Uber to axe alcohol delivery app Drizly

Ride-sharing firm Uber will close its on-demand alcohol delivery service Drizly at the end of March 2024, nearly three years after buying the US platform.

In February 2021, Uber agreed to acquire alcohol e-commerce platform Drizly for approximately US$1.1 billion, with the deal completed in October that same year. The move marked Uber’s entry into alcohol, with Drizly maintaining its own app while being integrated into the Uber Eats platform.

In a statement, San Francisco-based Uber has confirmed it will shutter Drizly as it aims to focus on delivering food and alcohol through its Uber Eats app. Alcohol delivery is available on Uber Eats across 35 US states and in more than 25 countries around the world.

Pierre-Dimitri Gore-Coty, senior-vice president, delivery, said: “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.

“We’re grateful to the Drizly team for their many contributions to the growth of the beverage alcohol delivery category as the original industry pioneer.”

Uber said consumers are ‘increasingly preferring the one-stop shop convenience of being able to get multiple types of products delivered using the same app’.

On its Uber Eats app, the company said alcohol sales had more than doubled in the last year. It also highlighted that the majority of Drizly consumers also have an Uber account.

Available in more than 1,400 cities across the majority of US states, Drizly is the nation’s leading on-demand alcohol marketplace. The platform works with local retailers to offer consumers a wide collection of spirits, beer and wine.

In 2022, the Federal Trade Commission took action against Drizly and its CEO for alleged security failures that resulted in the leak of the personal information of 2.5 million users.

Last February, Drizly partnered with Gopuff to expand its on-demand alcohol delivery service nationwide.

Drizly recently spotlighted trends to watch in 2024 based on its previous-year sales and consumer responses.

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Author: Nicola Carruthers