Liquor home delivery: Are Swiggy, Zomato, BigBasket going to restart what they did during pandemic?
In 2020, Swiggy and Zomato expanded their services to include alcohol home delivery in non-metropolitan areas in response to the COVID-19 lockout, which had a major negative impact on their main business. Currently alcohol can be delivered to homes in West Bengal and Odisha.
The industry leaders in food delivery, Swiggy, BigBasket, and Zomato, may soon begin offering low-alcohol beverages including wine, liqueurs, and beer. Many states, including New Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala, are reportedly planning pilot projects for this idea, according to a report published in the Economic Times. Executives in the industry have disclosed that authorities are presently weighing the benefits and drawbacks of permitting alcohol delivery.
Same innovation, different reasons
In 2020, Swiggy and Zomato expanded their services to include online alcohol delivery in non-metropolitan areas in response to the COVID-19 lockout, which had a major negative impact on their main business. Swiggy started delivering alcohol in Ranchi after receiving the required permissions from the Jharkhand government. Zomato did likewise, starting in Ranchi and intending to go on to seven other Jharkhand cities.
Both businesses were at that time in discussions to expand their services with major metro authorities, though it was anticipated that these conversations would take several weeks to a month to get approved. Due to Cyclone Amphan, Swiggy was forced to postpone its plans to grow into more cities in Odisha.
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, per the ET report. According to retail industry executives, online deliveries have resulted in a 20-30% increase in sales in West Bengal and Odisha.
According to an executive in the report, “This is to cater to a growing expat population, especially in larger cities, changing profiles of consumers who perceive moderate alcohol-content spirits as recreational drinking along with meals, and women and senior citizens who have flagged buying from traditional liquor vends and shop-front experiences as unpleasant.”
The advantages of online delivery models were emphasized by Dinker Vashisht, Vice-President of Corporate Affairs at Swiggy. He stated that these models guarantee age verification, end-to-end transaction records, and compliance with restrictions.” Further, online tech stacks synchronize with regulatory and excise requirements, ensuring adherence to timings, dry days, and zonal delivery guardrails.”
The Beer Cafe’s CEO, Rahul Singh, gave The Economic Times some of his observations: “States can improve consumer convenience, spur economic growth, and follow global trends while guaranteeing responsible and regulated alcohol distribution by allowing online home deliveries of liquor.”
