Upon closing of the deal, Drizly’s marketplace will be integrated with the Uber Eats app
Uber Eats at a Subway Restaurant. (Credit: Raysonho @ Open Grid Scheduler / Scalable Grid Engine/Wikipedia)
Uber Technologies has agreed to acquire US-based alcohol-delivery service Drizly in a stock-cash deal worth about $1.1bn.
Established in 2012, Drizly works with thousands of retailers in more than 1,400 cities across a majority of US states.
Drizly, which is available to over 100 million customers across the US and Canada, offers consumers options to choose the beer, wine, and spirits with competitive, transparent pricing.
Upon closing of the deal, Drizly will operate as a wholly-owned subsidiary of Uber and Drizly’s marketplace will be integrated with the Uber Eats app.
Uber said that it will keep the standalone Drizly app.
Drizly co-founder and CEO Cory Rellas said: “Drizly has spent the last eight years building the infrastructure, technology, and partnerships to bring the consumer a shopping experience they deserve.
“It’s a proud day for the Drizly team as we recognise what we’ve accomplished to date but also with the humility that much remains to be done to fulfil our vision.
“With this in mind, we are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters – committed to life’s moments and the people who create them.”
The acquisition is expected to benefit merchants on Drizly app from Uber’s routing technology and consumer base. It will also provide additional options for delivery drivers to earn more.
Furthermore, Uber’s rewards and subscription programmes will be able to provide better value to consumers with new benefits and perks on Drizly.
Uber expects that over 90% of the consideration to be paid to the Drizly stockholders in the transaction will consist of shares of Uber common stock, with the rest will be paid in cash.
Subject to regulatory approval and other customary closing conditions, the transaction is anticipated to be closed in the first half of this year.
Uber CEO Dara Khosrowshahi said: “Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol.
“Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 per cent year-over-year.
“By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead.”