Uber to Acquire Drizly for $1.1 Billion

Uber to Acquire Drizly in $1.1 Billion Deal

Uber has announced its intention to acquire Drizly, a prominent alcohol delivery service. The transaction, valued at approximately $1.1 billion, will be executed through a combination of stock and cash payments.

Completion of the acquisition is anticipated within the first six months of the current year. Following the integration, Drizly’s marketplace will be directly incorporated into the Uber Eats application.

Strategic Marketplace Alignment

Despite the integration, Drizly will continue to operate as a separate, standalone application for the foreseeable future. This move represents a strong synergy between the two companies.

Uber’s existing infrastructure for ride-hailing and delivery services will be leveraged to enhance Drizly’s capabilities and broaden the reach of Uber Eats into a potentially more profitable sector.

Executive Commentary

“Cory Rellas and his team have successfully established Drizly as a remarkable business, achieving over 300% year-over-year growth in gross bookings while maintaining profitability,” stated Uber CEO Dara Khosrowshahi in an official announcement.

“Integrating Drizly into the Uber ecosystem will accelerate its growth by introducing it to a wider Uber audience and expanding its geographic footprint globally over time.”

Expansion and Market Reach

Drizly has been steadily expanding its service area across the United States. However, varying local alcohol regulations have presented challenges to its expansion efforts.

Recently, the service launched in Atlanta, partnering with numerous local retailers and liquor stores to extend its delivery network. Similar to Uber Eats, Drizly collaborates with local businesses within the markets it serves.

Currently, Drizly’s services are available in over 1,400 cities throughout North America. The increased demand for alcohol delivery, particularly during pandemic-related lockdowns, has undoubtedly contributed to its growing popularity.

Company Background and Funding

Established in 2012 and headquartered in Boston, Drizly has secured nearly $120 million in funding, according to Crunchbase data. A significant portion of this funding, $34.5 million, was raised during a Series C funding round in late 2018.

The company recently addressed a data security incident. Disclosed in July of the previous year, the breach potentially affected up to 2.5 million user accounts.

Deal Structure and Regulatory Review

Uber anticipates that approximately 90% of the payment to Drizly shareholders will be made in Uber stock, with the remaining 10% being paid in cash.

The acquisition is subject to standard regulatory approvals before it can be finalized.