DoorDash Gets Into Alcohol Delivery Market

DoorDash to Deliver Alcohol in 20 States

DoorDash (DASH) is getting into the alcohol delivery market as competition with Uber (UBER) heats up. On Monday DoorDash announced customers can order alcohol via its app in 20 states in the US, the District of Columbia, Canada, and Australia. The service will reach over 100 million customers across the globe.

DoorDash is expanding into alcohol as a way to increase usage of its app and boost the average order value. According to the company’s leadership, wine, spirits, and beer can increase average order values by 30%. The new feature also helps restaurants sell more and helps delivery people make more money.

Demand for Alcohol Delivery Increases

DoorDash’s decision to add alcohol comes as competition in this area is heating up. Demand for wine and beer deliveries exploded during the pandemic and remains high today. In 2019 ecommerce accounted for 1% of alcohol sales by retailers in the US. Analysts project that by 2024 that will be up to 7%. DoorDash is not alone as it tries to gain a piece of this growing market. For example, in February 2021, Uber spent $1.1 billion to acquire Drizly, a alcohol-delivery startup.

This is not DoorDash’s first foray into delivering wine and spirits for restaurants. It has delivered alcohol through DoorDash Drive, which delivers orders placed on restaurants’ websites. However, this will be the first time customers can order directly from the DoorDash app.

DoorDash Lobbies Lawmakers

Customers 21 years of age or older can scroll through DoorDash’s alcohol tab to order a selection of wine, beer, and cocktails from one of its 10,000 partners which include restaurants, grocery stores, and convenience stores. The buyer’s ID will be checked in the app and when the alcohol is delivered. The service is only available in select markets since laws around delivery of alcohol differ between locations. DoorDash has joined the restaurant industry in lobbying for help in easing restrictions.

DoorDash’s entrance into alcohol delivery proves that many pandemic trends are here to stay. It will be interesting to see how the market evolves and what impact DoorDash will have.

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