Uber to Buy Drizly
Uber Technologies Inc. and Drizly announced that they have reached an agreement for Uber to acquire Drizly for approximately $1.1 billion in stock and cash.
Drizly is the leading on-demand alcohol marketplace in the United States, available and designed to be fully compliant with local regulations in more than 1,400 cities across a majority of U.S. states. Drizly works with thousands of local merchants to provide consumers with beer, wine, and spirits with competitive, transparent pricing.
The move diversifies Uber's offerings with a complementary product mix. According to the 2021 State of the Restaurant Industry Report, 35% of off-premises customers—with millennials leading the category at 53%—are more likely to choose a restaurant if it offers the option of including alcoholic beverages with the to-go order.
After the completion of the transaction, Drizly will become a wholly owned subsidiary of Uber. Drizly’s marketplace will eventually be integrated with the Uber Eats app, while also maintaining a separate Drizly app.
The deal comes after Uber announced another expansion — an on-demand prescription delivery to New York City.
Drizly has been growing gross bookings more than 300% year-over-year. Drizly plans to innovate and expand independently in its competitive sector, while also gaining access to Uber's technologies. Merchants on Drizly will be able to benefit from Uber’s best-in-class routing technology and significant consumer base. Delivery drivers will have even more ways to earn. And Uber’s rewards and subscription programs will be able to deliver even greater value to consumers with new benefits and perks on Drizly.
The acquisition is subject to regulatory approval and other customary closing conditions and is expected to close within the first half of 2021.