Uber said Tuesday it was acquiring the startup Drizly, specializing in delivery of beer, wine and spirits, for some $1.1 billion and would integrate it with its Uber Eats service.

The move gives Uber a broader array for its fast-growing food delivery service which has helped the San Francisco firm cope with a steep decline in ridesharing.

The two firms said Drizly, which operates in some 1,400 US municipalities and one Canadian province, would become a wholly owned subsidiary of Uber and that its services would be available via Uber Eats as well as the separate Drizly app.

Uber Eats will be able to offer more delivery of beer, wine and spirits with the planned $1.1 billion acquisition of delivery startup Drizly
Uber Eats will be able to offer more delivery of beer, wine and spirits with the planned $1.1 billion acquisition of delivery startup Drizly AFP / EVA HAMBACH

"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," Uber chief executive Dara Khosrowshahi said in a statement.

"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."

Drizly co-founder and CEO Cory Rellas said: "We are thrilled to join a world-class Uber team whose platform will accelerate Drizly on its mission to be there when it matters -- committed to life's moments and the people who create them."

Uber said it expects 90 percent of the transaction, which remains subject to regulatory approval, will be in shares with the remainder in cash.

Uber