Three years ago, Uber rideshare service app purchased USA-based alcohol delivery service app Drizly for a whopping $1.1 billion. Uber is now experiencing a hangover and closing Drizly as of March 2024. Uber says that, instead, they will integrate alcohol delivery into their homegrown delivery service app, Uber Eats.
Since the purchase, Drizly had operated independently under Uber with a separate app – despite being integrated into the Uber Eats app – as they offered local liquor stores the opportunities to provide their own deliveries to Drizly customers in more than 1,400 U.S. cities.
However, a massive cybersecurity breach in 2020 – which reportedly exposed the information of approximately 2.5 million customers – may have assisted in the demise of Drizly. An investigation by the Federal Trade Commission (FTC) found that Drizly’s CEO had been aware of the company’s security issues since 2018 but took no action to fix them. The FTC then ordered, in 2022, Drizly to wipe its systems of any personal data it collected and restrict the types of customer information it was allowed to collect.