Quick commerce refers to delivery of groceries and everyday essentials within a few minutes upon ordering. The growing popularity of online shopping and high internet penetration coupled with evolving consumer lifestyle favoring immediate delivery of products has fueled the demand for quick commerce services. Key players in the market such as GoPuff, DoorDash, Uber and Instacart offer hyperlocal delivery of groceries, household items, over-the-counter medicines within 10-30 minutes upon ordering through their mobile applications and websites. The ability of quick commerce platforms to fulfill consumers' needs almost instantly without the hassle of visiting a brick-and-mortar store has made it an attractive proposition, especially for time-pressed urban households.
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 2023-2031.
Key Takeaways
Key players: Key players operating in the Quick Commerce market are GoPuff, DoorDash, Uber, Instacart, Postmates, Fridge No More, Buyk, Gorillas, Jokr, and Getir among others. GoPuff leads the market with over 200 warehouses across North America while Instacart remains one of the largest online grocery platforms in the US.
Growing demand: Evolving consumer proclivity towards immediacy and convenience has propelled the demand for quick commerce in the US. The youth demographic heavily dependent on on-demand delivery services is expected to sustain market demand. Furthermore, the COVID-19 pandemic has accelerated consumer shift towards contactless purchases, benefiting the quick commerce model.
Technological advancement: Quick commerce operators are investing heavily in order management technologies, fulfillment systems and autonomous vehicles to ensure hyperlocal delivery within 10-15 minutes. Advancements in AI, IoT, computer vision and machine learning will help streamline fulfillment processes, optimize delivery routes and enhance customer experience.
Market Trends
Fulfillment capabilities: Leading companies are setting up micro-warehouses or dark stores closer to residential areas with diversified inventory to fulfill orders within the short delivery window. Micro-fulfillment centers enable swift order picking, packing and last-mile delivery.
New retail experience: Quick commerce players are experimenting with innovative concepts like customer pick-up lockers and checkout-free stores. Autonomous vehicles are also being piloted for contactless deliveries. These initiatives aim to make the purchasing experience more convenient.
Market Opportunities
First-mover advantage: Early expansion of fulfillment infrastructure and customer acquisition across new US cities will provide first-mover advantage over competitors. Success in tier 2 & 3 markets will open up new growth avenues.
New product categories: While groceries and pantry items dominate currently, players can tap opportunities in perishables, ready-to-eat meals and other categories to diversify revenue streams and enhance value proposition.
Impact of COVID-19 on US Quick E-Commerce (Quick Commerce) Market growth
The COVID-19 pandemic has significantly impacted the growth of the US quick e-commerce market. During the lockdowns imposed due to the pandemic, people were confined to their homes and were hesitant to go out for grocery shopping and other essential items. This increased the demand for quick delivery of items through e-commerce platforms. Many quick commerce startups entered the market during this period to cater to this growing demand. Established platforms like Instacart, Uber and DoorDash also expanded their quick delivery services.
The lockdowns led to temporary closure of physical stores, which further boosted the reliance on online channels for purchases. The availability of contactless delivery options encouraged more customers to opt for quick e-commerce platforms. Post-lockdowns as well, many customers have preferred quick deliveries due to convenience and safety reasons. This changed customer behavior is expected to drive the continued growth of the market even in the coming years. However, factors like economic uncertainties induced by the pandemic may pose challenges. The market players need to focus on expanding their product portfolio and delivery reach to tap into emerging opportunities.
US geographical regions where quick e-commerce market is concentrated in terms of value
The quick e-commerce market in the US is highly concentrated in major metropolitan areas in terms of value. Cities like New York, Los Angeles, Chicago, Dallas, Houston, Philadelphia, Washington DC, Miami, Atlanta and Boston account for over 60% of the total market value. This is due to high population densities and busy lifestyles in these cities that drive the demand for quick deliveries. Established market players have set up dense networks of micro-fulfillment centers and fleet operations in these cities to offer ultra-fast deliveries within 15-30 minutes. The availability of loyal customer bases and opportunities for scaling up operations make these cities lucrative for quick commerce companies.
Fastest Growing Region For US Quick E-Commerce Market
The Southern region of the US, comprising states like Texas, Florida, North Carolina, Georgia, is expected to be the fastest growing market for quick e-commerce over the forecast period. This is attributed to rapid population growth, urbanization and expanded delivery capabilities in cities across this region. For instance, the quick commerce market in Texas alone is projected to grow at over 15% annually between 2023-2031. Further, emerging cities in the South like Austin, Charlotte, Jacksonville, etc. that are adopting e-commerce at a fast pace will contribute highly to the overall growth of the Southern region 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's growth between 2024 and 2031.
:- Accurate calculation of the size of the US Quick E-Commerce and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- US Quick E-Commerce 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 vendors
FAQ’s
Q.1 What are the main factors influencing the US Quick E-Commerce?
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 companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the US Quick E-Commerce’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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