Drizly

Last updated
Drizly
Company type Subsidiary
Industry Retail
Founded2012;12 years ago (2012)
FounderJustin Robinson
Spencer Frazier
Nick Rellas
Defunct2024;0 years ago (2024)
Headquarters Boston, Massachusetts, United States
Key people
Cory Rellas, CEO
ServicesAlcohol delivery
Parent Uber
Website www.drizly.com

Drizly was an online ordering and delivery platform that facilitates the delivery of alcohol from local retailers via its mobile app or website. As of December 31, 2020, the company had approximately 4,000 retail partners. [1]

Contents

Drizly has proprietary identity document verification technology that allows drivers to verify the purchaser is of legal age to purchase alcohol.

Drizly does not take a commission and can therefore operate without beer, wine, and liquor licenses. Instead, Drizly charges customers a monthly fee to use its platform. Drizly does not mark up the prices of alcoholic beverages.

History

Drizly was founded by Nick Rellas, Justin Robinson, and Spencer Frazier [2] in 2012. The company launched its service in Boston in 2013, then expanded to New York, Los Angeles, and Chicago. [3]

In 2015, the company raised a $13 million Series A round from Polaris Partners, Suffolk Equity Partners, Cava Capital, Fairhaven Capital Partners, and First Beverage Group. [4]

In February 2016, Drizly expanded to Edmonton and Calgary, Alberta, Canada through a partnership with Liquor Stores N.A. (LSNA). [5]

In August 2016, the company raised a $15 million Series B round. [6]

In July 2018, Drizly partnered with Anheuser-Busch to keep beer stocked in offices using Anheuser-Busch's Office Bud-e fridges, which use technology to automatically re-order beer when stocks run low. [7]

In September 2021, the company added a service that specifically delivers alcohol to weddings. [8] [9]

In October 2021, Uber acquired the company for $1.1 billion in cash and stock. [10]

In January 2024, Uber announced that Drizly would be shutting down and would be merged with the Uber Eats app by March 2024. The goal was to offer consumers a unified delivery experience. At the time of the announcement, Uber said it was also sunsetting its grocery shopping app Cornershop.

Uber said their reasoning for Drizly's closure was a strategic move to integrate its services under Uber Eats, catering to shifts in the market and consumer behavior post-pandemic and to better align with their overall infrastructure. [11]

Data breach

On July 28, 2020, Drizly announced it was the victim of a data breach that exposed the contact information of approximately 2.5 million customers. [12] This resulted in a class action lawsuit that was settled in 2021, with each affected member receiving approximately $14. [13]

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References

  1. ↑ Dingwall, Kate (January 8, 2021). "What America Was Drinking On New Year's Eve, According To Drizly" . Forbes .
  2. ↑ O'Neil, Luke (May 22, 2013). "Thursty: A new app called Drizly delivers booze right to your doorstep". Metro New York .
  3. ↑ HUDDLESTON JR., TOM (May 18, 2015). "Ordering On-Demand Booze Is About to Get Easier". Fortune .
  4. ↑ Crook, Jordan (May 18, 2015). "Drizly Lands $13 Million In Series A Funding". TechCrunch .
  5. ↑ Sawers, Paul (February 17, 2016). "Drizly's booze delivery service expands into Canada, its first international market". VentureBeat .
  6. ↑ Crook, Jordan (August 4, 2016). "Drizly pulls in $15 million Series B to power liquor-based e-commerce". TechCrunch .
  7. ↑ "Anheuser-Busch And Drizly Brew Up Partnership To Keep Office Beer Fridges Stocked" (Press release). PR Newswire. July 10, 2018.
  8. ↑ Bartlett, Jessica (September 28, 2021). "Drizly launches service to bring booze to your wedding". American City Business Journals .
  9. ↑ "New Free Service From Drizly Offers People Planning Wedding Events Personal Concierges For Alcohol Planning, Shopping And Delivery" (Press release). PR Newswire. September 7, 2021.
  10. ↑ "Cheers! Uber Completes Acquisition of Drizly" (Press release). Business Wire. October 13, 2021.
  11. ↑ Delouya, Samantha (2024-01-15). "Uber is shutting down alcohol delivery app Drizly | CNN Business". CNN. Retrieved 2024-01-16.
  12. ↑ Whittaker, Zack (July 28, 2020). "Alcohol delivery service Drizly hit by data breach". TechCrunch .
  13. ↑ Fitzgerald, John (April 1, 2021). "Booze delivery app Drizly settles class action over 2020 data breach". Westlaw .
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