Uber Technologies (NYSE:UBER) has announced its decision to close the Alcohol Delivery Service, Drizly, which it had acquired three years ago. This strategic move by the ride-hailing company is aimed at sharpening its focus on the core business of Uber Eats, a platform that allows consumers to access a wide range of products through a single app.
Additionally, concerns related to cybersecurity may have played a role in Uber’s decision to shutter the Drizly unit. It’s worth noting that Drizly had experienced a security breach in 2020, exposing information for approximately 2.5 million customers. Pierre-Dimitri Gore-Coty, Uber’s Senior Vice President of Delivery, expressed gratitude to the Drizly team for their contributions to the growth of the BevAlc delivery category as pioneers in the industry.
In 2021, Uber had acquired Drizly for $1.1 billion in cash and stock. Following the acquisition, Drizly’s marketplace was integrated into the Uber Eats app, while a standalone Drizly app remained available. Currently, Drizly operates in over 1,400 cities across the United States.
Uber, recently included in the prestigious S&P 500 Index, has demonstrated robust performance on the stock market. The company’s shares have surged by 116.4% in the past year, outpacing the S&P 500’s growth of 20.6%.
Despite being primarily known for its ride-sharing services, Uber has successfully diversified its portfolio over time, venturing into food delivery and freight. This move aligns with the imperative for large companies to diversify, mitigating risks and expanding their reach across various sectors. Uber’s decision to focus on its core Uber Eats business reflects a strategic approach to streamline operations and enhance its market position.
Featured Image: Pexels @ freestocks.org
Author Stephanie Bédard-Châteauneuf 
