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Uber announced today that it will be acquiring Drizly for $1.1 billion. Its alcohol marketplace will be integrated with the Uber Eats app while Drizly maintains a separate app.
Business has boomed for Drizly since the start of the pandemic. The company has said lockdowns drove up sales by 400% in May.
"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," Uber CEO Dara Khosrowshahi said in a release. "That's why we've been branching into new categories like groceries, prescriptions and, now, alcohol."
Drizly's success to date had been an example of a new, upstart company that has succeeded in a digital marketplace dominated by a few large players, including Uber. The ride-hailing company also bought Postmates late last year for $2.65 billion as its main business has struggled during the pandemic.
Emily Birnbaum ( @birnbaum_e) is a tech policy reporter with Protocol. Her coverage focuses on the U.S. government's attempts to regulate one of the most powerful industries in the world, with a focus on antitrust, privacy and politics. Previously, she worked as a tech policy reporter with The Hill after spending several months as a breaking news reporter. She is a Bethesda, Maryland native and proud Kenyon College alumna.