How will home delivery of liquor become a game changer for the industry? Now work is going on on a pilot project in these 6 states
Soon people in Delhi will start getting liquor delivered at 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
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 tax on liquor. In a country where petrol, food, ration, medicine and clothes-shoes are all being delivered at home to far-flung areas, then home delivery of liquor is not a big deal, which is going to start soon in Delhi. But the remaining 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 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 was first raised in Kerala and Karnataka, but it could not be implemented then.
All these states are thinking about home-delivery of low-alcohol content liquor such as beer, rice beer, meads and wines 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 liquor business. This will not only affect 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 along with economics, they also have to take care of the sociology of their local area.
After all, how will it be a game changer for the industry?
The home delivery system of liquor can prove to be a game changer for the entire industry. Let's understand it like this that if Zomato, Big Basket, Swiggy and Zepto do this, then the gross value of the orders on their platform will increase by 10 percent. This will improve their income margin, the platform reach will also increase.
If we look at it from the point of view of state governments, the state government has earned 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 government's VAT collection will increase even more rapidly.
From the companies' point of view, home delivery of liquor will increase their sales manifold. At the same time, many companies will have to compete fiercely to remain in the market and work on their quality. This will also help in stopping the sale of fake, raw and illegal liquor, because people will get real liquor sitting at home. This will also increase the revenue of companies.