Uber acquires alcohol-delivery brand Drizly for $1.1 billion

Uber Technologies Inc. has acquired Drizly, an e-commerce alcohol delivery brand for $1.1 billion.

This is one of the biggest deal of Uber since July when it bought food delivery app Postmates.

Also Read; Uber acquires American food delivery player Postmates for $2.65 billion

The Drizly purchase primarily consists of Uber stock, with less than 10% in cash, shared a statement from Uber. With this acquisition, Uber shares climbed about 7% on Tuesday.

Before finalizing the deal with Uber, Drizly was also in talks with DoorDash and GoPuff in the US.

"Wherever you want to go and whatever you need to get, our goal at Uber is to make people's lives a little bit easier. That's why we've been branching into new categories like groceries, prescriptions and, now, alcohol," shared Dara Khosrowshahi, CEO, Uber in a statement by adding that introducing Drizly into the Uber family they can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead.

Drizly operates in more than 1400 cities in the US delivering customers their favourite wine, beer and other liquors from local stores.

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"We are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters — committed to life's moments and the people who create them,’ added Cory Rellas, Co-founder and CEO, Drizly.

Uber said it expects 90 percent of the transaction, which remains subject to regulatory approval, will be in shares with the remainder in cash.

flying taxis. Uber shifted resources to delivery services, and in the third quarter, delivery sales increased 125%.