How Does Drizly Work? Everything Explained

How does Drizly work? Let’s talk! 

Online alcohol delivery sales surged in 2020 amidst the pandemic. As social distancing regulations and lockdowns were imposed worldwide in full swing, the alcohol e-commerce value grew by 42% in the United States in 2020. In fact, according to forecasts, the U.S. is expected to surpass China to become the world’s largest beverage alcohol e-commerce market by the end of 2021.

In the latest statistics, it is forecasted that the revenue in the ‘Alcoholic Drinks’ segment of the beverages E-commerce market in the United States will continue to rise steadily from 2024 to 2028, with a total increase of 3.4 billion U.S. dollars (+19.25 percent). After a decade of consecutive growth, the revenue is expected to reach a new peak of 21.06 billion U.S. dollars by 2028. Notably, the revenue of this segment has been on a continuous upward trend over recent years.

As a result, many on-demand alcohol delivery apps capitalized on this liquor fever. One such app is Drizly, which is one of the leading alcohol marketplaces. With its unique and one-of-a-kind approach, Drizly has transformed the way people buy and sell alcohol in today’s world. 

Although it started as one of the first few on-demand alcohol delivery apps, the company’s step-by-step growth strategy made it a dominant player in its space. 

If you’re a budding entrepreneur or a startup looking for some inspiration and insights into Drizly, you’re in the right place. 

This blog post will discuss everything you need to know about Drizly. So, without further ado, let’s get you the information you need. 

Drizly – A Quick Overview

Drizly is a leading alcohol delivery platform in North America, connecting consumers with a vast selection of beer, wine, and spirits from local retailers. Founded in 2012 by Nick Rellas, Justin Robinson, and Spencer Frazier, the platform has grown significantly to serve customers in numerous cities across the United States.

Drizly operates as a digital marketplace where users can easily order alcoholic beverages through its iOS or Android app or website. Once an order is placed, a local liquor store partner fulfills, processes, and delivers the order directly to the customer’s location. The platform ensures compliance with local regulations, providing a convenient and reliable service.

Uber Acquires Drizly

In a strategic move to expand its on-demand delivery services, Uber acquired Drizly in February 2021 for a valuation of $1.1 billion. This acquisition combined Drizly’s alcohol delivery expertise with Uber Eats’ food delivery platform, creating a comprehensive on-demand marketplace for both food and beverages.

Key Features of Drizly

• Extensive Selection: Offers a wide range of beer, wine, and spirits from multiple liquor stores.
• Price Comparison: Allows users to compare prices across different retailers.
• Rapid Delivery: Provides quick delivery options, often within an hour.
• National Shipping: Offers shipping services for select states where direct delivery is unavailable.
• Secure Payments: Accepts credit card payments and requires ID verification upon delivery.
• Customer Support: Provides assistance with product inquiries and order-related issues.

Salient Features of Drizly

• The platform offers the largest selection of beers, wines & spirits by shopping multiple liquor stores at once.
• Users can compare the prices of alcohol from liquor stores in their area.
• The best part about this application is that you can get a beer, wine, or liquor delivered in under 60 minutes.
• If Drizly does not deliver in your city, you can opt for 2-3 day alcohol shipping (valid for selected states in the U.S)
• You can pay with your credit card in the Drizly alcohol delivery app & show ID upon delivery or pickup.
• If you have questions about beer, wine & spirits available in your area, Drizly’s customer support team can help you.

Drizly Facts and Stats 

How Does Drizly Work For Customers? 

Let’s discuss how Drizly works for end-users or customers. 

7-step Ordering Process 

• The users register on the Drizly platform.
• The users can view all the available choices and place an order via the application.
• Customers can pay via the app or opt for Cash on Delivery. Their bill amount will include the extra delivery charges.
• The customers can also provide additional information such as “don’t ring the bell,” “hand me the order,” and so on.
• The liquor vendor will then get an alert as soon as a customer places an order. 
• The vendor will send a confirmation to the customer via the application and send a request to the nearest delivery partner.
• Upon reaching the customer’s address, the delivery partner will check the valid ID proof and hand over the order.

How Does Drizly Check ID?

Once the delivery partner reaches your address with your order, they’ll ask for a valid 21+ ID and check its validity by scanning the barcode on your license with their technology-enabled smartphone. The application does not store this information. 

