Global Quick E-Commerce Market is Estimated To Witness High Growth Owing To Increase In Usage Of Mobile Applications
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.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Quick e-commerce or quick commerce refers to delivery of goods within a few minutes of ordering via mobile applications. It offers an array of groceries, snacks, beverages and other consumables for daily needs. With growing preference for instant delivery of daily essentials, quick commerce is gaining traction among urban consumers with hectic schedules.
Market key trends:
The key trends fueling the growth of global quick e-commerce market include increasing usage of mobile applications for online shopping and growing preference for instant delivery among consumers. The ease of ordering everyday items via mobile and getting them delivered within few minutes is driving the adoption of quick commerce services. Further, entrepreneurs are investing heavily in quick commerce startups to tap into the lucrative opportunities. For instance, Gorillas raised over $1 billion in 2021 to expand its quick delivery operations globally. Similarly, Getir raised $768 million to accelerate its international footprint. Such heavy investments are expected to strengthen the supply chain and infrastructure required to support quick commerce business model.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as high capital requirements and economies of scale pose significant entry barriers. However, start-ups can disrupt the market with new technologies and business models.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of alternatives and price sensitivity of buyers for quick delivery services. Buyers can easily switch between providers based on price and delivery time.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of alternative suppliers of goods and services. However, large suppliers serve multiple quick commerce players thereby limiting their influence.
Threat of new substitutes: The threat of substitutes is high with the emergence of new online delivery options and omni-channel retailing providing alternate quick fulfillment models to customers.
Competitive rivalry: is intense given the presence of global and local players competing on the basis of wide selection, delivery speed, and price.
SWOT Analysis
Strength: Quick commerce players have strong tech capabilities enabling ultra-fast deliveries within restricted time windows. This is a key differentiator in the market.
Weakness: Maintaining profitability is challenging due to high operating expenses for fulfilment centers, delivery staff, and inventory management. Quality control and safety standards are also difficult to maintain.
Opportunity: Untapped international markets and tier 2/3 cities provide significant growth opportunities. Partnerships with retailers can enhance product assortments.
Threats:Stringent regulations around delivery vehicles and labour practices can squeeze margins. Dependency on third party delivery exposes operations to risks.
Key Takeaways:
The Global Quick E-Commerce (Quick Commerce) Market Size is expected to witness high growth, exhibiting CAGR of 34% over the forecast period, due to increasing preference for instant gratification among consumers. The demand for quick delivery of items ranging from groceries to medicines from doorsteps within 15-30 minutes have surged in the post-pandemic era.
Regional analysis: Europe currently dominates the global quick commerce market, driven by high smartphone and internet penetration and presence of major international quick commerce players like Gorillas and Flink in the region. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period supported by rising internet and smartphone usage in developing Asian countries like India and Indonesia, where key players like Blinkit, Swiggy Instamart and Jokr have expanded their operations.
Key players: Key players operating in the global Quick E-Commerce (Quick 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.
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