Uber has decided to shut down alcohol delivery app Drizly, after purchasing it for $1.1 billion
An app that has been a lifeline for libations during the coronavirus (COVID-19) pandemic is closing shop.
Uber confirmed to TODAY.com that it is shutting down its alcohol delivery app Drizly. Ride-sharing and food delivery company, which It acquired Drizly in 2021 for $1.1 billionsays it will close both its Drizly business and the brand bearing its distinctive red bear logo at the end of March.
“After three years of Drizly operating independently within the Uber family, we have 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 in one app.” Pierre Dimitri Jour-Coty, senior vice president of delivery at Uber, tells TODAY.com in an email. “We are grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry leader.”
In addition, Drizly The news announced itself on her official social media accounts on January 15, saying in part that “it’s true what they say… all good things must come to an end.”
Uber says it’s focused on making its services more of a one-stop-shop, with more choices within one app. This includes focusing on serving Uber’s 142 million monthly active users who may want to have multiple types of products delivered using the same app.
Uber Eats already delivers beer, wine, and liquor through its app and drivers, and while Drizly also offers home delivery, it was more of a delivery service. Mediator For liquor stores and customers. When users place an order using the Drizly app, the liquor store delivers it directly to the customer.
The company also adds that the majority of Drizly consumers also have Uber accounts, and that the drinks and alcohol category on Uber Eats has doubled in the past year.
It was business news It was first reported by Axios on January 15. The outlet reported that after Uber acquired Drizly, the Federal Trade Commission found that a security failure led to… Data breach in 2020. This hack exposed the personal information of about 2.5 million Drizly users — despite Drizly and its CEO being alerted to problems two years before the hack.
Federal Trade Commission later Drizli ordered the destruction some of its user data and further restricted what the company could collect and retain, among other requirements.
Drizly’s popularity soared due to the pandemic and the app’s growth skyrocketed during the lockdown. Many people He sang the praises of the online service And its annual sales It rose by 1000 percent In April 2020.
This article was originally published on TODAY.com