You might be wondering, what is Drizly? Have you ever imagined that there will be an on-demand app for getting alcohol delivered to their doorstep as and when required? Drizzly is an amazing example of on-demand liquor delivery app that is based in Boston and now covers some major countries across the world.
The concept came into existence in 2012 when the app market revolution was at its initial stage and no one has ever imagined that an app like Drizzly will ever gain so much recognition that it will hold the second largest share among all on-demand alcohol delivery providers.
Currently, the app covers more than 3000 liquor stores all across the USA and Canada offering various different types of alcohols and spirits. Moreover, the alcohol beverage industry is also expected to reach $ 1684 billion till 2025 with a CAGR of 2% but the growth is expected to be more exponential in the coming years. So, if you are planning to launch a similar concept for your target audience, this is a great time to enter online alcohol delivery services. This blog will further add to your knowledge in understanding the core features and functionalities for an on-demand alcohol delivery app along with its business model and revenue generation techniques.
A Brief Overview of Drizly’s Business Model
Drizly allows users to shop for their alcohol requirements by offering an extensive range of alcohols including, wines, bears, whiskeys, rums as well as many other non-alcoholic dinks and beverages. Drizly has a tie-up with more than 3000 liquor stores including Los Angeles, New York, Miami, Chicago, California, San Francisco, and many other parts of entire USA.
When a user places an order for alcohol, the order is routed to the closest alcohol store that is registered with Drizly’s network. The delivery app development company has incorporated many exciting features to get your favorite alcohol delivered to your doorstep. The alcohol store quickly accepts the order and delivers it on the mentioned address to ensure timely doorstep delivery within an hour. In case, a particular liquor is not available with that nearest alcohol store, the order gets transferred to the next nearest available liquor store for delivering it to the customer. You are informed through notification that your order has been dispatched and you can track it in real-time using the app.
This is how Drizly simply acts as a mediator between the alcohol consumers and sellers. It uses the best technology to keep entire process streamlined and manageable. And this is how, Drizly has successfully managed to increase its userbase by offering convenient and flexible service to access desired alcohol for any special occasion or for any regular mundane.
Funding for Drizly
This on-demand alcohol delivery giant has raised significant amount of funding through various different rounds of funding inviting worldwide investors. Till now, the company has successfully collected $ 69.6 million from different leading investors and the latest round of funding fetched it $ 34.5 million that was collected by a group of 17 investors. These funds are used intuitively towards improvement of its entire digital infrastructure and providing latest updates in the app to offer unmatched user experience through the app. The company has a constant focus on increasing the number of alcohol stores from different geographical regions in order to assure its expansion. Partnering with maximum number of alcohol stores and enhancing its user experience are the two most prioritized areas which has led to the overall success of this on-demand alcohol supplier.
The Drizly Business Model
Drizly follows a well-planed strategy to perform its online alcohol delivery services with value added features and functionalities. The company neither owns any alcohol store nor does it have any delivery fleet of its own. The Drizly business model includes directing all the online orders to their respective (nearest) alcohol stores and assuring timely delivery by them. It charges a certain monthly commission on its partner stores. The company also charges an additional delivery fee of $ 5 that is directly transferred to the respective alcohol store. The company also has its own age verification framework that can be offered to other companies for monetization purpose. This is how it proudly claims to be the best tech intermediary in the world.
The success factor for such type of business is to partner maximum alcohol stores to ensure availability different range of alcohols that can be ordered by users. Moreover, the pick and drop app development company has utilized all its experience to deliver exceptional user experience to order alcohol through Drizly. This makes the app worth enough to select among different liquor brands available and allowing users to access online liquor in the shortest time.
Drizly also conducts a thorough quality check for the suppliers to ensure whether standards are maintained for certain parameters like storage, pricing, distribution etc. Once, the check is conducted successfully, that particular store is integrated with the app and is allowed to accept orders on behalf of Drizly. It also sells a zip code subscription for stores to make them a preferred alcohol provider in a specific area.
Legal Requirements
As you are going to deal with liquor, you also need to adhere to some legal rules and regulations that apply to alcohol selling. Alcohol delivery market comes with its own set of legal requirements. For an instance, in US, the alcohol distribution works in a three-tier system that is regulated at all levels. Bars and restaurants cannot directly purchase these alcohols from the manufacturer, in fact, they have to approach authorized distributors to buy stocks for them. The same rule applies to the alcohol consumers also, they have to approach dealers only for alcohol consumption.
However, launching an app like Drizly simply means hiring the best delivery app development company and providing a platform to get desired alcohol at your doorstep. Drizly doesn’t hold a possession of any alcohol store nor does it offer delivery on its own. The company also doesn’t set any margins on the individual sales and manages efficiently to act as a bridge between alcohol consumers and suppliers.
End Note
We hope that you must have got quick insights into this online alcohol delivery service that can yield unexpected returns if you approach it in a strategic way. Launching an app like Drizly will surely expose you to explore seamless opportunities to get ever-increasing returns on your unique concept. Just follow your instincts and get started with the initial research work on the on-demand alcohol delivery market in your region and get the best Android app development company hired to build an app for you.
