Real MVP: Uber Embraces Our Inner Degenerate & Buys An Alcohol Delivery Service

Like Uber Eats, Drizly teams with local merchants in the markets it services. The company says its services reach more than 1,400 cities in North America at last count. No doubt pandemic-related shutdowns have also gone a ways toward expanding the appeal of alcohol delivery.

Shares of Uber [$UBER] shot up 5.3% in premarket trading Tuesday, after the ride-hailing company announced a deal to buy on-demand alcohol marketplace Drizly for $1.1 billion in stock and cash. Which begs the hard hitting question; where the heck was this at the beginning of the pandy?

Drizly is an e-commerce platform that facilitates the delivery of alcohol. Affectionately known by some as the “Amazon for liquor,” Drizly enables users to order an assortment of beer, wine, and spirits directly from local retailers to their location through a mobile app or website.

Founded in 2012, Boston-based Drizly has raised just under $120 million to date. That includes a $34.5 million Series C back in late-2018. More recently, the service was hit with a data breach. The breach, which was disclosed last July, was believed to have impacted up to 2.5 million accounts.

Uber predicts that more than 90% of the payment to Drizly shareholders will be in Uber stock. The deal is sought to close within the first half of 2021, after which Drizly will become a wholly owned subsidiary. 

“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,” said Uber CEO Dara Khosrowshahi. “That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol.” 

Uber’s stock has soared 51.6% since November, while the S&P 500 has gained 14.0%.

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