July 12, 2024
UK Quick E-Commerce Market

UK Quick E-Commerce Market: Buyk Captures Market with Hyperlocal Speed

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:
The UK quick e-commerce market refers to the online grocery delivery services which offer delivery of goods within 60 minutes or less. Quick e-commerce uses a hub-and-spoke model for inventory management and logistics. Goods are stored in micro-warehouses located close to customers. This allows for rapid retrieval and delivery of items by bicycle or other micro-mobility vehicles. The key advantages of quick e-commerce include hyperlocal delivery speeds, personalized basket recommendations, wide product assortments, and flexible delivery windows. The need for quick e-commerce has increased amidst the COVID-19 pandemic as people want contactless grocery delivery options.

Market key trends:
One of the key trends in the UK quick e-commerce market is the rise of quick commerce player Buyk. Based in London, Buyk operates over 60 micro-warehouses across major cities and delivers groceries within 15 minutes on average. It has raised over $250 million in funding to date to expand its micro-fulfillment centers and delivery fleet. By optimizing urban footprints and harnessing micro-mobility, Buyk aims to redefine the speed and efficiency of online grocery delivery. Its capital infusion and technological edge over peers have helped it capture a major share of the UK quick commerce market in recent times.

Porter’s Analysis
Threat of new entrants: The quick commerce market in UK poses moderate threat of new entrants due to the high capital required to build infrastructure like micro-fulfillment centers for delivery within minutes and strong brand positioning of existing players.
Bargaining power of buyers: Buyers have high bargaining power in this market due to availability of substitutes and undifferentiated products offered by players. Buyers can switch between players easily based on pricing and delivery time.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of many supplier options and dependence of players on suppliers for inventory.
Threat of new substitutes: Threat from substitutes is high with availability of alternatives like regular e-commerce, instore shopping and takeouts.
Competitive rivalry: Competition in the market is high due to presence of global established players.

Key Takeaways
The UK Quick E-Commerce Market Demand is expected to witness high growth, exhibiting CAGR of 19.4% over the forecast period 2023 to 2030, driven by rising demand for instant delivery groceries and other daily essentials especially after pandemic. The market size is projected to reach US$ 6.21 billion in 2023.

Regional analysis: London dominates the UK quick commerce market with over 50% share due to high population density and awareness. Other major regions include South East and West Midlands.

Key players operating in the UK quick 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 key players focus on expanding their micro-fulfillment centers to provide delivery within agreed time frames and offer promotional discounts to attract customers. They also launch new categories to boost order values.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it