Q-commerce: what awaits fast delivery services

Instant delivery — q-commerce — is actively developing in the world. Research and Markets valued the industry at $25 billion in 2021 and expect it to triple in size to $72.3 billion by 2025.

Q-commerce (quick commerce, “quick commerce”) is a business concept for the instant delivery of everyday goods: groceries, basic medicines, household and household goods. On average, such delivery is carried out within half an hour after placing an order. Goods are brought from darkstores - special warehouse stores that are not available to ordinary buyers. Orders are usually delivered by couriers on bicycles, mopeds or scooters. Analysts at the German fast food delivery company Delivery Hero note that q-commerce is distinguished by the presence of local partners. In particular, more than 15,000 retail outlets, such as cafes, pharmacies, and flower shops, cooperate with Delivery Hero.

One of the first q-commerce startups to emerge during the dot-com era in 1998 was Kozmo.com. The creators Josef Park and Yong Kang focused on free shipping and promised to bring any order within an hour. The project raised more than $250 million. In 1999, its revenue was $3.5 million, and the loss was $1.8 million. Free delivery paid off in densely populated cities, and only brought losses in small ones. As a result, due to an undeveloped business model in 2001, the project was forced to close.

In fact, q-commerce is the next stage in the development of e-commerce (“electronic commerce”). E-commerce combines all platforms and services where payment is made online, for example, online stores. Q-commerce does the same, but the players deliver goods faster.

The COVID-19 pandemic , which broke out in 2020, has spurred a change in shopping behavior with a strong demand among users for fast delivery of groceries. This expanded the possibilities of q-commerce. For example, in Europe there are now more than ten companies with a similar business model. Among them are Gorillas, Foodpanda, Foodora. But with rapid development came serious competition. Startups are vying for user attention, shifting the focus from profit to user experience.