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Nov, 2021     

Quick Commerce: “Instant” becoming the norm in delivery

Within e-tailing alone, instant Delivery is expected to contribute to 8% of GMV in the next 3 years


1. Q-commerce is defined by fast delivery within 2 hrs. from local shops, restaurants, and dark stores

Quick Commerce provides more convenience to customers with its instant and doorstep delivery, curated selection of products.

Although a wide array of product segments are serviced through the quick commerce model, the F&B segment commands a large share currently.

Q-commerce Category1 Segmentation

Note: This document focuses on product-based sectors only and doesn’t include services

2. MENA Q-commerce market is expected to reach $20 Bn by 2024

2020 proved to be a landmark year for Q-commerce adoption as the pandemic proved to be a tailwind for two major sectors in Q-commerce – Food Delivery and e-Grocery. The e-Grocery market saw 4x growth in 2020 and the need for instant delivery was strong in this segment.

On our estimates, the Q-commerce market will cross the USD 20 Bn mark in the next 3 years.

MENA Q-commerce1 Market Size,

USD Bn, 2018 – 2024 (F)

Note(s): 1. Q-commerce is defined as delivery of goods within short period of time usually around 1-2 hrs

3. Food delivery accounts for majority share in this market but Grocery and other categories contribution is rising rapidly

Food delivery accounts for the lion’s share of the Q-commerce market currently, however e-Grocery has grown leaps and bounds over the last two years. Other adjacent categories are also starting to figure prominently in the mix.

MENA Q-commerce1 Sector Split

USD Bn, 2018 – 2024 (F)

Note(s): 1. Q-commerce is defined as delivery of goods within short period of time usually around 1-2 hrs

 

4. Within e-tailing alone, instant Delivery is expected to contribute to 8% of GMV in the next 3 years

8% of e-tailing GMV in 2024 in MENA will be fulfilled through the Q-commerce model. This is a massive jump as in 2018, this number was ~1%.

4 different business models have been driving up the Q-commerce market –

1. Omnichannel Retailers
2. Hyperlocal Players
3. E-Tailing Horizontals
4. Specialist e-Grocers

Each of them have a sizable presence in the segment, however we see some strong moves playing out over the last couple of quarters.

MENA E-tail Market Split by delivery type

% of GMV, 2018 -2024 (F)

Note: Q-commerce excludes food delivery and courier services

The trends in MENA are quite different to what we’ve observed in some other regions like Southeast Asia and India for that matter.