1. Technology is rapidly shrinking the order-to-delivery time for online customers…
Technology has continuously shortened the customers’ order-to-delivery time from days to hours in the last few years. The emergence of Qcommerce is set to further reduce the time window to a few minutes!
Qcommerce players have been gaining customers’ attention with their under 15 mins quick and secure delivery. Realizing this emerging trend, eCommerce players have also stepped in test the waters.
Consumers with access to internet holding cryptocurrency as tradeable assets, % of total internet users
Note: Players list only for illustrations
2. Dark stores (decentralized warehouses) is a critical part of QCommerce model
QCommerce players are racing to establish their dark store networks in Indonesia. These stores hold inventory, which is promptly matched to customer orders and their fleet drops the goods directly at the customer’s house.
To deliver goods faster, QCommerce relies on in-house logistics (mostly two-wheelers), offers grocery/household appliances-only, and uses a network of dark stores to service adjoining areas. Consequently, they can achieve faster delivery times. As customers’ awareness and adoption improve, the product assortment is likely to widen as well.
3. ECommerce players testing the waters now and could offer their own QCommerce offerings in the near future
The eCommerce players are distinctly ahead of the independent QCommerce players on most parameters including geographic coverage, product variety, customer base, etc. However, sensing an emerging opportunity in QCommerce, the eCommerce players are likely to step up on faster delivery options as well.
4. Funding has strengthened QCommerce’s capabilities amid signs of encouraging growth
Qcommerce players like Astro and Dropezy (established in 2021) are using their capital to expand their dark store network footprint, offer more products, and increase their tech capabilities. These initiatives should sustain their near-term growth momentum.
ID Quick Commerce Funding, US$ Mn