Delivery service Drizly has grown rapidly within the highly-regulated alcohol market. Last year, its annual sales doubled, and spending in 2018 has been increasing even faster. Founded in Boston in 2012, Drizly now operates in 101 cities—up from 69 at the end of last year. Its 2018 expansion into over thirty new markets has bolstered recent sales and, as of August, monthly sales have grown more than fourfold since the start of the year.
Drizly’s platform matches customers to liquor stores that fulfill and deliver the orders. Each store sets its own purchase minimum, and Drizly charges a $5 delivery fee. More than just alcohol, Drizly offers all the extras a host might need, like cups, ice, and even a bartender. And for customers ordering at least two days in advance, there’s also a shipping option. As of August, the average Drizly order was just over $55.
Key markets drive majority of sales growth
Now partnered with over 1,000 liquor stores, Drizly has expanded its footprint into 26 states, and several of those burgeoning markets have been essential to recent growth. Places like New York and Florida have seen spending increase rapidly, and the five states where Drizly sales grew most account for 69 percent of overall year-to-date sales growth.
The most aggressive growth has been in Florida. The Sunshine State brought in less than 2 percent of Drizly’s monthly sales in January and, as of August, now accounts for 19 percent. Tampa and St. Petersburg have become major markets for Drizly, currently ranking as the third and ninth biggest cities by monthly sales, respectively.
In addition to direct rivals, like Saucey and Minibar Delivery, Drizly also faces competition from delivery giants dabbling in its niche. Currently, Instacart, DoorDash, Postmates, and Amazon Prime Now also offer on-demand booze delivery, though their alcohol business is not distinguishable from other purchases.
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