The VinePair Podcast: Why Did Uber Dump Drizly?

In 2021, Uber purchased Drizly for a cool $1 billion. Just three years later, the alcohol delivery platform announced that it is shutting down, and there are more questions than answers. Namely, why in the world would you spend that much money on something only to shutter its operation almost immediately?

The biggest argument many in the industry are making is that the Drizly shutdown must be an indication that on-demand alcohol delivery isn’t working. But this could not be further from the truth. Uber Eats has a very robust alcohol delivery service of its own, which makes it all the more likely that the real reason behind the shutdown was simply to eliminate its biggest competitor.

There’s also the timing of the closure to consider — after all, the FTC has been investigating Drizly for several months due to a massive data breach. As such, Uber will not be folding in the data from any Drizly users onto Uber Eats, and it’s been speculated that Uber chose this moment to close the company to halt the investigation.

On this episode of the “VinePair Podcast,” Adam, Joanna, and Zach explore the possible reasons behind Uber’s surprising decision to shut down the alcohol delivery platform Drizly shortly after acquiring it. Does this mean that there’s no market for alcohol delivery, or did Uber just want to eliminate a competitor? Tune in for more.

Zach is reading: Ask a Wine Pro: Is It a Red Flag if the Somm Doesn’t Present the Cork?
Joanna is reading: Mastering Extracts and Essences With Sunken Harbor Club’s Garret Richard
Adam is reading: Tequila-Spiked Yerba Mate: Clubbing, but Make It ‘Healthy’