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Uber To Acquire Drizly In Blockbuster $1.1 Billion Deal

February 2, 2021

Uber has agreed to acquire drinks delivery platform Drizly in a deal worth $1.1 billion. Drizly has operations in 1,400 cities across a majority of U.S. states. The transaction is subject to regulatory approval and is expected to close before the end of the first half. Uber currently anticipates that more than 90% of the consideration to be paid to the Drizly stockholders in the transaction will consist of shares of Uber common stock, with the balance to be paid in cash.

Following the acquisition, 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. “By bringing Drizly into the Uber family, we can accelerate their trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” said Uber CEO Dara Khosrowshahi.

Founded in 2012, Drizly has expanded rapidly—especially over the past year, when business tripled owing to stay-at-home orders during the pandemic. The Wine & Spirits Wholesalers of America took an undisclosed minority stake in the company in 2015.

Uber sees the chance to further boost that expansion drive looking ahead as younger consumers increasingly gravitate to the e-commerce space. “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,” Khosrowshahi added. “That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol. Cory (Rellas) and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year.”—Daniel Marsteller

 

 

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