On Monday, food delivery giant DoorDash announced that it’s now selling alcohol through its app. This move will help DoorDash compete with competitors like Grubhub, Shipt and Uber Eats, which already deliver alcohol in select markets.
To start, the company plans to offer wine, beer, and spirit delivery in 20 U.S. states, the District of Columbia, Australia, and Canada. This new offering will help grow DoorDash’s reach and may inspire users to order more often since they’ll be able to get drinks directly.
Customers in markets where this offering is available will use the “Alcohol” tab in the DoorDash app. There, customers will select from a variety of options available from businesses in their local market, including restaurants, grocery stores, and convenience stores.
DoorDash will check customer IDs before checkout and will rely on delivery drivers to verify the ID again before they hand off the order. For users that do not drink, the company will offer users the chance to opt-out of the alcohol tab on their app, along with alcohol-related direct marketing.
The company noted, using current Nielsen data, that its new addition has arrived in a timely manner as alcohol delivery is quickly becoming one of the most popular e-commerce offerings. COVID-19 has played a significant role in the huge uptick in demand for online orders since people stayed at home more often because of lockdown.
ABC News reported that during the lockdown, 39 states relaxed their alcohol delivery policies, and as of July, 11 states still hadn’t fully reverted to pre-lockdown delivery rules. According to the National Restaurant Association, “53% of millennials say they’d be more likely to choose a restaurant if they can get an adult beverage with their food order.”
The company forecasts that their new venture could boost its restaurant partners average order values by up to 30%. It remains to be seen whether this new expansion will have a positive impact on restaurant partners since Chicago has recently filed lawsuits against both DoorDash and Grubhub. The lawsuits claim that both delivery giants broke the law by using misleading and unfair business tactics that hurt restaurants, delivery workers, and consumers during COVID-19.
Additionally, DoorDash is launching another feature called DoubleDash, which will provide customers with the chance to add two shops into a single order and can be used to bundle alcohol.