Canada Quick Commerce Market Overview, 2029

The Canadian quick commerce business, often known as "q-commerce" or "on-demand delivery," is a fast rising industry that focusses on delivering goods to consumers in minutes, if not less than an hour. This sector contains necessities such as groceries, medications, and convenience store items, which cater to urban consumers seeking instant pleasure. Its significance stems from its ease, time-saving, and accessibility, particularly for city people with hectic schedules or mobility issues. This market's growth has been fuelled by technological improvements such as sophisticated inventory management systems, route optimisation algorithms, and user-friendly mobile apps. Also, the proliferation of dark stores, small warehouses specialised to fulfil internet orders has made deliveries faster. The COVID-19 epidemic has considerably expedited the growth of Canada's fast commerce business. Lockdowns and social distancing tactics pushed consumers to use online shopping and speedy delivery services at record rates. According to a 2021 research from Dalhousie University's Agri-Food Analytics Lab, the number of Canadians who ordered groceries online at least once a month increased by double during the pandemic. This shift in customer behaviour has maintained post-pandemic, indicating long-term shifts in shopping patterns and a promising future for the rapid commerce market. Quick commerce enterprises must comply with a variety of regulations, including food safety standards, labour legislation, and data privacy guidelines. They must also follow local ordinances regarding delivery services and parking. Also, the passage of Bill C-97 in 2019, which changed the Canada Business Corporations Act, has ramifications for gig workers' rights, as well as the labour models of these platforms.

According to the research report "Canada Quick Commerce Market Overview, 2029," published by Bonafide Research, the Canada quick commerce market is anticipated to grow at more than 21% CAGR from 2024 to 2029. This market also creates job opportunities, particularly through the gig economy, and helps to drive the retail sector's digital transformation. Several main trends are influencing the market. For starters, there's a growing desire for lightning-fast deliveries, with players boasting 15-minute or less turnaround. Dark retailers are proliferating to allow for speedier order fulfilment. Also, there is an increasing emphasis on sustainability, with customers preferring environmentally friendly packaging and delivery methods. The epidemic has also led to an increase in contactless deliveries and better safety procedures. Also, the market is experiencing an expansion in the use of innovative technologies such as artificial intelligence for inventory management and route optimisation, as well as data analytics for personalised marketing. International corporations including as Amazon, Walmart, Instacart, DoorDash, and Uber Eats are key players in Canada's rapid commerce business. Pineapple Express, Inabuggy, and Goodfood are among the notable homegrown players. These players frequently specialise in specialised categories such as groceries, ready-to-eat meals, and convenience store items. Collaborations and partnerships are strategic growth drivers in this sector. For example, Sobeys' parent business, Empire business Limited, teamed with British online grocer Ocado to improve its e-commerce capabilities. To broaden its reach, Instacart teamed with major Canadian stores such as Loblaw Companies and Walmart. DoorDash teamed up with Circle K to deliver convenience store supplies. These alliances enable players to broaden their product offers, attract new audiences, and improve their technological skills. Also, rapid commerce platforms collaborate with technology businesses to improve their services. For example, DoorDash collaborated with Cruise, a self-driving car firm, to test autonomous deliveries. These collaborations demonstrate the market's potential for technological disruption and innovation.

The Canadian rapid commerce sector offers a varied range of product kinds to meet consumers' immediate requirements. Groceries are the leading segment in Canada's rapid commerce business. It contains fresh vegetables, packaged foods, beverages, and other household necessities. Grocery purchases are regular and recurring, which drives growth. Key participants include Instacart, Goodfood, Voilà by Sobeys, and PC Express by Loblaw Companies. Instacart, for example, innovates with its "Instacart Pickup" service, which allows customers to order groceries online and pick them up at their convenience. The Stationery things section covers office supplies, school stationery, and other related things. While it is not as vast as groceries, it serves a specialised need, particularly with the advent of distant employment and online schooling. Startups like Staples Canada and Grand & Toy are noteworthy players, with Staples pioneering with its same-day delivery service and user-friendly smartphone app. Personal care items include health and beauty products, personal hygiene supplies, and over-the-counter drugs. The recurring demand for these supplies, as well as the convenience of speedy delivery, are driving factors. This market is dominated by companies such as Well.ca and Pharmapacks. Well.ca, a Canadian business, distinguishes out for its diverse product offerings and unique use of technology for personalised suggestions.

In the Canadian rapid commerce industry, both cash on delivery (COD) and online payment methods are popular, each with its own set of benefits and customer preferences. Online Payment is the dominating segment in the Canadian rapid commerce market, owing to its ease, speed, and security. It accepts credit/debit cards, digital wallets, and bank transfers. Technological developments, increased smartphone usage, and a shift in consumer behaviour towards digital transactions are all driving online payment growth. PayPal, the global leader in online payments, provides a secure and convenient way to pay online. It innovates with the "Pay in 4" function, which allows clients to divide their payments into four interest-free installments. Interac, a Canadian interbank network, provides safe online payments via its Interac e-Transfer service. It innovates by allowing payments to be made using email addresses or phone numbers, removing the need to divulge sensitive bank information. Buy Now and Pay Later (BNPL) Customers can acquire things and pay for them in interest-free installments through startups such as Afterpay and Sezzle. COD is less common in Canada than in other countries due to the significant adoption of digital payments and faith in secure online payment systems. This payment method lets customers to pay for their goods at the time of delivery, giving them the freedom to check products before paying and avoiding the need to divulge sensitive financial information online. However, it can provide issues, such as greater chance of payment defaults and late payments.

Platforms in the Canadian fast 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. Application Based Operation is the dominating segment, because to rising smartphone penetration, the ease and personalisation provided by mobile apps, and a growing demand for app-based buying, particularly among younger consumers. This includes specific mobile applications that let clients to explore products, place orders, track deliveries, and pay. 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. It's especially enticing to tech-savvy customers and those who want to shop on the go. Instacart, DoorDash, and Uber Eats are among the industry's top players. Instacart, for example, innovates with an intuitive app design and features like "Buy It Again" for quick reordering. Hybrid Operations strategy integrates several channels, including mobile apps, websites, and physical stores, to provide customers with a seamless and integrated purchasing experience. For example, a customer can explore products on the internet, add them to their basket via the app, and then pick them up in-store. Walmart, Loblaw Companies, and Sobeys are among the key firms who have adopted this strategy. Walmart distinguishes out for its well-integrated online and in-store experiences, which include services such as in-store pickup and home delivery. Website-based operations include e-commerce websites that allow customers to shop online using their web browsers. 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.



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)

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.