The Rise of Quick E-Commerce Will Drive Hyperlocal Delivery at Fastest Pace

The Rise of Quick E-Commerce Will Drive Hyperlocal Delivery at Fastest Pace

Quick e-commerce or quick commerce refers to delivery of goods and services within a few minutes to hours. It provides seamless shopping experience and fulfills customer demand for instant gratification. The market offers hyperlocal delivery of groceries, food, medicines and other daily essential items within a short span of time. Products are stored in local micro-fulfilment centers located close to customers to enable swift pick up and drop off.

Quick e-commerce enables shops and retailers to list their inventory online and make last mile deliveries through a network of gig workers. It allows customers to place orders from partner retailers and restaurants via mobile apps. Orders are picked, packed and delivered within a short timeframe ranging from 10-30 minutes. The on-demand model promises convenience and has gained popularity among time-strapped consumers.

The Us Quick Commerce Market Size Is Estimated To Be Valued At US$ 7.5 Bn In 2024 And Is Expected To Exhibit A CAGR Of 8.0% Over The Forecast Period 2024-2031.

Key Takeaways

Key players operating in the quick e-commerce market are Gopuff, Doordash, Uber, Instacart, Postmates, Fridge No More, Buyk, Gorillas, Jokr, And Getir Among Others. GoPuff and Gorillas have emerged as leading players with strong footprint across major cities.

The quick commerce business has flourished during the pandemic as people preferred contactless delivery of essential items. Continued social distancing measures and changing consumer habits will further stimulate the demand for quick delivery in the long run.

Advancements in logistics, warehouses, and AI-based predictive analysis are helping companies provide faster fulfillment. Establishment of centralized warehouses or micro-fulfilment centers within cities enables on-demand delivery. New technologies facilitate real-time order sorting, packing and dispatch for under 30 minutes.

Market Trends

Growing Investments - Venture capital investments in the sector have ballooned, with leading players raising billions annually to ramp up operations. Increased funding is channelized towards expanding fulfillment centers, bolstering fleets and improving customer experience through new services.

Expanded Product Portfolios - Beyond daily essentials, companies are adding various other product categories like electronics, books, apparels and flowers to their offerings. Diversification helps increase order values and customer retention.

Partnerships and Acquisitions - Strategic collaborations with retail chains and restaurants as well as acquisitions of regional startups enable players to quickly penetrate new markets. Such partnerships augment marketplace selection for time-sensitive shoppers.

Market Opportunities

Grocery and Staples - As people prefer on-demand delivery over stocking inventory, quick commerce players can leverage B2B partnerships or private labels to offer a wide assortment of pantry items, snacks and home care products.

Advertising and Loyalty Programs - Monetization opportunities exist through sponsored listings, performance-based advertising and exclusive member deals. Loyalty schemes can boost order frequencies.

International Expansion - With steady success, major quick commerce providers are slated to begin overseas operations, starting from regions exhibiting high mobile penetration and comfortable with on-demand services.

Impact Of COVID-19 On US Quick E-Commerce (Quick Commerce) Market Growth

The COVID-19 pandemic has accelerated the growth of quick commerce market in the US. During lockdowns and restrictions, online grocery and other essential goods delivery witnessed a surge in demand as consumers preferred contactless deliveries for safety. This gave a major boost to quick commerce players in providing delivery of goods within minutes. The pandemic highlighted the need for a quick, on-demand delivery model, benefiting players in this sector. Though pre-COVID the market was still at a nascent stage, post-COVID many players expanded aggressively to cater to the spiking demand. They partnered with retailers and focused on expanding into more cities and neighborhoods. Investments into the sector also increased manifold during this period to support the capacity expansion needs of players. As shopper behavior shifted online during the pandemic, quick commerce is expected to become an integral part of online grocery shopping in the post-pandemic period as well. However, profitability remains a challenge given high operational costs for players in this space.

Geographical Regions With Highest Concentration Of US Quick E-Commerce Market

In terms of value, the quick commerce market is currently concentrated in major metropolitan areas of the US like New York City, Los Angeles, Chicago, Washington DC, Boston, San Francisco, Miami and Dallas. These cities offer higher population density which is crucial for quick commerce operations given the small delivery windows. The availability of rentable dark stores, proximity to customers and extensive delivery zones allow players to optimally execute their quick delivery model. Also, widespread smartphone and internet penetration coupled with acceptance of digital payments in these regions provide a fertile ground for quick commerce services. However, in the future, other mid-sized cities and suburbs are expected to emerge as lucrative opportunities given rising consumer expectations and expanding service coverage of players.

Fastest Growing Region for US Quick E-Commerce Market

The Western region of the US encompassing cities like Seattle, Portland, San Diego and Sacramento has been witnessing strong growth in quick commerce adoption in recent times. This can be attributed to rising investments by sector players into these areas. Moreover, high disposable incomes, prevalence of nuclear families leading to increased reliance on online deliveries of daily grocery and other items and acceptance of new shopping behaviors have driven the sector's popularity. Quick delivery services are well aligned to address the time-starved lifestyles of these cities. With continued efforts to strengthen delivery infrastructure, Western states are expected to emerge as the fastest growing region for quick commerce in the US market.

What are the key data covered in this US Quick E-Commerce Market report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the US Quick E-Commerce Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the US Quick E-Commerce  Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behavior

:- US Quick E-Commerce  Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of US Quick E-Commerce  Market vendors

FAQ’s

Q.1 What are the main factors influencing the US Quick E-Commerce market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top US Quick E-Commerce Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the US Quick E-Commerce market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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