Uber is shutting down alcohol delivery app Drizly, the company has confirmed, three years after acquiring the platform for 1.1 billion US dollars.
Drizly will officially shut down at the end of March, Uber said.
It means orders are open until then, Drizly said in details posted on X, formerly Twitter.
“We’ll be sure to let you know when it’s last call,” Drizly wrote in a post on Monday.
In a prepared statement, Uber’s senior vice president of delivery Pierre Dimitri Gore-Coty said the company decided to close Drizly’s 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”.
— Drizly (@Drizly) January 16, 2024
Uber bought Drizly in a cash-and-stock deal in 2021.
The Boston-based subsidiary continued to operate as a standalone app, with its marketplace also integrated into the Uber Eats platform.
Drizly delivers beer, wine and spirits in states where it is legal, and partners with retailers across North America.
Regulators accused the alcohol delivery app of security failures several years ago that exposed personal information of some 2.5 million customers.
To resolve these allegations, Drizly later agreed to tighten security and limit data collection.
Axios first reported on Uber’s decision to shut Drizly on Monday.
On Tuesday, Uber said it plans to learn from Drizly’s time in the industry as the company continues to grow its own “BevAlc” offerings, which are currently available in 35 US states and 25 countries worldwide.
The San Francisco company said the majority of Drizly customers also have Uber accounts.
