Uber to Terminate Drizly, Three Years Post-Purchase

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Uber to Terminate Drizly, Three Years Post-Purchase

Three years after Uber shelled out $1.1 billion to acquire Drizly, the ride-hailing service has decided to cease operations for the alcohol delivery branch. Although functioning autonomously, Drizly will be discontinued by March 2024, Uber confirmed. Originally, plans were set to merge Drizly with Uber Eats; however, such execution never materialized.

Pierre-Dimitri Gore-Coty, the Senior VP of Delivery at Uber, informed this business decision. He expressed the company's intentions to focus intensively on Uber Eats. Their strategy is to assist consumers in finding nearly anything – ranging from meals and groceries to alcohol – on a singular platform. Uber conveyed appreciation to the Drizly unit for contributing significantly to the development of the alcohol delivery sector, dubbing them the original pioneers of the industry.

Back in 2020, Drizly disclosed a data breach that compromised 2.5 million customers' records. Subsequently, the Federal Trade Commission (FTC) commanded Drizly to erase all nonessential personal data and establish a sturdy security system. The directive encompassed the company, the alcohol delivery service, and its CEO, James Cory Rellas.

In spite of the Drizly shutdown, Uber remains committed to enhancing alcohol delivery via Uber Eats. The company asserted this part of the business had witnessed a twofold increase worldwide. Presently, Uber Eats administers alcohol delivery across 35 U.S. states and 25 foreign countries.

Prior to buying Drizly in 2020, Uber clinched a $2.65 billion all-stock deal with Postmates. Last year, Uber Eats introduced chatbot features enabling customers to unearth restaurant discounts and reorder favorites. It further added the functionality allowing users to place orders from two nearby stores concurrently.