Major Layoffs Expected as Uber Shuts Down Alcohol Delivery App Drizly
(Photo: Drizly)
Major layoffs are expected as Uber moves forward with shuttering the popular alcohol delivery app, Drizly. The layoffs mark the culmination of a three-year journey since the ride-hailing service acquired Drizly in 2021 for $1.1 billion. During the pandemic, Drizly saw more than 350% sales growth between 2019 and 2020. However, the alcohol delivery bubble appears to have burst in post-pandemic America and Uber has found redundancies between its two apps, Uber Eats and Drizly.
The head of Uber’s delivery branch, Pierre-Dimitri Gore-Coty confirmed the layoffs in a statement to Forbes. It is projected that 168 Drizly employees in Uber’s Boston headquarters will lose their jobs starting from April 1 through Sept. 1. Uber previously laid off 200 employees in June making this the second round of dismissals in less than a year.
Uber’s decision to “focus on our core Uber Eats strategy” means that all Drizly positions will be eliminated as part of the restructuring. It is unclear how many Drizly employees will be retained as Uber attempts to streamline operations.
IWSR Drinks Market Analysis reported in Dec. 2023 projected that the value of e-commerce would increase by $7.5bn over the next five years. However, compared to the pandemic, the growth has severely lessened from +31% between 2019 and 2021 to +4.5% for 2022-27.
Customers might not have completely jumped on board with alcohol delivery yet but e-commerce is still expected to reach a value of $40 billion by 2027. With the fall of Drizly, Uber may have opened the door for competition in this sector, since the app was arguably one of the most recognized alcohol delivery services available.
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