Scoop: Uber shutting down alcohol delivery service Drizly
Uber has decided to shutter Drizly, an alcohol delivery service it bought three years ago for $1.1 billion, Axios has learned.
The big picture: Drizly was always a bit of an odd match for Uber, in that it didn't hire or contract its own delivery workers. Instead, Drizly provided backend tech that let local liquor stores provide their own deliveries.
- The bigger issue, however, might have been cybersecurity. Drizly in 2020 confirmed a hack that exposed information on around 2.5 million customers.
- What it didn't say, however, was that the company had been aware of the security flaw for two years without fixing it.
- That information was discovered by the Federal Trade Commission, after Uber's acquisition of Drizly, and led to an FTC order that restricted the types of customer information that Drizly could collect and retain.
What they're saying: "After three years of Drizly operating independently within the Uber family, we've decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything — from food to groceries to alcohol — all on a single app," Pierre-Dimitri Gore-Coty, Uber's SVP of delivery, tells Axios exclusively.
- He adds: "We're grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer."