Delivering products directly to the customers has always been a great business model, but with alcohol delivery, they took it to the next step. Now with online alcohol delivery app like Drizly, customers can order their favorite brands right at their doorstep without any issue. On the other hand, if you are drinking in your home then you won’t have to drive back home while being drunk. This approach became so popular among customers that the on-demand alcohol industry is currently at about $1 billion in the USA alone. Even in India, the government is allowing grocery delivery apps Big Basket and Grofers to deliver alcohol in some states.
Alcohol delivery apps are also called beer delivery apps and wine delivery apps. Government and public both have seen the power and efficiency of on-demand applications changing the market, now the industry is moving towards alcoholic beverages. Do you have an idea about how to build an on-demand online alcohol delivery app like Drizly? If yes then keep reading, because today we are going to share with you the history and business model of Drizly as well as discuss key factors that you shall use in your app. In addition to this, we will also discuss a few of the cost deciding factors. Welcome to the Tech Pathway blog, today we are going to share with you How to build an on-demand alcohol delivery app like Drizly.
History and business model of Drizly
The company was founded in 2012 by Nick Rellas, Justin Robinson, and Spencer Frazier, and Brett Beller in the Great Boston area. In the later years, they expanded their services to New York, Los Angeles, and Chicago. To use their app you can install it from the Play Store or the App Store and register. Once you have registered on the app, you can order your desired product. Drizly also does not have any minimum limit which means you can order anything as long as you are willing to pay the delivery charges. In addition to this, you can also pay a tip to your delivery person.
The alcohol delivery app Drizly has been around since 2012 and has faced many legalization hurdles during their journey. However, their business model allows its users to get their products without Drizly ever touching the bottle itself. Drizly works like Zomato and Uber Eats were Drizly has ties with hundreds of alcohol shops with licenses and allows them to sell on their platform. Their business model is so successful that in August 2020 the company was valued at around $120 million after it received $50 million in funding.
Drizly has so many small and big competitors. Even in Drizly control only 19% of the total market in second place, Drizly had a sales revenue of almost $12 million in the year 2017.
On-demand alcohol and beer delivery market trend
- the market for on-demand alcohol and beer delivery grew by 32.17% in the year 2017.
- According to a recent report by IBIS World, the online alcohol delivery industry only amounts to 1% of the total alcohol consumption market. Which means there are so much space and the market for new competitions to cover.
- The alcohol delivery market is $983 in the USA alone.
- The whole industry growth was about 11.16% between 2014 and 2019. However, in 2020 after quarantine, these numbers grow off the roof.
- In the year 2017 alone, the whole on-demand alcohol delivery industry saw a rise of 3% per month.
- The legalization of wine and alcohol delivery in almost all of the states might be the biggest reason behind this growth.
- If you are thinking about developing an on-demand alcohol delivery app then festivals like Holi, Diwali, and Christmas can bring even more revenue.
- The whole alcohol industry is ruled by a total of 9 big corporations including Wine.com and Drizly.com this means you can get into the market and give them competition.
- Wine.com has the largest market share of almost 20% among all of the companies followed by Drizly at 19%.
- Between 2016 and 2017 Drizly’s revenue grew by 161% and later in the year 2018 the growth was over 700% in a single year.
- In the year 2020, Drizly is available in around 180 US markets.
How to make revenue in the Alcohol delivery market
Type of on-demand applications
Drizly works as a platform for retail stores to sell their products directly to the customers and the platform takes care of the delivery. In the aggregator application model, you would only have to deliver the product to the customers and can take a small percentage per sale. In other words, in an aggregator business model, you would have to provide both platform and delivery service to both of the parties. Some of the examples of the Aggregator business model are Zomato, Amazon, and Uber Eats.
In cases when businessmen do not want to share the part of their profit every time they make a sale, dedicated applications come into play. Dedicated applications provide a platform for businessmen to sell their products. However, unlike the aggregator applications model now businesses have to take care of everything including inventory and delivery. Businesses can only rent out space to sell their product. Craigslist is one of the finest examples of dedicated applications.
You can also use the marketplace application model to monetize your alcohol delivery apps. This works like a traditional marketplace where businessmen can put their price as well as negotiate with the customer as well. Here in marketplace applications, everything needs to be taken care of by the seller himself.
Now when you are aware of types of the on-demand applications business model, it is time to discuss some of the ways you can monetize your platform.
Applications take a small percentage out of every sale that the seller makes.
Feature listing based
Companies like Amazon earn millions using feature listings where they ask sellers to pay a little more and get their products on the top. Paid sales also get to sell more so this is a win-win situation for both the seller and you.
Google ads or customized ads can be used on your application and on the on-demand website to make more money.
There are so many hurdles in the on-demand alcohol delivery market, however, if you are planning to enter the market then it’s good for you. The government is allowing big industries to enter the market and losing the laws.
Key features of an on-demand online alcohol delivery app like drizly
- Sign in
- Product search
- Order history
- Schedule delivery
- Multiple payment options
- Manage profiles
- Real-time push notification
- Order tracking
- In-app call or chat feature
- View delivery requests
- Accept or reject delivery requests
- Previous deliveries
- Change order status
- In-app map
- Check order details
- Manage the drinks category
- Manage Snacks
- Cost management system
- Check ratings and reviews
- Manage earnings
- Retail store management
- Customer management
- Product and cost management
- Push notification management
- Order management
- Payment management
- Cashbacks and reward management
Technology Stack for developing the on-demand alcohol delivery website
- For Payment – Braintree, e-wallet, net banking, Stripe, Paypal
- User location Finding – Google Places API
- Direction Finding – MapKit, Google Maps
- For Registrations – Facebook SDK, Gmail SDK
- Storage – AWS, Google, Azure, Digital Ocean
- For Analytics – Firebase, Google Analytics, Strom, Flink
- For Voice and SMS – Push.io, Twillo
The country-wise location of the development company: Depending upon the location of the company the pier development rates will be different. A company from the USA will charge you about $200 per hour whereas a company from India will only charge you about $40 per hour.
The quality of UI & UX of the app: The quality of the UI & UX is another important factor. The better UI & UX you want the more you will have to pay.
The total number of panels and features: The more features and panels you will want the more you will have to pay.
The total number of supported operating systems: IF you want your app to support both Android as well as iOS then you will have to pay accordingly.
The connectivity with the website: If you also want to design a website or connect the existing one to the app then you will have to pay for that too.
The estimated cost of your wine delivery app development will be between $5000 to $40,000.
Looking for a development company to hire
If you are looking for a software and website development company to help you with the design and development of your new on-demand application for on-demand alcohol delivery then you are exactly in the right place. Tech Pathway is India’s one of the top leading IT consultancy companies with experience of over 300+ complete projects for clients across the globe. We will be perfect for your liquor app development since we have more than enough experience with on-demand delivery apps. With the experience of our developers, you can be free about the quality of the application that you will receive. So contact us today to discuss how we are going to turn your dream of owning an on-demand online liquor store into a reality.