Uber Technologies, Inc. and Drizly announced that they have reached an agreement for Uber to acquire Drizly for approximately $1.1 billion in stock and cash deal expected to close in the first half of the year. The deal augments other big moves made by the ride-hailing company in the food and drink market.

Drizly is the leading on-demand alcohol marketplace in the United States, available and designed to be fully compliant with local regulations in more than 1,400 cities across a majority of US states. Drizly works with thousands of local merchants to provide consumers with an incredible selection of beer, wine, and spirits with competitive, transparent pricing.

Last year, Uber was close to acquiring GrubHub, in an attempt to widen its share in the food market. COVID-19 ushered in an unprecedented crisis, restricting businesses and nearly totally collapsing the ride-hailing aspect of Uber’s business, forcing the California-based company to reevaluate its business play.

Now the company seems to be shifting focus to food and drinks delivery, widening its market base through acquisition and partnership with vendor companies.

Last year, Uber sold off its autonomous vehicle and flying taxi divisions, signaling the company’s diminishing interest in taxis and focus on more profitable business. Uber also purchased Postmates last year for $2.5 billion as part of its push to focus more on food and delivery.

The company has also recently started making moves into on-demand grocery delivery, beginning in Latin America and Canada. Last year, as the pandemic took a toll on its ride-hailing business, Uber introduced prescription delivery to its Uber Health service, an attempt geared toward keeping its business afloat.

These moves become necessary due to its model of business and how vulnerable it has become to events of recent times.

Apart from the worries emanating from COVID-19 strains, Uber has had governments to contend with. Last year, the company narrowly escaped a ban in California, its largest market, using prop. 22, a gig worker ballot it used on Nov. 3 2020 to overcome California State’s move to shut its operation down for classifying drivers as independent contractors against the state’s law.

With these events, Uber’s acquisition of Drizly signals a shift from what the company has been known for – ride-hailing, and points to a new direction that will not only eliminate scrutiny from the authorities, but also defy growth obstacles, such as presented by human to human interaction restrictions induced by the pandemic.

The statement from the company said it will collaborate with Drizly in many ways for growth, using technology to up the ante.

After the completion of the deal, Drizly will become a wholly owned subsidiary of Uber. Drizly’s marketplace will eventually be integrated with the UberEats app, while it is run as a standalone company.

While Drizly plans to run as a standalone, the companies are teaming up to use their expertise in their respective fields to foster growth.

Drizly plans to innovate and expand independently in its fast-growing and competitive sector, while also gaining access to the advanced mobile marketplace technologies of the world’s largest food delivery and ridesharing platform.

Merchants on Drizly will be able to benefit from Uber’s best-in-class routing technology and significant consumer base. Delivery drivers will have even more ways to earn. And Uber’s rewards and subscription programs will be able to deliver even greater value to consumers with new benefits and perks on Drizly, the company said.

“Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol. Cory and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year. By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead,” said Uber CEO Dara Khosrowshahi.

Uber currently anticipates that more than 90 percent of the consideration to be paid to the Drizly stockholders in the transaction will consist of shares of Uber common stock, with the balance to be paid in cash.

With this branching into new categories like groceries, prescriptions and, now, alcohol, Uber is gradually creating an exit from ridesharing, a pandemic-proof play that will protect the company from the kinds of losses it incurred last year.

This is simply a great performance: Google’s parent company, Alphabet, made a huge statement for the digital economy, hitting $56.9 billion revenue for its 2020 fourth quarter. Advertising drove it with YouTube and Google Search the blood and spinal cord of the Google central nervous system of generating alpha.

Of course, what is also missing there is that Google devalued many ad clicks for publishers. If you were paid $1 for 1,000 views on Dec 31 2019, by Jan 1 2020, Google required you hit 2,000 views. That power and capacity to change the “ad currency” is the reason why Google could hit these numbers. 

I am nearly confident that Google did not serve more adverts on absolute volume. Rather, it cut the hands of its partners, especially publishers because of its superior positioning in the market as the super aggregator.

Yet, it is all free market – and Google should be celebrated for putting itself in this position to win.

