Quick commerce refers to the delivery of groceries and essential items to customers within a short period, usually within 60 minutes. It aims to provide convenience to customers by fulfilling their daily shopping needs in the quickest possible time. Quick commerce operates through ultrafast fulfillment from dark stores located in dense neighborhoods and aims to be highly localized through a dense network of micro-warehouses. The model relies on proprietary distributed warehouse management systems, algorithmic assortments, and robotics to enable profitable delivery at scale within the one-hour timeframe.
The Global Europe Quick E-Commerce Market is estimated to be valued at US$ 5.59 Bn in 2024 and is expected to exhibit a CAGR of 12. % over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Europe Quick E-Commerce are Motorola Solutions, ABB, Everbridge, Hexagon, IBM, General Electric, Siemens, Honeywell, Huawei, Cisco, Microsoft, Rockwell Collins, Saab, Ericsson, Harris Corporation, Motorola Solutions, NEC Corporation, Lockheed Martin, TCS, Atos.
Growing demand for convenient shopping: The shifting consumer preference towards one-hour grocery and food delivery has accelerated the growth of the quick commerce model in Europe. The covid-19 pandemic has further amplified this trend as customers look for contactless shopping options.
Global expansion of quick commerce: Key players in the market are expanding their presence across major European cities to tap into the growing demand. The increasing investments in logistics, infrastructure and rapid fulfillment centers is helping companies scale up their operations globally.
Market key trends
Adoption of artificial intelligence and robotics is a key trend in The Europe Quick Commerce Market. Players are investing in AI-powered predictive algorithms and robotics for warehouse management, inventory optimization and autonomous delivery vehicles. This enables them to achieve greater automation, increase order fulfillment rates and reduce delivery times well below the 60-minute mark.
Porter’s Analysis
Threat of new entrants: New entrants face high set-up costs to enter the market with minimal inventory and delivery infrastructure to ensure quick delivery. Bargaining power of buyers: Buyers have high bargaining power as they can easily switch between quick commerce providers based on delivery timeframe and product assortment. Bargaining power of suppliers: Established quick commerce players have strong bargaining power over suppliers due to their scale of business and demand planning abilities. Threat of new substitutes: Threat of substitution is moderate as demand for quick delivery is being met by evolving traditional e-tailing and hyperlocal delivery models. Competitive rivalry: The market sees intense competition amongst established players to acquire more customers by expanding assortments, shortening delivery timelines and leveraging technologies like AI and ML.
Geographical Regions
Western Europe accounts for the major share of the Europe quick e-commerce market in terms of value owing to high population densities in major countries like Germany, France, and the U.K. facilitating viable business operations. Eastern Europe is witnessing the fastest growth led by countries like Poland, Hungary, and Czech Republic experiencing surge in smartphone and internet penetration along with evolving customer preferences.
