What is Q-commerce, and why is it catching on with shoppers?
The business model of quick commerce (Q-commerce) is defined by deliveries made within 10 to 20 minutes.
Q-commerce is based on three pillars:
- a main or mother hub
- distribution centres
- dark stores, commonly called last-mile delivery stores.
Typically, dark stores are micro warehouses storing between 500 and 2000 items. To facilitate faster fulfilment of orders, these small warehouses are located closer to consumer centres. This concept emerged in response to the growing demand for faster delivery times and convenience, as customers increasingly expect immediate gratification.
The moment a consumer places an order, quick coordination occurs between last-mile stores and distribution centres, as well as the delivery logistics and distribution centres.
As many items in the grocery segment, such as frozen foods and fresh fruits and vegetables, are perishable, 10 to 20-minute deliveries make sense both for consumers and sellers.
Although the operational costs of instant services are much higher and the discounts lower, the trend is gaining popularity among consumers, given its sheer convenience.
As Q-commerce players prepare to ensure their operations become future-ready, deliveries through drones may just be a matter of time.
