Uber, the rideshare and food delivery giant, is set to close down Drizly, the alcohol delivery app it acquired for a whopping $1.1 billion in 2021. This move comes as Uber aims to streamline its services and concentrate on its core Uber Eats strategy. The shutdown is scheduled for the end of March 2024, marking the end of Drizly’s three-year run within the Uber family.

Pierre Dimitri Gore-Coty, Uber’s Senior Vice President of Delivery, expressed gratitude to the Drizly team for their contributions to the growth of the BevAlc (Beverage Alcohol) delivery category. Uber plans to focus on becoming a comprehensive one-stop-shop within its app, serving the 142 million monthly active users by offering a diverse range of products, including food, groceries, and alcohol.

The announcement of Drizly’s closure was made on its official social media accounts on January 15, stating that “all good things must come to an end.” Uber, already delivering beer, wine, and liquor through Uber Eats, aims to enhance its selection and convenience within a single app, leveraging the existing user base that often overlaps between Uber and Drizly.

While both Drizly and Uber Eats provide alcohol delivery services, Drizly acted as an intermediary between liquor stores and customers, allowing the liquor stores themselves to fulfill the orders directly. Uber highlights the synergy between the two services by noting that the majority of Drizly consumers also have Uber accounts. Uber Eats’ beverage and alcohol category witnessed a remarkable doubling in the last year, showcasing the potential for growth in this market.

Axios reported the business news on January 15, revealing that the Federal Trade Commission (FTC) had identified security failures leading to a data breach in 2020 after Uber’s acquisition of Drizly. This breach exposed personal information of approximately 2.5 million Drizly users. Despite Drizly being alerted to issues two years prior, the FTC ordered the destruction of some user data and imposed further restrictions on data collection and retention.

Drizly experienced a surge in popularity during the COVID-19 pandemic, with its growth skyrocketing during lockdowns. Online praise and a staggering 1,000 percent year-over-year sales spike in April 2020 underscored Drizly’s significance as a lifeline for libations during challenging times.