SAN FRANCISCO — Uber Technologies Inc. is expanding its network.
The San Francisco-based company inked a deal to acquire Drizly for approximately $1.1 billion in stock and cash. Following the deal's closing, Drizly will become a wholly owned subsidiary of Uber.
Drizly's marketplace will eventually be integrated with the Uber Eats app, while also maintaining a separate Drizly app.
Boston-based Drizly is an on-demand alcohol marketplace in the United States, available and designed to be fully compliant with local regulations in more than 1,400 cities across a majority of U.S. states.
Drizly plans to innovate and expand independently in its fast-growing and competitive sector, while also gaining access to the advanced mobile marketplace technologies Uber's food delivery and ridesharing platform.
According to the companies, merchants on Drizly will be able to benefit from Uber's routing technology and significant consumer base. Delivery drivers will have even more ways to earn and Uber's rewards and subscription programs will be able to deliver greater value to consumers with new benefits and perks on Drizly.
"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," said Uber CEO Dara Khosrowshahi.
According to Khosrowshahi, Drizly co-founder and CEO Cory Rellas and his team have grown Drizly's gross bookings more than 300 percent year-over-year.
"By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead," he said.
Uber anticipates that more than 90 percent of the consideration to be paid to the Drizly stockholders in the transaction will consist of shares of Uber common stock, with the balance to be paid in cash. The acquisition is subject to regulatory approval and other customary closing conditions and is expected to close within the first half of 2021.
"Drizly has spent the last eight years building the infrastructure, technology, and partnerships to bring the consumer a shopping experience they deserve," Rellas said. "It's a proud day for the Drizly team as we recognize what we've accomplished to date but also with the humility that much remains to be done to fulfill our vision. With this in mind, 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."