New York: Uber Technologies has agreed to buy on-demand alcohol delivery company Drizly for $1.1 billion.
The Drizly deal is Uber’s biggest since July when it acquired food delivery firm Postmates.
The Drizly acquisition primarily includes Uber stock, with under 10% in cash, the companies said in a release.
Uber shares shot up 7% in the first few minutes after markets opened.
Drizly has had a fabulous year as consumers ordered alcohol home rather than venture into a liquor store.
Drizly operates in 1,400 US cities and connects customers with stores to order beer, wine and liquor.
Last May, sales were 400% above historical levels, Drizly said. Consumers both ordered more frequently and bought more per order, it had said
The acquisition will add an expansive category of products for Uber to deliver.
Covid has transformed Uber from a firm that primarily transported people to one that now mostly delivers food from eateries.
Uber plans to include Drizly’s alcohol selection in its Uber Eats app, alongside meals and groceries.
The deal is expected to close in the first half of the year, both companies said.
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