North America Quick Commerce Market Outlook, 2029

The North American quick commerce market describes delivery within 10-30 minutes and is one of the highly growing markets. This can be attributed to increasing urbanization, rising disposable incomes, and changing consumer expectations. Major urban centers act as central hubs in the U.S. and Canada, impelled by a well-established e-commerce infrastructure and technological advancements. It is in this regard that the quick commerce companies amplify their activities to meet the demand of consumers wanting products faster, through mobile apps and efficient logistics networks that provide a convenience never seen before.

And if there is anything central to the quick commerce model, then it's technological advancements: AI, machine learning, better demand forecasting, route optimization, and real-time inventory management. Crucially, mobile applications are provided as user-friendly interfaces through which one can order and trace delivery. Besides, there is the growing trend of automated warehouses with robotics and AI, which accelerates picking and packing, hence giving better efficiency to the overall process. These combined technologies allow quick commerce companies to live up to their promise of fast delivery.

Labor laws, consumer protection statutes, and food safety regulations are part of the regulatory setting in which North American quick commerce companies have to operate. With extensive data collection, compliance with data protection laws such as the CCPA is inevitable. The same case applies to the regulation on delivery vehicles and time for delivery within urban areas; this balances business operational efficiency with community impact. In January 2022, Instacart extended its partnership with Michaels, the biggest arts and crafts retailer, in the expansion of same-day delivery from more than 100 Michaels stores within Canada.

According to the research report "North America Quick Commerce Market Outlook, 2029" the North America Quick Commerce market is projected to reach a market size of more than USD 71 Billion by 2029. Quick commerce creates a huge number of jobs in delivery, warehousing, and software development, which contributes to the economy. Investment by venture capitalists and private equity firms fuels the rapid expansion of this whole sector. The convenience can affect the spending patterns of consumers, which result in increased expenditure on goods and services. For most of the companies, it still remains non-balanced in terms of profitability against operational costs.

Strategies pertaining to marketing and customer engagement in quick commerce involve promotions, discounts, and loyalty programs to attract and retain customers. Flash sales and time-bound offers encourage and urge customers to purchase instantly. Social media and digital marketing platforms are used to engage customers through interactive content and personalized messages, thereby creating brand awareness. Metro, a Canadian grocery and pharmacy company, extended its partnership with Instacart. Orders can be placed at the retailer's Adonis banner and the discount formats Super C and Food Basics with delivery service in an hour. Efficient supply chain and logistics management is the need of the hour in quick commerce.

Companies emphasize real-time inventory management so that there is no fall in efficiency by having products available to the customers while avoiding delays. In terms of this, it will need logistics partnerships and local store collaborations to help in facilitating the delivery process and expanding the service areas. Optimized routing and other last-mile delivery innovations become critical in satisfying the rise in demand for rapid delivery and maintaining operational efficiency.

Market Drivers

• Convenience Demand: In North America, the growing demand for convenience has been a significant driver of the quick commerce market. With busy lifestyles and increased work-from-home scenarios, consumers prefer rapid delivery of groceries, essentials, and ready-to-eat meals. This convenience factor has been amplified by the integration of advanced technology like AI and machine learning, which enables personalized shopping experiences and optimized delivery routes. Retailers are capitalizing on this trend by offering a variety of products with delivery times as short as 15-30 minutes, meeting the growing consumer expectation for immediate access to goods without leaving their homes.
• Urbanization and Dense Population Centers: The rapid urbanization and dense population centers in North America have created an ideal environment for quick commerce to thrive. Major cities like New York, Los Angeles, and Chicago have high concentrations of potential customers living in close proximity, making it easier and more cost-effective for companies to offer fast delivery services. These urban hubs have the necessary infrastructure, including well-developed transportation networks and a high penetration of smartphones, which further support the growth of quick commerce. Companies are leveraging these factors to expand their operations, focusing on densely populated areas where demand for speedy delivery is highest.

