United Arab Emirates (UAE) Quick Commerce Market Overview, 2029

United Arab Emirates (UAE) Quick Commerce Market Overview, 2029

The Quick Commerce (Q-Commerce) market in the UAE is rapidly evolving, driven by changing consumer behaviors and technological advancements. Q-Commerce emphasizes ultra-fast delivery, typically within an hour, catering to the growing demand for immediate gratification among consumers. This market has gained significant traction, particularly in the grocery sector, where it commands a substantial share of 60 to 70 percent of total grocery sales in the UAE. Q-commerce's main goal is to provide clients with goods and services more quickly than a traditional retail outlet. It is a platform that offers people in the UAE quick and easy processes. Customers are not restricted to the company's set business hours. For people in UAE, where they are more work-oriented, rapid commerce acts as a one-stop shop where they get all of their requirements met at one location. Businesses that use the fast commerce model of operation create their own apps so that customers order a variety of goods from a single source. The primary focus of q-commerce is on micro to lower quantities of a select few commodities, such as food, medications, personal care items, and stationery. Q-commerce refers to ""on-demand delivery"" and ""e-grocery"" interchangeably while focusing on customers' small order sizes. Due to the rising popularity of Q-commerce, online vendors are progressively moving their inventory from traditional, massive warehouses on the outskirts of cities to smaller, closer-to-the-delivery facilities in the UAE. The number of users of digital channels increases along with their number. A Standard Chartered survey found that nearly half of consumers in the region now favor making online purchases over those made in-person with cards or cash, marking a major shift from earlier transaction patterns. Financial inclusion is believed to improve with more ICT use, but e-commerce growth requires greater financial sector participation. In July 2022, by registering and adding UAE products to the fastest-growing online marketplace for purchasing, Veppy.com offers small and medium-sized businesses in the UAE a fantastic business chance to grow.

According to the research report ""UAE Quick Commerce Market Overview, 2029,"" published by Bonafide Research, the UAE quick commerce market is anticipated to grow at more than 24% CAGR from 2024 to 2029. The quick commerce market in the United Arab Emirates (UAE) is experiencing significant growth, driven by evolving consumer preferences and the increasing demand for convenience. As urbanization accelerates and lifestyles become busier, consumers are gravitating towards services that promise rapid delivery of essential goods. Companies such as Getir and Glovo are at the forefront, providing a streamlined shopping experience that allows customers to order groceries and other essentials with just a few clicks. The quick commerce market in the UAE is poised for continued expansion. Opportunities abound for new entrants and existing players alike, particularly in enhancing service offerings and improving operational efficiencies. Investments in technology, such as artificial intelligence and machine learning, can optimize inventory management and delivery routes, reducing costs and improving customer satisfaction. Additionally, integrating a hybrid model that combines traditional retail with quick commerce can address challenges like inventory visibility and stock shortages, ensuring a seamless shopping experience for consumers. The growing trend of sustainability presents an opportunity for quick commerce companies to differentiate themselves by adopting eco-friendly practices, such as using electric vehicles for deliveries or implementing sustainable packaging solutions. The UAE boasts a high rate of smartphone penetration and digital literacy, facilitating the growth of online shopping. A significant portion of the population now prefers online transactions over traditional shopping methods, as evidenced by surveys indicating that nearly half of consumers favor online purchasing.

Online mode of payment has been leading and on the rise within the UAE's quick commerce market. The trends in broader digitalization and the shifting consumer behaviors are reflected in this market immediately. This has been driven by the convenience and safety associated with online payments, including credit/debit cards, mobile wallets, and digital payment platforms. The increased adoption of e-commerce, together with higher smartphone penetration, has placed online payments in a better position to be more accessible and favored by consumers who desire ease in transaction execution without the need for physical cash. In addition, the growth of online payments is supported by the UAE's strong digital infrastructure and government initiatives toward a cashless economy. Accelerated by the COVID-19 pandemic, consumers became more careful about handling cash and far more familiar with digital transactions. In addition, the ease of storing payment information for express checkouts, coupled with rising trust in the security of online payments, has further pushed more consumers to shift from traditional cash payments to digital means. Cash on Delivery (COD), even as it is still used, gradually decreases in preference. COD was first popular based on the perception of safety by paying on delivery in a market where online shopping was still building up trust. Growth in online payment options, however, is boosted by secure and reliable platforms, reducing dependence on COD. While COD still represents an enormous option, mainly for those dealing person-to-person or those very skeptical of online modes of payment, the share of COD in the quick commerce market is falling with increasing adoption of convenience and speed associated with online modes of payment.

Food & Groceries dominate the UAE's quick commerce market since these products are essential and frequently purchased. More and more consumers would prefer the convenience of having fresh produce, dairy, snacks, and daily essentials delivered fast to their front doors and this aligns with the fast-paced lifestyle prominent in the UAE. This segment represents the largest share in the market, driven by increasing penetration of online grocery platforms, competitive pricing, and variety. It is also driven by rising dependency on technology, wherein the need for replacements and accessories like mobile chargers, headphones, and other various gadgets requires a quick purchasing decision. Now, with increasing remote working and digital lifestyles, this demand has surged for products, and this quick commerce platform is meeting this demand with fast delivery, hence making this segment one of the fastest-growing in the market. Though important in their own right, stationery products cater only to more specific needs, such as office supplies, school materials, and art supplies, and their role in the quick commerce market has been stable but relatively inconspicuous. The Personal Care Items segment, including skincare, hygiene products, and grooming essentials, plays a cardinal role driven by increasing consumer awareness of personal health and wellness. These items, however have a lower purchase frequency as compared to food and groceries, making this segment possibly stable but second in position with respect to the market.

The reason the Application Based Operation segment leads the quick commerce market in the UAE is that there is wide usage of smartphones, and mobile applications make it easy for customers to order products without any trouble. Mobile applications have turned out to be the prime means of operation for quick commerce platforms, enabling the user to go through the products, place the order, and pay for it just by tapping their device a few times. User-friendly interfaces, personalized experiences, and deal and update push notifications are said to dominate this segment. There are features that these apps mostly incorporate, such as order tracking in real time, smooth customer support, and loyalty programs, that increase customer engagement and satisfaction. This has resulted in app-based operations being most in demand, probably because the services can be accessed from anywhere and at any time. The rise of this Hybrid Operation, having both app- and website-based functionalities, is gaining tremendous ground. Driving it are efforts to serve a wider audience that prefers to use different platforms out of convenience. Quick commerce platforms, by being both on apps and the web, can capture and retain customers who might prefer to shop on a desktop or a laptop during work hours and then use mobile apps for convenient usage on the go. And with flexibility and choice in the manner of operations, this hybrid segment gets ever more popular, which means that companies get ability to reach a much wider pool of customers. This ultimately leads to enhancement in the overall user experience. Website-based operation simply represents the traditional access method to quick commerce services through any web browser on a computer or mobile device. While it still obviously plays an important role in the market, especially for users preferring bigger screens and users habituated to accessing facilities over the web, this role is relatively less prominent compared with app-based operations. The ease of use and add-ons available on mobile apps seem to have put the operations of the website-based a step backwards, and hence become more of a secondary option.

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.