DoorDash is moving into alcohol delivery. The company has benefited from increased sales during the coronavirus pandemic. Now they will add alcohol in parts of the U.S. as it leans into sales outside of the restaurant. The company also recently debuted a feature allowing DoorDash users to bundle orders.
Where will alcohol be available on DoorDash?
The food delivery service announced that it would add alcohol in a number of high-profile states. In addition to several states – DoorDash says it will make alcohol available on its platform in Canada and Australia.
The move out of DoorDash comes as the company competes with Instacart and other delivery startups as they all enter convenience deliveries. For months, convenience stores have been gaining popularity on delivery service applications.
“Over the past year, many cities where we operate evolved their legislation in order to permit the delivery of alcohol to residents’ homes. Over that time, we worked tirelessly to build a trusted alcohol ordering and delivery experience for merchants, customers and Dashers,” said Caitlin Macnamara, Director, Alcohol Strategy & Operations at DoorDash. “We’re committed to providing new earning opportunities for merchants and Dashers, a safe, high quality experience for customers, and being a responsible leader in compliant alcohol delivery.”
A specific list of states were not included, but the expectation is that places like New York and California will be on the list to capture large metro markets like L.A. and New York City.
How will DoorDash deliver alcohol safely?
DoorDash has laid out a clear plan for how they intend to keep alcohol out of the hands of minors through the platform.
- Intense ID verification before, during, and after the transaction (more information here);
- A compliance course for Dashers that are 21 or older so they understand the process for delivering alcohol; and
- An opt-out that would allow customers to exclude themselves from receiving alcohol orders. This will also end alcohol marketing from DoorDash.
Why does DoorDash want to sell alcohol?
For the company it’s all about expanding its service range. Specifically, entering spaces where there is existing competition.
A recent Nielsen report showed alcohol is the fastest growing e-commerce vertical across all consumer packaged goods. Many retailers and restaurants on DoorDash see increased sales due to the reach and visibility of the DoorDash Marketplace. The National Restaurant Association, 56 percent of customers over the age of 21 say they would be likely to order alcoholic beverages if they were offered them as part of a food delivery order from a restaurant.
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