by The UK Quick E-commerce (quick commerce) Market is estimated to be valued at US$ 6.21 billion in 2023 and is expected to exhibit a CAGR of 19.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Quick commerce refers to delivery of groceries and daily essential items within a few minutes or one hour through a hyper-local delivery model. In the UK, operators use a dense network of micro-fulfillment centers or “dark stores” that hold inventory near potential customers. They dispatch orders through fleets of personal shoppers who gather items and delivery partners who make the drop-offs. This allows quick commerce players to offer delivery windows as short as 10-30 minutes.
Market Dynamics:
The UK quick commerce market is expected to witness significant growth over the forecast period, owing to increase in online grocery orders and growing urbanization. The COVID-19 pandemic has accelerated the shift towards online grocery shopping and delivery, as customers seek contactless options. According to research by ocado, online grocery sales in the UK increased by 33% in 2020 compared to the previous year. Furthermore, around 80% of UK population lives in urban areas with higher density of customers, allowing quick commerce players to optimize their operations. Quick commerce operators are able to offer convenience and meet customer expectations of instant or near instant delivery. The entry of quick commerce players such as Gorillas and Jiffy has further intensified competition in the UK market.
Segment Analysis
The UK quick e-commerce market is dominated by the grocery segment which accounts for over 50% market share. Quick delivery of grocery and daily essential items within 30 minutes of order placement is the core value proposition of grocery retailers in this segment. Changing consumer habits and preference for convenience has led to higher demand for quick delivery of daily essentials.
Pest Analysis
Political: The government supports tech innovation through funding and policies. Recent policies allow foreign investment in quick commerce space.
Economic: High disposable incomes and busy lifestyles have increased consumer appetite for quick delivery models. The market is expected to grow exponentially due to economic recovery post pandemic.
Social: Rising nuclear families and dual income households leave less time for errands. Social media influence has increased awareness and adoption of quick commerce platforms among younger consumers.
Technological: Advanced technologies like AI, ML and autonomous vehicles are enabling retailers to optimize logistics and fulfillment to achieve delivery under 30 minutes. Advanced in-app features and integrations provide seamless shopping experience.
Key Takeaways
The UK Quick E-Commerce Market Demand was valued at US$ 6.21 billion in 2023 and is expected to reach US$ XX Billion by 2030, growing at a CAGR of 19.4% during the forecast period. The growing trend of instant delivery is the major factor driving the market.
Regional analysis indicates that London dominates the UK quick commerce market with over 30% share due to high population density and prevalence of nuclear families. However, other major cities like Manchester, Birmingham are also witnessing rapid growth in adoption of quick commerce platforms.
Key players operating in the UK quick e-commerce market are Buyk, Cajoo, Everli, Fancy, Weezy, Zoom2U, Deliveroo, Just Eat, Uber Eats, Getir, Gorillas, Flink, Zapp, Jiffy, Weezy, Dija, DoorDash, Stuart, Gopuff, Jokr. The market is highly competitive with focus on quick fulfillment capabilities, reliable quality products and differentiated value propositions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
