by Quick-commerce refers to delivering goods from local warehouses to customers within one hour. It involves using a network of micro-fulfillment centers or dark stores located in densely populated urban areas to enable fast delivery. Goods are typically ordered via a mobile app and delivered within a short timeframe by couriers. Key products delivered through quick commerce include groceries, daily essentials, medicines, and prepared meals. As people’s hectic schedules leave little time for shopping, the growing trend of on-demand delivery has fueled demand for quick commerce services.
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 Dynamics:
Growing urbanization coupled with increasing disposable incomes has resulted in more hectic lifestyles, leaving people with little time for shopping errands. This has boosted the popularity of quick commerce services that enable doorstep delivery of goods within an hour. The convenience and instant gratification offered by quick delivery are some of the major drivers favoring the growth of the US quick e-commerce market. Furthermore, advances in warehousing technology have enabled companies to establish micro-fulfillment centers in dense urban locations, facilitating fast order processing and delivery within the stipulated timeframe. While on-demand delivery provides evident customer benefits, it also allows retailers to improve supply chain efficiency and inventory turnover. This synergy between customer demands and operational efficiencies is expected to further propel the quick commerce model.
Segment Analysis:
The US Quick E-Commerce Market is dominating by the grocery segment with over 50% market share. This segment is growing rapidly as more consumers are looking for quick delivery of daily grocery and cooking essentials at their doorsteps within 30 minutes. The need for convenience and saving time is driving the growth of grocery segment in the quick commerce market.
US Quick E-Commerce (Quick Commerce) Market Segmentation:
- By Product Type
- Clothing
- Stationary
- By Delivery Mode
- Online
- Cash on Delivery
PEST Analysis:
Political: The US government is supportive of quick commerce business models through various business friendly policies and regulations to promote the digital economy. However, hiring independent contractors by these platforms is facing some challenges.
Economic: Strong economic growth, rising disposable incomes, busy lifestyles and increasing internet and smartphone penetration are fueling the demand for quick commerce services in the US. Higher inventory costs and low-profit margins remain key challenges for operators.
Social: Changing consumer preferences towards convenience and instant delivery are a major driver for quick commerce adoption. Younger generations especially are adopting such services heavily for their daily needs.
Technological: Emerging technologies around warehouse automation, AI powered predictive analytics and self-driving vehicles are enabling operators to deliver orders within 10-30 minutes. Advanced location technologies and platforms are enhancing customer experience.
Key Takeaways:
The US Quick E-Commerce Market Size is expected to witness high growth at 8.0% CAGR through 2023 to 2030 driven by growing consumer demand for ultra-fast delivery.
Regional Analysis:
The Western region accounts for over 35% market share led by states like California due to high smartphone and internet penetration. Southern region is also growing rapidly in states like Florida, Texas due to rapid urbanization.
Key Players:
Key players operating in the US Quick E-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 is the dominant player with over 25% market share attributed to its wide warehouse network and product assortment.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
