Are you capitalising on the quick commerce opportunity?

24 January 2022

Quick commerce has emerged as a new route to market, adding a new channel of operations for retailer and suppliers and is providing new opportunities to engage and sell to shoppers

This new channel we estimate is already worth in excess of £1.4bn. Our research has shown that one in three consumers are already using it or are intending to use it in the near future, and that it’s likely to continue growing at pace, with a total market potential in excess of £3bn.

In the UK, Deliveroo and Uber Eats have been the established players in on-demand delivery. The pandemic saw these last milers change focus to grocery after being impacted by restaurant closures. However, 2021 saw a rush new financing deals, launches and further expansion of specialist on-demand rapid delivery startups in the UK, operating from dark stores. Jiffy, Getir, Gopuff, Gorillas and Zapp are all now operating, in one or more UK towns or cities.

So how can you take advantage of this new channel? What should you be considering?

  1. Understand the players and their offers.
    Understanding the quick commerce operators on the market to better understand their models will help identify collaborative opportunities. Knowing which operating model is being used is critical as this will determine the range of products which can be offered and the key missions to target, making it clear where your business can fit and where growth can come from.
     
  2. Know the shopper and the key missions.
    Quick commerce today is mainly used for “need it now” missions, including, food-to-go, evening meal and top-up, with bakery, dairy, chilled products and food-to-go the most bought into categories. However the range of categories being shopped is wide, with even the likes of fresh produce appearing in over a quarter of shops.
     
  3. Choose a partner carefully.
    Pick your partners carefully and have clear KPIs upfront and regularly review performance against these. Walk the platforms and audit range, key quick commerce missions targeted, images, descriptions, and search.
     

If you want to know more or want to discuss the quick commerce market, its shoppers and your growth opportunities with this channel, please contact Miloš Ryba, Head of Retail Solutions at [email protected]

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