Uber Technologies Inc. announced on Tuesday that it has acquired alcohol delivery service Drizly in a cash-and-stock deal worth $1.1 billion, as the American ride-hailing giant aims to further expand the range of items that its food delivery arm Uber Eats can bring at the consumers’ doorsteps.
In a joint press release, the two companies said that Boston-based Drizly would become a wholly-owned subsidiary of Uber once the transaction is completed.
The alcohol-delivery platform’s marketplace of beer, wine, and liquor would eventually get integrated into the Uber Eats app while the standalone Drizly app would be maintained as well.
The San Francisco-based ride-hailing firm is expecting 90 percent of Drizly’s purchase price would consist of Uber common stocks, with the remaining amount to be paid in cash.
“Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol,” Uber CEO Dara Khosrowshahi said in a statement.
“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,” he added.
Uber’s acquisition of Drizly is subject to regulatory approval, as well as other customary closing conditions.
The transaction is expected to close within the first half of the year, according to the two companies’ joint statement.
Cory Rellas, the chief executive and co-founder of Drizly, is expected to be appointed in an executive position of Uber.
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