A new alcohol delivery start-up “Drizly” with locations in New York and Boston hopes to become “the Amazon” of alcoholic beverages using its patent pending iPhone app to facilitate on-demand alcohol delivery services. If your liquor or wine store delivers, you can contact Drizly at info@Drizly.com or firstname.lastname@example.org.
To be a Drizly retail partner, a liquor store purchases an iPad, a Drizly Driver Phone and a software license. The software directs customers to a nearby partner-retailer. Once the contact is initiated between the customer and the licensed retailer, the licensee processes the order on its iPad and the software alerts the retailer’s driver of the order delivery details. The key is a proprietary ID reader and verification system. Delivery typically takes 20 – 60 minutes and there is a $5 delivery fee. A minimum order of $20 is also required.
The New York State Liquor Authority approved the smart phone and web-based app as a third party provider to an off-premises licensee. Drizly does not have a liquor license itself. The legal issue is whether its service amounts to the sale of an alcoholic beverage and whether it participates in the proceeds of the sale. If a provider does not take an active role in every sale, the Liquor Authority declared, it will not violate the state’s Alcohol Beverage Control Law. The service operates on a monthly fee that is not based on a per transaction cost or percentage of sales. The customer’s money never passes through Drizly’s accounts.
For liquor stores who want to get into internet sales and delivery, changes must be made to the existing method of operation and transportation permits may be needed.
Working with an experienced Liquor License attorney will help you use this service.