Beer Delivery App Company Drizly Set for Major Expansion

After receiving a deluge of funding to the tune of $13 million, Drizly plans to double both its market and employee base by the end of 2016. Currently, the company is in 15 cities, and employs around 40 people.

“Our latest round of funding really just enables us to continue to grow at a rapid rate," said Drizly CEO and co-founder Nick Rellas from his Boston headquarters. "This new capital will allow us to double our team and the markets we serve by the end of next year and in addition we'll look for more marketing and product development opportunities.” 

Drizly, like its creators, is young. The company was founded in 2013 by Rellas and friend Nick Robinson, both 25, who were surprised at the comparative lack of technological integration in the retailing of beer, wine and spirits.

The first hurdle they ran into was figuring out how to operate legally. “Because the alcohol industry is heavily regulated and laws vary from state to state, the most difficult part of our business is making sure we are compliant in each state we do business in. We have counsel in every state we have a presence to help us navigate the regulations so that we are providing alcohol delivery in a compliant and safe way,” Rellas said. To this end, Drizly also equips delivery drivers with a specially designed ID verification app.

Legal counsel may constitute a significant chunk of Drizly’s new hires and capital, but an even heavier emphasis will be placed on marketing, specifically combatting the notion that Drizly is out to bite business from traditional liquor vendors. According to Rellas, it’s there to help: “The misconception is that Drizly is coming in and taking business away from local retailers, but that’s not the case. Drizly partners with local liquor retailer to provide them an avenue for e-commerce, a way to expand their business.”

Getting on the good side of the industry’s old guard will be key to Drizly’s success, as evidenced by its recent partnership with the Wine and Spirits Wholesalers of America (WSWA), which also contributed in the most recent round of investment. The WSWA’s industry connections should also help to legitimize Drizly in the eyes of skeptics.

Despite its youth, Drizly’s strategy has placed it well ahead of the competition, and Rellas has defied expectations of what a sub-30 CEO can accomplish. “I think the past 18 months have really prepared us for the growth and excitement we expect to see in the next year… The support we have for our business coupled with the team we have in place will be a huge driver of the scale you see from Drizly.”