Uber announced Tuesday that it is acquiring the Drizly alcohol delivery service for $ 1.1 billion in stock and cash.
Upon completion of the transaction, the Drizly market will be integrated with the Uber Eats application. The company will also keep the Drizly app independent, he said.
Founded in 2012, Drizly has become the first on-demand alcohol delivery service in the US and is available in 1,400 cities. The purchase could help people use the Uber app more often.
Uber Eats was a key segment for the Uber business amid the Covid-19 pandemic, which dramatically reduced the number of people leaving their homes.
“Meanwhile, our delivery business has grown at tremendous rates,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.
The transaction is expected to close in the first half of 2021. Uber said it anticipates that more than 90% of the compensation to be paid to Drizly shareholders will consist of shares of Uber joint stock, and the balance will be paid in cash.
Uber shares rose about 5% in the premarket.
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