Uber Shuts Down Booze Delivery App Drizly 3 Years After Acquiring it for $1.1 Billion

Uber has decided to shutter the Drizly alcohol delivery app. (Photo: Shutterstock)

On Monday, Axios reported that Uber is shutting down Drizly. The shutdown comes three years after Uber’s $1.1 billion acquisition of the alcohol delivery app, which took place in February 2021.

“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,” Uber’s SVP of delivery, Pierre-Dimitri Gore-Coty, told Axios.

In 2020, TechCrunch reported Drizly was hit by a data breach, in which hackers obtained customer information including email addresses, birthdays, passwords and physical delivery addresses. The outlet reported that as many as 2.5 million Drizly accounts were believed to have been compromised in the data breach.

“In terms of scale, up to 2.5 million accounts have been affected,” a spokesperson from Drizly told TechCrunch. “Delivery address was included in under 2% of the records. And as mentioned in our email to affected consumers, no financial information was compromised.”

Though Drizly claimed no financial information was compromised in the data breach, TechCrunch reported that a listing featuring credit card information was available on a dark web marketplace.

In October 2022, the Federal Trade Commission issued an order against the company, requiring Drizly to restrict the data it collected from customers and get a handle on its alleged security issues.

“We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer,” Gore-Coty said, according to Axios.

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