DoorDash to launch alcohol delivery service to compete with rivals

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DoorDash has announced it will start delivering alcohol in 20 US states as the beer, wine and spirit delivery space heats up.

The announcement follows the likes of rivals Gopuff and Uber, which have both launched forays into the sector.

DoorDash has said it will deliver from around 10,000 retailers and liquor stores and intertwine the service with its food delivery arm.

This means a customer can order food from a restaurant and the DoorDash rider will be able to pick up an alcoholic drink from a separate retailer or restaurant on the way.

The move has prompted a rising resistance from anti-addiction groups over the need for rapid alcohol delivery.

According to drinks market analysts IWSR, the pandemic has acted as a “trigger” for the increase in online alcohol sales, which were up 80 per cent year-on-year in 2020.

READ MORE: Grubhub and DoorDash sued for allegedly deceiving customers

The group predicts that online alcohol sales will make up around 7 per cent of total alcohol retail, compared to 3.4 per cent at the end of last year.

“Over the past year, many cities where we operate evolved their legislation in order to permit the delivery of alcohol to residents’ homes,” DoorDash director of alcohol sales and strategy Caitlin Macnamara said in a statement.

“Over that time, we worked tirelessly to build a trusted alcohol ordering and delivery experience for merchants, customers and [couriers].”

The delivery company said it would also offer the service in Canada and Australia, potentially opening a customer base of around 100 million more consumers.

In order to be a success, DoorDash will have to navigate the liquor laws which differ from state to city.

Unlike Uber and DoorDash, rival delivery company Gopuff owns its own inventory which it claims helps it achieve a more reliable service with bigger margins.

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