GLOBAL QUICK E-COMMERCE (QUICK COMMERCE) MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global Quick E-Commerce (Quick Commerce) market size is expected to reach US$ 303.27 Bn by 2030, from US$ 38.89 Bn in 2023, at a CAGR of 34.1% during the forecast period. Quick commerce, also known as Q-commerce or instant delivery, refers to the business model that delivers groceries and other daily essentials to customers within a short time frame, usually 10-30 minutes. The key advantage of quick commerce is that it allows busy consumers to order products on-demand and get them delivered to their doorstep rapidly via an app or website. Drivers supporting quick commerce growth include busy lifestyles, safety concerns during pandemic, and growing consumer demand for instant gratification.

The global Quick E-Commerce (Quick Commerce) market is segmented based on product type, channel, location, delivery time, and region. By product type, the market is segmented into food products, beverages, personal care products, household products, and others. Food products make up the largest share as consumers frequently order fresh foods, meals, snacks and ingredients from quick commerce platforms.

Global Quick E-Commerce (Quick Commerce) Market Regional Insights:

• The Asia Pacific region is the largest market for quick commerce, which accounted for over 50% of the global market share in 2023. The growth of the market in this region can be attributed to increasing urbanization, rising disposable income, and growing awareness about the benefits of quick commerce services.
• North America is the second-largest market for quick commerce, which accounted for over 25% of the global market share in 2023. The growth of the market in this region can be attributed to the increasing demand for convenience and the rising popularity of online shopping.
• Europe is the third-largest market for quick commerce, which accounted for over 15% of the global market share in 2023. The growth of the market in this region can be attributed to the increasing urbanization and the rising demand for convenience.

Figure 1. Global Quick E-Commerce (Quick Commerce) Market Share (%), by Region, 2023

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Analysts View:

The quick commerce market is well positioned for strong growth in the coming years. Major drivers for this growth include rising smartphone and internet penetration worldwide coupled with increasing preference of consumers for instant gratification. Young population across regions are adopting mobile shopping at higher rates and want everything delivered within hours which is fueling demand for quick commerce services.

However, high fulfilment costs due to requirement of dense distribution network and efficient supply chains could restrain market expansion initially. Establishing warehouses close to customer locations within cities involve huge capital investments. Maintaining real-time inventory levels across such distributed networks also adds operational complexities for players.

Europe and North America currently lead the quick commerce adoption owing to high disposable incomes and busyness of consumers. But Asian regions like India and Southeast Asia offer largest opportunities considering their massive population bases and rapid technology adoption among young demographics. Within Asia, dense urban environments of tier 1 and 2 cities make them ideal testing grounds for last-mile quick delivery models.

Overall, while scaling challenges exist, innovations in predictive analytics, autonomous vehicles and drones could help alleviate costs in the future. Partnerships between retailers, restaurants and logistics players will also help players increase selection and offer hybrid delivery options. Those able to achieve high operating efficiency while meeting customer expectations for delivery speed should benefit the most from this emerging space.

Global Quick E-Commerce (Quick Commerce) Market Drivers:

• Busy Lifestyles and Growing Time Poverty: The busy modern lifestyles and rising time poverty, especially among urban professionals is a key driver of the quick commerce market. Long working hours coupled with commuting times leaves consumers with little time to shop for groceries and daily essentials. The quick commerce model solves this challenge by delivering products within 10-30 minutes. Working parents, students, and other time-strapped consumers embrace quick commerce for its sheer convenience and time-saving. For example, research shows that 40% of quick commerce users in London, U.K. stated lack of time for shopping as the main reason for using such services.
• Safety and Convenience During the Pandemic: The COVID-19 pandemic has fueled the demand for quick commerce globally, as homebound consumers sought to limit shopping visits and exposure risks. On-demand delivery of groceries and household items addressed safety concerns and provided convenience to vulnerable groups like the elderly. Even as lockdowns ease, consumers continue using quick commerce, indicating a permanent shift towards home deliveries. For instance, Instacart saw a 400% growth in customer demand during the pandemic. Quick commerce operators like Getir and Gorillas also saw a massive surge in orders.
• Growing Smartphone and Internet Penetration: Widespread smartphone ownership and rising internet penetration rates are powering the adoption of quick commerce globally. Consumers are now accustomed to seamless mobile commerce experiences. Quick commerce apps make on-demand ordering and payment frictionless. Developing markets are leading internet and smartphone adoption. For example, India will have 1 billion smartphone users by 2026. High mobile penetration enlarges the addressable market for quick commerce players.
• Younger Demographics and On-demand Culture: Gen Z and millennial consumers highly value convenience, flexibility, and instant gratification. Quick commerce resonates with their preference for on-demand services. Young demographics in urban cities have been quick to embrace quick grocery delivery. Moreover, on-demand culture has risen via services like Uber, Netflix, and Amazon Prime, making ultra-fast delivery an expectation. Quick commerce operators rely on young early adopters to gain market share in new locations.

