Uber is shutting down its alcohol delivery service, Drizly, in March 2024. Three years after paying $1.1 billion for Drizly, Uber is ending this spirited experiment, citing a shift in focus to its core Uber Eats strategy.
When Uber acquired Drizly, the initial plan was to seamlessly integrate it into Uber Eats, resulting in a one-stop shop for not only food and groceries but also alcohol.
However, that integration never materialized, and the Drizly brand is set to disappear from our app screens in early 2024.
A Closer Look
Speaking with TechCrunch, Pierre Dimitri Gore-Coty, Uber's Senior Vice President of Delivery, shared insights into the decision, saying, "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."
Drizly, known for its backend tech that allowed local liquor stores to manage their own deliveries, faced an additional challenge in 2020. A data breach affecting 2.5 million customers came to light, and it did not stop there.
The Federal Trade Commission (FTC) uncovered that Drizly had been aware of the security flaw for two years without fixing it. Last year, the FTC ordered Drizly to delete unnecessary customer data and implement a robust security program.
What's Next for Uber?
Pierre-Dimitri Gore-Coty, Uber's SVP of delivery, tells Axios that the company is now aiming to consolidate alcohol delivery services under the umbrella of Uber Eats. The company boasts an expanded alcohol delivery presence, covering 35 US states and 25 countries globally.
Uber's foray into delivering spirits began with acquiring Postmates for $2.65 billion in an all-stock deal in 2020. However, with Drizly's closure, it is clear that Uber is refining its focus within the competitive delivery landscape.
The closure of Drizly is not the only recent shift in Uber's strategy. Last year, Uber Eats introduced AI chatbot-based features that let users find restaurant deals and easily reorder their favorites.
Users can now place orders from two nearby stores at the same time, making their delivery experience even more convenient.
Drizly's unique delivery model, which relied on local liquor stores rather than dedicated delivery workers, had always seemed like an odd fit within the Uber family. Nonetheless, it played a pioneering role in the BevAlc delivery category.
Uber assures users that their alcohol needs will be met through Uber Eats, which claims to have doubled its alcohol delivery business globally.
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