June 14, 2024
US Quick E-Commerce (Quick Commerce) Market

Rapid E-Commerce Delivery Is Fueling The Rise Of Us Quick E-Commerce Quick Commerce Market

With increasing demand for faster delivery of everyday items, the quick commerce model is rapidly gaining popularity. Quick commerce refers to delivery of consumables and essential items within an hour from ordering through a dedicated mobile app or website. Typically, quick commerce companies keep a network of micro-fulfillment centers located in densely populated city centers that helps deliver items from nearby warehouses to customers within minutes. This eliminates the waiting period associated with traditional e-commerce. Some key products delivered through quick commerce include groceries, snacks, prepared meals, over-the-counter medicines, and other daily needs items. The model offers immense convenience to customers who can access such items as and when needed without having to spend considerable time visiting stores.

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 Key Trends:

One of the major trends driving the growth of quick commerce is the entry of major retailers and restaurant delivery chains into the market. For instance, goPuff, DoorDash, Uber, and Instacart are some of the largest players offering quick commerce services in major US cities. Their established brand names and delivery networks help expand the reach of quick commerce. Another key trend is the introduction of specialized grocery delivery vans and bikes fitted with coolers and insulated compartments that enable delivery of items without compromising quality within the promised timeline. This has significantly enhanced delivery capabilities of quick commerce companies. Investments in developing hyperlocal fulfillment centers is another area attracting significant funding that will help strengthen the supply chain infrastructure and support market growth over the coming years.

Porter’s Analysis:

Threat of new entrants: The US quick commerce market has moderate threat of new entrants due to high capital requirements and technical expertise required to maintain quick delivery timelines. However growing customer demand and availability of venture capital funding provides opportunities for startups.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of multiple quick commerce platforms offering similar products and services. However speed and convenience of service differentiates established players.

Bargaining power of suppliers: Established quick commerce platforms have high bargaining power over suppliers due to large volume of sales and ability to source items in bulk from multiple suppliers.

Threat of new substitutes: There is moderate threat from substitute options like regular e-commerce and pick up services. However quick commerce fills the need for instant delivery of items within few minutes.

Competitive rivalry: The US quick commerce market experiences high competitive rivalry with presence of multiple players competing on dimensions of delivery time, unique offerings, private label brands, and price.

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 driven by increasing smartphone penetration, changing consumer behavior towards instant deliveries and growing demand for quick grocery items. 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 dominates the US quick commerce market due to high adoption of on-demand delivery services in states like California. States like New York and Texas also present lucrative opportunities for quick commerce platforms owing to large urban populations and fast-paced lifestyle.

Key Players: Key players operating in the US quick commerce market include GoPuff, DoorDash, Uber, Instacart, Postmates. Leading players are investing heavily in expanding fulfillment centers to offer quick delivery in new geographies and expanding their private label offerings. GoPuff leads the market with presence in over 650 cities across US followed by DoorDash.

*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it