Uber Announces Closure of Alcohol Delivery Service, Drizly
Uber has recently made an announcement concerning Drizly, the digital alcohol marketplace it acquired three years ago for $1.1 billion. Details released reveal that the company is preparing to shut down Drizly and the brand will cease to exist at the end of March. The marketplace, including the recognizable red bear logo, will also be discontinued.
Key Takeaways:
– Uber shutting down $1.1bn acquisition, Drizly by the end of March.
– Drizly was the largest online liquor store in North America, grown majorly due to COVID-19.
– The closure is part of Uber’s strategy to streamline its operations and focus on its Uber Eats service.
– Uber Eats will continue to offer Drizly’s drink selection to consumers.
– Drizly promises exclusive perks and promos for Uber Eats.
Drizly Responds to Shut Down News
The Boston-based company confirmed this news through a social media post. The post read, “The dinosaurs. Malt liquor with caffeine in it. Drizly. Turns out, it’s true what they say… all good things must come to an end.” Drizly was established in 2001 and climbed its way up to become the largest online liquor store in North America. Its success was primarily attributed to the surge in mobile orders and deliveries during the coronavirus pandemic.
Uber’s Acquisition and the Boom of Liquor Delivery Services
Uber purchased Drizly in a cash and stock deal in 2021. Post-acquisition, Drizly continued operating as a standalone app. However, the alcohol service was also integrated into Uber’s other venture, Uber Eats platform.
The alcohol delivery market expanded drastically amid the global health crisis. Consumers avoiding public places led to a significant spike in meal delivery services. The rise was about 162% compared to the previous year, according to data provided by Bloomberg Second Measure.
Drizly’s Closure and Uber’s Strategy
Drizly’s imminent closure is being viewed as a strategic move by Uber. It intends to streamline its operations and focus on Uber Eats strategy dynamically. “We want to focus on our core Uber Eats strategy of helping consumers get almost anything — from food to groceries to alcohol — all on a single app,” stated Pierre Dimitri Gore-Coty, Uber’s SVP of delivery.
As a parting gift, Drizly promised opportunities and promotions for the Uber Eats platform. “Don’t worry, you’ll probably feel at home at Uber Eats as the drink selection you know and love is available there,” Drizly assured customers.
The Future of Alcohol Delivery Services
With the discontinuation of Drizly, current users can look into other platforms such as delivery.com and Minibar. These platforms continue to provide extensive alcohol delivery services. The closure does not mean the end of convenience for consumers. It indicates a shift towards consolidation and a leaner business model for big players like Uber.
Uber’s decision to shut down Drizly underscores its intent to focus on a unified platform for all delivery needs. As industries evolve, companies must continually assess and adjust their strategies to deliver competitive and profitable services. The decision shows, amid all changes, the fundamental aim remains to serve customers better and improve their experience. Uber Eats hopes to fill the gap left by Drizly, keeping consumer satisfaction at its core. Consumers will keenly watch these changes and the broad impacts they may have on delivery services.