Uber is gobbling up its competition.
The San Francisco-based tech giant inked a $1.1 billion deal to acquire the largest alcohol delivery service, Drizly, the company said on Tuesday.
Drizly delivers beer, wine and booze to consumers’ doorsteps in more than 1,400 cities, where demand for its services has soared during the pandemic, according to the companies.
The UberEats app will incorporate Drizly’s app, which has grown 300 percent year over year, Uber said. Founded in 2012, Drizly will continue to operate as a standalone app as well.
“By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” Uber CEO Dara Khosrowshahi said in a statement.
The deal is just the latest in the delivery sector as companies struggle to make money in a highly competitive field. As a publicly traded company, Uber has been especially sensitive to shareholder criticisms that its UberEats division needs to turn a profit, including by swallowing the competition.
This summer, Uber bought competitor Postmates, which delivers everything from food, groceries to clothing, and it launched a partnership with NimbleRx to delivery prescriptions. NimbleRx works with some 700 pharmacies in 34 states.
Uber’s stock is up by more than 7 percent on Tuesday morning.