How Does Drizly Work? A Comprehensive Guide

Last updated on June 21st, 2024

Drizly is an innovative online alcohol delivery service that allows you to order your favorite beer, wine, and spirits from the comfort of your own home. It’s perfect for those who want to skip the trip to the store and have their beverages delivered straight to their doorstep. But how does it work?

Let’s dive into a comprehensive guide on the ins and outs of Drizly. First, you’ll need to create an account on their website or app, which is a straightforward process requiring some basic personal information. Then, you can browse through a wide selection of alcohol from local stores in your area, including options you might not find at your usual grocery store or liquor shop. The platform is user-friendly, allowing you to filter by type, brand, and price, making it easier to discover new favorites or stick to your go-to choices.

Once you’ve made your selection, simply place your order and choose a delivery time that works best for you, whether that’s the same day or scheduling for a later date. Drizly partners with local liquor stores to ensure fast and reliable deliveries, often within an hour, depending on your location and the store’s availability. They also offer tracking for your order, so you can see exactly when your delivery will arrive, adding an extra layer of convenience and peace of mind.

Whether you’re planning a party, hosting a dinner, or just relaxing at home, Drizly makes it easy to get your favorite drinks without any hassle. They also have a blog and various resources on their site to help you mix cocktails, pair drinks with meals, and stay informed about the latest trends in the beverage industry. Plus, their customer service team is readily available to assist with any questions or issues that may arise, ensuring a smooth and satisfying experience from start to finish.

Table of Contents

Drizly – A Quick Overview

Drizly is a popular online alcohol delivery service that allows customers to order a wide range of alcoholic beverages from their local liquor stores and have them delivered straight to their doorstep. Whether you’re looking for a fine wine, craft beer, or premium spirits, Drizly offers an extensive selection to suit every taste and occasion. With its user-friendly platform, detailed product descriptions, and easy-to-navigate categories, finding the perfect drink has never been easier. Fast delivery times ensure that your order arrives promptly, often within an hour, making it ideal for last-minute gatherings or spontaneous celebrations. Convenient features like order tracking and secure payment options enhance the overall experience, making Drizly a go-to choice for many people looking for a hassle-free way to purchase alcohol. Plus, the service frequently offers promotions and discounts, adding even more value to your shopping experience.

Also Read: Navigating the Future with On-Demand Delivery App Development

Uber to Acquire Drizly

In February 2021, ride-sharing giant Uber announced its plans to acquire Drizly for a whopping $1.1 billion. Drizly, known for its quick and reliable alcohol delivery service, has already made significant strides in the market. This move is expected to further cement Drizly’s position as a leader in the alcohol delivery industry and help expand its reach globally. With Uber’s extensive network and established presence in numerous cities worldwide, customers can expect even faster delivery times and more options in terms of products and store selection.

Uber’s vast logistics and delivery infrastructure will likely enhance Drizly’s operational efficiency, making it easier to scale and meet the increasing demand. This acquisition also highlights the growing popularity of online alcohol delivery services and the increasing demand for convenience in purchasing alcoholic beverages. As consumer behavior shifts towards digital and on-demand services, the synergy between Uber and Drizly could set new standards in the industry, offering a seamless and enriched customer experience. The integration of Uber’s technology and resources with Drizly’s specialized market knowledge promises to bring innovative solutions and expanded offerings to the alcohol delivery landscape.

Salient Features of Drizly

Drizly’s user-friendly interface and robust infrastructure make it a highly preferred choice for alcohol delivery. Let’s take a look at some of the key features that set Drizly apart from its competitors:

Extensive Product Selection: Drizly has an extensive range of alcoholic beverages, including beer, wine, liquor, and mixers. With numerous store partnerships, customers can choose from a vast selection of products to suit their preferences.
Quick Delivery Times: With Uber’s acquisition, customers can expect even faster delivery times through Drizly’s efficient logistics system.
Real-time Tracking: Customers can track their order in real-time through the Drizly app or website, providing convenience and transparency in the delivery process.
Convenient Payment Options: Drizly offers multiple payment options, including credit/debit cards and Apple Pay, making it easy for customers to make purchases.
Age Verification: To ensure responsible alcohol delivery, Drizly has a strict age verification process in place. Customers have to upload a valid ID for verification before placing an order.
Personalized Recommendations: The app’s algorithm recommends products based on customers’ previous orders, making it easier for them to discover new brands and products.
Customer Support: With a dedicated customer support team available 24/7, customers can reach out for assistance with any issues or concerns they may have.

