A Small Idea to a Billion Dollar Business

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Have you ever been in a situation where you need alcohol 🥴 but it's too late to go to the store? Imagine having it delivered to your door in less than an hour.

That's exactly what Drizly set out to make happen. What began as a simple solution to a late-night problem has become a multi-million-dollar business 💰

But is there no competitor for Drizly?
How did it overcome its competitors, if there are any?

Let's see!

Drizly, founded in 2012 by Nick Rellas, Justin Robinson, and Spencer Frazier, started as a solution to a problem - the limited availability of alcohol for immediate delivery.

The idea came to co-founder Nick Rellas after he could not buy alcohol during late hours. This frustration led him to create a platform that would allow you to order alcohol from local liquor stores and have it delivered right to your door conveniently, within an hour.

Today, Drizly is a two-sided marketplace, connecting consumers with independent liquor stores.

Brand Strategy

Drizly's brand strategy focuses on technology, partnerships, and data-driven advertising to stand out in the alcohol delivery market. Drizly's primary goal is to make alcohol delivery easy, fast, and personalized.

• It delivers fast by partnering with local liquor stores, and that also helps Drizly attract people with a wide collection at low prices.

• Drizly also focused on improving the delivery experience by integrating data analytics to track consumer behavior and personalize things based on location-specific demand and user preferences.

This commercial says it all:

• Drizly’s integration with Uber in 2021 improved this strategy and became a one-stop service experience by combining alcohol and food deliveries.

This merger lets Uber and Drizly combine their data, creating a more convenient experience and opening doors to innovations like eco-friendly delivery options​.

Competitor Analysis

Some of Drizly's main competitors are Drink Haus and Minibar. Although all three compete with each other, they have their unique features.

» Drizly

Drizly’s competitive edge is its wide selection of alcohol sourced directly from local stores and delivered in 30-60 minutes on average.

The company’s partnerships let them run services across the U.S. and in some Canadian locations (a reach beyond competitors like Drink Haus).

This accessibility targets people seeking a quick, convenient alcohol delivery option, especially in areas where such services are harder to find.

1. Drink Haus

Drink Haus works on a different model by focusing on high-quality, handcrafted aperitifs.

Even with a limited product line, Drink Haus targets a niche market of consumers who value premium, unique beverages. The brand works with a subscription option.

That gives the brand an edge with loyal, repeat customers. However, their delivery times are longer, and their availability is limited to specific states​.

2. Minibar

Minibar focuses on corporate partnerships and charity collaborations, making it the preferred choice for business clients and philanthropists.

They have maintained a strong local focus, with delivery times as Drizly’s but limited availability depending on the customer’s location.

Their recent partnership with ReserveBar has strengthened the brand's supply chain. That allows them to sell high-quality products in bulk and at discounted rates for larger orders​.

Each competitor holds a unique position:

• Drizly wins in reach and selection, targeting the widest consumer base.

• Drink Haus captures the high-end specialty market with unique flavors and a direct-to-consumer subscription model.

• Minibar focuses on local business partnerships and socially responsible shopping. The brand resonates with people who support local and corporate clients who value convenience.

This comparative insight into Drizly and its competitors highlights how each brand addresses consumer needs, from fast, casual convenience to premium niche offerings.

Results

Drizly's results after Uber's acquisition and strategic changes in its business model and expansion efforts show growth in revenue and customer engagement. Here are some notable outcomes:

• Revenue and Sales Growth
  From February to March 2020, sales rose by 235%. Drizly's revenue remained robust, aided by the Uber acquisition, as the platform continued to dominate the North American alcohol delivery market​.

• Cross-Shopping Behavior
  Customer behavior showed that Drizly users who shop on Uber Eats spend more on both platforms. In September 2021, cross-shoppers averaged $128 monthly on Drizly versus $115 for Drizly-exclusive users.

• Geographic and Product Expansion
  Drizly now runs services in over 1,600 cities across 33 U.S. states. As it expands geographically and through partnerships with local retailers, Drizly has positioned itself as a go-to service for alcohol delivery.

Conclusion

Drizly shows how a clear market need, strong partnerships, and tech innovation can turn a simple idea into a successful brand. By solving customer pain points and going through regulations, Drizly became a leader in the alcohol delivery space. Its acquisition by Uber further expanded its reach.

It's your turn now (we will feature the best answers in our next post):

• How can a niche strategy like Drizly’s be applied to other delivery services?

• What role does data play in retaining customers, and how can other e-commerce platforms leverage it more effectively?