Uber announced Tuesday, February 2, that it is acquiring alcohol-delivery service Drizly for US$1.1 billion in stock and cash, reported CNBC.
Following the completion of the transaction, Drizly’s marketplace will be integrated with the UberEats app. The company will keep the standalone Drizly app as well, it said.
Founded in 2012, Drizly has become the leading on-demand alcohol delivery service in the US and is available in 1,400 cities. The purchase could help drive people to use Uber’s app more often.
Uber Eats has been a key segment to Uber’s business amid the COVID-19 pandemic, which has dramatically reduced the number of people leaving their homes.
“During this time our delivery business has been growing at extraordinary rates,” Uber CEO Dara Khosrowshahi told CNBCon Tuesday. Drizly said it had more than 300% growth in the past year.
The deal is expected to close within the first half of 2021. Uber stated that it anticipates that more than 90% of the consideration to be paid to Drizly shareholders will consist of shares of Uber common stock, and the balance will be paid in cash.
