News Detail

Connecting ideas and people

29 August, 2021

Q-Commerce Potential Increasing in UAE

Quick commerce (or q-Commerce) has already taken up 20% of the region’s digital economy and will contribute $20 billion in gross merchandise value by 2024, according to Redseer.

 

Q-commerce in the MENA is currently driven by food delivery, contributing 85% to the total q-commerce sales. The most common examples of q-commerce are online food deliveries, typically through aggregators, but this now far expanding into grocery, pharmacy, gifts, flowers, and courier services. These segments are now seeing increased traction and have the potential to grow to twice that of food delivery.

 

Experts believe that there are several factors that have contributed to the growth of q-commerce in the UAE.

 

The first is consumer-focused, which is more about the shopping behavior. Consumers have lower attention spans today and are looking for quicker transaction times or gratification. A recent report by Mastercard estimated that roughly 20-30% of the Covid-19-related shift to digital globally is expected to be permanent. The same report also expects 70-80% of grocery e-Commerce to be a permanent fixture.

 

The second major reason is that of a shift towards a digital economy.

 

One such emerging idea that seeks to maximize benefits is that of cloud kitchens. Cloud kitchens are also becoming increasingly important as they play a crucial role in enabling further growth and expansion for existing brands, and for supporting new brands to enter the market. A survey conducted in March 2021 by POSist in collaboration with Dubai Restaurants Group, showed that 70 per cent of otherwise dine-in players are now exploring the idea of investing in cloud kitchens to expand their offerings.

 

Do you intend to capitalize on the UAE q-Commerce economy?

 

Get in touch with us to explore opportunities in this growing sector.

 

Source : Khaleej Times

Share This Post
Open chat
1
Hi,
How can we help you?