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On Demand Businesses 101

Let’s raise a toast on-demand!

The on-demand economy has been catching headlines all over the world. Food, groceries, taxi, laundry, clothing, medicines – well, all these are among the basic necessities that are being ordered online by many for some time now. However, as the space gets bigger and better, start-ups are getting more creative and are attempting to stretch the on-demand area further, to include lifestyle amenities as well under its umbrella, liquor being one of them. Booze on-demand is a burgeoning industry and is surely to get a consumer thumbs up in future.

Changing Trends Necessitate Industry Transformation
Due to busier lifestyles and health consciousness, for the first time since 2001, global alcohol consumption dipped 0.7% to about 248 billion litres in 2015 from 249.7 billion litres in 2014. North America was the only exception to this trend, as many companies understood the changing consumer demand pattern and forayed into the on-demand space. In 2015, North Americans bought 33.8 billion litres of alcohol, an increase from 33.1 billion litres in 2014.

Moving ahead, it looks like alcohol on-tap is the most convenient option for the tech savvy on-demand consumer, who no longer relishes the idea of visiting the wine stores and picking up his favourite liquor. Rather, snuggling in the corner of the sofa and ordering it online seems to be an easy way. The question arises – is the rise of on-demand economy moving the consumer high up on the laziness curve, or is it just an attempt to simplify their lives. Well, that’s a separate debate, we feel! Having said that, the booze on-demand industry which has been struggling to gain regulatory acceptance till a few years ago (it is still illegal in several countries) was expected to reach $614 million in 2016, which would represent an 11.7% annual growth rate over the last five years. The industry is waiting for the confirmed numbers to appear to arrive at a conclusion.

Key Players
Saucey, a Los Angeles based company, which targets to deliver booze within 25-30 minutes, despite of its claim of “1-hour alcohol delivery” has been in news for its recent success and having received a total funding of $4.8M till now. Boston-based Drizly has also recently evolved into a marketplace that connects consumers with nearby brick-and-mortar liquor stores. The start-up has recently received an additional $2 million in venture funding, which brings its total capital raised to about $35 million. Thirstie, a New york-based on-demand booze delivery service, has been able to garner good numbers and has been sitting high on the market share. And yes, there are others too! Let’s have a look.

Strengthening Deliveries
Interestingly, all existing players in the industry promise instant delivery of alcohol, maximum being an hour, leave aside the concept of same day delivery or two-day delivery. Imagine a situation where in the middle of a party, all that we see are empty bottles of booze, while the thirst of the guests isn’t yet quenched. Instant delivery of alcohol works as the only saviour in a doomed situation like this. So, as the industry rides high on deliveries, it becomes extremely important for the players to ensure that there is no miss. Absolutely not! Tookan, with its advanced delivery management solutions, optimizes your deliveries with utmost efficiency and could let your consumers drink in peace and style. And yes, on time!

So, if you are a start-up wanting to explore the fascinating alcohol on-demand delivery segment, or even if you are already an existing player, Tookan would certainly work it out for you.

You take care of the booze. Let Tookan take care of deliveries. Sure-shot growth on the cards!

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