Uber bought Drizly in 2021 for $1.1 billion. Three years later, the American division of Uber discontinued the alcohol delivery service. Pierre-Dimitri Gore-Coty, Uber’s vice president, said the company has decided to shut down Drizly and focus on Uber Eats.

In the acquisition notice published by the Securities and Exchange Commission, Drizly was described as a service that “partners with thousands of small traders to provide consumers with a large selection of beer, wine and spirits at competitive and transparent prices“. Uber integrated the alcohol offering into its Eats app, but Drizly still kept a separate mobile app. “After three years of Drizly operating independently within Uber, we have decided to close that business and focus on our core Uber Eats strategy,” Gore-Coty said in a statement.

It’s unclear whether Drizly’s cybersecurity issues played a role in Uber’s decision. Drizly confirmed a data breach in 2020 that compromised the information of 2.5 million customers. After the acquisition, the Federal Trade Commission found that Drizly CEO James Cory Rellas was alerted to security issues already in 2018. However, Drizly did not implement appropriate security measures to protect its users, despite claiming to have done so. The Federal Trade Commission then required Rellas to implement information security programs at every company he joined or founded and assumed the role of CEO.

Source: www.engadget.com