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Drizly connects customers with nearby liquor stores through an online platform for ordering beer, wine, and spirits with delivery to the customer’s door. It runs as a marketplace and does not stock inventory; orders are placed online and routed to a local partner store, which completes the delivery. Revenue comes from fees charged to partner stores for using the platform plus a delivery fee added to the customer’s order. The service is differentiated by its focus on alcohol delivery via a dense network of local stores and a promise of fast delivery, often within an hour, fulfilling last-minute or convenience-driven needs. The goal is to make alcohol shopping and home delivery easy and quick by linking customers to nearby stores through a digital platform.
Industries
Consumer Software
Enterprise Software
Company Size
51-200
Company Stage
Acquired
Total Funding
$122.1M
Headquarters
Boston, Massachusetts
Founded
2012
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Total Funding
$122.1M
Below
Industry Average
Funded Over
9 Rounds
Career coaching
Equity
Flexible PTO
Charitable giving
Drizly orders
Lifestyle stipend
Affinity groups
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Parental leave
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How Tovala banks on subscriptions and incrementality - But not ads - to profit from its oven. Thursday, June 25th, 2026 - 3:51 pm Smart TVs, refrigerators and other home appliances may pester you with marketing and perhaps even check your presence in the room using a front-facing camera. But at least the hardware is cheap! That's the promise. Some companies, like the TV manufacturing startup Telly, take it to the logical extreme by offering free televisions in exchange for agreeing to data collection and advertising. Although Telly remains in a years-long pre-order phase. Another startup taking a different approach to the same theory is Tovala, which was founded in 2015 and combines a standalone countertop oven appliance with a weekly meal kit subscription. When asked whether the company plans to enable any retail or brand marketing opportunities, CMO Scott Braun said, "We haven't done anything there from the revenue-generating side, and I'm not sure we will." Likelier, he added, the company would pursue relevant food or condiment-type brand integrations to include their products in meal kits. "The team is toying with a couple partnerships" along those lines. Braun joined Tovala only a month ago, following stints as the marketing leader at the alcohol delivery app Drizly (acquired by Uber) and, most recently, at SimpliSafe. The SimpliSafe business model is particularly apt for the current role, he said, since it makes home security hardware, which likewise was sold at cost or even a loss but made up for in long-term customer acquisition revenue via subscriptions. The Tovala oven would retail as a standalone product for more than $300, Braun said. As of this writing, it sells on Amazon for $350. That's because it is a functional countertop toaster oven. One doesn't need the meal kit subscriptions for it to work. On the Tovala site, though, with the meal kit deliveries bundled in (starting with six weeks' worth of meals over the first six months), the oven goes for $69. Tovala's ability to target and acquire the right customers - those who are going to reliably order meal kits for potentially years to come - is the company's lifeblood. For that reason, he said, the startup is a rigorous tester of marketing channels, with incrementality studies running constantly on old channels like branded search and new formats like podcast ads. The company also allows customers to scan items from a grocery store and use the SKU info to set up a preset cook. Like for a particular type of frozen pizza or if someone recreates a Tovala meal recipe they received with grocery store equivalents (since the oven can steam, broil and bake in particular sequences). Right now, that's just a customer experience benefit. But the advertising and attribution temptation is right there, hanging like an apple in the Garden of Eden. Braun said they were not pursuing these right now. But there are marketing integrations the company will pursue, he said. For instance, there are theoretical partnerships just from the fact of Tovala having a subscription revenue stream. Meal delivery services like Instacart or Uber Eats, home office or education services (to include easy and quick lunches), retail memberships, wellness services and other types of subscription-based businesses could be bundled in interesting ways. "Lots of different partnerships could make more or less sense for us to sync up with," Braun said. "It wouldn't be hard to think of some great fits." Tagged in:
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.”
Drizly will lay off 168 employees between April and September, according to BBJ.
Drizly had already laid off 100 employees the previous year, with some of its features integrated into Uber Eats.
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
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Industries
Consumer Software
Enterprise Software
Company Size
51-200
Company Stage
Acquired
Total Funding
$122.1M
Headquarters
Boston, Massachusetts
Founded
2012
Find jobs on Simplify and start your career today