According to Axios, Uber has made the decision to shut down the alcohol delivery app Drizly, which it has owned for just three years.Thank you for reading this post, don't forget to subscribe!
Drizly is the platform that enables local liquor stores to manage their own deliveries, in contrast to Uber, which engages drivers for the direct delivery of alcohol. Drizly simply facilitates the sales process without handling the deliveries.
In 2020, the company made headlines due to a data breach that affected 2.5 million customers shortly after its acquisition. The severity of the breach prompted the FTC to intervene, claiming that the company should have taken heed of warnings about its inadequate security practices in 2018.
Drizly reached a $7.1 million settlement in a class action lawsuit related to the breach. Additionally, it entered into a further settlement with the FTC, wherein the company was mandated to implement additional security measures and was not required to discard any consumer data it no longer required, including customer information.
While these issues were not cited as reasons for the company’s closure, they likely played a role in the decision.
Recommended by our editors
Pierre-Dimitri Gore-Coty, Uber’s SVP of delivery, confirmed the shutdown in a statement to Axios, expressing that “After three years of operating independently within the Uber family, we have chosen to close the business and concentrate on enhancing core Uber Eats.” The aim is to enable consumers to access everything from food to groceries to liquor, all within a single app.
Users who previously used Drizly to buy alcohol will now have the option to make purchases through Uber Eats.
Receive our top stories!
Sign up for what’s new now Our top stories delivered to your inbox every morning.