Uber is set to close down the alcohol delivery service Drizly, which it acquired three years ago for $1.1 billion. The decision to discontinue Drizly comes after the company operated independently within the Uber family, with plans to integrate it into Uber Eats never materializing. The Drizly brand is expected to be phased out by March 2024, marking the end of an era for the pioneering alcohol delivery platform.
Key Takeaway
Uber is shutting down the Drizly alcohol delivery service, marking the end of an era for the pioneering platform. The decision reflects Uber’s strategic focus on consolidating alcohol delivery services under Uber Eats, following the company’s acquisition of Drizly three years ago.
Uber’s Decision and Statement
Pierre-Dimitri Gore-Coty, SVP of Delivery at Uber, announced the closure, stating, “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.” The decision reflects Uber’s commitment to streamlining its delivery services and consolidating its offerings within the Uber Eats platform.
Drizly’s History and Challenges
Drizly faced challenges, including a data breach in 2020 that impacted 2.5 million customers. Following this incident, the Federal Trade Commission (FTC) ordered Drizly to delete unnecessary personal data and implement a robust security program. Despite these setbacks, Drizly played a significant role in pioneering the BevAlc delivery category and contributing to the growth of alcohol delivery services.
Uber’s Focus on Alcohol Delivery
Uber’s decision to close Drizly aligns with its efforts to strengthen alcohol delivery through Uber Eats, where it has reported a doubling of business in this category globally. Currently, Uber operates alcohol delivery through Uber Eats in 35 U.S. states and 25 countries worldwide, signaling a strategic shift towards consolidating its alcohol delivery services under the Uber Eats umbrella.
