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.
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 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.
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.”
Founded | 2012 |
Founder | Justin RobinsonSpencer FrazierNick Rellas |
Headquarters | Boston, Massachusetts, United States |
Availability | Across selected cities in the United States |
Services Offered | Alcohol E-Commerce |
Industry | Retail |
Website | www.drizly.com |
Let’s discuss how Drizly works for end-users or customers.
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.
The customer or the end-user variant of the Drizly app has the following features:
Want to make a similar on-demand alcohol delivery app? Get in touch with us and start your project today!
Let’s discuss how Drizly works for delivery partners.
Let’s break down how Drizly brings in the cash in a way that’s easy to understand:
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.
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!
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.
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.
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!
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.
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.
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.
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.
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.
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.
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.
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.
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!
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Read through some of the most frequently asked questions about Drizly’s work.
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.
Drizly makes money by charging the retailers posting their products on the app with a monthly license fee.
Drizly uses an app called Mident to scan the IDs of the customers. It is a proprietary ID verification mobile app.
Khushboo Rajpal