Market Challenges

• Logistics and Last-Mile Delivery: In North America, logistics and last-mile delivery challenges pose significant obstacles to the quick commerce market. The vast geographic expanse and varying population densities across the region make it difficult to optimize delivery routes and ensure timely deliveries in suburban and rural areas. The high cost of maintaining a fleet of delivery vehicles and managing warehouse operations adds to the complexity. The traffic congestion in urban areas can lead to delays, further complicating the logistics. Companies must invest in advanced technologies like route optimization software and autonomous delivery vehicles to overcome these challenges and maintain efficient operations.
• Labor Shortages: Labor shortages are a critical challenge in the North American quick commerce market. The rise of gig economy platforms has created high demand for delivery drivers, leading to competition among companies to attract and retain workers. This has resulted in increased wages and benefits, driving up operational costs. The physically demanding nature of the job, combined with long hours and the pressure to meet tight delivery deadlines, contributes to high turnover rates. Companies are facing difficulties in scaling their operations and meeting customer expectations for rapid delivery times due to the scarcity of reliable and experienced delivery personnel.

Market Trends

• Integration of AI and Automation: In North America, the integration of AI and automation is a growing trend in the quick commerce market. Companies are increasingly using AI to predict consumer demand, optimize inventory management, and streamline delivery processes. Automated warehouses, robotic pickers, and drones are being deployed to enhance efficiency and reduce delivery times. This trend is driven by the need to meet the rising consumer expectation for faster deliveries while managing costs. The adoption of AI and automation is expected to continue, enabling companies to scale their operations and remain competitive in a rapidly evolving market.
• Sustainable Practices: Sustainability is becoming a significant trend in the North American quick commerce market. Consumers are increasingly demanding environmentally friendly options, prompting companies to adopt sustainable practices in their operations. This includes using electric delivery vehicles, reducing packaging waste, and sourcing products from local suppliers to minimize carbon footprints. Companies are exploring circular economy models, such as reusable packaging and delivery containers. The focus on sustainability is not only a response to consumer preferences but a strategic move to comply with regulatory requirements and enhance brand reputation in a market that values environmental responsibility.

The Food & Groceries leading the North America quick commerce market is due to the shift in consumer behavior toward convenience and immediacy.

Life has been so fast, and urbanization has brought consumers to instant gratification, where speed and easiness are starting to be concentrated upon more and more in their shopping experiences. Quick commerce does quite well at catering to this demand, with its promise of instant delivery within minutes. Food and groceries are high in frequency, very essential purchases; hence, they do fit very well in quick commerce. Traditional grocery shopping can, at times, take much time since one travels to the shop, waits in the queue, and carries heavy bags. Quick commerce platforms get rid of such hassles with delivery of a wide range of products from fresh produce to packaged goods to consumers' doorsteps within 10-30 minutes.

Especially now, this becomes of particular interest to busy professionals, families with young children, or those challenged by mobility. Secondly, the COVID-19 pandemic has accelerated online grocery shopping as consumers sought to avoid crowded spaces. This demand surge in quick commerce services has opened the floor to many new players and the online offering expansions by established retailers. Technological innovations like effective inventory management systems and optimized delivery routes have helped in offering a frictionless and trustworthy shopping experience to customers by such quick commerce platforms.

Quick commerce in North America leads primarily online due to convenience and speed.

Online Q-commerce is more commonly known as instant delivery or on-demand delivery; it involves the ordering of products through mobile apps or websites and is received within quite a short time frame, often one hour or lower. This has appealed increasingly to the North American consumer who values convenience and instant gratification. The emergence of online quick commerce in North America can be traced to various factors. Foremost, penetration and high use of smartphones with mobile applications have eased access to ordering products on the go by customers.

A majority of these quick commerce companies have developed mobile applications with a high level of user-friendliness, allowing customers to browse, order, and track the progress of their purchase with just some few taps. This convenience has attracted large patronage, especially since a large volume of people is already used to visiting several mobile apps for various services, especially among the younger demographic. Quick commerce platforms have used the opportunity to exploit the trend through contactless deliveries, expanding the categories carried, at the very least, from books and T-shirts to basics like groceries and household supplies. In general, many quick commerce companies have seen strong growth during the pandemic.

