Uber Acquires Alcohol Delivery Service Drizly for $1.1B

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Uber, the leading ride-sharing company has acquired alcohol delivery service provider Drizly for a reported $1.1 billion. Uber announced that it had acquired  Drizly evaluating the company over a billion-dollar mark. 

Drizly was founded in 2012 by Nick Rellas, Justin Robinson, and Spencer Frazier in The company quickly expanded its service in the greater Boston area in 2013 after that it started serving the customers of New York, Los Angeles, and Chicago. The liquor delivery leader operates in more than 1400 cities now  Currently it employs about 85 people in its Boston, New York, and Denver offices.   The leading on-demand alcohol marketplace has expanded across the majority of US states and works in close collaboration with thousands of local merchants. It provides consumers with an incredible selection of beer, wine, and spirits with competitive and transparent pricing. 

Uber hopes to expand its delivery business with the acquisition of yet another delivery company. The San Francisco-based ride-sharing company beat several rival food delivery companies to acquire the beverage delivery company. Drizly’s marketplace will be integrated with the Uber eats app and users soon can order the products available on Drizly directly from Uber eats. Uber claims that it will keep the Drizly app as it is and also continue to provide the delivery service through the app as well. Uber eats gained significant popularity due to the COVID-19 Pandemic and it hopes to increase at the same pace after  COVID-19 as well. It aims to be the leader in all the delivery sector of essential food and drinks with the acquisition of Drizly.

 Uber eats saw a growth of nearly 300% during the Pandemic and the same goes for Drizly as well. Uber stated that more than 90% of the amount will be paid to Drizly shareholders through the shares of Uber common stock, and the remaining balance will be paid in cash.

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