The Europe Quick E-Commerce (Quick Commerce) Market is estimated to be valued at US$ 4.85 billion in 2022 and is expected to exhibit a CAGR of 38.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Quick commerce is an e-commerce business model that delivers groceries and everyday essentials to customers within a few minutes of order placement. It utilizes hyperlocal warehouses to store merchandise closer to high-density customer locations for extremely fast delivery. Quick commerce eliminates the wait time associated with traditional e-commerce and satisfies quick shopping needs of customers.
Market key trends:
One of the key trends fueling the growth of Europe quick e-commerce market is increased focus on hyperlocal delivery. Established quick commerce players are aggressively expanding their geographical footprint by setting up hundreds of micro-fulfillment centers within high demand pockets of major cities. These centers act as inventory hubs where orders are assembled before being dispatched on insulated delivery vehicles/bikes. The hyperlocal delivery approach enables quick commerce providers to offer delivery slots within 15-30 minutes. Moreover, it allows them to scale rapidly while meeting increased customer expectations for even faster deliveries.
Porter’s Analysis
Threat of new entrants: New entrants find it difficult to enter the market as quick commerce requires large investments in technology infrastructure and widespread delivery network to ensure timely deliveries.
Bargaining power of buyers: Buyers have significant bargaining power as quick commerce market is growing rapidly with presence of many players offering similar products and services at competitive prices.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of large number of suppliers for similar products and services.
Threat of new substitutes: Threat of substitutes is low as no direct substitutes exist for quick commerce business model.
Competitive rivalry: High competitive rivalry exists among existing players.
SWOT Analysis
Strength: Quick commerce players have strong tech capabilities and widespread delivery network. Short deliveries timeframes provides unparalleled convenience to customers.
Weakness: Require large capital investments and economies of scale to reach profitability. Dependence on hyper-local warehouses increases operational challenges and costs.
Opportunity: Large untapped market potential with growing customer demand for instant deliveries. Consolidation opportunities through mergers and acquisitions.
Threats: Intense competition affecting profitability. Strict local laws and regulations around storage and delivery of items.
Key Takeaways
The global Europe Quick E-Commerce (Quick Commerce) Market Size Share is expected to witness high growth, exhibiting CAGR of 38.5% over the forecast period, due to increasing adoption of on-demand delivery model among online shoppers.
Regional analysis: Germany dominates the Europe quick commerce market and is expected to retain its lead, growing at 40% CAGR during the forecast period. Presence of large customer base and growing penetration of smartphones and internet are driving demand.
Key players: 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, Deliveroo. Players are investing heavily in expanding into new regions and strengthening delivery capabilities to gain market share.
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https://www.newsstatix.com/the-europe-quick-e-commerce-market-trends-size-and-share-analysis/
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