February 3, 2021
Uber announced on February 2 that it will acquire Drizly, a Boston-based alcohol-delivery service, for $1.1 billion in stock and cash, in a further expansion of the ride-hailing app’s food delivery arm, Forbes reported. The transaction is slated to close in the first half of 2021.
Founded in 2012, Boston-based Drizly is an online service that claims to deliver beer, wine, and(/or) liquor to the customer’s location within an hour.
After the deal closes, Forbes says, Drizly’s operations eventually will be integrated into the Uber Eats app—Uber’s own food delivery and takeout service—while the standalone Drizly app will remain in place.
Uber said it expects 90% of the purchase price of Drizly will consist of Uber common shares, with the remainder in cash.
Drizly co-founder and CEO Cory Rellas is expected to join Uber in an executive position, according to Forbes.
Uber said Drizly is “fully compliant with local regulations in more than 1,400 cities across a majority of U.S. states.” Seeking Alpha pointed out that buying Drizly fits in with Uber’s strategy of expanding its delivery service business, given that, during the pandemic, huge demand for its Uber Eats unit helped to mitigate losses in its ride-share business.
Research contact: @Forbes