Drizly, Uber's Alcohol Delivery Service, Is Closing Down

　　Uber Shifts Focus to Uber Eats

　　Drizly, the alcohol delivery service acquired by Uber in 2021 for $1.1 billion, is ceasing operations. Uber has decided to shut down the standalone delivery service, realigning its focus on its Uber Eats unit.

　　Uber Eats to Continue Delivering Alcohol

　　The closure of Drizly does not mean the end of alcohol delivery through Uber. The company assures that Uber Eats will continue to offer a wide range of products, including food, groceries, and alcohol in 35 U.S. states and over 25 countries worldwide.

　　Drizly's Demise

　　Uber announced that the Drizly business and brand will be discontinued in March of this year. Pierre Dimitri Gore-Coty, SVP of delivery at Uber, explained the decision: "After three years of Drizly operating independently within Uber, we've decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything - from food to groceries to alcohol - all on a single app." Gore-Coty expressed gratitude to the Drizly team for their contributions to the growth of the alcohol delivery category.

　　Drizly's Rise and Fall

　　Uber's acquisition of Drizly came at a time when home alcohol delivery was experiencing a surge due to the COVID-19 pandemic. During the height of lockdowns, Drizly sales skyrocketed by 400% compared to pre-pandemic levels. However, the company's valuation had been relatively low at $73 million in 2017, making the acquisition price appear inflated.

　　Drizly's reputation took a hit in 2020 when a security breach exposed the information of approximately 2.5 million customers. The company's awareness of the security flaw for over two years without taking action drew criticism and led to an FTC order restricting Drizly's collection and retention of customer information.

　　Uber has not disclosed whether the hacking incident influenced its decision to close Drizly.

　　Uber's New Focus

　　Uber is now fully committed to Uber Eats as its primary delivery platform, offering a comprehensive range of products, including food, groceries, and alcohol. The company aims to provide a seamless and convenient experience for consumers, allowing them to access a wide variety of items through a single app.

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