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 apps 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 the largest alcohol delivery platform in North America. Founded by Nick Rellas, Justin Robinson, and Spencer Frazier in 2012, Drizly is a marketplace where customers can conveniently shop for alcohol. Its robust platform connects liquor seekers to liquor providers. For such reasons, it is known as the “Amazon for liquor.”

You may wonder, how does Drizly work? Well, the concept is simple. People can order alcohol from the iOS or Android application or through their website. Then, Drizly retail partners fulfill the order, process the transaction, and execute delivery. The best part about this app is that it is available in more than 1,400 cities across the U.S. states and is fully compliant with local regulations. 

Thus, the users can get an incredible selection of beer, wine, and spirits directly from local retailers to their location. They are also known for offering competitive and transparent pricing.

Uber to Acquire Drizly 

Many people also define the business model of Drizly as similar to that of Uber. This is because, just like Uber offers on-demand cabs, Drizly provides on-demand alcohol delivery services. Thus, just as you get a taxi within a few clicks and taps on your smartphone, likewise, you can receive booze at your convenience. 

Here’s the exciting part – Drizly is not only an Uber-like service anymore. On 2nd February 2021, the San Francisco-based ride-hailing giant officially announced to acquire Boston-based Drizly in a cash-and-stock deal valued at $1.1 billion.

In a news release, Uber said it would trade more than $900 million worth of stock for Drizly.

Once the deal is finalized, which is expected to close in the first half of 2021, Drizly will become a subsidiary of Uber. Further, its services will be merged with the on-demand food delivery application “Uber Eats.”

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.

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 portfolio of Mobile Apps here.

FAQs

Read through some of the most frequently asked questions about the working of Drizly.

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.