Emergence of Flash Delivery Services

The past year has seen the rapid emergence of a new sector in online grocery delivery - flash delivery or quick commerce services. Pioneered by companies like Gorillas, Getir and Dija, these services promise delivery of convenience store essentials within 10-15 minutes of ordering. By having micro-fulfilment centers based in city centers and dense suburban areas, they are able to achieve incredibly fast delivery speeds compared to standard 1-2 hour grocery delivery windows. This new model fills an important gap for last-minute and urgent household needs.

Initially targeting major cities like London, Manchester, Birmingham and others, the number of quick commerce players has grown significantly. Dozens of new entrants have launched, each fighting for share through heavy discounts, promotions and costly customer acquisition expenditures. Backed by large funding rounds, these startups are well-capitalized to rapidly expand their fulfillment networks and battle for consumer mindshare. While still niche compared to traditional online grocery, industry analysts estimate the UK Quick E-Commerce grew over 5 times in 2021 to be worth around £300 million.

Fulfilment Challenges of Quick Delivery

On the surface, the 10-15 minute delivery promise seems impossible to deliver consistently for any sizable retailer. The operational complexity and challenges involved in fulfilling such fast deliveries should not be underestimated. Micro-fulfilment centers need to be within a tight radius of customers to keep delivery times low. Picking and packing orders needs to be an industrialized process to deal with high order volumes within narrow time frames. Last-mile delivery fleets need to be large with delivery staff making multiple drops per ride to maintain efficiency. Fulfilment centers also need to hold the right inventory mix based on hyper-local demand to ensure high in-stock levels.

Managing these fulfillment challenges at scale across dozens of urban locations is an enormously difficult task. Even minor delays or inefficiencies in any part of the process can cause order delays and impact the customer experience. With delivery promises as tight as they are in quick commerce, there is little room for error. As the sector matures, those players who can crack fulfillment optimization and achieve consistent delivery times despite high order volumes will emerge as clear winners. The others risk damaging their brand perception with frustrated customers.

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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

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