Last call for Drizly: Uber shuts down billion-dollar booze delivery
Uber has announced the closure of its alcohol delivery service, Drizly, a decision coming three years after its acquisition for $1.1 billion. Initially, Uber aimed to integrate Drizly into its Uber Eats platform, a plan that never materialized. The closure of Drizly is set for the end of March 2024, with services available until then.
12:44 PM EST, January 16, 2024
Data Breach and Strategic Shift
Drizly's journey within Uber wasn't without challenges. In 2020, the company faced a significant data breach impacting 2.5 million customers, leading to regulatory actions by the Federal Trade Commission (FTC). The FTC ordered Drizly to delete unnecessary personal data and implement a comprehensive security program. Despite these issues, Uber's decision to shut down Drizly stems from a strategic choice to focus on its core business through the Uber Eats platform, emphasizing a unified approach to delivering a range of products, including food, groceries, and alcohol.
Future Focus: Uber Eats and BevAlc
Uber's future in alcohol delivery isn't ending with Drizly. The company plans to continue and expand its alcohol delivery offerings through Uber Eats. This service is already operational in 35 U.S. states and 25 countries globally. Uber's strategy is to learn from Drizly's experiences in the industry and apply these insights to grow its own "BevAlc" category.
Impact and Consumer Transition
The closure of Drizly as a standalone app marks a significant shift in Uber's business strategy. However, most of Drizly's customer base also holds Uber accounts, suggesting a potential smooth transition for consumers to Uber Eats for their alcohol delivery needs. Uber's move signifies its commitment to consolidating and strengthening its core services, focusing on efficiency and consumer convenience.
