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.
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%.