Cheers to Uber’s New Acquisition

Uber to Buy Drizly for $1.1 Billion

Uber (UBER) announced yesterday that it has reached a deal to acquire Drizly, the alcohol delivery startup, for $1.1 billion in stock and cash. The pandemic has battered Uber’s core ride-share business. Meanwhile, demand for food and beverage delivery has soared, giving Uber a much-needed lifeline.

Uber has seen rising demand for its original delivery service, UberEats. It also acquired the food delivery app Postmates last year in a $2.65 billion stock deal. Now Uber will add Drizly to its delivery arm. Uber plans to integrate Drizly into its food delivery app while also maintaining Drizzly as a standalone service.

Online Alcohol Sales Boom During Pandemic

Drizzly’s founders say the app began in 2012 because of a text—“Why can’t you get alcohol delivered?”Now, you can. Drizzly currently provides alcohol delivery services in over 1,400 US cities through partnerships with thousands of retailers.

Online alcohol sales surged by 80% last year. Some analysts expect buying alcohol online will continue even after the pandemic subsides and people can return to restaurants and bars. In 2019 ecommerce accounted for only 1% of US alcohol sales, but that number is expected to hit 7% by 2024. During the pandemic, a number of states have loosened restrictions on alcohol delivery regulations to help restaurants and bars stay afloat. Some expect that these changes will be permanent, which will help online alcohol sales stay strong.

Uber’s Emphasis on Delivery

Uber has recently sold some of its less profitable segments like Jump, its electric bike and scooter business, and Advanced Technologies Group, its autonomous vehicle project. The company seems to be shifting its focus from high-tech transportation initiatives to delivery operations.

In addition to purchasing Drizly and Postmates, Uber recently bought the Chilean delivery startup Cornershop. Through this acquisition, it has begun delivering groceries in the US and Canada. It has also partnered with Walgreens (WBA) and CVS (CVS) to deliver medicines, cleaning supplies, and other products. The deal with Drizly is still subject to regulatory approval, but is expected to close within the first half of this year.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender