Amazon and Flipkart, two major e-commerce giants were planning to increase their quick commerce operations. This new operation need a huge amount of investment at least US$ 1 billion in upcoming two or three years. This investment is done to compete with the other leading companies such as Swiggy Instamart, Zepto, and Blinkit. As per a report published on 22 December 2024, companies are heavily investing on its supply chain and logistics infrastructure to support quick commerce ambition. Q-commerce means when a product is delivered within 30 minutes, it requires efficient logistics network.
To achieve this objective, both the leading companies were need to invest in new technologies. These technologies include artificial intelligence and data analytics, to optimize its supply chain operations. These companies also trying to expand its network of delivery center and dark store, those are specialized warehouse that caters exclusively to online orders.
Additionally, these companies also need to hire more manpower and guide their existing workforce to handle this increased demand for quick commerce services. The investment will lead in scaling up the Q-com operation and is expected to be a substantial, but the potential rewards are significant. This segment is a fastest evolving segment in the e-commerce industry and those companies who will make fast delivery services is more likely to gain competitive edge.
Flipkart owned Walmart and Amazon launched Tez in the field of quick commerce sector. As these companies are expanding its Q-com operation, they will also checking that their new investment will provide desired results or not.
CMI Research: Key Quick E-commerce Market Insights
Coherent Market Insights states that, the global quick e-commerce market is poised to increase at a CAGR of 34.1% from 2024 to 2031. In 2023, the market is likely to be reach at a sum of US$ 38.89 Billion and US$ 303.27 Billion by 2030. The growth in the market is being driven by rising penetration of internet and smartphones among Gen Z and millennial.
Furthermore, in today’s era people have hectic schedule and modern lifestyle. They are working long hours in offices and they don’t have much time to go for grocery shopping and daily essentials. The introduction of this new quick-commerce model will deliver goods within 30 minutes. People are finding this more convenient and time-saving method to shop goods.
Analyst Opinion: Japan’s Strategic Role in Quick E-commerce Growth
“Growing need for convenience, instant gratification, and flexibility among Gen Z and millennial will drive growth”, says lead Technology analyst Ankur Rai. Innovation in traditional e-commerce models according to new business need will provide more convenience and build loyalty among consumers. These platforms provide ultrafast pick up for return will add more value to the consumers.
Leading delivery platform such as Uber, Gojek, and Grab were adding q-commerce services to their app. This integration of q-commerce services with these apps will offers one-shop stop services.
Conclusion: Business Takeaways and Japan’s Pivotal Role
As Flipkart and Amazon plans to scale up there q-commerce services this move will take the e-commerce landscape on another level. These companies are investing in logistics and supply chain infrastructure and trying to meet the growing demand for rapid delivery. These two companies are committed to take leading position in the quick e-commerce industry in near future.
