Good morning, here’s your weekly dose of what happened in the software and e-commerce space last week:
Uber axes Drizly: The alcohol delivery service that fueled countless home happy hours during the pandemic, is calling it quits. Uber, which acquired Drizly in 2021 for $1.1 billion, decided that it will shut down the standalone app by the end of March, Axios reports. Uber says it wants to focus on its core Uber Eats platform, which already has the ability to deliver alcohol in over 25 countries. Key takeaway: Uber's pandemic gamble on dedicated alcohol delivery didn't quite pay off. Now, they're streamlining operations and betting on a one-stop shop for all your delivery needs.
Canva share sale: Online design platform Canva is nearing a $1.5 billion share sale that would maintain its $26 billion valuation, as reported by Bloomberg. The sale, facilitated by Goldman Sachs, involves existing investors, including current and former employees, but won't raise new capital for the company. This move comes as Canva blew past its revenue target, hitting US$2 billion, which the company is attributing to the demand for its new AI features. Canva's user base has traditionally skewered towards smaller businesses and Gen Z, but the company has recently made strides in attracting larger enterprises. Clients like FedEx, Starbucks, and Zoom Video Communications are now using Canva's platform.
AI game is getting crowded: At the World Economic Forum, the French AI startup Mistral became a focal point in discussions among political and business leaders, per Financial Times. Recognized for its exceptional AI model, Mistral is now seen as a serious competitor to industry giants like OpenAI and Google. Despite being only nine months old, Mistral has impressed top tech executives with its capabilities, challenging the notion that the generative AI market is a two-horse race. Mistral's rise signifies a shift in the AI landscape, suggesting that new entrants can still capture a significant market share as AI development costs decrease. Valued at €2 billion after a recent €400 million funding round, Mistral, known for its large language models used in generative AI products like chatbots, is now competing with well-funded rivals, including the $86 billion valued OpenAI.