Uber has announced that it will be closing its alcohol delivery service, Drizly, three years after acquiring it for $1.1 billion. Drizly, which has been operating independently within Uber, is set to be discontinued by March 2024.
This decision comes as Uber shifts its focus to its core strategy with Uber Eats, aiming to provide a range of services including food, groceries, and alcohol delivery through a single app.
Pierre-Dimitri Gore-Coty, SVP of Delivery at Uber, expressed gratitude towards the Drizly team for their contributions to the beverage alcohol (BevAlc) delivery category.
Drizly had been a pioneer in the industry but faced challenges, including a data breach in 2020 affecting 2.5 million customers. Last year, the Federal Trade Commission (FTC) ordered Drizly to implement a robust security program and delete unnecessary personal data.
Uber now plans to focus on alcohol delivery through Uber Eats, where it has seen significant growth globally. The company operates alcohol delivery in 35 U.S. states and 25 countries.
This shift follows Uber’s acquisition of Postmates in 2020 for $2.65 billion and its exploration of chatbot-based features in Uber Eats to enhance user experience.
