Uber is doing away with its alcohol delivery service despite spending over $1 billion on the expansion.
Drizly, the online marketplace that allowed customers to have their adult beverages delivered to their front doors, was purchased by Uber for $1.1 billion in February 2021. The app seemed to be a solid integration with the rideshare company. However, Uber has decided to use its own Uber Eats platform to offer alcohol delivery.
“After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything — from food to groceries to alcohol — all on a single app,” Uber senior vice president of delivery Pierre-Dimitri Gore-Coty explained in a statement to CBS MoneyWatch.
When Uber first began eyeing Drizly, the rise in mobile orders was fueled by pandemic-induced lockdowns. More consumers than ever were opting for home delivery of food and alcohol to minimize public exposure as the COVID-19 virus spread. During the peak of the pandemic, significant growth, meal delivery services saw a 162 percent spike compared to the preceding year. However, with the gradual easing of pandemic conditions and people becoming comfortable with going into stores, there is a noticeable decline in consumer reliance on delivery services. Recent data indicates that the usage of these apps increased by 8% last December compared to the previous year.
Drizly also lets its followers know via a tweet on Monday that it will officially shut down for good in March 2024.
https://twitter.com/Drizly/status/1747086621604970952
