look news india
People in Delhi will soon start getting liquor delivered to their homes. Platforms like Zomato, Swiggy and Big Basket have already made preparations for this. But this system is soon going to prove to be a game changer for the liquor industry across the country. 6 states have also started planning for this.
Home delivery of alcohol will change everything
The one thing that was felt most needed during the time of Covid was home delivery of liquor. If seen from an economic point of view, this is also a beneficial system for the state governments because a large part of their income comes from the tax on liquor. In a country where petrol, food, ration, medicine and clothes-shoes are available at home in remote areas, home delivery of liquor is not a big deal, which is going to start soon in Delhi. But the other 6 states are also eyeing it.
Delivery platforms like Zomato, Swiggy and Big Basket have made preparations for home delivery of liquor in Delhi. After about 3 years of the end of Covid, now this need of the people is going to get tangible form. This can also be a game changer for the entire liquor industry. Let's understand how…
These states made a big plan
This process can start soon in Delhi. First of all, it will be started on a pilot basis. According to ET's report, apart from Delhi, states like Karnataka, Haryana, Punjab, Tamil Nadu, Goa and Kerala have also planned to start pilot projects on this. During the Covid period, such an idea first came up in Kerala and Karnataka, but it could not be implemented then.
All these states are thinking about home-delivery of low-alcohol liquor such as beer, rice beer, mead and wine etc. This can help state governments to increase their revenue rapidly.
Changes in policy and legislation
For home delivery of liquor, state governments will need to amend their policies and laws related to the liquor business. This will not only affect the governments, but will also affect everyone from liquor manufacturing companies to e-commerce platforms and customers. Governments also have to face many challenges for this, in which they have to take into account the economics as well as the sociology of their local area.
How will this ultimately be transformative for the industry?
The home delivery system of liquor can prove to be a game changer for the entire industry. Understand it this way that if Zomato, Big Basket, Swiggy and Zepto do this, then the gross value of orders on their platform will increase by 10 percent. This will not only improve their income margin but will also increase the reach of the platform.
If we look from the point of view of the state governments, the state government has received a revenue of about Rs 7,484 crore from VAT tax on liquor in Delhi in 2023-24. This is 10 percent more than the previous 2022-23. Now if home delivery of liquor starts, then the VAT collection of the government will increase even faster.
From the companies' point of view, home delivery of liquor will increase their sales manifold. Also, many companies will have to compete fiercely and work on their quality to remain in the market. This will also help in preventing the sale of fake, raw and illegal liquor, as people will get real liquor sitting at home. This will also increase the revenue of the companies.