The access to venture capital funding allows quick commerce startups to do one thing: scale up and be prepared to compete aggressively with more established retailers. Again, most investors are getting the wind of the potential that lies in the quick-commerce subsector and have put in billions to the effort of helping startups. This investment allows companies to reinvest in infrastructure, such as fulfillment centers and delivery fleets, to levy cheap prices and promotions necessary to build up beginnings. The quick commerce is enabled through logistics and technological advancements.

Quick-commerce platforms leverage algorithms and data analytics to ensure that delivery routes are optimized for negligible delivery timelines. They leverage a gig-ready fleet that uses either vehicles or bicycles to get the purchased items delivered quickly and efficiently. These technological and logistical advancements in making "it large" have helped quick commerce companies serve super-fast delivery services to a large mass.

The application-based operations are leading in the North American quick commerce market is their ability to provide a seamless, user-friendly experience that aligns perfectly with the region's tech-savvy consumer base and mobile-first lifestyle.

Application-based operations have become the dominant force in North America's quick commerce landscape due to their unparalleled convenience and efficiency. These apps serve as a one-stop-shop for consumers, offering an intuitive interface that allows users to browse products, place orders, track deliveries, and manage their accounts all from the palm of their hand. This level of accessibility and ease of use resonates strongly with North American consumers who are accustomed to managing various aspects of their lives through mobile applications. The success of app-based quick commerce can be attributed to several key factors.

Firstly, the high smartphone penetration rate in North America provides a solid foundation for these services to thrive. With most consumers having constant access to their mobile devices, app-based quick commerce platforms can reach their target audience at any time, anywhere. This ubiquity allows for impulse purchases and last-minute ordering, which are crucial elements of the quick commerce model. The app-based operations excel at data collection and personalization. By analyzing user behavior, purchase history, and preferences, these platforms can offer tailored recommendations and personalized promotions, enhancing the shopping experience and increasing customer loyalty.

This data-driven approachenables more efficient inventory management and demand forecasting, allowing quick commerce companies to optimize their operations and reduce costs. The integration capabilities of app-based platforms have contributed significantly to their success. Many quick commerce apps have seamlessly integrated with other popular services such as digital wallets, loyalty programs, and even social media platforms. This interconnectedness creates a more holistic ecosystem that keeps users engaged and increases the frequency of use.

US is leading in North America's quick commerce market is due to its large and established e-commerce market, which has paved the way for the growth of quick commerce.

The United States has created a fertile ground for the growth of quick commerce, which is an extension of e-commerce. The country's large and established e-commerce market has enabled quick commerce companies to leverage the existing infrastructure, logistics, and technology to offer fast and convenient delivery options to customers. The US has a high penetration of smartphones and internet, which has further fueled the growth of quick commerce. The presence of large and established players such as Amazon, Walmart, and Target has contributed to the growth of quick commerce in the US. These players have invested heavily in technology and logistics, which has enabled them to offer fast and reliable delivery options to customers.

The US has a large and diverse population, with a high demand for convenience and speed. This has created a huge opportunity for quick commerce companies to tap into this demand and offer fast and convenient delivery options to customers. The country's urbanization and busy lifestyle have contributed to the growth of quick commerce, as people are looking for ways to save time and effort in their daily lives.

• In January 2023, SPAR extended its operations in Latvia by launching a new store in Rzekne. The 265 sq. m neighborhood shop has everything required for everyday living, including a bakery and a fresh meat sales section.
• In March 2022, Walmart Canada announced an investment of over USD118 million in constructing a new high-tech sortable fulfillment center in Rocky View County, Alberta, just outside of Calgary. The company's investment is intended to enhance Walmart consumers' online and in-store shopping experience to be more accessible, faster, and more convenient. The retailer intends to invest in continued growth in Alberta and across Canada.
• In December 2021, Instacart announced the launch of a new 30-minute delivery option for groceries called Instacart Plus, available to members in certain metro areas for a monthly or annual fee. It enhanced Instacart's competitiveness in the quick commerce space.

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.


This product will be delivered within 2 business days.