If you fail to provide a valid 21+ ID, the driver will not complete your delivery. Moreover, you’ll need to pay the restocking fee, which is up to $20. Therefore, you need to be responsible and plan accordingly when placing your orders.

In case you’re not present at the delivery address at the moment, you can also add a secondary cardholder’s name and contact information. They can accept and sign on your behalf.

Drizly’s End-User/Customer App 

The customer or the end-user variant of the Drizly app has the following features:

• Registration/Log-in – You can register by linking your email or social media accounts. You’ll be able to log in with the same credentials whenever you use the app next time. 
• Liquor Listings – You can look at their comprehensive list of liquor and choose the ones you want. You can further refine your search by adding your location and the type of alcohol you need. 
• Multiple Payment Options – The application has an easy check-out process. It includes multiple payment options such as Debit Card, Credit Card, Net Banking, E-wallets, and COD.
• Push Notifications – You receive notifications related to your orders, payments, and other important alerts.
• GPS Tracking – You can track your order and the ETA.
• Feedback and Review – This feature allows you to give feedback and rating. You can provide ratings to each delivery partner and the app as a whole. 

Want to make a similar on-demand alcohol delivery app? Get in touch with us and start your project today!

How Does Drizly Work For Delivery Partners? 

Let’s discuss how Drizly works for delivery partners.

The 7-step Delivery Process

• The nearest delivery partner will receive a notification from the vendor.
• They can accept/decline the request based on their availability and proximity to the liquor vendor.
• If unavailable, the next nearest delivery partner will be notified.
• The delivery partner will then shop for the liquor items and deliver them to the customer’s location.
• They will ask for valid ID proof and scan it through their application.
• In the case of COD, they will collect the cash and complete the transaction. 
• The delivery partner can ask the customer to provide feedback or rating.

Drizly’s Delivery Partner App 

• Registration/Log-in – delivery partners can register via their email and social media accounts and use the same credentials to log in every time.
• Accepting and Denying requests – delivery partners have the flexibility to accept and decline requests within a limited time frame. It can be as per their availability, schedule, and proximity of the household or vendor. 

• Customer’s Information and Order Details – Upon confirmation, the delivery partner receives the customer’s complete information. This includes the customer’s address, contact information, items ordered, the total amount paid, and so on.
• GPS Tracking and Status of Delivery – The navigation feature allows the driver to reach the customer’s exact location. He can also change the status of delivery to En route, Arrived, Delivered, etc. 

Revenue Model – How Drizly Makes Money

Let’s break down how Drizly brings in the cash in a way that’s easy to understand:

1. Ordering Fees:

Drizly partners with local liquor stores and retailers. When you place an order through Drizly, these stores pay a small fee to be featured on the platform. It’s like a commission for connecting you with your favorite drinks.

2. Delivery Charges:

Sometimes, you might see a delivery fee when you order through Drizly. This fee helps cover the cost of bringing your drinks straight to your door. After all, convenience is priceless!

3. Extra Perks:

Drizly offers cool extras like faster delivery options or exclusive deals. Sometimes, you might pay a little extra for these perks, but hey, it’s worth it for the convenience and savings.

4. Sharing Insights:

Drizly gathers information about what people like to drink and when they like to drink it. This data helps liquor brands and stores make smarter decisions. They might pay Drizly for these insights to improve their offerings.

5. Ads and Promotions:

Ever notice ads for specific drinks or deals while browsing Drizly? Liquor brands and stores pay to have their products featured. It’s like seeing a billboard in your favorite store, but online!

How Does Drizly Work With Deliveries?

Deliveries are expected to be delivered within 60 minutes, but this is not guaranteed. Factors such as traffic, weather, store staffing, etc., can affect the delivery time. Therefore, it is recommended that you schedule the order in advance of any events or office parties.

Order Placement: Customers browse a wide selection of beer, wine, and spirits available on the Drizly app or website.

Store Selection: After selecting their items, customers choose from participating local liquor stores listed on Drizly.

Order Processing: Once the order is placed and payment is made through the app, Drizly sends the order details to the selected liquor store.

Delivery Fulfillment: The liquor store prepares the order and dispatches a driver to deliver it to the customer’s specified location.

