Ride-hailing major Uber is shutting down its alcohol delivery service called Drizly which it acquired for $1.1 billion.
San Francisco: The famous ride-hailing company Uber has announced that it is shutting down its alcohol delivery service, Drizly. Notably, Uber acquired it for $1.1 billion. Uber had planned to integrate Drizly into Uber Eats but could not succeed and ultimately had to take this decision. Drizly will be discontinued by March, as per a report by Axios.
“After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything—from food to groceries to alcohol—all on a single app,” an Uber spokesperson said in a statement.
“We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer,” the spokesperson added.
Drizly’s Backend Technology
Drizly provided backend technology that lets local liquor stores provide their own deliveries. In 2020, it confirmed a hack that exposed the information of around 2.5 million customers. It was the leading on-demand alcohol marketplace in the US, available in more than 1,400 cities.
After alcohol at your doorstep, Uber CEO Dara Khosrowshahi had even planned to deliver cannabis or marijuana when “the road is clear.”. The Uber CEO told CNBC News in 2021 that the ride-hailing company could start delivering weed once federal regulation allows the company to do so.
“When the road is clear for cannabis, when federal laws come into play, we’re absolutely going to take a look at it,” Khosrowshahi was quoted as saying in the report. Marijuana still remains illegal under the US federal law, but some lawmakers have expressed a willingness to change the policy.
Uber Launches EV Autos in Ayodhya
Ride-hailing platform Uber on Sunday flagged off its EV auto rickshaw service in Ayodhya, under its category Uber Auto, in the presence of Uttar Pradesh Chief Minister Yogi Adityanath.
The company said it will also start operations of UberGo, its affordable car service, along with Uber Intercity in Ayodhya, which will support all inter-city travel needs to the holy city from popular destinations within Uttar Pradesh to connect the temple city with various destinations.
“With this expansion, we are not only providing enhanced mobility options for tourists and pilgrims but also unlocking earning opportunities for many more in the region,’ said Prabhjeet Singh, President Uber India and South Asia. The expansion into Ayodhya aligns with Uber’s growth plans in India, said the company. Today, Uber is available across 125 cities.
“We are committed to contributing to Ayodhya’s tourism, promoting a seamless travel experience and fostering sustainable economic growth,” said Singh.
(With inputs from agencies)