Uber to Discontinue Drizly Alcohol Delivery App in Strategic Shift Towards Uber Eats
Ride-hailing giant Uber has announced the closure of its alcohol delivery app, Drizly, just three years after its acquisition for $1.1 billion. The move is part of Uber’s strategic consolidation, focusing on integrating Drizly’s marketplace into its primary delivery app, Uber Eats.
Drizly, which became the largest online alcohol marketplace in North America, will cease operations at the end of March 2024, marking the end of its standalone app. Uber aims to streamline its delivery services, bringing groceries and alcohol under the Uber Eats umbrella.
In a statement, Pierre Dimitri Gore-Coty, Uber’s Senior Vice President of Delivery, explained the decision, stating that Uber is prioritizing its core Uber Eats strategy. This strategy involves offering consumers a one-stop-shop for a variety of items, including food, groceries, and alcohol, within a single app.
Uber’s decision to discontinue Drizly follows the closure of its grocery shopping app, Cornershop, as part of the company’s efforts to consolidate and enhance its delivery services. Despite the closure of Drizly as a standalone app, Uber Eats will continue to provide alcohol and grocery delivery services.
Expressing gratitude to the Drizly team, Gore-Coty acknowledged their contributions as pioneers in the BevAlc (Beverage Alcohol) delivery category. The move aligns with Uber’s acquisition strategy during the pandemic, where a surge in at-home deliveries prompted the company to expand its services.
Uber’s acquisition of Drizly took place during a transformative period for the company. The pandemic-induced decline in its core ridesharing business led to losses, while the delivery segment experienced significant growth. Uber’s strategic acquisitions, including Drizly and Postmates, aimed to fortify its position in the competitive delivery market.
Despite the closure of Drizly, Uber’s ridesharing business has witnessed a rebound in recent quarters. In November, the company reported better-than-expected gross bookings for the third quarter, indicating a positive trajectory for its overall business.