Drizly Facts and Stats

In addition to its user-friendly features, Drizly has also gained popularity for its impressive numbers and statistics. Here are some interesting facts and figures about Drizly:

As of 2021, Drizly operates in over 180 markets across the United States and Canada.
With over 2,000 retail partners, Drizly offers customers access to more than 100,000 products.
In 2020 alone, Drizly saw a 350% increase in sales due to the COVID-19 pandemic’s impact on alcohol delivery services.
The average delivery time for a Drizly order is less than an hour.
In January 2021, Uber Technologies Inc. acquired Drizly for $1.1 billion, making it a subsidiary of the ride-sharing company.

How Does Drizly Work For Customers?

Now that we have covered the features and benefits of Drizly, let’s dive into how it works for customers. The process is simple:

7-step Ordering Process

Download the Drizly app or visit their website.
Create an account by providing your email address, phone number, and password.
Enter your delivery address to see which products are available in your area.
Browse through the options and add items to your cart.
At checkout, upload a valid ID for age verification purposes.
Choose a payment method and complete the transaction.
Wait for your order to arrive within the estimated delivery time.

How Does Drizly Check ID?

One unique feature of Drizly is its strict adherence to alcohol delivery laws and regulations. To ensure that customers are of legal age to purchase and consume alcohol, Drizly uses a sophisticated ID verification system.

When a customer places an order, they are required to upload a photo of their government-issued ID for age verification. The ID is then checked by Drizly’s third-party partner, who utilizes advanced technology to verify the authenticity of the ID. This process ensures that only adults of legal drinking age can make purchases on the platform.

Additionally, drivers are also trained to check IDs upon delivery to confirm that the person receiving the order is the same as the one who placed it. They are also required to wear body cameras during deliveries for added security.

Drizly’s End-User/Customer App

The Drizly app is designed to make the ordering and delivery process as convenient as possible for customers. Some of its features include:

Easy account creation: Customers can quickly create an account using their email address, phone number, and password.
Fast and secure transactions: Using the app, customers can easily pay for their orders through various payment methods such as credit or debit cards, Apple Pay, and Google Pay.
Real-time order tracking: Customers can track their orders in real-time from the moment it’s placed until they arrive at their doorstep.
Customized search options: The app allows customers to filter products by category, price range, brand, and more to help them find exactly what they’re looking for.
Personalized recommendations: Based on previous orders and preferences, the app provides personalized recommendations for customers to discover new products they may enjoy.
Customer support: The app has a dedicated customer support team available 24/7 to assist with any issues or inquiries.

How Does Drizly Work For Delivery Partners?

Apart from providing a convenient platform for customers, Drizly also offers opportunities for delivery partners to earn income. Here’s how it works:

Flexible scheduling: Delivery partners can choose their schedule and decide when they want to work.
Simple sign-up process: Interested individuals can easily apply to become a delivery partner through the Drizly website or app.
Easy navigation: The app provides turn-by-turn directions and optimized routes for deliveries, making it easier for drivers to navigate.
Vehicle requirements: Delivery partners must have a valid driver’s license, insurance, and access to a reliable vehicle (car, bike, scooter) to make deliveries.
Competitive pay: Drivers are paid based on the number of orders delivered, with the potential to earn additional tips from satisfied customers.
Safety measures: Drizly has implemented safety measures, such as mandatory ID verification for alcohol deliveries and contactless delivery options, to ensure the well-being of both delivery partners and customers.
Support resources: Delivery partners have access to support resources through the app, including a help center and customer service team.

Drizly’s Delivery Partner App

Drizly also has a dedicated app for delivery partners to manage their deliveries and earnings. Some features of the app include:

Real-time order updates: Delivery partners can receive real-time updates on orders, including any changes or cancellations.
Earnings tracking: The app allows drivers to track their earnings and tips for each delivery.
Customer support: Similar to the customer app, the delivery partner app also has access to 24/7 customer support for any issues or inquiries.
Order history: Drivers can view their past orders and earnings for reference.
Ratings and feedback: Customers have the option to rate and provide feedback on their delivery experience, allowing drivers to improve their service.

Revenue Model – How Drizly Makes Money

Drizly operates on a commission-based revenue model. This means that Drizly takes a percentage of each sale made through the platform. The exact percentage varies depending on various factors, such as location and type of product being sold.

In addition to its base commission, Drizly also offers premium services for its retail partners, including marketing and promotional opportunities. These services allow retailers to increase their visibility and sales on the platform.

