On-demand alcohol delivery options Expand

By on December 22, 2021 0

Since the start of the pandemic, on-demand delivery has conquered the restaurant industry and gained traction in the grocery store. Yet faced with increased scrutiny and regulation, alcoholic beverage companies have been slower to penetrate the “bring it to me” economy.

It took eight months between Uber’s announcement of its acquisition of the Drizly on-demand alcoholic beverage delivery marketplace in February and the deal’s closing in October, and during that time DoorDash was able to add beer, wine and spirits in its market in the United States, as well as in Washington, DC, Canada and Australia. Meanwhile, Instacart also competes to meet consumers’ instant alcoholic beverage needs, as do new entrants to the on-demand delivery space such as super-fast grocery delivery service Jokr.

Read more: DoorDash adds on-demand alcohol service

Jokr Now Serves Alcohol In NYC With Its 15-Minute Delivery Service

Over the past month or so, access to on-demand beer, wine and spirits delivery has increased significantly. Last week, DoorDash announced it was adding alcoholic beverage delivery through Midwestern supermarket chains Meijer and Hy-Vee. In mid-November, Drizly said that following a successful 190-store pilot program, it partnered with 7-Eleven to deliver alcohol in 60 minutes or less to the retailer’s 1,200 stores. Proximity.

Related: On-demand alcohol delivery becomes more competitive, despite a mutually beneficial relationship

The space is growing rapidly, but so far brands and retailers selling alcohol have not been able to see success in the online marketplace of other food and beverage companies.

“The old adage: ‘if you build it, they will come’, I think we all agree that is not the reality” Devaraj southworth, CEO and co-founder of Thirstie, a company that creates e-commerce solutions for alcohol brands, told PYMNTS in an interview.

Still, he predicts that over the next five years, digital channels will generate 10% of all alcohol sales, doubling to 20% over the next 10 years. “And the reason I can say this with relative confidence, and it can be off by a few percentage points, is that in other countries like France and China, that digital penetration is between 10% and 20%.

For comparison, the 2021 Restaurant Readiness Index PYMNTS research, created in collaboration with Paytronix, notes that last spring, 32% of sales in table-service restaurants came from digital orders, as did 47% for quick-service restaurants (QSR). As an additional benchmark, the PYMNTS study “What Consumers Expect from Their Grocery Shopping Experiences”, conducted in collaboration with ACI in the world, found that 34% of consumers now buy groceries online.

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A PYMNTS survey from the first quarter of this year, which asked a balanced panel of about 2,000 American adults about their drinking habits, found that only 14% of the 1,200 who had purchased alcohol l ‘had made online for same-day delivery. . Additionally, the study found that millennials were twice as likely as the general population to take advantage of these on-demand e-commerce channels.

Yet despite this relatively low penetration, the habits are sticky. About half of those taking advantage of these options said they do so more often than before the pandemic started, and 70% said they plan to maintain these increases.



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