Drizly

Drizly

Online platform for alcohol delivery service

About Drizly

Simplify's Rating
Why Drizly is rated
D+
Rated C on Competitive Edge
Rated D+ on Growth Potential
Rated D+ on Differentiation

Industries

Consumer Software

Consumer Goods

Company Size

201-500

Company Stage

Acquired

Total Funding

$1.2B

Headquarters

Boston, Massachusetts

Founded

2012

Overview

Drizly specialized in the delivery of alcoholic beverages, allowing customers to order beer, wine, and spirits online for home delivery. The service worked by partnering with local liquor stores; when a customer placed an order through the Drizly app or website, it was sent to a nearby partner store, which managed the delivery. Drizly generated revenue by charging these stores a fee for using its platform and by adding a delivery fee to customer orders. The company distinguished itself from competitors by offering quick delivery, often within an hour, catering to busy consumers and those needing last-minute purchases. Drizly aimed to provide a convenient shopping experience for alcohol delivery, but it is no longer in service, with customers now directed to Uber Eats for similar needs.

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Simplify's Take

What believers are saying

  • Increased consumer interest in alcohol delivery post-pandemic boosted Drizly's market.
  • Collaborations with major retailers expanded Drizly's delivery networks and product availability.
  • Regulatory changes in states allowed alcohol delivery, opening new markets for Drizly.

What critics are saying

  • Increased competition from DoorDash threatened Drizly's market share.
  • Layoffs in 2023 indicated potential operational challenges and financial instability.
  • FTC's action for a 2020 data breach highlighted reputational and regulatory risks.

What makes Drizly unique

  • Drizly offered a wide selection without holding inventory, partnering with local stores.
  • The company promised delivery within an hour, appealing to last-minute shoppers.
  • Drizly's integration with Uber Eats expanded its reach and streamlined operations.

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Funding

Total Funding

$1222.1M

Above

Industry Average

Funded Over

6 Rounds

Notable Investors:
Acquisition funding comparison data is currently unavailable. We're working to provide this information soon!
Acquisition Funding Comparison
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Benefits

Career coaching

Equity

Flexible PTO

Charitable giving

Drizly orders

Lifestyle stipend

Affinity groups

Fitness classes

Hackathons

Parental leave

Referral bonus

Company News

PYMNTS
Jul 9th, 2024
On-Demand Delivery Aggregators Expand Their Alcohol Businesses

As delivery aggregators look to become go-to destinations for a wider range of on-demand needs, key players are expanding their alcoholic beverage options. Take, for instance, DoorDash. Earlier this month, the company announced the launch of alcoholic beverage delivery in Maryland, following changes to the law in the state that made doing so possible. “We’re thrilled to be bringing alcohol delivery to Maryland, providing even more consumers with a convenient, responsible way to enjoy their favorite drinks at home,” Erik Ragotte, the aggregator’s general manager of alcohol and convenience, said in a statement. “Whether it’s locally brewed craft beers or bottles of beloved wines, we hope that this new offering can showcase the best that Maryland has to offer.”

Boston.com
Apr 4th, 2024
These Mass. tech companies have laid off the most workers so far this year, according to BBJ

Drizly will lay off 168 employees between April and September, according to BBJ.

Tech Startups
Jan 17th, 2024
Uber shuts down Drizly, an alcohol delivery startup it bought 3 years ago for $1.1 billion

Drizly had already laid off 100 employees the previous year, with some of its features integrated into Uber Eats.

PYMNTS
Jan 16th, 2024
Report: Uber Closing Down Drizly 3 Years After Acquisition

Uber is reportedly closing down its alcohol delivery business, Drizly.The move comes three years after Uber bought Drizly for $1.1 billion, Axios reported Monday (Jan. 15), citing Uber’s senior vice president of delivery, Pierre-Dimitri Gore-Coty.“After three years of Drizly operating independently within the Uber family, we’ve decided to close the business and focus on our core Uber Eats strategy of helping consumers get almost anything — from food to groceries to alcohol — all on a single app,” Gore-Coty said in the report.Uber did not immediately reply to PYMNTS’ request for comment.Drizly differed from other parts of Uber’s business in that it didn’t hire or contract delivery workers; it provided back-end technology to help liquor stores provide their own deliveries, according to the report.When Uber’s acquisition of Drizly was announced in February 2021, Uber CEO Dara Khosrowshahi told CNBC that the company wanted to “double-down” on alcohol delivery by buying the leader in that space.Uber aimed to upgrade its food delivery platform, Uber Eats, by integrating Drizly’s marketplace into the Uber Eats app while also maintaining a standalone Drizly app.At the time of the acquisition, Drizly had become the leading on-demand alcohol delivery service in the United States and had expanded its availability to 1,400 cities since its founding in 2012.In November 2021, a month after the acquisition was completed, Drizly announced that it had partnered with 7-Eleven to deliver alcohol in 60 minutes or sooner from 1,200 of the convenience retailer’s stores.In October 2022, the Federal Trade Commission (FTC) took action against both Drizly and its then-CEO, James Cory Rellas, for activity around a data breach that took place at the company in 2020 — before its acquisition by Uber.The FTC alleged that Drizly and Rellas were alerted to data security problems in 2018 but failed to improve the company’s procedures before a data breach took place two years later in 2020.Uber has been expanding its alcoholic beverage selection for years, with Uber Eats looking to drive adoption of its non-restaurant offerings and boost the unit economics with higher-ticket categories

Bizjournals
Jan 16th, 2024
Uber set to close booze delivery company with Denver presence

Locally, Drizly partnered with Molson Coors and Amazon in 2017 to deliver beer to consumers in under one hour.

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