Delivery: The driver delivers the order directly to the customer, who must provide proof of legal drinking age upon receipt.

Service Fees: Drizly may charge a delivery fee, which can vary based on location and order size. Customers can also tip the driver through the app.

Technology Behind Drizly

App Features

Drizly’s app is designed for ease of use, featuring intuitive navigation, detailed product descriptions, and secure payment options. The app also offers personalized recommendations based on browsing and purchase history.

Backend Infrastructure

The technology that powers Drizly includes sophisticated algorithms for inventory management, order routing, and delivery logistics. This robust backend infrastructure ensures that the platform runs smoothly and efficiently.

Drizly’s Business Model

Partnership with Retailers

Drizly’s success hinges on its partnerships with local liquor stores. By collaborating with these retailers, Drizly provides them with a digital storefront and access to a broader customer base. This symbiotic relationship helps local businesses thrive while enhancing the customer experience.

Revenue Streams

Drizly generates revenue through a combination of retailer fees, delivery charges, and service fees. Retailers pay Drizly for the platform’s technology and marketing services, while customers might incur delivery fees based on their location and order size.

Drizly in the Pandemic Era

Surge in Demand

The COVID-19 pandemic led to a significant increase in demand for alcohol delivery services. Drizly experienced a surge in orders as consumers sought safe and convenient ways to purchase alcohol without leaving their homes.

Safety Measures

In response to the pandemic, Drizly implemented safety measures such as contactless delivery and enhanced hygiene protocols. These measures helped protect both customers and delivery personnel.

Customer Benefits

Convenience and Time-Saving

One of the primary advantages of Drizly is the convenience it offers. Customers can order their favorite alcoholic beverages from the comfort of their homes, saving time and effort. The efficient delivery service ensures that orders are received quickly, often within an hour.

Wide Range of Products

Drizly boasts an extensive product catalog, featuring thousands of options. Whether customers are looking for popular brands or rare finds, Drizly’s comprehensive selection ensures that there’s something for everyone.

Competitive Pricing

Drizly often matches or even undercuts the prices found in physical stores. By offering competitive pricing, coupled with the convenience of delivery, Drizly provides significant value to its customers.

Retailer Benefits

Increased Sales Opportunities

Partnering with Drizly allows local liquor stores to tap into a wider customer base. The platform’s marketing and technology services help retailers reach new customers and increase sales.

Inventory Management Tools

Drizly provides retailers with advanced inventory management tools, allowing them to update their stock in real-time. This integration helps prevent stockouts and ensures customers have access to up-to-date product information.

Regulatory Compliance

Age Verification

To comply with legal requirements, Drizly has robust age verification processes in place. Customers must provide valid ID upon delivery, ensuring that alcohol is only sold to those who are legally permitted to purchase it.

Local Laws and Regulations

Drizly adheres to all local laws and regulations regarding the sale and delivery of alcohol. By working closely with retailers and regulatory bodies, Drizly ensures compliance and promotes responsible consumption.

Future of Drizly

Market Trends

As the trend of online shopping continues to grow, the demand for services like Drizly is expected to rise. The company is well-positioned to capitalize on this trend and expand its market presence.

Potential Expansion

Drizly is exploring opportunities for international expansion and diversifying its product offerings. By continually innovating and adapting to market trends, Drizly aims to maintain its leadership in the alcohol delivery industry.

Conclusion 

And that’s a wrap! We’ve covered everything you need to know about “how does Drizly work?” including the app versions. 

If you’re looking to make a similar on-demand alcohol delivery app, we have solutions for that, too! Get in touch with us and get started with a world-class project today! 

Our applications are thoughtfully designed by keeping all your requirements in mind. By offering a great User Experience and User Interface, we ensure that your end-users love your application. 

Do not forget to check out our mobile app portfolio here.

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FAQs

Read through some of the most frequently asked questions about Drizly’s work.

Q. What is Drizly’s business model?

Drizly’s business model is based on offering an exclusive range of alcoholic drinks at affordable prices. It’s delivery management ensures delivery in 20-60 minutes.

Q. How does Drizly’s monetization model work?

Drizly makes money by charging the retailers posting their products on the app with a monthly license fee.

Q. How does Drizly check ID of customers?

Drizly uses an app called Mident to scan the IDs of the customers. It is a proprietary ID verification mobile app.