Uber (NYSE:UBER) stock is in the news Tuesday after the company announced plans to shut down its Drizly alcohol delivery service.
According to Uber, the company is closing down Drizly to focus more on its Uber Eats business. This comes after it acquired the alcohol delivery service three years ago for $1.1 billion.
Pierre-Dimitri Gore-Coty, Senior Vice President of Delivery at Uber, said the following about the Drizly shutdown to Axios:
“We’re grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer.”
Why Uber Closed Dirzly
It’s worth mentioning that the shutdown of Drizly comes after it suffered a major cybersecurity attack in 2020 that affected 2.5 million customers. An investigation into this attack revealed that Drizly was aware of the security flaw for two years and didn’t fix it.
Investors will also note that the closure of Drizly doesn’t mean customers are unable to get alcohol through Uber. Uber Eats still allows customers to get both groceries and alcohol delivered.
UBER stock is down slightly as of Tuesday morning.
Investors will want to stick around for even more of the latest stock market stories today!
We are offering coverage of all the hottest stock market news investors need to know about on Tuesday! Among that is what’s happening with shares of Tesla (NASDAQ:TSLA), Stellantis (NYSE:STLA) and Vodafone (NASDAQ:VOD) stock today. You can catch up on this news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
