When the pandemic began, Uber’s core business of ride sharing was crushed, falling 51% year over year in the most recent quarter. However, the company pivoted and focused its attention on its delivery services, which are experiencing over 100% growth. Now the company is doubling down by announcing it will acquire alcohol delivery service Drizly for $1.1 billion.
Drizly’s delivery service currently operates in over 1,400 cities across the United States. Following the acquisition, Drizly will be combined with the UberEats app, allowing for the integration of rewards programs and for the service to fully leverage Uber’s advanced technology and massive customer base.
The consideration for the deal is expected to consist of roughly 90% Uber stock and 10% cash. The transaction is also expected to close in the first half of 2021, assuming the two companies receive regulatory approval.