Rapid commerce, a hybrid model between quick commerce and e-commerce, offers delivery within a few hours. However, its success hinges on value addition and positioning, as buyer incentives and product range limitations pose significant challenges.
Rapid commerce bridges instant gratification of q-commerce and e-commerce convenience
Vikash Khatri, Founder, Aviral Consulting Reconnaissance @ Rapid Commerce, throws light on the emerging concept of rapid commerce, a new delivery model positioned between quick commerce (q-commerce) and traditional e-commerce. In today’s fast-paced retail landscape, rapid commerce aims to bridge the gap between the instant gratification of q-commerce and the convenience of e-commerce by offering delivery within a few hours—a window longer than q-commerce’s minutes but shorter than e-commerce’s typical next-day deliveries.
Model positioning
Khatri emphasises that for rapid commerce to succeed, it must provide clear value and differentiated positioning. Without these, the model risks becoming a theoretical concept with limited practical application. The challenge lies in navigating the significant differences between q-commerce, which thrives on last-minute, ad-hoc purchases, and e-commerce, which caters to planned, often bulk shopping. Rapid commerce, he suggests, must balance these extremes, potentially positioning itself as an experimental yet pivotal model in retail logistics.
E-commerce origins
The origins of e-commerce lie in the convenience of online shopping, where customers can access a wide range of products and have them delivered without visiting physical stores. E-commerce primarily serves planned purchases, with customers often logging in to buy specific items, though many additional purchases occur due to product visibility and promotional offers. This contrasts sharply with q-commerce, which emerged from the need for quick delivery of essentials like groceries and is now expanding into categories such as electronics and cosmetics.
Q-commerce growth
Khatri notes that q-commerce is rapidly penetrating urban metro markets, where time constraints drive buyer behavior. These q-commerce fulfilment centres focus on a limited number of SKUs with high order frequency, serving small radii to meet tight delivery windows. Some q-commerce companies are partnering with specialised retail chains to deliver items like electronics within 30 minutes, a move that reduces inventory costs while boosting sales for both parties. In contrast, e-commerce fulfilment centres handle a broader range of SKUs across wider geographies, offering next-day delivery and catering to both premium and standard delivery schedules.
Rapid commerce challenges
In Khatri’s analysis, rapid commerce proposes a network of multi-user last-mile fulfilment centres, enabling e-commerce companies to deliver within a 2-4 hour window. This model requires fewer fulfilment centres than q-commerce but more than traditional e-commerce, optimising inventory holding while maintaining service speed. However, the increased distribution costs—stemming from additional operational points and inventory—could deter sellers unless buyer adoption is high. The key challenge for rapid commerce lies in its unclear value proposition from the buyer’s perspective. Ad-hoc buyers may not wait hours for delivery, and range seekers might find the SKU availability too limited compared to e-commerce or D2C platforms, making the future of rapid commerce uncertain.
Khatri’s insights highlight the delicate balance rapid commerce must achieve to establish itself as a viable delivery model.
