In a recent development to digital alcohol delivery service, Uber Technologies Inc. will acquire the alcohol delivery company Drizly for $1.1 billion in both stock and cash and will eventually integrate with the company's Uber Eats app.
Uber plans to integrate Drizly into its system, allowing Drizly to reach Uber's customers while Uber, well, lists more alcohol as alcohol sales have boomed in the pandemic.
Uber will make Drizly's alcohol inventory available within the Uber Eats app, alongside meals and groceries, while maintaining a separate Drizly app. The deal is expected to close in the first half of the year, the companies said.
The Drizly purchase primarily consists of Uber stock, with less than 10% in cash, the companies said in a statement. The acquisition excludes Drizly's cannabis delivery arm, an Uber spokesman said. Uber shares climbed about 7%.
Drizly co-founder and CEO Cory Rellas said, "We are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters — committed to life's moments and the people who create them."
Uber said it expects 90 percent of the transaction, which remains subject to regulatory approval, will be in shares with the remainder in cash.