1. Ordering Fees:

Drizly charges a fee on each order placed through the platform, ensuring that the service can continue to offer convenient, on-demand alcohol delivery. This fee typically ranges from 5-10% of the total purchase price, covering various operational costs and helping maintain the quality and speed of delivery that customers expect. Additionally, this fee supports the company’s ability to invest in technology upgrades, improve customer service, and expand its delivery network. By contributing to these areas, Drizly can consistently provide a seamless and efficient experience for its users, ensuring that their favorite beverages are delivered swiftly and reliably right to their doorstep.

2. Delivery Charges:

Customers also pay a delivery charge on top of the order fee, which is calculated based on distance and time. This amount goes directly to the driver who fulfills the order, incentivizing them to provide excellent service and ensuring that they are fairly compensated for their work.

3. Extra Perks:

Aside from the standard delivery fee, customers also have the option to include a tip for their driver. This is another way that Drizly encourages its users to recognize and appreciate the hard work of its drivers, who play a crucial role in making sure that orders are delivered accurately and efficiently. Additionally, customers can choose to purchase an annual subscription known as “Drizly Express,” which offers unlimited free deliveries on all orders over a certain amount. This not only saves customers money but also incentivizes them to continue using Drizly for their alcohol needs.

4. Sharing Insights:

Drizly’s business model also includes sharing data insights with its retail partners. By analyzing customer purchase behavior and trends, the company can help retailers make more informed decisions about their product offerings, promotions, and inventory management strategies. This not only benefits the retailers but also improves the overall experience for Drizly customers by ensuring that the products they want are always available.

5. Ads and Promotions:

In addition to its delivery and subscription fees, Drizly also generates revenue through targeted ads and promotions. Similar to other e-commerce platforms, the company offers retailers the option to pay for sponsored listings and featured placement on their website and app. This allows retailers to increase their exposure to potential customers, while also providing Drizly with an additional stream of income.

How Does Drizly Work With Deliveries?

Drizly partners with local retailers to fulfill its delivery orders, creating a seamless connection between customers and their favorite beverages. When a customer places an order on the Drizly platform, the retailer nearest to their location receives the notification and promptly prepares the order for delivery. This efficient system ensures that customers have access to a wide variety of products from local stores.

The company utilizes a network of contracted drivers who are responsible for picking up and delivering the orders in a timely and safe manner. These drivers undergo thorough background checks and training to ensure that they provide the highest level of service. Customers can track their orders in real time through the Drizly app, which offers detailed updates on the status of the delivery. This feature provides transparency and peace of mind, ensuring a smooth and reliable delivery experience every time. Additionally, Drizly’s customer service team is available to assist with any questions or concerns, further enhancing the overall experience for users.

How Much Does It Cost to Build a Drizly Business Model?

Building a business model similar to Drizly requires a significant investment in various components. This includes developing a robust technological infrastructure to handle high traffic, manage transactions, and ensure data security. A reliable supply chain system is essential to maintain inventory levels and efficient delivery times. Effective marketing strategies are necessary to attract and retain customers, utilizing digital marketing, social media, and traditional advertising methods. Strong partnerships with local retailers are paramount to ensure product availability and competitive pricing. Additionally, ensuring compliance with legal and regulatory requirements, such as obtaining the appropriate licenses and adhering to alcohol distribution laws, is crucial for the smooth operation and long-term success of such a business. Building customer trust through excellent service and maintaining a positive reputation in the market also play a vital role in achieving sustainability and growth. Here’s a breakdown of the potential costs involved:

Technology Development: Creating a robust, user-friendly app and website is paramount. The costs can range from $200,000 to $500,000, depending on the complexity and features incorporated. Ongoing maintenance and updates could add $100,000 to $200,000 annually.

Licensing and Compliance: Adhering to alcohol distribution laws is crucial. Securing the necessary licenses and ensuring compliance with legal requirements may cost between $50,000 and $150,000, based on the range of areas serviced.

Partnerships with Retailers: To establish strong relationships with local retailers, a dedicated partnership team is essential. Initial costs for team setup and marketing could be around $100,000 to $300,000.

Driver Network and Logistics: Building a reliable network of contracted drivers involves recruitment, background checks, and training, approximating $150,000 to $300,000. Additional costs for logistics software and operational management may be $50,000 to $100,000 annually.

Marketing and Customer Acquisition: Initially attracting and retaining customers necessitates a comprehensive marketing strategy, which could require investments of $250,000 to $500,000 in the first year.
Customer Support and Service: Establishing a responsive customer service team to handle inquiries and issues can cost between $100,000 and $200,000 annually.

How can iTechnolabs help you to build a Drizly-like app?

