Drizly, the largest on-demand alcohol delivery service in America, will reportedly shut down after a decision by parent company Uber, according to a report yesterday from Axios.
This move comes only three years after Uber bought the alcohol tech company for $1.1 billion.
Part of the original reasoning behind this purchase was for the delivery company’s customer analytics capabilities. However, the company’s collection of consumer data also presented an issue when Drizly confirmed in 2020 that a hack had exposed the info of around 2.5 million customers.
Compounding matters, and leading to an investigation from the Federal Trade Commission, Drizly reportedly knew of the security issues for years without addressing the flaw. As a result, the FTC limited what kind of information Drizly could collect and maintain from its users.
A representative from Uber told Axios that the parent company will focus now on growing its own Uber Eats app, including deliveries of alcohol.