MMM: Uber To Sunset Drizly; Dry January Advertising Trends

Key Takeaways:

• Uber announced that it would shut down its alcohol delivery service, Drizly, which it had acquired for ~$1.1bn nearly three years ago. Per Sensor Tower data, Drizly has struggled to drive app adoption in the post-pandemic period, exhibiting material declines in both downloads and active users since 2020

  • Per ST data, Drizly downloads peaked in 2020, registering a whopping 188% YoY increase before declining -6%, -32%, and -39% YoY in 2021, 2022, and 2023, respectively. 2023 downloads of Drizly were down more than -60% compared to 2020. Drizly MAUs have also declined materially since 2020, down an average of -23% YoY, per quarter, from 2Q21-4Q23

• In Jan’23, US ad spend across the Alcoholic Beverages category declined ~60% MoM, and is projected to fall ~50% MoM in Jan’24, based on the current rate of spend for the first two weeks of the new year. On the other hand, US ad spend increased 213% and 50% MoM in 2023, respectively, for the non-alcoholic beer and non-alcoholic liquor & spirits subcategories

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