Delivery Hero rapidly expands quick commerce and partners with more than 20,000 vendors globally
- Quick commerce is meeting evolving customer expectations focused on convenience and speed, delivering household goods faster than ever before
- As the pioneer of quick commerce, Delivery Hero brings products like groceries, pharmaceuticals, electronics and flowers to customers in 35 markets across four continents
- Delivery Hero partners with over 20,000 local shops and additionally operates more than 100 Dmarts (local warehouses or cloud stores) to ensure a broad choice and instant delivery
- In the second quarter of 2020, q-commerce orders grew by 98% to 10.5 million
Berlin, 15 July 2020 – Delivery Hero SE (“Delivery Hero”), the world’s leading local delivery platform, is responding to evolving customer behavior by rapidly expanding its quick commerce (“q-commerce”) operations globally. Q-commerce is the next generation of e-commerce, bringing small batches of groceries, pharmaceuticals, electronics and other household goods to customers in less than one hour. In 35 countries across the Middle East, Asia, Europe, and Latin America, Delivery Hero’s customers can enjoy the perks of quick commerce. With delivery times that are below 15 minutes in some markets, Delivery Hero is setting new standards to meet customer demands.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said:
In the era of quick commerce, customers can expect to receive their orders almost instantly. In some markets, we are able to deliver already within 15 minutes, 24/7, from our Dmarts. This new standard will shape the future of delivery. People will spend increasingly less time going to stores. Instead, they will order whatever they need, whenever they need it and receive their items straight away.
Evolving customer behavior: speed and convenience more important than price
COVID-19 has changed priorities of customers, who increasingly value fast and convenient deliveries of everyday products. Ordering online allows them to stay safely at home and spend their time on things that really matter to them. The pandemic has illustrated the benefit of quick commerce and led to fast growth: in the second quarter of 2020, q-commerce orders grew by 98% to 10.5 million (compared to 5.3 million orders in the first quarter).
Pieter-Jan Vandepitte, Chief Operating Officer of Delivery Hero, said:
With our logistics expertise and capacities, we are in a fantastic position to establish q-commerce as a new standard globally. Collaborating with local partners and opening our own Dmarts, we can offer customers a broad choice and super fast delivery. The last few months have proved that this is exactly what customers are looking for.
With the rise of urbanization and more people living in smaller households, customers will continue to move away from purchasing large quantities of items, and spontaneously order products in small batches when they are needed. The relevance of quick commerce will continue to grow and Delivery Hero estimates the global business opportunity for this category to be at EUR 448 billion by 2030.
Delivery Hero plans to operate over 400 Dmarts by the end of this year
On the technical and logistical side, q-commerce is made possible by partnering with more than 20,000 local vendors, an increase by more than 50% in the last two months, and by operating small warehouses called Dmarts. Dmarts (also known as cloud stores) are strategically located in densely populated areas. Each store has several thousand items in stock and inventories are constantly being adjusted based on data insights and customer feedback. Today, Delivery Hero operates more than 100 Dmarts. In 2020 alone, the United Arab Emirates, the Kingdom of Saudi Arabia, Chile, Argentina, Uruguay, and Hong Kong have opened their first Dmarts. Delivery Hero will further invest in this category and expects to operate over 400 Dmarts by the end of 2020.
ABOUT DELIVERY HERO
Delivery Hero is the world’s leading local delivery platform. The company holds a strong position in 36 out of 42 countries in which it operates across Europe, Latin America, Asia-Pacific, the Middle East and North Africa in terms of restaurants, active users, orders, online and mobile platforms. Delivery Hero also operates its own delivery service primarily in over 530 cities around the globe. Headquartered in Berlin, Germany, the Company has more than 25,000 employees. For more information, please visit www.deliveryhero.com
Director of Global Corporate Communications