Walmart's e-commerce platform Flipkart has partnered with a startup backed by spirits giant Diageo to deliver alcohol in two Indian cities, according to government letters seen by Reuters, months after Amazon planned a similar foray.
Flipkart and Amazon's interest in delivering alcohol in India marks a bold move to make inroads into an alcohol market that is worth US$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 -backed HipBar, an Indian alcohol home delivery mobile application.
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. 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.