Read Why Uber Shut Down Drizly, Alcohol Delivery Service

Uber has announced the closure of its alcohol delivery service, Drizly, three years after acquiring it for $1.1 billion.

Despite initial plans to integrate Drizly into Uber Eats, the alcohol delivery platform operated independently within the Uber family.

The decision to shut down Drizly comes as Uber aims to focus on its core Uber Eats strategy.

Integration Plans Never Materialized:

Upon acquiring Drizly, Uber intended to integrate it into the Uber Eats platform.

However, the integration plans never came to fruition, and Drizly remained a separate entity. Uber has now decided to discontinue the Drizly brand by March 2024.

Uber’s Core Strategy for Uber Eats:

Uber highlighted its core Uber Eats strategy, emphasizing the goal of providing customers with a one-stop app for various services, including food, groceries, and alcohol.

Pierre-Dimitri Gore-Coty, SVP of Delivery at Uber, expressed gratitude to the Drizly team for their contributions to the growth of the beverage alcohol (BevAlc) delivery category.

Focus on Alcohol Delivery Through Uber Eats:

Uber aims to concentrate on alcohol delivery through Uber Eats, where it claims to have doubled business in the category globally.

The company operates alcohol delivery services through Uber Eats in 35 U.S. states and 25 countries worldwide.

Drizly’s History, Data Breach, and Regulatory Scrutiny:

Drizly, an alcohol delivery pioneer, faced challenges during its independent operation, including a data breach in 2020 affecting 2.5 million customers.

The Federal Trade Commission (FTC) ordered Drizly to delete non-essential personal data and implement a robust security program.

Uber acquired Drizly in 2021, following its acquisition of Postmates for $2.65 billion in 2020.