DoorDash provides alcohol delivery service in response to competitors

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DoorDash update

DoorDash, a market leader in American delivery applications, announced on Monday that it will launch alcohol delivery services in 20 states in the United States, as beer, wine and spirits are quickly delivered to consumers’ doorsteps as the latest on-demand battlefield.

The announcement follows similar moves by competitors such as Uber and Gopuff, which will exacerbate the growing concerns of anti-addiction organizations about the trend of rapid alcohol delivery.

Beverage market analyst IWSR stated that “Covid-19 has become” the fuse for the growth of online alcohol sales, with an increase of 80% in 2020 compared to 2019. The organization predicts that by 2024, online liquor sales will account for approximately 7%. As a percentage of total alcohol retail sales, it was approximately 3.4% at the end of last year.

DoorDash said it will ship from approximately 10,000 retailers, most of which are existing restaurant and convenience store networks. This means that, for example, customers can order food from McDonald’s, and then the driver can also serve them cocktails from another restaurant or store.

Caitlin Macnamara, DoorDash’s head of liquor sales and strategy, said in a statement: “In the past year, many cities where we operate have enacted legislation to allow liquor to be delivered to residents. At home.” “During that time, we worked tirelessly to create a trustworthy alcohol ordering and delivery experience for merchants, customers, and customers. [couriers]. “

The company said that among its wine partners is Total Wine & More, a chain of more than 200 stores in the United States. DoorDash said it will also provide alcoholic beverages to customers in Canada and Australia, thereby opening up a potential group of 100 million consumers.

This move is the latest in a series of efforts in the field of rapid delivery, with the goal of navigating a complex system of different alcohol laws in various markets across the country.

In February of this year, Uber acquired the alcohol e-commerce platform Drizly for $1.1 billion. This move has led to the participation of alcohol retailers operating in 1,200 cities in the United States, each with its own alcohol license.

A few months ago, the food delivery app Gopuff acquired the alcohol retail chain BevMo! In a $350 million transaction, it provided it with more than 185 stores, which are now used as delivery centers for Gopuff’s own network of gig drivers.

Unlike Uber and DoorDash, this approach means Gopuff owns its liquor inventory, which it claims will help achieve more reliable service and greater profits.

Gopuff added that alcohol is seen as an effective way to increase the average basket size, with more than 50% of customers buying alcohol while adding other convenience items, such as toiletries or snacks.

But the anti-addiction organization found this trend disturbing, and one of them worried that the “huge increase” in sales should be tighter controlled.

“Delivery apps that make it easier to buy large amounts of alcohol may increase alcohol problems and related health problems, including addiction,” said Emily Feinstein, chief operating officer of the Partnership for End Addiction.

“Countries should consider regulating the sale of alcohol through these channels to reduce potential harm.”

According to a research report released by Bank of America last week, analysts predict that by 2025, the total online delivery of groceries, convenience products and alcohol will reach 150 billion U.S. dollars.

Although the main players in these categories today are Walmart, Amazon, and Instacart, analysts predict that the delivery times provided by emerging fast apps are much faster—some of which promise to be delivered in as little as 15 minutes—will enable them to gain Considerable market share. time.

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