Australia Quick Commerce Market Overview, 2029

The Australian rapid commerce market, which focusses on delivering things quickly to consumers, is significant due to its ease, efficiency, and accessibility. It meets the growing need for rapid gratification among urban customers by addressing issues such as urban sprawl, hectic lives, and the necessity for convenient shopping options. This market is remarkable for its use of technology and a competitive landscape driven by both domestic and international firms. The Australian rapid commerce market evolved from traditional e-commerce, with early entrants such as eBay Australia and Catch.com pioneering online purchasing. However, the market surged with the introduction of specific rapid commerce platforms and the increase in smartphone adoption. The growth of this market has been fuelled by technological improvements such as advanced routing algorithms, real-time inventory management, and user-friendly mobile apps. Investments from venture capital firms and tech behemoths have also fuelled growth and innovation. For example, Uber Eats has received significant funding to develop its services in Australia. Quick commerce companies in Australia must comply with a variety of regulations, including food safety standards (Food Standards Australia New Zealand), labour legislation, and data protection guidelines (the protection Act 1988). They must also follow local restrictions regarding delivery services and parking. Also, enterprises must follow e-commerce regulations and maintain fair competition, as defined by the Australian Competition and Consumer Commission (ACCC). According to the Australian Bureau of Statistics, online retail revenue grew by 57.8% year on year in August 2020. This shift in consumer behaviour has lasted after the epidemic, indicating long-term shifts in shopping habits and a bright future for the rapid commerce business. Companies such as Uber Eats and Menulog have created "no-contact" delivery options, which allow customers to receive orders without having to engage directly with delivery workers. The pandemic also fuelled technologies such as driverless deliveries, with businesses like Wing, an Alphabet Inc. affiliate, trying drone deliveries to reduce human touch. According to the research report "Australia Quick Commerce Market Overview, 2029," published by Bonafide Research, the Australia quick commerce market is anticipated to grow at more than 22 % CAGR from 2024 to 2029. Quick commerce in Australia is critical because of its ability to meet the growing need for rapid and easy delivery services. Quick commerce satisfies this requirement by offering delivery services that can complete purchases within hours, hence increasing consumer convenience and efficiency. This sector's significance is highlighted by its role in transforming how Australians purchase, particularly in metropolitan regions with a high need for instant satisfaction. Several main trends are influencing the market. For starters, there is a growing desire for ultra-fast deliveries, with players advertising delivery times of 30 minutes or shorter. To expedite order fulfilment, dark shopfronts and micro-fulfillment centres are popping up everywhere. Also, there is an increasing emphasis on sustainability, with customers preferring environmentally friendly packaging and delivery methods. The concept of "ghost kitchens," which prepare food just for delivery, is also gaining popularity. The industry is experiencing a surge in the use of new technologies such as AI for demand forecasting and route optimisation, autonomous delivery via drones and robots, and data analytics for personalised marketing. Both multinational and local enterprises are major players in Australia's rapid commerce market. Uber Eats, a global player, is a major player in meal delivery services. Menulog, a local business, is another big operator that offers quick delivery for a variety of products. Other significant companies include DoorDash, Woolworths, and Coles. These organisations use their technological capabilities and huge distribution networks to provide fast and efficient services. Uber Eats partnered with local eateries and merchants to broaden its product offering. Menulog has worked with large food businesses such as McDonald's and KFC to improve its delivery services. Woolworths partnered with Sherpa, a last-mile delivery provider, to provide quick grocery deliveries. Uber Eats teamed up with Wing, an Alphabet Inc. subsidiary, to test drone deliveries. Menulog works with DoorDash to share technologies and best practices with the goal of increasing operational efficiency.

