Uber Technologies Inc. (UBER) - Get Report said Tuesday that is has agreed to a $1.1 billion takeover of beer and wine delivery service Drizly as it continues to focus on turning a bottom line profit in 2021.
Uber said the cash-and-stock deal will see Drizly and its 1,400 U.S. locations blended into its Uber Eats division, but will remain accessible to customers through the Drizly app.
“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. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol," said Uber CEO Dara Khosrowshahi. "Cory (Rellas) and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year."
"By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” Khosrowshahi added.
Uber shares were marked 7.4% higher in early trading Tuesday following news of the acquisition to change hands at $56.70 each.
Uber has consistently said it will profitable this year, and Uber Eats has been its fastest-growing business amid coronavirus pandemic-triggered lockdowns that have sent revenues from its traditional rides business plunging.
Overall delivery revenues for Uber, including Uber Eats, more than doubled from the previous year to $1.45 billion over the three months ending in September, although it continued to post losses thanks in part to rising costs.