Flipkart and Amazon's interest in delivering alcohol in India
marks a bold move to make inroads into an alcohol market that is
worth $27.2 billion, according to estimates by IWSR Drinks
Market Analysis.
The local governments of eastern West Bengal and Odisha states
have said that Flipkart can be associated as a technology
service provider of Diageo <DGE.L>-backed HipBar, an Indian
alcohol home delivery mobile application.
Flipkart's customers will be allowed to access HipBar's
application on the e-commerce giant's platforms, according to
the letters, which have not previously been reported.
Under the arrangement, Flipkart customers will be able to place
orders for their favourite tipple, which HipBar will then
deliver after collecting products from retail outlets, according
to a person with direct knowledge of the matter.
HipBar, 26% owned by Diageo India, and Flipkart did not
immediately respond to a request for comment.
In June, Reuters reported that Amazon had secured clearance to
deliver alcohol in West Bengal, signalling the U.S. e-commerce
giant's foray into the sector.
West Bengal is India's fourth most populous state, with a
population of more than 90 million people, while Odisha's
population is more than 41 million. Some states in India, like
Gujarat in the west, prohibit alcohol retail.
India's top two food-delivery startups, Swiggy and Zomato, have
also started delivering alcohol in some cities, as companies
look to cash in on the high demand for booze from people staying
at home due to the COVID-19 pandemic.
Amazon on Friday also said it will launch an online pharmacy in
India that will serve the southern city of Bengaluru.
Shoppers in India are increasingly going online to buy
everything from groceries to electronics during the pandemic.
(Reporting by Aditya Kalra in New Delhi; Editing by Sanjeev
Miglani and Emelia Sithole-Matarise)
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