Uber announced Tuesday that it is acquiring alcohol delivery service Drizly for $ 1.1 billion in stock and cash.
Upon completion of the transaction, Drizly’s marketplace will be integrated with the Uber Eats app. The company will also keep the standalone Drizly app, it said.
Founded in 2012, Drizly has become the leading on-demand alcohol delivery service in the US and is available in 1,400 cities. The purchase may encourage people to use the Uber app more often.
Uber Eats has been an important part of Uber’s business during the Covid-19 pandemic, drastically reducing the number of people leaving their homes.
“During this time, our delivery business grew at extraordinary speeds,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.
The deal is expected to be completed in the first half of 2021. Uber said it expects more than 90% of the consideration paid to Drizly shareholders will be Uber common stock, with the balance paid in cash.
Uber shares were up about 5% in the premarket.
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