Uber jumps 8% after it agrees to buy alcohol-delivery service Drizly for $1.1 billion
Gabe Souza / Portland Portland Press Herald via Getty Images
- Uber rose 8% on Tuesday after the company agreed to buy Drizly alcohol service for $ 1 billion.
- After the deal is concluded, “Amazon for Liquor” will become a wholly-owned subsidiary under Uber.
- Drizly’s marketplace will eventually be integrated with the Uber Eats app, according to the companies.
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Uber rose 8% on Tuesday after the company announced a $ 1.1 billion deal to purchase alcohol delivery service Drizly.
Upon conclusion of the contract, Drizly will become a wholly owned subsidiary of the hail driving app Uber. In due course, the marketplace will be combined with the Uber Eats app while maintaining its own standalone app, the companies said.
The cash-and-stock deal is expected to close in the first half of 2021.
Drizly, sometimes referred to as the “Amazon for Alcohol,” was founded in 2012 when the founders realized that the supply of alcohol was legal. According to the company, the journey began with a simple text from one friend to another: “Why can’t you have alcohol delivered?” Serving 1,400 cities in the United States, it has grown to become a leading online alcohol marketplace in North America.
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“Wherever you want to go and whatever you need, our goal at Uber is to make people’s lives a little bit easier,” said Uber CEO Dara Khosrowshahi in a statement. “That’s why we branched out into new categories like food, recipes and now alcohol.”
Uber expects that over 90% of the consideration paid to Drizly shareholders will be Uber common stock, with the remainder being paid in cash.
Ubers stock was trading at $ 57.13 on the market open on Tuesday.
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