What is Q-Commerce?

We are living in an era where convenience is the currency of the decade. Technology has irrevocably shaped consumer expectations, leading to a strong desire for instant gratification.

This gratification can manifest in various ways, such as typing a question into Google and receiving an answer within one minute, which annoys us since we expect it in just seconds.

A few years ago, before the pandemic, access to a wide range of payment options was limited to traditional banking services. Currently, digital payments are ubiquitous, providing consumers with numerous payment methods from the comfort of their homes. Interestingly, in today’s fast-paced lifestyle, consumers value their time and are increasingly willing to pay for services that save them time. The pandemic accelerated digital adoption among consumers, transforming online shopping from a choice into a necessity. Reports indicate that the average percentage of internet users making online purchases surged dramatically from 33% before the pandemic to over 60% afterward.

What is Q-Commerce?

The internet democratization the way we shop, allowing us to order products digitally and receive them quickly. This new era of e-commerce, known as Quick Commerce —or Q-Commerce for short—a subset of e-commerce that focuses on rapid delivery. It is sometimes used interchangeably with terms like "on-demand delivery" and "e-grocery”.

Why is Q-Commerce Gaining Momentum?

Ethiopia's digital payment landscape has seen exponential growth in recent years, with a staggering 750% increase in usage over the past five years. This surge in digital transactions has significantly impacted sectors like food delivery and quick commerce, offering unprecedented convenience to both businesses and consumers.

This transformation is supported by a dynamic, growing digital payments infrastructure with new corridor bike infrastructure that solve the impact of traffic congestion on delivery times and costs. Since More vehicles on the streets lead to increased traffic congestion, which can result in unexpected delays and pressure on delivery personnel. This can lead to fatigue, errors, and accidents. With such quick delivery timelines, consumer expectations have skyrocketed. Any delays, missing items, or quality issues can lead to negative customer experiences and damage brand loyalty in the long run .

which parallels successful models seen in other countries, Additionally ,The upcoming launch of an interoperable QR code system on December 1, 2024, is set to further support simplifying payment process . This system will allow consumers to use a single QR code for various payment platforms, enhancing convenience for food delivery services by reducing the need for multiple apps and payment methods.. This interoperability is expected to increase user adoption of digital payments, thereby boosting the overall market for quick commerce.

What is the future of q-commerce in Ethiopia ?

Connecting the dots ...

The rise of Q-commerce has undoubtedly shaken the foundations of traditional retail. With lightning-fast delivery and a vast array of products at our fingertips, it's easy to see why consumers are increasingly turning to online platforms.

But does this mean the end of brick-and-mortar stores?

The outcome of this question will become clearer over the next four to five years. However, the prevailing opinion is that Q-commerce offers a complementary solution rather than a complete replacement for traditional retail. While Q-commerce offers unparalleled convenience, there's still a strong desire for in-person shopping experiences. Many consumers appreciate the ability to physically examine products, interact with sales associates, and enjoy the social aspect of shopping.

We have observed this shift for some time now, and it is occurring rapidly, leaving many traditional retailers unprepared to meet new consumer demands.

The Future of Retail: A Hybrid Approach

The future of retail lies in a hybrid model that combines the best of both worlds:

• Omnichannel Retail: Seamlessly integrating online and offline shopping experiences.
• Experiential Retail: Creating unique in-store experiences to attract customers.
• Personalized Shopping: Leveraging data to tailor product recommendations and offers.

Moreover , Q-commerce represents a massive business model that creates its own marketplaces, often requiring extensive operations and logistics chains, which makes these businesses less agile in responding to the changing preferences of consumers. The lingering question remains:

who will emerge victorious in this new emerging market?

Currently, there are approximately 20 notable delivery service providers operating in Ethiopia, ranging from large international courier companies to local startups focusing on specific niches like food delivery and general logistics. The market is characterized by a mix of established players and emerging startups, reflecting a vibrant ecosystem that is adapting to consumer demands for faster and more reliable delivery options. Some of these include:

• Tikus Delivery: A prominent food delivery service that partners with over 100 restaurants and handles around 6,000 deliveries monthly.
• beU Delivery: Known for its extensive network of over 500 local and national restaurant menus, focusing on quick food delivery across Addis Ababa.
• Eshi Express: A rising local platform providing last-mile delivery services for various needs, including food and retail deliveries.

Many Q-commerce companies specialize in grocery delivery but are likely to expand their offerings to "deliver anything." Supermarkets have developed fleets of delivery personnel, while marketplaces have gained access to new types of products, presenting customers with advanced tech-optimized choices, including dark stores. Even ridesharing vehicles may become part of this emerging market.

Technological Adoption Will Determine Who Wins

Numerous similar companies are currently competing in this space to gain market share. Their team strength and technological adoption will be critical factors in determining success. Q-commerce was born from technology, and it is through continued technological innovation that it will thrive.

Bet on Modern Payments!

The digital payments market and e-commerce are developing dynamically, with each sector filling gaps for the other. In recent years, we have seen many innovations in this area. Modern online payment methods, such as instant payments and digital wallets, significantly streamline and accelerate transactions in quick delivery services. The result?

Customers are satisfied; shopping is quick and convenient; and stores are earning more while growing within this loop. Food delivery platforms frequently collaborate with restaurants and fintech companies to enhance payment processing capabilities and expand their service offerings. This integration allows restaurants to reach a broader untapped audience while modernizing their services and providing consumers with more dining options.

Every piece of data indicates that this trend will continue to strengthen in the near future. Companies will actively invest in integrating new payment methods to ensure convenience, flexibility, and security for their customers' transactions. This will undoubtedly have a positive impact on the further development of the e-commerce market.

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