DoorDash, one of the largest food delivery companies in the US, has announced that it is expanding alcohol delivery in 20 new states. The expansion will also roll out in Canada and Australia over the coming days. The new plan will see DoorDash reach up to 100 million adults as it continues to ramp up its delivery business to a whole new level.
DoorDash was already delivering alcohol but demand peaked during the pandemic. As a result, the company has decided to expand its reach from just California to the rest of the US. A statement released by the company noted that customers in select markets "where it's legally permissible” can order alcohol from its large selection of drinks.
DoorDash already has a dedicated alcohol tab on its app that makes it easier for people to make the order. The feature is, however, only available to customers 21 years and older. ID verification will also be needed to order at the checkpoint and when the alcohol is finally delivered to the buyer.
In essence, DoorDash will not be able to have contactless delivery and since we are still living in a pandemic, it means customers will be required to wear masks and social distance as they receive their order. DoorDash saw a huge surge in sales and revenue during the pandemic.
As people went on mandatory lockdown and restaurants closed, food delivery became a huge part of coping with the realities of the pandemic. During this period. Several states also relaxed rules around alcohol delivery, something that allowed eateries and restaurants to ship drinks alongside food.
However, after states started to reopen and return to normality, most of these lax regulations were abolished. But it seems like DoorDash sees an opportunity here. Although there will be a lot of legal bottlenecks to overcome, there is no arguing that alcohol delivery could be a lucrative business.
Citing one study done in 2020, DoorDash noted in a statement that 56% of customers above the age of 21 were more likely to order alcohol to accompany food orders from restaurants. This creates a huge opportunity for DoorDash to increase its revenue and reach. Besides, other food delivery apps have been stepping into alcohol delivery with zeal.
UberEats, one of DoorDash's main competitors, announced the acquisition of alcohol delivery app Drizly. The deal was valued at $1.1 billion. However, the Federal Trade Commission is already looking into the deal for possible antitrust issues.
But it is believed that UberEats will have no issues finalizing the acquisition. DoorDash is hoping that by expanding its alcohol delivery service, it will be able to match up to UberEats and maintain its pandemic-era growth in the long term.
DoorDash has also noted that it is partnering with Responsibility.org to promote alcohol consumption. The food delivery service is also working with nonprofits working to end or reduce cases of drunk driving. It's not clear if the company is looking for a nationwide rollout of alcohol delivery anytime soon. But so far, getting to 20 new states is a huge milestone.