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Businesses Transportation

Uber Shutting Down Alcohol Delivery Service Drizly (axios.com) 36

Uber is shutting down alcohol delivery service Drizly three years after the company acquired it for $1.1 billion. Axios reports: Drizly was always a bit of an odd match for Uber, in that it didn't hire or contract its own delivery workers. Instead, Drizly provided backend tech that let local liquor stores provide their own deliveries. The bigger issue, however, might have been cybersecurity. Drizly in 2020 confirmed a hack that exposed information on around 2.5 million customers.

What it didn't say, however, was that the company had been aware of the security flaw for two years without fixing it. That information was discovered by the Federal Trade Commission, after Uber's acquisition of Drizly, and led to an FTC order that restricted the types of customer information that Drizly could collect and retain.
"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," said Pierre-Dimitri Gore-Coty, Uber's SVP of delivery. "We're grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer."
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Uber Shutting Down Alcohol Delivery Service Drizly

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  • local liquor stores provide their own deliveries? that was not part of an Uber Eats or Instacart?

    Like what local store will want to pay for that vs say doing it own there own like who pizza has been for an long time.

    • It sounds like it may have represented a threat to Uber, so they bought it and then killed it. Basically they just let the business hire delivery drivers however they choose, and they just pay for the app and server infrastructure without needing to hire developers or IT staff.

      • Thanks to a complete lack of anti-trust law enforcement buying competitors and shutting them down is standard MO.
    • When I was at uni there was a local company called "Dial-a-Drink". This was back when Facebook was still new, people were still wondering what the point of Twitter was. There was no such thing as calling an Uber. There has been a market for delivering booze to people for a very long time, but the difference between takeaways and off-licences is that people can have a preference for the former while a bottle of whatever is the same no matter which shop you buy it from. It wasn't a large company because the s

  • How much of Uber's revenue is from selling your data to marketers?

    If that is restricted do divisions become unprofitable?

    • Re: (Score:3, Interesting)

      by cstacy ( 534252 )

      How much of Uber's revenue is from selling your data to marketers?

      If that is restricted do divisions become unprofitable?

      Uber has never made one penny. Since the company was founded, they have lost about $2,000,000,000 EVERY QUARTER.

      They currently have no articulable plan or path to profitability. Just an unfathomable sunk cost. Sometimes they mutter about replacing the drivers will self-driving robotic cars. Yeah right.

      • Re:Marketing Data? (Score:5, Informative)

        by Entrope ( 68843 ) on Wednesday January 17, 2024 @04:14AM (#64166221) Homepage

        Uber has never made one penny. Since the company was founded, they have lost about $2,000,000,000 EVERY QUARTER.

        Huh? In their most recent quarterly report, Uber reported [cnbc.com] $221M net income. They had higher net income the previous quarter.

        • by cstacy ( 534252 )

          Uber has never made one penny. Since the company was founded, they have lost about $2,000,000,000 EVERY QUARTER.

          Huh? In their most recent quarterly report, Uber reported [cnbc.com] $221M net income. They had higher net income the previous quarter.

          Oh! You're right: they are doing better since I last checked. This quarter they apparently have a profit of $221 MILLION. For such a large company, that's peanuts. But it is better than the same quarter last year they had a Loss of $1.2 BILLION.

          I do not know how that "profit" is accounted for with their having to service roughly $120 BILLION in accumulated debt (not counting 15 years of interest on that amount). Did they make that back yet, or is this "profit" an accounting trick?

      • This suggests the financial position isn't what you say

        https://www.macrotrends.net/st... [macrotrends.net]

  • by Somervillain ( 4719341 ) on Tuesday January 16, 2024 @09:06PM (#64165575)
    My state severely restricts alcohol sales and you can't buy it at most grocery stores. I am always amazed when I go back to where I grew up and see Vodka on sale an aisle away from corn flakes. The odd thing is that about every 10 years, we get ballot initiatives to reform the stupid laws...and the local liquor stores lobby and fearmonger and get their way, even on the ballot. As a result, a bottle of booze is very expensive where I live...enough to partially motivate me to stop drinking. When a bottle of whiskey was $25 in California, the same bottle would vary between $30 and $45, depending on which shithole mold-infested liquor store was selling it....it's a very gross experience here because there are laws saying a franchise, like a grocery store or WalMart/Target can only have a limited number of licenses in the state and the number is REALLY low.

    What infuriated me is the local shithole liquor stores banded together and ran ads when we had a referendum on expanding the number of licensing saying that it would lead to drinking and driving...yes, if you could buy wine at a grocery store, your kids will be killed...just like this family and this family (cue sad last photos of dead kids)...forget that this is legal in most of the country and they have similar fatality rates. Unfortunately, the stupid people bought it, the very sensible and conservative expansion law was barely defeated...and local retailers can charge whatever they feel like because they have no real competition.

