Uber announced on Tuesday that it is acquiring alcohol delivery service Drizly for $ 1.1 billion in stock and cash.
Following the transaction, Drizly’s market will be integrated with the Uber Eats app. The company will also retain the standalone Drizly app, he said.
Founded in 2012, Drizly has become the leading on-demand alcohol delivery service in the US and is available in 1,400 cities. The purchase could help people use Uber’s app more frequently.
Uber Eats were a key part of Uber’s business amid the Covid-19 pandemic, which dramatically reduced the number of people leaving their homes.
“During this time, our delivery industry has grown at extraordinary prices,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday.
The transaction is expected to end within the first half of 2021. Uber said it expects more than 90% of the compensation to be paid to Drizly shareholders will consist of shares of Uber ordinary shares, and the balance will be paid in cash.
Uber share rose about 5% in the forex market.
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