Google rode a surge in online holiday spending to record revenue in the fourth quarter, even though it disclosed for the first time continued losses in its closely watched cloud division.

The internet titan’s earnings, released Tuesday afternoon, reflected a continuing recovery in global ad spending that took a hit in early 2020 when people paused travel plans and other purchases in response to the coronavirus pandemic.

Google parent Alphabet Inc. posted a record $56.9 billion revenue, up from $43.2 billion a year ago. The company’s advertising units pulled in $46.2 billion, up nearly 22% from a year earlier. Analysts had forecast $52.7 billion in revenue, including $42.3 billion from advertising, according to FactSet.

Alphabet’s profit also rose, to $15.7 billion, from $9.3 billion a year ago. Analysts had expected $11.9 billion.

Ruth Porat, Google’s financial chief, said the company’s search and YouTube units drove its performance in the quarter. “It was a great end to a challenging year,” she said.

Tekedia Mini-MBA will have a session on China and how businesses can do business and grow with the world’s manufacturing factory. A global strategist on China who helps multinational companies find paths in China, and get them to build and grow with China, has joined our Faculty. He will speak from Beijing,  and we hope our members will get insights and perspectives to help them THRIVE.

To those African traders learning Mandarin to help them cut-off the middlemen in China, as they import things, buying directly from factories, we hope to expand your playbooks. Henry Chan will be available to provide guidance.

Tekedia Mini-MBA continues registration; class begins Feb 8 (Monday). Learn from the best and experience a transformation on market systems. Register here.

According to Amazon Founder and CEO, Jeff Bezos, “The three big ideas at Amazon are long-term thinking, customer obsession, and a willingness to invent,”. With that mentality, he pioneered new industrial sectors and changed the ordinance of commerce. Amazon pioneered renting cloud computing infrastructure after bringing ecommerce to Americans.

To a large extent, these are orthogonal domains but he executed and operated them brilliantly. The end result: Amazon’s shares have risen 225,233% since the web retail pioneer went public in 1997!

Amazon now employs 1.1 million around the world. In the United States, it comes behind Walmart as the private sector largest employer of labour. Today, Amazon is a digital conglomerate with tentacles in ecommerce, web cloud services, robotics, logistics and voice recognition. And in these domains, it is one of the top three, if not the category-king.

Jeff Bezos is stepping down for a new boss, to take over this big ship: “I’m excited to announce that this Q3 I’ll transition to Executive Chair of the Amazon Board and Andy Jassy will become CEO. In the Exec Chair role, I intend to focus my energies and attention on new products and early initiatives. Andy is well known inside the company and has been at Amazon almost as long as I have. He will be an outstanding leader, and he has my full confidence.”

Amazon founder Jeff Bezos will relinquish his role as the retail behemoth’s chief executive this summer, passing the baton to Andy Jassy, the current chief of Amazon’s hugely profitable cloud computing division. Bezos, who in recent years had already “stepped back from much of the day-to-day business,” will take on the role of executive chairman once Jassy transitions into the CEO role. “Right now I see Amazon at its most inventive ever, making it an optimal time for this transition,” Bezos told employees in a statement reflecting on his 27 years at the helm. (INNews)

For Amazon to have picked Andy Jassy, the Board saw its future via cloud computing, and not necessarily ecommerce. The cloud computing unit of Amazon provides one of the largest margins in the digital conglomerate.

Jeff Bezos announced his departure as CEO of Amazon earlier this week, tapping Andy Jassy as his successor. Jassy, the head of Amazon Web Services and a longstanding member of the S-team — a group of Amazon’s top executives — will step into Bezos’s shoes in the third quarter of this year. Jassy has led AWS since before its launch in 2006 and he has been widely heralded for transforming Amazon into a leader in the cloud infrastructure market. Jassy being tapped as Bezos’s heir highlights “how important the cloud is becoming to our economy.”

Nations rise when pioneering entrepreneurs emerge. America has Bezos, Elon Musk, Bill Gates, etc. Nigeria needs such for the nation to rise.