Written by Jackie Devlos | Bloomberg
As the fight for on-demand delivery intensifies with Uber Technologies and InstaCart, Dordash is launching a dedicated alcohol delivery service, moving to the non-food category.
Dordash will supply beer, wine and spirits through 20 states in the United States and Washington DC, Canada and Australia, as well as through the Dordash Marketplace. A new “Alcohol” tab in the Dordash app allows customers to order alcohol from grocery stores, restaurants and other local merchants.
Alcohol distribution exploded during the epidemic as Covid-1 restrictions were moved from bars and restaurants to people’s homes during the restriction period. Many state lawmakers have temporarily relaxed rules to make alcohol available for home delivery and pickup. E-commerce accounted for only 1% of U.S. alcohol sales by retailers in 2019 but is expected to grow by 7% by 2024, according to U.S. Wine & Spirits Wholesalers, an industry trade group.
Delivery giants like Durdash and Uber It’s created opportunities to capitalize on the high-margin class. According to Christopher Payne, chief operating officer of Dordash, it is also a boon for restaurants because adding alcohol can increase the value of the average order by up to 30%. “It simply came to our notice then. Customers have a wider selection, restaurants can generate more sales and dashers can earn more, ”he said.
The San Francisco-based company controlled 5 %% of the food-delivery market until August, and segments continued to grow despite the resumption of internal dining. More than 10,000 retailers will also benefit from Counted Dedicated Alcohol Operation DoubleDash, a feature that allows customers to shop from multiple stores and combine in a single order. Dordash’s move has increased competition with Uber, which bought Drizley Inc., an on-demand alcohol delivery app, for 1.1 billion in February.
Since the rules for supplying alcohol vary from city to city, the new offer will only be available in selected markets. Pierre said Dordash has stepped up its lobbying efforts alongside the restaurant industry and has seen “great attraction” because legislators were keen to help affected businesses when the epidemic closed restaurants, Payne said.
Doordash will work through courier ID verification prior to checkout and to ensure customers are 21 years of age or older, the company said in a statement.
The company has been supplying alcohol from restaurants and through its drive service, which handles orders from a merchant’s website instead of the regular Dordash Marketplace app.