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Uber has decided to close down its Drizly alcohol delivery service, which it bought in 2020 for $1 billion.

An email went out to users yesterday:

Axios writes that "Drizly was always a bit of an odd match for Uber, in that it didn't hire or contract its own delivery workers. Instead, Drizly provided backend tech that let local liquor stores provide their own deliveries.

"The bigger issue, however, might have been cybersecurity. Drizly in 2020 confirmed a hack that exposed information on around 2.5 million customers.

"What it didn't say, however, was that the company had been aware of the security flaw for two years without fixing it.  That information was discovered by the Federal Trade Commission, after Uber's acquisition of Drizly, and led to an FTC order that restricted the types of customer information that Drizly could collect and retain."

KC's View:

Personally, I'll kind of miss Drizly.  I've used it a fair amount, and it seemed to work pretty well.  But if the business model doesn't work, the business model doesn't work.