Uber to Buy Alcohol Delivery Service Drizly for $1+ Billion

Ride hailing giant Uber has announced this week that the company has agreed to purchase alcohol delivery company Drizly for $1.1 billion in stock and cash.

When the transaction is completed, Drizly’s marketplace will be integrated with the Uber Eats app. The deal is expected to close within the first half of 2021 and is “subject to regulatory approval,” per the release.

Drizly, founded in 2021, has become a leading on demand alcohol delivery service in the U.S. across 1,400 cities. The company had over 300% growth in the past year.

“During this time our delivery business as been growing at extraordinary rates,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.

“By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” Uber CEO Dara Khosrowshahi said in the press release.

Uber is expecting that more than 90% of the consideration to be paid to Drizly shareholders will consist of shares of Uber common stock, and the balance will be paid in cash.

Shares of Uber were up over 8% in morning trading on Tuesday after Wall Street learned the news.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.