July 22, 2024

The rising integration of drones is anticipated to open up new avenue for Europe Quick E-Commerce (Quick Commerce) Market

Market Overview:
Quick commerce refers to delivering grocery and daily essential items to customers within 30 minutes of order placement through a dedicated quick commerce supply chain and infrastructure. Key players have established microfulfillment centers at prime city locations which acts as mini warehouses to store products closer to customers. Orders are fulfilled through shoppers/runners within the targeted lead time. Products associated with this market include grocery, fresh food, OTC drugs, household products etc.

Market Dynamics:
The quick commerce market in Europe is primarily driven by rising digitalization and increasing adoption of online grocery shopping. According to a report, over 50% of people in UK prefers online grocery shopping over visiting stores due to factors like convenience, safety and time saving nature. Further, growing consumer demand for instant gratification also contributes to the market growth. Younger demographic segment particularly expects everything at their fingertips and quick commerce fulfills this need. Despite challenges like high setup and operating costs, quick commerce model is gathering pace in Europe led by rising investments and expanding hyperlocal initiatives of key players.
Segment Analysis
The Europe quick e-commerce market is dominated by the grocery segment which holds around 60% market share. Grocery delivery within 10-30 minutes has gained huge popularity in Europe owing to the busy lifestyle of consumers and their need for instant gratification. Customers prefer ordering everyday grocery items through quick commerce platforms for same day delivery rather than visiting retail stores, thus driving the growth of grocery segment.

PEST Analysis
Political: The quick commerce market is undergoing favorable regulations across major European countries which encourage the growth of startups as well as investments. For instance, funding and subsidies provided by governments of UK, France, and Germany.
Economic: High disposable income levels along with growing online spending on groceries and essential items is fueling the Europe quick commerce market. Consumers find such services affordable and convenient.
Social: Rapid urbanization and changing customer preferences towards instant delivery are driving the social factors. Also, adoption of mobile apps for ordering daily needs is prevalent among young population.
Technological: Continued investments in advanced warehouse technologies like AI, ML, computer vision etc. help players in improving order picking, fulfillment and delivery efficiency. Also, the adoption of E-bikes and electric vehicles boost sustainable last mile delivery.

Key Takeaways
The Europe Quick E-Commerce (Quick Commerce) Market is expected to witness high growth, exhibiting CAGR of 38.5 % over the forecast period, due to increasing preference of customers towards instant delivery offered by such platforms.

Regional analysis indicates UK holds the largest share of around 35% in the European quick commerce market owing to strong presence of leading players. Germany follows UK and is witnessing fastest growth on back of growing trend of rapid grocery delivery among German consumers.

Key players operating in the Europe quick e-commerce market are Getir, Gorillas, Gopuff, Just Eat Takeaway, Delivery Hero, Jokr, Flink, Zapp, Uber Eats, Wolt, Bolt, Deliveroo. Getir and Gorillas dominate more than 50% market share due to their extensive dark store networks across major European cities.

Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it