Uber Technologies Inc. agreed to acquire Drizly Inc., which makes an on-demand alcohol delivery app, for $1.1 billion, beating out at least two rival companies that held talks with the startup.
The deal is Uber’s biggest since July when it bought Postmates, a food delivery app. The Drizly purchase primarily consists of Uber stock, with less than 10% in cash, the companies said in a statement Tuesday. The acquisition excludes Drizly’s cannabis delivery arm, an Uber spokesman said. Uber shares climbed about 7%.
Before cinching the deal, Drizly held sale talks with DoorDash Inc., the largest food delivery app in the U.S., and GoPuff, the SoftBank-backed delivery company that recently acquired BevMo!, said people familiar with the discussions. Neither reached an agreement, said the people, who asked not to be identified because the discussions were private. The companies either declined to comment or didn’t respond to requests for comment about the discussions.