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Uber is shutting down its alcohol delivery service, Drizly, three years after acquiring it for $1.1 billion.
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Despite initial plans to integrate Drizly into Uber Eats, the integration never happened, and Uber has decided to close Drizly by March 2024.
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Pierre-Dimitri Gore-Coty, SVP of Delivery at Uber, mentioned that the decision is to focus on the core Uber Eats strategy of providing consumers with a single app for various needs, including food, groceries, and alcohol.
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Uber appreciates the Drizly team's contributions to the growth of the beverage alcohol delivery category as industry pioneers.
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Drizly faced challenges in 2020 with a data breach affecting 2.5 million customers, leading to an FTC order to delete unnecessary personal data and implement a robust security program.
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Uber plans to concentrate on alcohol delivery through Uber Eats, boasting doubled business in this category globally.
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Currently, Uber Eats operates alcohol delivery in 35 U.S. states and 25 countries.