Uber is closing down the Drizly alcohol delivery application
Uber is set to close down its alcohol delivery application, Drizly, just three years after acquiring it for $1.1 billion. Drizly, which became the largest online alcohol marketplace in North America during the pandemic-driven surge in at-home deliveries, will officially cease operations by the end of March 2024, as announced by Uber.
Initially functioning as an independent app, Drizly’s marketplace was intended to be incorporated into Uber’s primary delivery app, Uber Eats. Pierre Dimitri Gore-Coty, Uber’s senior vice president of delivery, explained in a statement that the decision was driven by Uber’s commitment to concentrate on its core Uber Eats strategy, which involves offering consumers a comprehensive range of items, including food, groceries, and alcohol, all within a single app.
As part of this effort to streamline product delivery services under Uber Eats, Uber also discontinued its grocery shopping app, Cornershop. Despite these changes, groceries and alcohol will continue to be available for delivery through the Uber Eats platform.
Expressing gratitude to the Drizly team for their role as pioneers in the growth of the Beverage Alcohol (BevAlc) delivery sector, Gore-Coty highlighted their contributions in the company’s statement.
News of Drizly’s closure was first reported by Axios.
Uber’s purchase of Drizly came during a transitional time for the company. A push to stay at home during the early days of the pandemic in 2020 and 2021 meant that Uber’s core ridesharing business suffered losses as its delivery business skyrocketed.
In an effort to ramp up its competitive edge in the delivery business, Uber also purchased another delivery company, Postmates, for $2.65 billion a few months before it acquired Drizly.
Uber’s ridesharing business has bounced back in recent quarters, though. In November, Uber reported gross bookings for the third quarter that beat the company’s own expectations.