Zomato, Swiggy, BigBasket may soon home-deliver liquor in several states: report

The report comes a day after Swiggy and Zomato, dominant players in the food delivery space, opted to increase their platform fees on July 15. Customers now find themselves paying ₹6 per order on both platforms, a significant 20% hike from the previous ₹5 charge.

Swiggy and Zomato in 2020 started online alcohol delivery in non-metropolitan areas to diversify their offerings during the COVID-19 lockdown, which severely impacted their main businesses. Swiggy initiated its alcohol delivery service in Ranchi after receiving the necessary approvals from the Jharkhand government. Zomato followed, launching in Ranchi and preparing to expand to seven other cities in Jharkhand.

While permits were expected to take a few weeks to a month, both companies were at the time negotiating to expand their services with authorities in major metropolitan areas. Cyclone Amphan forced Swiggy to postpone its plans to expand its services to cities in Odisha.

At present, home delivery of alcohol is only authorized in Odisha and West Bengal. The temporary license for liquor delivery during the COVID-19 lockdown in Maharashtra, Jharkhand, Chhattisgarh, and Assam was successful, despite certain restrictions, according to the ET.

An industry executive mentioned in the report said, "This initiative aims to serve a growing expatriate population, particularly in larger cities, as well as changing consumer profiles that view moderate alcohol-content beverages as a complement to meals. Additionally, women and senior citizens find traditional liquor store experiences 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 adheres to limits. "Further, online tech stacks synchronize with regulatory and excise requirements, ensuring adherence to timings, dry days, and zonal delivery guardrails."

However, Zomato's stock plunged 5% to Rs 218.35 on July 16. The shares have jumped 172.5% in the past one year. Meanwhile, Swiggy is yet to enter the listed market space and reports suggest that the company may come up with an IPO soon.