Uber’s decision to shut down Drizly, the popular alcohol delivery app it acquired for $1.1 billion in 2021, marks the end of an era in the alcohol delivery space. The move comes as Uber aims to consolidate its delivery services under the Uber Eats brand and refocus its efforts on providing a one-stop delivery experience for consumers.
Drizly’s acquisition by Uber was initially seen as an opportunity for both companies to capitalize on the growing demand for home delivery services, particularly during the pandemic. However, the decision to shutter Drizly reflects a shift in Uber’s strategy as it seeks to streamline its operations and prioritize profitability.
“After three years of Drizly operating independently within the Uber family, we’ve 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 on a single app,” Pierre-Dimitri Gore-Coty, Uber’s SVP of delivery, told Axios exclusively.
One factor that may have influenced Uber’s decision is Drizly’s security breach in 2020, which exposed the personal information of approximately 2.5 million customers. While companies generally aren’t held responsible for hacks, Drizly faced scrutiny for its handling of the security flaw, leading to an FTC order restricting its data collection practices.
Additionally, Uber’s focus on profitability may have played a role in the decision to shut down Drizly. As the company seeks to streamline its operations and grow its bottom line, it may have determined that consolidating its delivery services under the Uber Eats brand is the most efficient way to achieve its goals.
Despite the closure of Drizly, consumers will still be able to order alcohol through Uber Eats, which operates in 35 U.S. states and more than 25 other countries around the world. The decision to shut down Drizly reflects broader changes in the delivery industry and underscores the evolving nature of consumer preferences and behavior.
As Uber moves forward with its plans to consolidate its delivery services, other players in the alcohol delivery space, such as ReserveBar, are poised to fill the gap left by Drizly’s closure. While the closure of Drizly marks the end of an era, it also signals new opportunities for growth and innovation in the alcohol delivery market.
