Uber is set to close down its alcohol delivery service, Drizly, three years after acquiring it for $1.1 billion. Drizly operated independently under Uber’s ownership, and the decision to shutter it comes as Uber refocuses on its core strategy of consolidating various delivery services under Uber Eats. The plan to integrate Drizly into Uber Eats was never executed. Uber intends to discontinue the Drizly brand by March 2024.
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, stated, ‘After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything – from food to groceries to alcohol – all on a single app. We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer.’
In 2020, Drizly faced a data breach affecting 2.5 million customers. Last year, the Federal Trade Commission (FTC) mandated Drizly to delete unnecessary personal data and implement a robust security program.
Uber aims to concentrate on alcohol delivery through Uber Eats, claiming to have doubled its business in the category globally. Currently, Uber Eats offers alcohol delivery in 35 U.S. states and 25 countries worldwide.
In addition to the Drizly acquisition, Uber acquired Postmates for $2.65 billion in an all-stock deal in 2020. Last year, Uber Eats introduced chatbot-based features to help users discover restaurant deals and reorder favorite items. The platform also allowed users to order from two nearby stores simultaneously.
