Sunday, January 20, 2019

Follow up on Regulation Lecture - Mobile Alcohol Delivery Platform


Came across this interesting article on how Eaze (cannabis) and Drizzly (alcohol) mobile delivery platforms navigated through the stringent regulation and achieved relative success so far. Key takeaways are below and more details can be found in this link: https://jilt.com/upsell/drizly-eaze-regulations/

·       Know market regulations inside and out
·       Focus on customer experience
·       Work with knowledgeable partners (In Drizzly's case, Wine & Spirits Wholesalers of America, an established distributor and also an early investor in the business has helped the business work with the regulators and expand nationally)
·       Build compliant technologies (including ID check, payment) 
·       Make data-driven decisions

3 comments:

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  2. I think perhaps the "move fast and break things" approach would work if Amazon had gone for it whole hog decades ago. At this point, Drizzly and others are taking the opposite approach: get buy-in from most likely tiers in the supply chain to block you (Wholesalers)- via public endorsements, direct investment, etc.

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  3. Great find! Adding another viewpoint, I wonder if the first major success in mobile alcohol delivery will be a startup that follows Uber and Tesla's model of "moving fast and breaking things".

    With enough consumer traction and strategic political support, it may be possible for a wine delivery service to actually change some of the stringent regulations in the space. Of course, Amazon Wines in a less direct way attempted to do something like this - with unsuccessful results. That may signal that in the wine space, adherence to versus rebellion against regulation may be the key to success.

    One of the major wine retailers may also be the one to usher in change. Whole Foods (before the Amazon acquisition) opened a wine store in NY that was shut down by the state liquor authority because it was deemed a part of the supermarket. Now that Amazon has acquired the chain, it will be interesting to see how they leverage it's licensing and scale to sell wine to the masses.

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