South Africa Quick Commerce Market Overview, 2029

South Africa Quick Commerce Market Overview, 2029

The Quick Commerce (Q-Commerce) market in South Africa is rapidly evolving, driven by changing consumer preferences for convenience and speed in shopping experiences. Defined as the delivery of goods within a very short timeframe, often under an hour, Q-Commerce encompasses various online grocery delivery services, including platforms that utilize ghost stores for limited product selections but faster delivery times. This market is characterized by a significant shift in consumer behavior, particularly following the pandemic, which has led to an increased demand for fast and efficient delivery options. In terms of regulations, the Quick Commerce sector in South Africa is primarily governed by the Electronic Communications and Transactions Act (ECTA) of 2002, which outlines the legal framework for electronic transactions and consumer protection. Additionally, businesses must comply with the Protection of Personal Information Act (POPIA), which safeguards personal data and ensures privacy for consumers engaging in online transactions. These regulations are essential for fostering trust and security in the burgeoning e-commerce landscape. Innovations in the sector are also noteworthy. Many Q-Commerce companies are leveraging technology to enhance customer experiences through automated chatbots for customer service, real-time tracking of deliveries, and personalized marketing strategies based on consumer behavior. The rise of mobile commerce (m-commerce) is significant, as an increasing number of consumers prefer using smartphones for their shopping needs, leading to a surge in mobile-optimized platforms and payment solutions. The integration of social commerce, where platforms like Facebook and Instagram facilitate direct purchases, is also reshaping how consumers interact with brands and make buying decisions. A prominent player in the food delivery space, Mr D Food has expanded its offerings to include grocery deliveries, capitalizing on the growing demand for convenience. Uber Eats is known for its extensive reach and user-friendly platform, Uber Eats continues to innovate with features like contactless delivery and partnerships with local grocery stores to enhance its service offerings.

According to the research report ""South Africa Quick Commerce Market Overview, 2029,"" published by Bonafide Research, the South Africa quick commerce market is anticipated to grow at more than 25% CAGR from 2024 to 2029. Consumers are increasingly seeking convenience and speed in their shopping experiences, leading to a surge in demand for Q-Commerce services. With the rapid growth of e-commerce, South Africans are becoming more comfortable with online shopping and expect faster delivery times. The rise of urbanization has also contributed to this trend, as time-pressed consumers are willing to pay a premium for the convenience offered by Q-Commerce platforms. Factors such as the proliferation of smart devices, expansion of internet connectivity, and increasing integration of e-commerce platforms with advanced technologies like cloud computing, artificial intelligence, and predictive analytics are driving the growth of the South African Q-Commerce market. The integration of 5G and 4G technologies for payment processing is also expected to have a favorable impact on market growth, as it provides users with an uninterrupted experience. The Q-Commerce market in South Africa presents significant opportunities for growth, particularly in the food and groceries segment. The quick delivery model, which revolves around same-day, instant, and click-and-collect options, has gained traction among consumers. Many supermarkets and grocers are partnering with third-party delivery companies to establish their quick commerce offerings, focusing on contactless shopping and expedited delivery. Initiatives such as discounts and combo deals for high-frequency order commodities are further driving segmental growth.

The segment of food and groceries leads the market due to the rising demand for convenience and fast delivery. With the evolving lifestyles of urban consumers, where time-saving becomes the topmost priority, food items inclusive of ready-to-eat meals and groceries come out as the biggest agenda on Q-commerce platforms. Consequently, this has made supermarkets and grocery stores more diversified, with a much wider range of products that suit consumer needs. The category of small electronics and accessories is growing quite rapidly. This growth is there to be seen based on high demand for tech gadgets and accessories, more so from the very young consumers who have fully embraced online shopping. Quick Commerce platforms are housing such common electronics on its product range to tap a bigger market. The stationery category is stable, as most students and professionals want quick access to stationery items, especially in high academic times. The personal care segment has more than doubled because companies have finally realized the scope for wellness products in Q-Commerce. Companies use these marketplaces to leverage their best selling products and target the right consumer base with their marketing. That Others category has been one area slowly welcoming it though like pet supplies, alcohol, gifts, flowers, medicines as on-demand convenience made it very attractive to consumers who would rather have ordered in for events or emergency purposes. The latest trends coming up in the sector have been alliances of Q-Commerce platforms with local retailers, improving the selection of products and speeding up their online purchase.

Online payments are currently the leading payment method in South Africa's Q-commerce market and are expected to witness high growth soon, driven by increasing digitalization in consumer behavior. As consumers get more used to shopping online, preference for cash on delivery is gradually falling. Online payment methods credit and debit cards, digital wallets, instant EFT convenience, and security will be at par with the fast pace of Q-Commerce. This has also been driven by the growing trend of mobile banking and digital wallet solution adoption among the tech-savvy population. Developments in the online payment segment include the growing payment gateways for flawless transactions, like PayFast and Peach Payments. These platforms give the merchants a channel through which they can offer their customers diversified ways of payments to enhance their shopping experience, hence reducing cart abandonment rates. Innovation of instant EFT services has resulted in the opening up of online payments to a much larger customer base by providing an avenue where transactions can be verified and processed instantly. While cash on delivery still holds sway, more so in consumer markets that have minimal access to banking services, its stronghold on the market is weakening. COD appeals to that part of the population that has roots in traditional means of making payments, with the rise of financial literacy and access to banking services, consumers increasingly switch to online transactions. This change is precipitated by convenience in online payments, which is coupled with growing trust in e-commerce platforms.

In the South African Quick Commerce market, the leading segment is Application-Based Operations, which is primarily driven by the increasing reliance on mobile apps for convenience and speed in ordering. This segment thrives as consumers prefer using dedicated applications for their shopping needs, allowing for a seamless user experience that includes real-time tracking, personalized recommendations, and easy payment options. The growth of smartphone penetration and improved internet connectivity has further bolstered this segment, making it the preferred choice for consumers seeking quick delivery of groceries and other essentials. The Hybrid Operation segment is also experiencing significant growth, combining elements of both application-based and website-based operations. This model allows businesses to leverage the strengths of both platforms, catering to a broader audience. It appeals to consumers who prefer browsing on a desktop or laptop while also providing the convenience of mobile access. As more retailers adopt hybrid models, they can enhance customer engagement and streamline operations, thereby driving growth in this segment. Website-Based Operations, while still relevant, are less dominant in the current market landscape. This segment typically caters to consumers who prefer traditional e-commerce experiences. However, it faces challenges in competing with the immediacy and user-friendliness of mobile applications. Developments in this area include enhancements in website design and functionality, focusing on improving user experience and integrating features like live chat support to assist customers in real-time.

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.