- Uber plans to wind down Drizly by March, 3 years after a $1.1B purchase.
- Shift towards consolidating alcohol delivery into the Uber Eats app for tighter focus.
- Closure gives ammunition to compete amidst intensifying delivery battles and profit pressures.
Uber’s decision to wind down Drizly
Uber plans to officially wind down alcohol delivery unit Drizly by March after operating the $1.1 billion acquisition independently since its 2021 purchase.
Axios first reported Uber’s decision to discontinue the Drizly brand despite initial intentions to integrate it with the food delivery platform Uber Eats.
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Shift towards uber eats
In a statement, Uber executive Pierre-Dimitri Gore-Coty explained redirecting resources towards Eats’ core strategy of consolidating offerings from food to groceries to alcohol under one mobile app.
Drizly pioneered the nascent beverage delivery space as an early mover.
Uber Eats has instead organically doubled its alcohol order volume globally over recent years. The unit currently facilitates legal delivery in 35 U.S. states and 25 countries without Drizly’s help. Shutting Drizly enables a tighter focus on expanding these operations.
Competitive edge
The closure comes after Drizly faced data breaches, FTC order fines, and other turbulence threatening Uber’s initial visions for synergistic scale.
The delivery battle only intensifies. Streamlining by shuttering Drizly gives Uber ammunition to compete by leveraging Eats’ far larger footprint.
Consolidating efforts also aids potential profitability pressures.
