Quick commerce, also known as last-mile delivery, involves delivering consumable items to customers within a short span of time, usually within 2 hours. With the growing demand for on-demand delivery and consumption of small basket essential items, the quick commerce market in the US has gained massive traction in recent years. Products delivered through quick commerce include ready-to-eat meals, groceries, over-the-counter medications and other everyday essential items. Quick delivery enables consumers to order whatever they need at short notice and get it delivered within the promised time.
The US Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 7.5 billion in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.
Market Opportunity:
The growing prominence of the on-demand economy presents a huge market opportunity for quick commerce platforms to enable instant and hyperlocal delivery services. As more people seek convenience and speed in their daily purchases, the demand for quick delivery of items is growing rapidly. Quick commerce platforms that offer delivery within 15-30 minutes can leverage this opportunity by expanding their fulfillment centers, partnering with local merchants and enhancing their technical capabilities for efficient order processing. Establishing a strong quick commerce supply chain will enable companies to scale up operations and gain a larger share in this emerging on-demand market.
Porter's Analysis:
Threat of new entrants: The threat of new entrants is moderate as the quick commerce market requires large investments in technology, infrastructure, inventory management and delivery fleet to compete. However, growing opportunities have attracted several new companies.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of various quick commerce players. Buyers can easily switch between platforms based on price, delivery timelines and product availability.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as quick commerce players partner with multiple local suppliers and grocery stores to source products.
Threat of new substitutes: The threat of new substitutes is moderate as grocery delivery by traditional e-commerce players remains an alternative for customers. However, quick commerce satisfies immediate needs due to delivery in under 30 minutes.
Competitive rivalry: The competition in the quick commerce market is intense given the presence of various global and local players targeting lucrative opportunities through expanded product offerings and geographical reach.
SWOT Analysis:
Strengths: Access to urban customer base through apps, efficient inventory and delivery management through technology.
Weaknesses: High operating costs, reliance on gig workforce, limited product assortment.
Opportunities: Growing appetite for quick fulfilment of needs, partnerships with retailers to source inventory, new service offerings.
Threats: Changing customer preferences, strict delivery timelines, increased investment requirements.
US Quick E-Commerce (Quick Commerce) Market Segmentation:
- By Product Type
- Clothing
- Stationary
- By Delivery Mode
- Online
- Cash on Delivery
Key Takeaways:
The US Quick E-Commerce Market Size is expected to witness high growth over the forecast period driven by urbanization, busy lifestyles and expanding product offerings. The Western region currently dominates the market due to high smartphone penetration and presence of major cities. The US Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 7.5 billion in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030.
Regional Analysis: The Western region accounts for over 35% market share led by states like California, Texas and New York. Cities like Los Angeles, San Francisco and New York have witnessed huge demand for quick delivery supported by widespread retail chains and local vendors partnering with quick commerce companies. The Southern region is the fastest growing market led by Florida due to high population density in major cities.
Key Players: Key players operating in the US quick commerce market are GoPuff, DoorDash, Uber, Instacart, Postmates, GrocerKey, Jokr, Buyk, Fridge No More, Gorillas, Getir, Zapp, Delivery.com, Mercato, Weezy, Gopuff, Flink, Jiffy, Buyk, Ultrafast. GoPuff and DoorDash dominate with their expanded product portfolio and nationwide presence while local players are expanding services to newer cities.
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