    The laws are so stupid and vary so much, it's a minefield to set up a nice alcohol delivery service, but it is sorely needed. As anyone who has ever thrown a party that had more guests than expected can tell you, liquor delivery is a LIFESAVER. I didn't like having to keep a collection of wine and beer around "just in case" we had surprise guests that day (back before kids when my wife and I had a much more vigorous social life)

    Drizly became a popular service after I quit drinking, so I never really got to take advantage of it. I'm sad they're shutting it down, but I am not surprised given how much of a shitshow Uber was and apparently still is. I hope a superior service takes their place. It makes shitty laws we can't really change much more bearable. My team relies on Drizly to deliver booze for small team parties...beats trying to find the one standup guy who has a huge car and can stop by the store on the way in (our office is in a downtown district with expensive parking and everyone takes the subway). So I guess there's going to be a lot less booze in the office....giving me one less reason to come in more often.
    • by cstacy ( 534252 )

      In my state, the only place you can buy liquor is from a state-owned-and-operated outlet. Private sales or importation is not allowed at all.

      • Sounds like Alabama. No Sunday sales either.

    • I certainly see what you mean. But look at it a bit differently.

      In Tennessee, you could (until recently) only hold one retail liquor license and you had to be a resident of that county. This led to a proliferation of Mom & Pop liquor stores which often catered to particular tastes (cult wines, whiskey heavy, whatever). The result kept out big retailers such as Total Wine, etc. but kept the money local. These laws have been this way for many, many years. I am not commenting on the wisdom of such rules, o

  • What terrible name.

    Evokes "grizzly" ... ""dribbling" ...

    • The name describes the aftermath of getting overserved by one of their drivers: When you black out in your recliner and the drool oozes from the corner of your half-open mouth, you've become a bit "drizly".

  • Why do bars have parking lots?

    • Not everyone drinks alcohol at a bar. I prefer tonic and bitters and a twist.  And beer-nuts.
    • I can't speak to American bars but on the other side of the pond we have "pubs", which are places where you can go to just drink to excess or to have a family meal that may or may not be accompanied by a glass of wine or half a lager. It's such an old tradition that we have buildings with a bar that stretches across two rooms: one room has things like pool tables and dartboards, another with tablecloths and children running riot. Do you have places like that?

      • In the USA the English pub near really caught on but you do have bars with pool, darts, etc.
        the family meal thing never really caught on instead they are considered more a restaurant that has a large bar area. So if you are out parting with a group you might go to one of those and then after eating go to actual bar.
      • by mspohr ( 589790 )

        Unfortunately, not in the US.
        Pubs sound like a wonderful community asset.
        In the US we just have "bars" which range from "groovy" pick up places to grungy dark places that you don't really want to visit.

      • Yes, they are everywhere. Don't listen to the fools in the comments. No idea where they live but Those have been everywhere I've gone in the states. both city and rural. Northeast, southeast, Deep South. Midwest, Heartland, South West, West and even Texas. Maybe those don't exist in Wyoming or Montana? IDK never been to those two. And I guess Utah is an exception, due to the pervasive LDS church rules.
  • The service NEVER worked from the start for me. No coverage in your area, outrageous fees, orders that get cancelled after you place them because a 5th of Captain Morgan is somehow "out of stock." Not to mention the prudish municipalities that blew a gasket when they found out it existed. The one order I did successfully get was delivered a second time an hour later by a very confused delivery driver (which I got to keep for free which was pretty cool.)

    It was a good idea but it need a lot more talent on the

    • I've been using Drizly since covid and have never had such issues. Probably 95+% of my orders were ontime and correct. Sometimes something was out of stock and they would call if you wanted a replacement item. Thats the liquor stores fault not Drizly. .Im pretty sure like a bunch of other delivery services. It was just a front end to uber. Unsure if it went as far as having a back end the liquor stores used to take the orders, pack them and have them ready to go for the driver, or if the driver just went in
    • My god, a fifth of Captain, out of stock? Terrible fake rum. Are you sure the store wasn't just trying to get you to buy anything better?
  • The M&A frenzy is out of control, and it is always about looting. Buy a company, chop it up, sell it for spare parts. Buy a company, to remove it as a competitor. But a company, take its IP, hand it a pile of debt, and declare it bankrupt. From the other side, run a company in a way that makes it a ripe target, in hopes of wealth and riches. None of this has anything to do with running a healthy business - it's all short-term thinking, and is provably detrimental to both governments and individual consu

    • It really needs to be stopped. At the very least the buyer should be banned from taking loans out against the acquired company and leaving it in debt, essentially guaranteeing its death. This hurts everyone, the creditors, the employees, the physical waste from closed facilities and society in general. It is a scummy, short term, parasitical practice.

  • I used Drizly a good deal. I didn't pay them anything at all, but they served as a quick multi store inventory search. If I wanted some specific whiskey ( which I did) I could search all the local liquor stores to find out if they had it. They were all easy to get to and near other places I was going, but saved me the trouble of searching their shelves for things I didn't know if they carried or not. Also prevented me from having to speak to a store rep that would have tried steering to something I didn't
  • No idea how they were after. I only tried to use it once. No same day delivery defeats the entire purpose. There are local liquor stores now that have their own employees deliver.

    The big nationals like Instacart will list shit and then not sell it to you in my pearl clutching red state that only recently allowed sales on Sundays.

    I don't drink much but it's fucking annoying. Largely mitigated by some good local places at this point.

  • Too many states restrict liquor sales so right off the bat they were limited. Then on top of it the demand for hard liquor isn't that great, you can't run it off of just the hardcore alcoholics. People buy it, maybe, on a monthly basis at most. Beer and wine are easy to get in most states at grocery stores. As others have said here you also have liquor stores that provide their own delivery services.

    What I'd really love is if every state let you ship a few bottles legally to your home. My state is a gr

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