DoorDash Now Delivers Alcohol | US, Canada & Australia

DoorDash Expands into Alcohol Delivery

DoorDash is now offering alcohol delivery, a strategic move designed to enhance its competitive standing against companies like Uber Eats, Grubhub, Shipt, and Instacart, which already provide this service in authorized markets. The initial rollout will encompass beer, wine, and spirits across 20 U.S. states, as well as the District of Columbia, Canada, and Australia, potentially reaching over 100 million consumers.

Accessing the New Feature

Customers located within supported areas will discover a new “Alcohol” tab within the DoorDash application. This tab will allow them to explore a diverse selection of alcoholic beverages. Offerings will be sourced from restaurants, grocery stores, local retailers, and convenience stores.

Currently, DoorDash’s alcohol catalog features 30,000 distinct SKUs. However, the specific products visible to each user will be limited to those available in their particular geographic location.

Verification and Privacy Measures

Prior to completing a purchase, DoorDash will verify the age of customers. This verification process will be repeated by the delivery driver before finalizing the order.

To safeguard user privacy, the system will obscure all information on the identification document except for the photograph and date of birth.

Opt-Out Option

For individuals who do not consume alcohol, DoorDash provides an opt-out feature. This option will prevent customers from ordering alcohol and will also remove them from receiving any marketing materials or communications related to alcohol delivery.

Growth in Alcohol E-Commerce

This expansion occurs during a period of rapid growth in the alcohol e-commerce sector, as highlighted by recent Nielsen data. The Covid-19 pandemic significantly contributed to this increase in demand, with more consumers opting for online orders during lockdowns and quarantines.

Data indicates a 27% year-over-year increase in off-premise alcohol purchases during a week in April 2020, compared to the previous year.

Potential Benefits for Restaurants

According to the National Restaurant Association, 56% of adults aged 21 and over expressed interest in ordering alcoholic beverages alongside their food delivery orders, if legally permissible. DoorDash anticipates that the inclusion of alcohol could increase restaurants’ average order values by as much as 30%.

A new feature, called DoubleDash, will enable customers to consolidate orders from two different stores into a single transaction. This feature can now be utilized to combine alcohol purchases with other items.

Changes in State Regulations

The company’s ability to offer alcohol delivery is facilitated by the relaxation of state laws regarding alcohol delivery. These changes were initially implemented in response to the pandemic’s impact on local businesses and have, in many cases, been extended or made permanent.

DoorDash’s Commitment to Responsible Delivery

Caitlin Macnamara, Director, Alcohol Strategy & Operations at DoorDash, stated that the company has been diligently working to establish a secure and reliable alcohol ordering and delivery experience for all stakeholders – merchants, customers, and Dashers.

She emphasized the company’s dedication to providing earning opportunities, ensuring a safe and high-quality experience, and maintaining compliance with alcohol delivery regulations.

Looking Ahead

This expansion follows DoorDash’s recent forecast of potentially weaker Q3 results, influenced by ongoing uncertainty surrounding consumer behavior in relation to the pandemic and its potential effects on the business.