Founder of Xook, the autonomous food kiosk company, has a successful track record of leading products for four unicorns that revolutionized traditional industries with technology. The rise of quick commerce (Q-commerce) in 2019 brought about a shift in the retail landscape, with startups like Gorillas and Fridge No More, as well as giants like Instacart and Doordash, competing to deliver goods in under an hour. These disruptors, fueled by VC investments, quickly became unicorns and aimed to capture a share of the $300 billion convenience retail market.
While some Q-commerce players struggled due to full delivery costs impacting consumer demand, others like Gorillas found stability through acquisitions. Instacart, despite its $29 billion GMV, faces challenges in maintaining demand and profitability, prompting major retail chains to launch their own Q-commerce services. Examples like Kroger Delivery and 7NOW from 7-Eleven demonstrate the success of traditional retailers embracing innovation to meet evolving consumer demands.
As the Q-commerce market expands, profitability becomes a crucial factor for all players involved. Autonomous delivery robots and checkout technologies emerge as potential solutions to reduce service costs and ensure the sustainability of Q-commerce operations. Companies like Amazon Go and Standard AI offer advanced solutions in this space, while others like Byte and Farmers Fridge provide more affordable technologies, creating opportunities for market consolidation and expansion.
Autonomous delivery robots and checkout technologies are expected to complement each other in the future, with unmanned convenience stores operating 24/7 in high-density areas. Collaboration between these segments is essential to establish interoperability standards and address challenges related to product handling and customer data. Efforts must be made to ensure a seamless shopping experience for customers while maintaining good unit economics for retailers.
Advancements in technology have the potential to benefit both major players in convenience retailing and small businesses. Mom-and-pop stores can gain access to tools and data previously only available to larger players, leveling the playing field. While not every product may be suitable for Q-commerce, companies that can adopt and scale using cutting-edge technologies will drive the trend sustainably and equitably, ensuring benefits for both consumers and retailers in this new era of decentralized offline commerce.
