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Uber plans to stop running Drizly.
The move, first reported by Axios, comes roughly three years after the ride-share giant first moved to acquire the alcohol delivery platform and make it a subsidiary. The transaction was worth about $1.1 billion of stock and cash.
In a statement, Uber told FOX Business it will soon close Drizly.
“After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything — from food to groceries to alcohol — all on a single app,” Uber Senior Vice President of Delivery Pierre Dimitri Gore-Coty said. “We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer.”
The Drizly logo on a smartphone arranged in Hastings-On-Hudson, New York, U.S., on Wednesday, Feb. 3, 2021. Uber Technologies Inc. agreed to acquire Drizly Inc., which makes an on-demand alcohol delivery app, for $1.1 billion, beating out at least tw (Tiffany Hagler-Geard/Bloomberg via Getty Images / Getty Images)
The alcohol delivery platform, which in 2022 was subject to an FTC order in connection to earlier data breach, also confirmed the move on social media platform X.
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“We’re shutting down slowly,” Drizly said on X. “Orders are still open until the end of March. We’ll be sure to let you know what it’s last call.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 63.65 | +0.45 | +0.71% |
Its closure will mark the end of Drizly’s more than 10 years of operations in North America. In the lead-up to shutting down, the alcohol delivery platform said it would send out “exclusive” Uber Eats perks to users.
Active partnered restaurants on Uber Eats grew by over 75 percent year-over-year, exceeding 600,000. (iStock / iStock)
On its Uber Eats platform, Uber currently offers of-age customers the option to have alcohol delivered in 35 states and over 25 other countries. It is looking to boost its offerings in the quickly-growing category more with its takeaways from Drizly, according to the company.
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Uber’s overall delivery segment made up nearly one-third of the $9.92 billion in total revenue it generated in the third-quarter, producing over $2.93 billion. Its other segments, Mobility and Freight, brought in $5.07 billion and nearly $1.29 billion respectively.
Last month, the company became part of the S&P 500.
