Most companies these days are trying to figure out how to go from the web to mobile.
But for alcohol delivery app Drizly, the problem was the exact opposite.
“It was part necessity in terms of how we started with our technical feasibility,” says CEO Nick Rellas. “We wanted to start with something that people were getting used to, which is pressing a button and having something show up at their feet.”
Drizly just launched its e-commerce site last month after seeing the success of similar companies like grocery delivery app Instacart. “Companies like Instacart see 70% of their traffic come through the web, and we wanted to get in the mind of consumers in an Uber-like fashion,” he said.
Drizly, which has raised around $5 million in funding, partners with liquor stores in each of the seven markets it operates in, essentially serving as an order processor. The customer pays Drizly, which passes 100% of the sale to the liquor store. Drizly makes money by charging retail partners a monthly fee, which varies based on the size of the area served, the company says. Drizly’s retail partners employ the drivers that fulfill the orders. Rellas says the company has seen a significant uptick in business since launching its e-commerce site. He would not disclose sales. “We’re seeing tens of thousands of unique (visitors) come through the site every week,” he says.
The company is still figuring out how its web site is going to complement its app. So far, Rellas says people spend more time on the web site than the app, something he attributes to consumers being inclined to spend more time on their computers than their phones.
“Mobile is going to be a tool for convenience,” he says. “We’re going to make some changes to the app to get to what you want faster, whereas the web we’re hoping will be a tool for browsing, for learning, personalization and recommendations.”
Drizly’s average consumer is around 31 years of age. But given that millions of under-21 consumers own smartphones and some might try to use the app as a means of getting booze, the company has gone to great lengths to help drivers spot fake IDs.
The version of the Drizly app that drivers use lets them scan a customer’s ID to determine if it’s legitimate. If it’s fake, the driver doesn’t complete the delivery and the customer is charged with a $20 restocking fee. The company spent nearly a year developing the technology with a company called Advanced ID Detection. The app scans a bar code to determine the ID’s legitimacy. It also gives the driver a list of things to look for on the ID depending on the state, including such security features as holograms and microprint.
“We feel that combating underage drinking is as much about using technology as it is using your brain,” Rellas says.
The company has no plans to branch out into other arenas beyond alcohol, though company executives are planning on expanding to other cities across the country. The service currently is available in Austin, Boston, Chicago, Denver, Los Angeles, New York and Washington D.C.
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