Uber Acquires Alcohol Delivery Service Drizly for $1.2 Billion 🍷🍸🥃

Uber has announced a $1.2 billion stock and cash deal to acquire on-demand alcohol marketplace Drizly. Alex details Ubers platform conglomerate model, Drizly's impressive growth throughout the COVID pandemic, and why he thinks this deal reached $1.2 billion. He also details some of the differences between Uber Eat's take rate model and the monthly fee model used by Drizly (a model which allows Drizly to operate without a liquor license).

Originally Aired: 02/04/21
#Food #Drizly #Uber

PRESS RELEASE:
SAN FRANCISCO & BOSTON--(BUSINESS WIRE)-- Uber Technologies, Inc. (NYSE: UBER) and Drizly today announced that they have reached an agreement for Uber to acquire Drizly for approximately $1.1 billion in stock and cash.

Drizly is the leading on-demand alcohol marketplace in the United States, available and designed to be fully compliant with local regulations in more than 1,400 cities across a majority of US states. Drizly works with thousands of local merchants to provide consumers with an incredible selection of beer, wine, and spirits with competitive, transparent pricing.

After the completion of the transaction, Drizly will become a wholly owned subsidiary of Uber. Drizly’s marketplace will eventually be integrated with the Uber Eats app, while also maintaining a separate Drizly app.

Drizly plans to innovate and expand independently in its fast-growing and competitive sector, while also gaining access to the advanced mobile marketplace technologies of the world’s largest food delivery and ridesharing platform. Merchants on Drizly will be able to benefit from Uber’s best-in-class routing technology and significant consumer base. Delivery drivers will have even more ways to earn. And Uber’s rewards and subscription programs will be able to deliver even greater value to consumers with new benefits and perks on Drizly.

“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. Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year. 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,” said Uber CEO Dara Khosrowshahi.

“Drizly has spent the last 8 years building the infrastructure, technology, and partnerships to bring the consumer a shopping experience they deserve. It’s a proud day for the Drizly team as we recognize what we’ve accomplished to date but also with the humility that much remains to be done to fulfill our vision. With this in mind, we are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters—committed to life’s moments and the people who create them,” said Drizly co-founder and CEO Cory Rellas.

Uber currently anticipates that more than 90 percent of the consideration to be paid to the Drizly stockholders in the transaction will consist of shares of Uber common stock, with the balance to be paid in cash. The acquisition is subject to regulatory approval and other customary closing conditions and is expected to close within the first half of 2021.

About Uber

Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 15 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

About Drizly

Drizly is North America's largest e-commerce alcohol marketplace and the best way to shop beer, wine, and spirits. With the speed and convenience of on-demand or scheduled delivery, Drizly partners with retailers in 1,400+ cities to offer consumers of legal drinking age unrivaled selection and a transparent, personalized shopping experience. As the industry leader, Drizly partners with retailers to bring their shelves online, helping them to reach new customers, tap into key market and customer insights, and diversify their business to grow sales.
—

📚 Grab a copy of the Amazon Best Seller Modern Monopolies: https://amzn.com/B017RC8CBC

❓ Are you part of a large enterprise interested in spinning out a platform business? Connect with us here: https://resources.applicoinc.com/wta-contact/

🎧 Listen to an audio version of the WTA Podcast here: https://anchor.fm/winnertakeall

At Applico, we identify untapped, intrinsic assets that give existing enterprises an enormous advantage to spin-out new tech companies. WisdomTree licensed Applico's Platform Insights Data Product to aid in the creation of the PLAT ETF.