Swiggy, Zomato, BigBasket set to pilot alcohol delivery services in key Indian markets, says report. ‘Pros and cons…’

Food delivery giants Swiggy, BigBasket, and Zomato might soon start delivering low-alcohol drinks such as beer, wine, and liqueurs. According to a report by the Economic Times, several states including New Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Goa, and Kerala are considering pilot projects for this initiative. Industry executives have revealed that authorities are currently assessing the pros and cons of allowing alcohol deliveries.

Same innovation, different reasons

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 delivery service in Ranchi after obtaining the 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 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.

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.

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 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.”

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 adhere to limits.  “Further, online tech stacks synchronize with regulatory and excise requirements, ensuring adherence to timings, dry days, and zonal delivery guardrails.”

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.”