Uber Technologies Inc on Tuesday said that it will acquire on-demand alcohol marketplace Drizly for about $1.1 billion, as the company looks to diversify into other services after the pandemic hit its biggest business.
The Covid-19 pandemic induced lockdown measures across the world dealt a severe blow to Uber's ride-hailing services, pushing the company to branch out into new categories of delivery services, such as groceries and prescriptions.
Drizly, an alcohol market place with retail partners in more than 1,400 cities across North America, will become a wholly owned subsidiary of Uber.
Drizly's marketplace will be integrated with the UberEats app, while also maintaining a separate Drizly app, Uber added.
Uber said it expects that more than 90% of the deal will be made through Uber stock and the balance paid in cash to Drizly stockholders.