Uber announced Tuesday that it will acquire Drizly alcohol delivery service for $ 1.1 billion in stock and cash.
Once the transaction is complete, the Drizly market will be integrated with the Uber Eats app. The company will also keep the Drizly app autonomous, he said.
Founded in 2012, Drizly has become the leading on-demand alcohol supply service in the United States and is available in 1,400 cities. The purchase could help people use the Uber app more often.
Uber Eats has been a key segment for Uber’s business amid the Covid-19 pandemic, which has drastically reduced the number of people leaving their homes.
“During this time, our delivery business has been growing at an extraordinary pace,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.
The deal is expected to close during the first half of 2021. Uber said it anticipates that more than 90% of the compensation to be paid to Drizly’s shareholders will consist of shares of Uber’s common stock and the balance will be paid in cash.
Uber shares rose about 5% in the premarket.
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