Uber Technologies completed its $1.1 billion acquisition of Boston-based alcohol delivery service Drizly on Wednesday, the companies announced, enhancing Uber’s reach in the last-mile delivery sector after reports that the deal might not go through as planned.
As part of the acquisition, Drizly will be featured on the Uber Eats app, but it will keep a separate app and website presence. Uber Eats is known for connecting consumers to local restaurants, but during the pandemic it quickly expanded into alcohol, convenience, grocery, and retail products.
The Information reported in August that the deal was under review by the Federal Trade Commission to determine whether it might give Uber too much market control. That process likely delayed the deal, which the companies said they expected to close over the summer. Uber and Drizly did not immediately respond to a request for comment.
Drizly itself doesn’t deliver alcohol, but its technology allows liquor stores in more than 1,600 cities across the US to deliver beer, wine, and spirits directly to consumers, a feat that requires compliance with varying local regulations.
“We’ve spent the last few years building the infrastructure to bring this category online,” said Cory Rellas, the chief executive of Drizly, in a press release. “With [Uber’s] platform, technology, scale, and expertise, we will accelerate our mission of becoming the go to place for alcohol — anytime, anywhere, for any occasion.”
The cash and stock deal included about 18.7 million shares in Uber, worth about $875 million, based on the closing price of the company’s stock on Tuesday.
Now that the deal is done, Drizly has officially spun off Lantern, its cannabis delivery marketplace. Lantern announced Wednesday that it was parting with a $40 million investment from its former parent company.