Market Overview:
Quick commerce refers to delivery of consumable goods from local retailers within an hour and through mobile/website apps. Demand for quick grocery delivery from local stores and kitchens has been increasing rapidly among urban customers who have busy life schedules and seek immediate fulfillment of daily needs. Quick e-commerce players maintain local warehouses spread across cities from where orders are picked, packed and delivered within designated time slots ranging from 15-90 minutes. This model allows retailers to effectively compete with restaurants by providing similar speedy fulfillment of orders to customers’ doorsteps.
Market key trends:
Growth of hyperlocal delivery applications catering to immediate needs of local customers have accelerated the adoption of quick commerce in European cities. Retailers are partnering with quick commerce players to leverage their existing supply chains and wide range of inventory for fulfillment of hyperlocal orders. Further, quick commerce startups are raising substantial funding to expand warehouse networks and delivery fleet across multiple cities to capture the rising demand for instant gratification among urban consumers. This is expected to substantially increase revenue opportunities for retailers participating in quick commerce over the next decade.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is moderate. Large capital investments are required to build the necessary infrastructure for quick delivery. Established players also enjoy strong brand recognition.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have many options to choose from and can easily switch between quick commerce platforms based on price, delivery time or product offerings.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. Established quick commerce platforms can negotiate favorable terms with suppliers due to their scale of operations and demand.
Threat of new substitutes: The threat of new substitutes is moderate to high. Traditional e-commerce and grocery stores/supermarkets can be considered as substitutes that offer similar products with cheaper delivery times.
Competitive rivalry: The competitive rivalry is high due to many established players offering similar quick delivery proposition. Players compete on parameters like delivery time, product selection, pricing and quality of service.
Key Takeaways:
The Europe Quick E-Commerce (Quick Commerce) Market is expected to witness high growth, exhibiting a CAGR of 38% over the forecast period, due to increasing consumer demand for quick deliveries. The convenience and speed offered by quick commerce platforms has boosted their popularity significantly.
By region, Western Europe dominates the Europe quick commerce market, accounting for over 50% share. Countries like UK, Germany, France, Spain and Italy have widespread adoption of quick commerce services. Established logistical capabilities and large consumer base further support the growth of quick e-commerce in Western Europe.
Key players operating in the Europe quick commerce market are Getir, Gorillas, Gopuff, Just Eat Takeaway, Delivery Hero, Jokr, Flink, Zapp, Uber Eats, Wolt, Bolt, and Deliveroo. Companies compete in factors like delivery time, product selection offered, reliable services, and reasonable pricing to gain more customers.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