Groceries, stationery items, personal care products, and electronics are among the products available in Australia's rapid commerce industry, providing to a variety of customer demands and contributing to the sector's diversity and growth. Groceries are the largest segment in Australia's rapid commerce market. This category include fresh vegetables, dairy goods, meats, and pantry basics. The high frequency of grocery purchases, as well as the requirement for rapid access to necessary commodities, contribute to the segment's importance. Woolworths, Coles, and Uber Eats are among the leading participants. Woolworths, for example, innovates with its "Woolworths Metro" locations, which provide quick grocery deliveries with a focus on fresh, high-quality products. Coles stands out for its "Coles Online" service, which offers same-day delivery on a large range of foods. Stationary items, such as office supplies and educational resources, are a modest but growing market. The growing popularity of remote work and online education has increased demand for these items. Companies such as Officeworks and Big W are extending their rapid commerce offerings to meet this demand. The need for speedy delivery of personal care essentials reflects the desire for convenience in everyday life. Chemist Warehouse and Priceline are market leaders in this category, leveraging technology to improve client convenience. Electronics, such as phone accessories, headphones, and other devices, are also sold in Australia's fast commerce market. While not as prevalent as groceries, the need for quick delivery of electronics is increasing. Companies such as JB Hi-Fi and Harvey Norman operate in this area, providing fast shipping choices for a variety of electronic equipment. This segment's innovations include real-time inventory tracking and automated warehouses, which aid in the effective management of high-value item logistics. In Australia's rapid commerce industry, payment methods such as cash on delivery (COD) and online payments are critical in influencing the consumer experience and operational efficiency of delivery services. However, online payment is the dominant segment due to its simplicity, speed, and security, which is fuelled by the country's sophisticated digital infrastructure and broad acceptance of digital payments. This includes payments made with credit and debit cards, digital wallets like Apple Pay, Google Pay, and Afterpay, as well as direct bank transfers. Afterpay, a popular "buy now, pay later" business in Australia, allows customers to buy things and pay for them in installments without interest. It offers customers flexible payment choices. Afterpay has become popular, especially among younger buyers. Uber Eats has collaborated with Afterpay to provide flexible payment options for food deliveries. Menulog partnered with PayPal to offer customers an additional online payment option. These agreements enable businesses to broaden their reach, increase their offers, and improve the entire customer experience. COD payment technique is less frequent in Australia compared to other nations, as the digital payment infrastructure is well-developed. However, some platforms continue to offer COD to users who want to pay in cash or who do not have access to digital payment options. Platforms in the Australian rapid commerce sector function via a variety of channels, including application-based operation, hybrid operation, and website-based operation, each with its own relevance and advantages. Dedicated mobile applications allow users to explore products, place orders, track deliveries, and make payments. The importance of app-based operation stems from its simplicity, user-friendly interfaces, and ability to exploit mobile capabilities such as push alerts and location services. Uber Eats, Menulog, and DoorDash are among the leading players in this category. Uber Eats, for example, innovates with a user-friendly app and a reliable delivery network. Menulog distinguishes out for its wide food delivery options and excellent app features. The Hybrid Operation model integrates several channels, including mobile apps, websites, and physical stores, to provide customers with a seamless and integrated purchasing experience. Its value stems from its adaptability to a wide range of consumer preferences and scenarios. Woolworths, Coles, and JB Hi-Fi are among the key firms that have adopted this strategy. Woolworths leads with well-integrated online and offline experiences, including in-store pickup and home delivery. Coles offers a unified shopping experience on its app and website, with additional services such as Coles Online for rapid deliveries. The value of website-based operation stems from its accessibility, which does not require app downloads and can be accessed from any device with an internet connection. It also supports more detailed product information and is SEO-friendly, which helps firms reach a larger audience.

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Manmayi Raval

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Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Quick Commerce market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Food & Groceries • Stationary • Personal Care Items • Small Electronics & Accessories • Others (Pets, alcohol, gifts & flowers, Medicines)

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By Payment Mode • Cash on Delivery • Online By Technology • Application Based Operation • Hybrid Operation • Website Based Operation The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Quick Commerce industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.