Demand for delivery convenience is being met with increased supply as alcohol delivery through Instacart now reaches 40 million households. As many consumers purchase beer, wine and spirits, the availability of delivery will encourage consumers to increase spending and attract new users to the online shopping model. The delivery model will create competitive pressure on traditional brick and mortar independent convenience and liquor stores, likely causing some of these stores to close over time or adopt a similar order and delivery system.
What are the factors that will drive usage for alcohol delivery? Most US consumers continue to manage daily time pressures, sacrificing leisure time with errands and household activities. Delivery reduces the pressure and often improves consumer lifestyle as many don’t like to shop. Adult beverages including beer, wine and spirits can be cumbersome and heavy. In addition, the opportunity to break glass containers and ruin the contents can create unnecessary risk. Direct-to-door delivery gives customers back valuable time which can be spent relaxing and enjoying other leisure activities.
Purchasing adult beverages through Instacart also provides some other benefits. Searching and finding specific brands and comparison price shopping can be very easy through an online app compared with wandering the isles of a store and trying to make sense of which products are good alternatives and present strong value. Adding mixers and snacks to an order can benefit specific social occasion preparation and can be planned well in advance of events. The 30-45 minutes a person gains from the convenience can often justify the delivery costs.
For consumers who don’t own a car or truck, delivery can be a huge factor in deciding to try and use delivery. Hand carrying bags and using traditional two wheel pull behind carts can become a thing of the past. Handicapped and persons with disabilities can get their items with greater ease and avoid inconveniencing friends and family who are asked to pick up items for them.
As I See It, the availability and expansion of digital ordering and delivery systems continues to become the norm for younger consumers. Growing up using these conveniences will build frequency and loyalty to this behavior. As many Boomer and GenX consumers consider the cost to be a barrier, the use by younger consumers will create social pressure to get on board with the new trend and give services like Instacart a try. Expect more availability, competitive apps and delivery slowly cannibalizing trips to the supermarket as consumers learn to plan their purchases and become more routine and less impulsive.