At iTechnolabs, we have extensive experience in developing and launching successful on-demand delivery apps tailored to meet various business needs. Our team of experts can assist you in every stage of the development process for your Drizly business model, from initial planning and design to implementation and post-launch support. We ensure that your app is not only user-friendly but also highly efficient and scalable to handle growing demands. With our comprehensive approach, we strive to deliver solutions that drive your business forward and keep you ahead of the competition.

Technology Development: Our skilled developers and designers will work with you to create a high-quality app and website that meets your specific needs. We use cutting-edge technologies and follow industry best practices to ensure a robust and user-friendly platform.

Licensing and Compliance: Adhering to legal requirements is crucial for any alcohol delivery service. We have a thorough understanding of licensing laws and compliance regulations, ensuring that your app meets all necessary standards.

Partnerships with Retailers: Our dedicated partnership team can help you establish relationships with local retailers and liquor stores to ensure a reliable supply chain for your business.

Recruitment and Training of Drivers: We can assist in the recruitment, background checks, and training of contracted drivers, helping you build a network of trustworthy and reliable delivery personnel.

Marketing Strategies: Our marketing experts can work with you to develop effective strategies for customer acquisition and retention, ensuring the success of your business in the competitive on-demand delivery market.

Are you planning to build an app like Drizly?

Partnering with iTechnolabs to build your Drizly-like app offers numerous benefits that can significantly enhance your business operations and success. Firstly, our expertise in technology development guarantees a seamless user experience. We utilize cutting-edge technology to create scalable and efficient apps and websites tailored to your specific needs, ensuring that they are robust and user-friendly.

Expert Technology Development: Our team possesses deep expertise in developing high-quality, user-friendly apps and websites, ensuring your platform is both scalable and efficient.
Regulatory Compliance: We have an in-depth understanding of the licensing laws and compliance regulations pertinent to alcohol delivery, helping your business to meet all legal standards effortlessly.
Strong Retailer Partnerships: Through our extensive network, we can help you establish and maintain reliable relationships with local retailers and liquor stores, securing a dependable supply chain.
Driver Recruitment and Training: We offer comprehensive recruitment and training services, including background checks, to build a network of dependable and professional delivery drivers.
Effective Marketing Strategies: Our marketing team will design and implement strategies for customer acquisition and retention, giving you a competitive edge in the on-demand delivery market.
Cost Efficiency: By leveraging our established processes and expertise, you can reduce development and operational costs, enabling you to allocate resources more effectively.
24/7 Support and Maintenance: iTechnolabs provides continuous support and maintenance services, ensuring that your app and website remain functional and up-to-date at all times.
Customizable Solutions: Our solutions are tailored to meet your specific business needs, offering flexibility to adapt and grow as your business evolves.

Conclusion:

At iTechnolabs, we are committed to providing comprehensive on-demand delivery solutions that drive business growth and success. Our team of experts will work closely with you to understand your unique requirements and develop customized strategies and solutions. With our expertise in technology, compliance, partnerships, recruitment, marketing, cost-efficiency, and support services, we can help your business thrive in the competitive on-demand delivery market. Contact us today to learn more about how iTechnolabs can help take your on-demand alcohol delivery business to the next level.

FAQs

Q. What is Drizly’s business model?

Drizly operates on a commission-based model, where it takes a percentage of each transaction made through its platform. This percentage varies depending on the partnership agreement with the liquor stores. Additionally, the company charges a delivery fee to customers for every order placed, which covers the cost of delivering the products directly to the customer’s doorstep. This fee can vary based on factors such as distance, delivery speed, and location. Overall, Drizly’s business model is designed to provide a convenient and efficient service while ensuring sustainable revenue for the company.

Q. How does Drizly’s monetization model work?

Drizly earns revenue through its commission-based model and delivery fees, as mentioned above. The company also offers subscription plans for liquor stores, where they pay a monthly fee to have their products listed on the platform and access other features such as data analytics and marketing services. Additionally, Drizly has partnerships with brands and retailers who pay for advertisements and promotions on the platform, generating additional revenue streams.

Q. How does Drizly check the ID of customers?

Drizly has a strict age verification process in place to ensure that only customers of legal drinking age can make purchases on their platform. When placing an order, customers are required to scan their government-issued ID through the Drizly app, and the information is verified against public databases. If the customer’s age cannot be verified or if they are under the legal drinking age, the order will not be processed. Furthermore, delivery drivers also check IDs upon delivery to confirm the customer’s identity and age.

Looking for Free Software Consultation?

Fill out our form and a software expert will contact you within 24hrs