Global Quick E-Commerce (Quick Commerce) Market Opportunities:

• New Geographic Expansion: Quick commerce firms have substantial scope for expansion into new geographies and cities. Major players like Gopuff and Getir have already embarked on large-scale global growth. Emerging markets in Latin America, Southeast Asia and Africa offer untapped potential thanks to rising mobile users and sparse traditional retail. As infrastructure improves in developing countries, quick commerce will fill gaps in distribution and shopping access. Globalization enables quick commerce companies to rapidly enter new markets by acquiring local startups.
• Strategic Brick-and-Mortar Partnerships: Quick commerce operators can forge innovative partnerships with brick-and-mortar chains to enhance competitive advantage. Dark stores can be opened adjacent to grocery chains, convenience stores, big box retailers, etc. This provides synergies like easier inventory and fulfillment. Brick-and-mortar partners also benefit via access to new revenue streams from delivery orders. For instance, Foxtrot partnered with Gorillas to power quick commerce from its stores. Such creative tie-ups are a win-win.
• Leveraging Advances in Logistics Technology: Emerging logistics technologies, such as automated warehouses, delivery robots, and drone delivery, can transform quick commerce operations. Automation can significantly lower picking and delivery costs. Robots and drones can also expand quick commerce to new locations and optimize last mile fulfillment. Companies will invest heavily in R&D around warehouse and delivery automation as they scale up volumes. Spain’s Glovo is already piloting delivery via robots and autonomous vehicles.
• Serving Business Customers: Quick commerce firms have an opportunity to serve business customers with their ultra-fast delivery capabilities. B2B quick commerce means supplying offices and businesses with perishable goods, stationery, equipment, etc. within 30-60 minutes. Busy startups and small businesses will be willing to pay a premium for urgent same-day delivery. Logistics platforms like Jumbotail and NinjaCart are disrupting B2B supply chains in India via quick commerce.

Global Quick E-Commerce (Quick Commerce) Market Trends:

• Quick Commerce 2.0 Business Models: Quick commerce operators are innovating with newer business models that offer more convenience and build loyalty. Providing complimentary ultrafast pick up for returns is an emerging value-added service. Some firms also enable consumers to drop off laundry and get it delivered back cleaned within hours. There is also a shift towards memberships and subscription packages. Jokr lets users opt for auto-recurring delivery as per customized schedules. Evolving to Quick Commerce 2.0 creates stickiness.
• Super App Integration: Major delivery and mobility platforms like Gojek, Grab, and Uber are adding quick grocery delivery into their super apps. Integrating quick commerce offers users the convenience of a one-stop shop. Swiggy's Instamart service is now baked into its main app which provides scale. Super apps leverage their geographic reach and massive user bases to swiftly expand into new verticals like quick commerce. DoorDash is even piloting 15-minute grocery delivery via its DashMart service.
• Sustainability Initiatives: Sustainability is becoming a rising priority within the quick commerce sector. Companies aim to minimize waste and carbon emissions across their supply chain. German startup, Flink uses electric-cargo bikes for green last mile delivery. Spanish grocery delivery firm, Blok employs eco-friendly packaging and incentivizes bike couriers. Quick commerce firms are also offering promotions to encourage consumers to use reusable bags. Sustainable practices help build brand reputation.
• Transition towards Self-Fulfillment: Many quick commerce firms initially relied on third-party retailers for order fulfillment but are now shifting towards self-owned dark stores and inventory. Vertical integration provides more margins and control. Self-fulfillment also enables faster picking and delivery through store layout optimization and supply chain integration. For example, Getir has opened over 500 dark stores, enabling 10 minute delivery. However, hybrid models persist with some brands, especially in emerging markets.

