The San Francisco-based tech giant – known for its hail and grocery delivery services – announced plans to acquire Boston on Tuesday Drizly closed a $ 1 billion cash-and-stock deal

In a press release, Uber announced it would trade more than $ 900 million in shares for Drizly, the largest alcohol delivery platform in North America

The transaction is expected to close in the first half of 2021 and is still subject to regulatory approval

Upon completion, Drizly will become a wholly-owned subsidiary of Uber and its alcohol-on-demand services will eventually be integrated into the Uber Eats mobile application, according to the press release

“Wherever you want to go and whatever you need, our goal at Uber is to make people’s lives a little bit easier,” said Uber CEO Dara Khosrowshahi of the press release, “That’s why we’re in new Categories like groceries, recipes and now alcohol branched out ”

Drizly shareholders, which include Tiger Global Management, Polaris Partners, Avenir Growth Capital and First Beverage Group, among others, are expected to receive approximately 90% of the payment in Uber shares with the remaining 10% paid in cash

Drizly was founded in 2012 by Cory Rellas, Justin Robinson, Nicholas Rellas and Spencer Frazier and has invested around $ 120 million in several donation rounds, according to Crunchbase

The company employs over 200 people and works with retailers in more than 1400 cities together, where consumers of legal drinking age can order beer, wine and spirits right on their doorstep

“Over the past 8 years, Drizly has built the infrastructure, technology and partnerships to give consumers the shopping experience they deserve,” said Cory Rellas, who has served as Drizly’s CEO since 2018

“It is a proud day for the Drizly team as we realize what we have achieved so far, but also with the humility that much still needs to be done to fulfill our vision,” he added

The purchase of Drizly underscores Uber’s growing interest in the delivery sector at a time when the on-demand transportation business has been ravaged by the ongoing coronavirus pandemic

Meanwhile, Drizly sales boomed in 2020, rising more than 330% as many consumers stopped eating out and redirected their dollars towards take-out and delivery

“By adding Drizly to the Uber family, we can accelerate this journey by introducing Drizly to the Uber audience and expanding its geographic footprint to our global presence in the years to come,” said Khosrowshahi, who named Drizly ” an incredible success story “marked”

Speaking to CNBC, Khosrowshahi called the deal a “win-win” and noted that Uber users will soon have access to alcohol delivery services, while Drizly will have millions of Uber users “instantly, overnight, in a very, will reach very large area path ”

Although awareness of the Drizly app has grown during the coronavirus pandemic, Rellas told CNBC that he believed the liquor delivery business was still nascent “

Uber’s plan to buy Drizly comes just two months after the company completes its $ 265 billion acquisition of restaurant, retail, and grocery company Postmates

Last summer, Drizly launched an on-demand home delivery cannabis platform called Lantern, which operates in California, Massachusetts, and Michigan, which is off-the-shelf business, according to the New York Times
NYT

I am a business journalist covering new products, trends and M&A in the US Beer and Beverage Industry I’ve spent nearly a decade as a driving force

I am a business journalist covering new products, trends and M&A in the US Beer and Beverage Industry For nearly a decade, I was the driving force behind Brewbound, a leading online magazine for the beer business. I am also Editor-in-Chief of THCnet, a news site for the cannabis industry, and I offer brewery owners across the country my quarterly report, Brewing Consult “Insights My analysis of trends in the beer industry has been referenced by the New York Times, CNBC, USA Today, and The Boston Globe, and I am frequently asked to showcase in the beer industry. I’m also a marathon runner and a huge Taco Tuesday fan You can find me on social media (@FurnRuns) and on my website: wwwcfurnaricom To learn more about Brewing Consult, please visit wwwBraukonsultcom

Drizly

World news – US – Uber to acquire Drizly in $ 11 billion deal

Source: https://www.forbes.com/sites/chrisfurnari/2021/02/02/uber-to-acquire-drizly-in-11-billion-deal/