'Quick commerce’ market to hit £3.3bn in UK

The quick commerce channel – which delivers food and groceries to consumers in less than one hour and often sub-30 minutes – is predicted to grow to £3.3 billion in the UK alone.

The research, from analyst house IGD, found the market is currently worth £1.4 billion.

One in three shoppers in the UK have used or are interested in using quick commerce and the most common drivers for purchase are “food-to-go”, “top-up shopping”, and “meal for tonight” according to IGD.

The average age of the quick commerce shopper is 36 according to IGD and its primary demographic is young adults living in urban locations.

In addition, the research found more than seven out of ten shoppers who use or are interested in using quick commerce can be convinced to use it to pick-up last-minute items for key events such as summer barbecues, key sporting events, parties, and public holidays.

Istanbul-based grocery delivery app Getir, a quick commerce company offering sub-30 minutes deliveries, recently raised $550 million in a Series D funding round, giving it a total valuation of $7.5 billion.

Established supermarkets in the UK are also beginning to trial fast deliveries; Tesco recently launched “Whoosh” in some areas, a rapid delivery service it says allows customers to receive goods in less than one hour. LINK

“Rapid delivery, or quick commerce as it is now known, has been around for some time, but Covid-19 has clearly catapulted its expansion to the point where it’s become a channel in its own right,” said Simon Mayhew, head of online retail insight at IGD.

He added: “Its growth is evident in the UK, but also on a worldwide scale, with players like Fancy, Getir, Weezy, Gorillas and Jiffy fast becoming household names.”

“Quick commerce is an exciting, fast-paced channel which presents a huge opportunity for suppliers, retailers, aggregators and pure plays,” said Rachel Sibson, retail analyst at IGD. “The new report maps out development and growth on a global scale and also looks closely at the UK, using our ShopperVista data.”

He added: “The second and third editions of the report series will focus on retailer best practice, how to gain share and the future outlook.”

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