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November 21, 2024
Posted: Thursday, 18 July 2024 20:50
Food delivery giants Swiggy, Zomato, Blinkit and Big Basket, are likely to be allowed to start delivering low-alcohol drinks such as beer, wine, and liqueurs in the first instance, according to a report by the Economic Times. Several states including Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala are considering pilot projects for this initiative.
In 2020, Swiggy and Zomato launched online alcohol delivery in non-metro areas to diversify their services during the COVID-19 lockdown, when their core business was significantly impacted. Swiggy began its alcohol home delivery service in Ranchi after obtaining the necessary approvals from the Jharkhand government. Zomato followed Ranchi with plans to expand to seven other cities in Jharkhand.
At that time, both companies were also in talks 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, according to Mint.
Also Read : Diageo exits Alcohol Home Delivery Business with 98% Loss
Delivery of alcohol to homes is permitted only in Odisha and West Bengal, according to the Report. The temporary approval for liquor deliveries during the COVID-19 lockdown in Maharashtra, Jharkhand, Chhattisgarh, and Assam was a success despite restrictions. According to retail industry executives, online deliveries resulted in a 20-30% increase in sales in West Bengal and Odisha.
Also Read : BMC allows Wine Home Delivery during Lockdown in Mumbai
An industry executive cited in the report stated, “This is to cater to a growing expat population, especially in larger cities, changing profiles of consumers who perceive moderate alcohol-content drinks as social drinking along with meals. Besides, women and senior citizens flagged buying from traditional liquor vends and shop-front experiences as unpleasant.”
Also Read : Mumbai Gears up for smooth Home Delivery of Wine and Beer
Dinker Vashisht, Vice-President of Corporate Affairs at Swiggy, highlighted the benefits of online delivery models, saying it ensures end-to-end transaction records, age verification and also adherence to legal limits. Online tech stacks also synchronize with regulatory and excise requirements, including timings, dry days, and zonal delivery guidelines.
Also Read : West Bengal and Orissa Start Liquor Home Delivery through Apps
Rahul Singh, Chief Executive of pub chain The Beer Cafe, and Past President of the National Restaurant Association of India (NRAI) reportedly says, ‘By enabling online home deliveries of wine and beer, states that this can enhance consumer convenience, drive economic growth, and align with global trends while ensuring responsible and regulated alcohol distribution.”
Also Read : Supreme Court suggests Home Delivery of Liquor during Covid Pandemic
Subhash Arora