Uber announced on Tuesday that it is purchasing the Drizly alcohol delivery service for $ 1.1 billion in shares and cash.
Upon completion of the transaction, Drizly’s marketplace will be integrated with the Uber Eats app. The company will also keep the Drizly app independent, he said.
Founded in 2012, Drizly has become the leading alcohol-on-demand delivery service in the United States and is available in 1,400 cities. Purchasing can help get people to 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 who leave their homes.
“During that time, our delivery business has grown at extraordinary rates,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.
The deal is expected to close in the first half of 2021. Uber said it anticipates that more than 90% of the consideration to be paid to Drizly shareholders will consist of Uber common shares and the rest will be paid in cash.
Uber shares were up about 5% in the pre-market.
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