Food delivery giants Swiggy, BigBasket, and Zomato may soon start delivering low-alcohol beverages like beer, wine, and liqueurs
Several states, including New Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala, are considering pilot projects for this initiative, as reported by the Economic Times. Industry executives revealed that authorities are currently evaluating the pros and cons of permitting alcohol deliveries.
Same Innovation, Different Reasons
In 2020, Swiggy and Zomato initiated online alcohol delivery in non-metro areas to diversify their services during the COVID-19 lockdown, which had significantly impacted their core business. Swiggy launched its alcohol delivery service in Ranchi after obtaining necessary approvals from the Jharkhand government. Zomato followed suit, launching in Ranchi and planning to expand to seven other cities in Jharkhand.
At that time, both companies were also negotiating with authorities in major metros to extend their services, although approvals were expected to take a few weeks to a month. Swiggy even planned to expand to cities in Odisha but had to pause due to Cyclone Amphan.
Currently, alcohol home delivery is permitted only in Odisha and West Bengal. The temporary approval for liquor deliveries during the COVID-19 lockdown in Maharashtra, Jharkhand, Chhattisgarh, and Assam was successful despite restrictions. According to retail industry executives, online deliveries have resulted in a 20-30% increase in sales in West Bengal and Odisha.
Catering to Changing Consumer Profiles
An industry executive cited in the report stated, “This initiative aims to cater to a growing expat population, especially in larger cities, and to consumers who view moderate alcohol-content spirits as recreational drinks with meals. Women and senior citizens have also flagged traditional liquor vends and shop-front experiences as unpleasant.”
Dinker Vashisht, Vice-President of Corporate Affairs at Swiggy, emphasized the benefits of online delivery models, noting that it ensures end-to-end transaction records, age verification, and adherence to purchase limits. “Furthermore, online tech stacks synchronize with regulatory and excise requirements, ensuring compliance with timings, dry days, and zonal delivery restrictions.”
Economic Growth and Consumer Convenience
Rahul Singh, Chief Executive of pub chain The Beer Cafe, shared his insights with The Economic Times: “By enabling online home deliveries of liquor, states can enhance consumer convenience, drive economic growth, and align with global trends while ensuring responsible and regulated alcohol distribution.”
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