Uber Technologies tells BourbonBlog.com that it will officially close its alcohol delivery service, Drizly. Acquired for a staggering $1.1 billion just three years ago, Drizly’s journey within the Uber family is drawing to an unexpected close.
Despite the imminent shutdown, the service will continue to take orders until the end of March 2024.
Founded in 2012 by Nick Rellas, Justin Robinson, and Spencer Frazier, Drizly emerged as a pioneer in the online alcohol delivery sector.
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Reasons Behind the Closure
The closure of Drizly comes as part of Uber’s strategic refocusing. Pierre-Dimitri Gore-Coty, Uber’s SVP of Delivery, outlined the company’s new direction, emphasizing an integrated approach under the Uber Eats umbrella.
The company says this pivot aims to offer a comprehensive range of services – from food to groceries to alcohol – in a single, streamlined application.
The company says its decision also reflects a post-pandemic market shift. The conditions that initially favored Drizly’s business model, such as lockdowns and increased home alcohol consumption, have changed, reducing the need for a standalone alcohol delivery service.
Uber’s Acquisition and Investment
Uber’s acquisition of Drizly in 2021 was a bold move, reflecting the company’s expansion into diverse delivery services. However, the integration of Drizly into Uber’s broader ecosystem faced challenges.
Drizly operated primarily as an ordering platform without its own delivery personnel, creating what they say was a mismatch with Uber’s existing infrastructure.
The closure of Drizly marks the end of a brief but eventful chapter in Uber’s history. It underscores the dynamic nature of the tech and delivery industries, where rapid changes in market conditions and consumer behaviors can significantly impact business strategies.
As Drizly winds down its operations, attention now turns to how Uber will continue to evolve its delivery services to meet the changing demands of the market.