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Uber completes $1.1 billion acquisition of Drizly, while cannabis marketplace Lantern is spun out

Uber completes $1.1 billion acquisition of Drizly, while cannabis marketplace Lantern is spun out

Uber Technologies completed its $1.1 billion acquisition of Boston-based alcohol delivery service Drizly on Wednesday, the firms announced, expanding Ubers reach in the last-mile delivery industry after reports that the transaction might not go as planned.

Drizly will be featured on the Uber Eats app as part of the acquisition, but it will retain a separate app and website presence. Uber Eats is a restaurant-connected service that connects customers to local restaurants, but during the epidemic it quickly expanded to alcohol, convenience, grocery, and retail products.

The Information reported in August that Uber's deal was being examined by the Federal Trade Commission to determine if it gave it too much market control. That likely delayed the sale, which the companies claimed they planned to close in the summer. Uber and Drizly did not immediately respond to a request for comment.

Drizly itself doesnt deliver alcohol, but its technology allows liquor stores in more than 1,600 cities across the country to deliver beer, wine, and spirits directly to consumers, a feat that requires compliance with varying local laws.

Cory Rellas, the ceo of Drizly, said in a press release that "weve spent the last few years building the infrastructure to bring this category online." With Ubers platform, technology, scale, and expertise, well accelerate our ambition to become the go-to place for alcohol anytime, anywhere, for any occasion.

The cash and stock transaction included about 18.7 million Uber shares, which were valued at roughly $875 million, based on the companys closing price on Tuesday.

Lantern, the company's cannabis delivery platform, has been officially spun off from Drizly after the deal has concluded. Lantern said on Wednesday that it will withdraw a $40 million investment from its former parent company.

Anissa Gardizy can be reached at Follow her on Twitter @anissagardizy8.

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