Uber shuts down alcohol delivery service Drizly three years after its purchase

Uber in 2021 Drizly bought it For $1.1 billion shortly after reporting its food delivery segment he could manage his losses during a pandemic. Three years later, the company is shutting down its alcohol delivery service in the United States. Axios reported. Pierre-Dimitri Gore-Coty, Uber’s head of delivery, told the publication that the company has decided to close the business and focus on its “core Uber Eats strategy.”

in the SEC announcement Drizly is described as a service that “works with thousands of local merchants to provide consumers with an incredible selection of beer, wine and spirits at competitive, transparent prices.” Uber has integrated Drizly’s offerings into its Eats app, but the alcohol delivery service has kept its own separate app.

“After Drizly’s three years as an independent member of the Uber family, we’ve decided to shut down and focus on our core Uber Eats strategy, which helps consumers get almost anything—from food to groceries to booze—all in one app.” Gore-Koti said in a statement. “We are grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as an original industry pioneer.”

It’s unclear whether Drizly’s cybersecurity concerns played a role in Uber’s decision. Drizly previously confirmed a data breach in 2020 that exposed the data of 2.5 million customers. Following the Uber acquisition, the Federal Trade Commission found that Drizly CEO James Corey Rellas received warnings about the company’s security concerns in 2018. is defined despite the delivery service claiming to do so, it failed to implement the necessary safeguards to protect its users and that its poor security practices made data breaches possible. It ordered Drizly to destroy any personal data it collected that had nothing to do with its services and to refrain from collecting it in the future. The FTC also required Rellas to implement information security programs at any company he assumes the role of CEO or joins. Either way, Drizly is gone, but Uber intends to continue delivering alcohol to its customers.

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