Global Quick E-Commerce (Quick Commerce) Market Restraints:

• Low Margins and Lack of Profitability: The quick commerce model intrinsically has slim profit margins due to high operating and delivery costs. Many firms acquire customers through promotions and discounts, delaying path to profitability. While order volumes are surging, losses are mounting as companies prioritize expansion over economics. Labor, real estate, and logistics costs also weigh heavily. Unless efficiencies improve, low margins will hamper long term viability and squeeze investor funding.
• Intense Competition Risks: Frenzied competition is an overhang in this nascent market. Dozens of quick commerce startups are vying for dominance in top cities from New York and London to Istanbul and Manila. Ad blitzes and cash burns are being used to lure customers. Promiscuous users easily shift between apps to chase discounts. Consolidation will be inevitable as the market matures. Weaker firms will fold up or get acquired. Survivors will be those with the deepest pockets and sustainable economics.
• Execution Challenges in New Markets: Quick commerce companies struggle with execution as they move into new geographies and lower-tier cities. Sprawl and congestion make fast delivery difficult. Mapping streets and finding optimal dark store locations is problematic. Sourcing quality inventory at low cost is also a hurdle. Consumer tech literacy can be a barrier in developing countries. Firms may lack familiarity with local context and regulations. Thus, expanding beyond core urban strongholds remains challenging.

Recent Developments:

New product launches:

• In March 2022, DoorDash announced the launch of an ultra-fast grocery delivery service DashMart in New York City, U.S., providing thousands of grocery items from localized dark stores in under 15 minutes. This expanded DoorDash's quick commerce footprint in a key metro market.
• In January 2022, Uber announced the launch of Uber Freight platform in Spain, allowing shippers to tap into thousands of trucking companies to move goods quickly across the country. This supports Uber's expansion into the European on-demand logistics market.
• In December 2021, Instacart announced the launch of a new 30-minute delivery option for groceries called Instacart Plus, available to members in certain metro areas for a monthly or annual fee. It enhanced Instacart's competitiveness in the quick commerce space.

Acquisition and partnerships:

• In March 2022, DoorDash acquired Wolt in a US$ 8.1 billion deal, expanding its reach into Europe especially key markets like Finland. The acquisition provides DoorDash an established player in the European quick commerce industry.
• In August 2021, Uber acquired Drizly for US$ 1.1 billion to integrate the alcohol e-commerce platform into its food delivery and Uber Eats app. The acquisition helps Uber expand into highly lucrative alcohol delivery vertical.
• In November 2021, Gopuff acquired rideOS for US$ 115 Mn to leverage its transportation management technology. This allows Gopuff to develop proprietary logistics algorithms to optimize quick deliveries.

Figure 2. Global Quick E-Commerce (Quick Commerce) Market Share (%), by Product Type, 2023

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Top Companies in the Global Quick E-Commerce (Quick Commerce) Market:

• GoPuff
• DoorDash
• Instacart
• Uber
• Glovo
• Rappi
• Gorillas
• Getir
• Jokr
• Zapp
• Flink
• 1520
• Buyk
• Deliveroo
• Seazon
• Yango Deli
• Delivery Club
• Bolt Food
• Swiggy Instamart
• Blinkit

Definition: The Global Quick E-Commerce (Quick Commerce) Market refers to the online business model that involves ultra-fast delivery of products to customers in less than an hour. Quick commerce platforms use hyperlocal warehouses or dark stores to store the inventory of highly demanded items like groceries, fresh foods, snacks, beauty items, etc. They enable consumers to order products via mobile apps and get deliveries in 10-30 minutes, much faster than traditional e-commerce. The quick commerce model taps into modern buyer needs for immediacy and convenience. Major players operate quick commerce services in top cities by utilizing vast fleets of drivers and optimizing warehousing and logistics operations. The market has high growth potential as busy lifestyles and on-demand culture fuels consumer appetite for near-instant delivery of goods.

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