Will Q-commerce become a $1T industry?

21.09.2022
It's impressive how Q-commerce is storming into our lives and changing consumption patterns. A lot of people open doors to couriers more often than doors of their fridges. Top 5 q-commerce startups (GoPuff, Getir, MissFresh, DingDong, Gorillas) have already raised almost $10B, building their dark stores infrastructure and expanding operations in the new markets with a pretty similar message - "groceries in minutes". But are there other niches for Q-commerce beyond food and grocery delivery? And will this market have a chance to hit the $1T mark?
Let's see it widely. According to Statista, the Retail market size is $27.3T. E-commerce, as an online part of the market, takes 21%. But what about Q-commerce, the fastest and most hyperlocal E-commerce? It's only 0.1% of the Retail market now ($25B) and is mostly associated with grocery delivery. Nonetheless, this tiny number shows us the vast potential for the niche.
Just calculate. If two of 50 retail purchases in the nearest future is delivered in 30 minutes, Q-commerce market size will grow 40 times to $1T. And this scenario seems absolutely real.

So, what q-commerce-friendly categories can provide this growth? These probably are medicine, cosmetics, accessories, gifts, and many other things. "All you need in a minute."
And talking about specific examples here is a case study of how q-commerce works in a non-food area.

A year ago, Boots, the UK's most significant health and beauty retailer, started a pilot with Deliveroo offering 400 most popular products. A few weeks ago, they expanded this project to cover 125 stores in the UK and shared the results.

"The original trial was a huge success and gave us the opportunity to learn very quickly what our customers want from a rapid delivery service," said Paula Bobbett, the chief digital officer at Boots. "Our customers can get cough, cold, and flu relief products and mild pain relief delivered to their doors to help them with the symptoms of mild illnesses this winter, or baby wipes and nappies for those everyday childcare emergencies," Bobbett added. "Plus, if they've run out of their favorite skincare brand or need a last-minute gift, they can get our great range of beauty and gifting products straight to them in minutes."

Such cases show a massive opportunity for different product categories and encourage retailers to further experiments with q-commerce. What do you think about it, and what goods could you order with 30 min delivery just now?
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Foodtech - is my passion for the last 10 years. Being a founder of a food delivery marketplace, ghost kitchen chain, and q-commerce software company, I'm inspired by great ideas and innovations in this area. And I'm happy to share my thoughts and insights here in Foodtech.Live. All updates are available on my LinkedIn and Twitter. See you there!
Yaroslav Tsyhanenko
Founder / CEO @ Dots Platform
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