On Tuesday, Uber Technologies Inc. said it agreed to acuire beer and wine delivery service Drizly for $1.1 billion.
In the cash-and-stock deal, Drizly and its 1,400 U.S. locations will be part of Uber Eats division. But customers will be able to access the Drizly app. The deal is expected to close within the first half of 2021. Uber expects that more than 90% of the consideration to be paid to Drizly shareholders will consist of Uber common shares, and the balance will be paid in cash.
Delivery revenues for Uber, including Uber Eats, more than doubled from the previous year to $1.45 billion over the quarter ending in September. However, the company continued to incur losses. Drizly said it had more than 300% growth in the past year.