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States may allow home delivery of liquor through quick commerce platforms like Zomato and Swiggy

States-may-allow-home-delivery-of-liquor-through-quick-commerce-platforms-like-Zomato-and-Swiggy

According to reports published by media houses, several Indian states, including New Delhi, Karnataka, Punjab, Goa, and Kerala, are considering pilot projects to allow home delivery of alcohol via online platforms like Zomato. The pilot project will initially start with delivering low-alcohol beverages such as beer, wine, and liqueurs. The state authorities are taking comments on the pros and cons of online delivery.

These types of pilot projects were strike down in past due to political backlash, believes, and pressure from brick and mortar retail stores that may have affect on implementation of such proposals. By enabling home deliveries of liquor, states can enhance consumer convenience and align with global trends while ensuring responsible and regulated alcohol distribution.

Earlier there were judgment by judiciary on prohibition sale of liquor at certain place and distance. If the states takes on pilot project, the online delivery machinery will be asked to ensure thorough transaction records, age verification, and adherence to legal limits.

During the COVID-19 lockdowns, states like Maharashtra, Jharkhand, Chhattisgarh, and Assam temporarily allowed deliveries under strict conditions. Since the spread of virus has brought under control, the permissions have since lapsed.  Currently, home delivery of alcohol is permitted in Odisha and West Bengal.

There are two prominent players in the food delivery space i.e. Swiggy and Zomato. According to reports, retail industry has reported that online deliveries have led to a 20-30% increase in sales in West Bengal and Odisha. Recently, the delivery platforms have hikes their delivery fee to Rs. 6.  If the pilot project is successfully implemented to cater growing expat population and also adopted by other states, this can lead to significant rise in revenue by delivery companies. Beer and wine producers, including United Breweries and AB InBev, are particularly interested in home delivery.

Also read :- Zomato shares jump 4% to fresh all-time high on platform fee hike

Further, online tech stacks synchronize with regulatory and excise requirements, ensuring adherence to timings, dry days, and zonal delivery guardrails. However, no official news /announcement have been made in relation to the pilot project or allowing delivery partner to deliver bewerages.

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