Zomato, Swiggy start alcohol delivery; here are the details

Marco Green
May 22, 2020

The company said that it is in talks with many other state governments to start home delivery of alcohol. Reports surfaced previous year amid Zomato-Swiggy merger talks that Amazon was gearing up to launch its own online food delivery division to compete with food delivery apps in the Indian market.

Swiggy and Zomato have started delivering essentials to make up for some of the shortfalls in the restaurant delivery business. Recently, the company launched a new "safety gear audit" feature within the Delivery Partner app which checks for "mask usage" to reinforce Swiggy's commitment towards ensuring the safety of consumers and delivery partners. Amazon's entry in the food delivery space could be a major challenge for Zomato and Swiggy that occupy a majority share of the food delivery market in the country.

The customer is then verified at the time of delivery using an OTP. As of now, the service has been launched only in select parts of Bangalore. "We also recognise that local businesses need all the help they can get", an Amazon spokesperson said in a statement (via Techcrunch). The service has begun in Ranchi and the company said it plans to expand it to other cities within a week.

Swiggy and Zomato, having raised more than $2 billion together, are still not profitable and are losing more than $15 million each month to acquire new customers and sustain existing ones.

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Zomato in January acquired Uber's Food Delivery Business in India in an all-stock deal of almost Rs 2,500 crore, with Uber having 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

On top of that, Zomato and Swiggy have established a duopoly in the market, and are facing additional challenges. Once they have a token, they can place an order through Whatsapp or by calling up the store. The service is now live in Ranchi, the capital city of Jharkhand.

To ensure safe delivery of alcohol and in compliance with applicable laws, Swiggy has introduced measures such as mandatory age verification and user authentication to complete deliveries.

Amazon has launched Amazon's Prime Now and Amazon Fresh platforms in India to sell perishables and grocery items in recent years, and expanded its warehouses in several parts of the country along the way.

Other reports by Click Lancashire

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