Booze forecast for Boston ’burbs: Drizly

A local alcohol delivery startup is making a major Boston-area expansion, adding nine new towns to its delivery area.

"We're taking the full dive into the Boston suburbs," said Nick Rellas, CEO of Drizly.

Drizly will begin delivering alcohol today to towns including Quincy, Newton and Arlington, the latest in the Boston company's nationwide expansion.

Calling itself the "Amazon of alcohol," Drizly's app and website connects users with local liquor stores, who then deliver the alcohol.

Founded at Boston College, the company has expanded quickly.

Drizly has started service in Chicago, Washington, Los Angeles, Denver and New York City this year, and is preparing for more cities soon.

"You're going to see us in 12 to 14 cities total by the end of this year," Rellas said.

Still, Drizly's suburban service will work slightly differently. Because liquor stores are more spread out, users can expect deliveries within 90 minutes, rather than 40. The minimum order has also been raised, to help the economics make sense for the liquor stores.

"There are a lot of challenges to being in the suburbs," Rellas said. "If you're in Lexington, there's a good chance you could be as much as 10 miles from our store."

Rellas said pilot tests in Wellesley, Weston and Wayland showed an appetite for on-demand alcohol delivery, though many other on-demand services such as Uber and Instacart, which delivers groceries, have had trouble expanding into the less-dense suburbs.

"It's a different type of store, it's a different type of selection, it's a different type of consumer," Rellas said.

Though alcohol and other so-called vices can scare off investors, Drizly has raised close to $5 million in venture financing.

Walt Doyle, one of Drizly's investors, said the company stands out by getting the OK from regulators before starting service in an area. The Massachusetts Alcoholic Beverages Control Commission has given the green light to Drizly, largely because of its identification verification software that the company says ensures the buyer is over 21. Rellas said the company has had no issues or incidents, and added they will not deliver to college campuses.

"We're looking at a white space in the industry that is completely compliant," Doyle said. "From a consumer perspective, I think we make the experience safer."

Other companies, including Uber and AirBnB, have been criticized for their tendency to enter markets without regulatory approval.

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