- US ride-hailing giant Uber has agreed to acquire Drizly, an on-demand delivery service for alcoholic beverages, in a deal worth $1.1 billion. Uber stock will account for an estimated 90% of the consideration to be paid to Drizly shareholders, the companies said in a statement.
- Boston-based Drizly claims to be “the leading on-demand alcohol marketplace in the US,” working with “thousands” of local merchants in over 1,400 cities across the country to sell beer, wine, and spirits “with competitive, transparent pricing.”
- Drizly’s online marketplace will be integrated into Uber’s food delivery platform, Uber Eats. A separate Drizly app will also be maintained.
Why it matters:
Drizly’s merchant partners will be able to leverage on Uber’s considerable tech capabilities in areas like route optimization. They’ll also gain access to Uber’s substantial customer base in the US and, potentially, its overseas markets in Asia-Pacific, Europe, Africa, and the rest of the Americas.
For Uber, its driver partners will get the opportunity to earn additional revenue by fulfilling alcohol orders. Its rewards and subscription programs will “deliver even greater value to consumers with new benefits and perks on Drizly,” it said.
While its core ride-hailing business has suffered during the Covid-19 pandemic, Uber has seen demand for its food-related services skyrocket – as have other companies specializing in food delivery.
Startups in the space are receiving increased investor interest as a result. Last month, Finland’s Wolt raised $530 million and UK-based Deliveroo netted $180 million, while Spain’s Glovo raised $121 million and Turkey’s Getir got $128 million.