Global Quick E-Commerce (Quick Commerce) Market Owing To Growing Delivery Speed Requirement & Urbanization Trends
The global Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 38.89 Bn in 2023 and is expected to exhibit a CAGR of 34.1% over the forecast period 2023 - 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Quick E-Commerce or Quick Commerce refers to online grocery and essential goods delivery model wherein orders are fulfilled within 60 minutes or less. Key players operating in the quick commerce market such as GoPuff, Jokr, and Getir are establishing micro-fulfillment centers in major cities to enable hyperlocal delivery. These centers stock thousands of frequently purchased items to enable delivery within 10-15 minutes.
Market Dynamics:
The global quick commerce market is driven by growing delivery speed requirement from consumers and increasing urbanization trends across major regions. Consumers today demand delivery of grocery and daily essential items within minutes which is fueling investments from quick commerce startups to establish localized supply chains. According to UN projections, over 68% of the world population will live in urban areas by 2050 creating demand for quick delivery models. In addition, growing smartphone and internet penetration is enabling consumers to order products via mobile apps facilitating market growth over the forecast period. The quick commerce market players are focusing on increasing their delivery radius and portfolio of products to cater to emerging consumer demand.
SWOT Analysis
Strength: Quick E-Commerce provides consumers with instant delivery of goods within minutes. This offers high levels of convenience to customers. The model allows for efficient stock management and minimal inventory levels. Quick delivery enables companies to access more customers and generate higher order volumes.
Weakness: Maintaining consistently fast delivery times across large cities is challenging due to traffic and distances involved. High fulfilment costs associated with delivering small baskets relatively short distances put pressure on profit margins. Reliance on gig workers for deliveries introduces risks around quality of service and reliability.
Opportunity: The global Quick E-Commerce market is expected to grow substantially, indicating significant room for expansion. Younger demographic cohorts increasingly demand instant gratification and convenience, representing a huge potential customer base. Partnerships with brick-and-mortar retailers provide opportunities to leverage existing infrastructure and inventory.
Threats: Traditional grocery retailers are developing their own fast delivery options, increasing competitive pressures. Customer acquisition costs are high due to intense competition between platforms. Regulation around gig worker rights and minimum wage could increase labour expenses. Dependency on private passenger vehicles makes operations vulnerable to issues like fuel price hikes.
Key Takeaways
The Global Quick E-Commerce Market Growth is expected to witness high growth, exhibiting a CAGR of 34.1% over the forecast period, due to increasing demand for instant gratification and convenience among customers. The US dominates currently due to high smartphone and internet penetration supporting online ordering.
Regional analysis: The Asia Pacific region is anticipated to be the fastest growing market for Quick E-Commerce. Countries like India have witnessed massive growth of local startups like Blinkit and Dunzo that pledge delivery within 10-15 minutes amid increasing appetite for instant services. The US currently holds the largest share of the global quick commerce market owing to strong consumer preference for convenience.
Key players: Key players operating in the Quick E-Commerce market are GoPuff, DoorDash, Instacart, Uber, Glovo, Rappi, Gorillas, Getir, Jokr, Zapp, Flink, 1520, Buyk, Deliveroo, Seazon, Yango Deli, Delivery Club, Bolt Food, Swiggy Instamart, Blinkit. These players compete on delivery speed, geographical coverage and basket size to dominate local markets.
Read more @ https://creativeedge16.blogspot.com/2023/11/north-america-to-dominate-global-quick.html
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