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Uber Acquires Alcohol Delivery Business Drizly In $1.1B Deal: What Investors Need To Know

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Uber Acquires Alcohol Delivery Business Drizly In $1.1B Deal: What Investors Need To Know

Uber Technologies Inc. (NYSE: UBER) announced Tuesday that it has acquired Drizly in a $1.1-billion dollar deal.

What Happened: Uber said will integrate Drizly into its Uber Eats app while contuinuing to offer services through the separate Drizly app. The approximate $1.1-billion bought deal will include both stock and cash, with 90% to be paid to Drizly shareholders in stock and the remainder in cash.

Drizly plans to continue to grow its marketplace through its own app while giving its merchants access to more customers through Uber’s existing mobile delivery service.

Why It Matters: Drizly, an online alcohol marketplace that connects beer, wine and liquor merchants to customers through a delivery service, will now have access to Uber's customer base. 

The deal will benefit both Drizly’s existing and future merchants through access to Uber’s “best-in-class routing technology” while also benefiting Uber’s drivers by giving them further ways to earn money, according to the companies.

Customers will also benefit by being able to take advantage of Uber’s benefits and perks when purchasing Drizly products.

"By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” Uber CEO Dara Khosrowshahi said in a statement. 

What’s Next: Although Drizly already boasts delivery services in over 1,400 cities throughout the U.S. it will be able to grow steadily through the deal and gain market share in more cities across all the states. This will undoubtedly allow more merchants to sign on to the Drizly marketplace.

UBER Price Action: Uber shares were trading 7.01% higher to $56.49 at last check Tuesday.

Courtesy photo.

 

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