Uber Technologies (UBER - Free Report) has decided to close its Alcohol Delivery Service, Drizly. The company had acquired Drizly three years ago. This move by the ride-hailing company is reportedly aimed at focusing on its core Uber Eats business that helps consumers get almost anything on a solitary app.
Cybersecurity-related issues too may have prompted UBER arrive at the decision of closing the above unit. We remind investors that in 2020, Drizly had confirmed a hack. The security flaw exposed information of roughly 2.5 million customers. Per Pierre-Dimitri Gore-Coty, UBER's SVP of delivery, “We're grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer."
We note that in 2021, UBER had acquired Drizly for $1.1 billion in cash and stock. Following the acquisition, Drizly’s marketplace was integrated with the Uber Eats app. A separate Drizly app was also available. Drizly currently operates across more than 1,400 cities in the United States.
Price Performance
UBER, which was recently added to the coveted S&P 500 Index, has performed well on the bourse. Shares of the company have surged 116.4% in a year, comfortably surpassing S&P 500’s 20.6% growth.
Diversification is imperative for big companies in particular to reduce risks and UBER has so far excelled in this area. Even though Uber’s primary business is ride sharing, it has diversified into food delivery and freight over time.
Zacks Rank
Currently, Uber carries a Zacks Rank #2 (Buy).
Other Key Picks
Investors interested in the same industry may also consider Lyft (LYFT - Free Report) and Akamai Technologies (AKAM - Free Report) , each presently carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lyft is being aided by growth in the ride-share market. Anticipating progress in rides to continue, management expects fourth-quarter revenues to rise mid-single digits quarter over quarter. The Zacks Consensus Estimate for LYFT’s current-year earnings has improved 52.8% over the past 60 days.
Akamai is witnessing solid net sales growth, driven by healthy demand trends in multiple end markets. Strength in segmentation products and growing demand for Web Application Firewall solutions are driving the top line in the Security Technology Group. Cost optimization initiatives are boosting the operating income.
The Zacks Consensus Estimate for AKAM’s current-year earnings has improved 0.5% over the past 60 days. Akamai's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 6.89%.
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Uber Technologies (UBER - Free Report) has decided to close its Alcohol Delivery Service, Drizly. The company had acquired Drizly three years ago. This move by the ride-hailing company is reportedly aimed at focusing on its core Uber Eats business that helps consumers get almost anything on a solitary app.
Cybersecurity-related issues too may have prompted UBER arrive at the decision of closing the above unit. We remind investors that in 2020, Drizly had confirmed a hack. The security flaw exposed information of roughly 2.5 million customers. Per Pierre-Dimitri Gore-Coty, UBER's SVP of delivery, “We're grateful to the Drizly team for their many contributions to the growth of the BevAlc delivery category as the original industry pioneer."
We note that in 2021, UBER had acquired Drizly for $1.1 billion in cash and stock. Following the acquisition, Drizly’s marketplace was integrated with the Uber Eats app. A separate Drizly app was also available. Drizly currently operates across more than 1,400 cities in the United States.
Price Performance
UBER, which was recently added to the coveted S&P 500 Index, has performed well on the bourse. Shares of the company have surged 116.4% in a year, comfortably surpassing S&P 500’s 20.6% growth.
Diversification is imperative for big companies in particular to reduce risks and UBER has so far excelled in this area. Even though Uber’s primary business is ride sharing, it has diversified into food delivery and freight over time.
Zacks Rank
Currently, Uber carries a Zacks Rank #2 (Buy).
Other Key Picks
Investors interested in the same industry may also consider Lyft (LYFT - Free Report) and Akamai Technologies (AKAM - Free Report) , each presently carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lyft is being aided by growth in the ride-share market. Anticipating progress in rides to continue, management expects fourth-quarter revenues to rise mid-single digits quarter over quarter. The Zacks Consensus Estimate for LYFT’s current-year earnings has improved 52.8% over the past 60 days.
Akamai is witnessing solid net sales growth, driven by healthy demand trends in multiple end markets. Strength in segmentation products and growing demand for Web Application Firewall solutions are driving the top line in the Security Technology Group. Cost optimization initiatives are boosting the operating income.
The Zacks Consensus Estimate for AKAM’s current-year earnings has improved 0.5% over the past 60 days. Akamai's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 6.89%.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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