In 2023, demand for easy access to products outside of food options, grew by 54% worldwide, with further demand likely in the coming years. This is according to research from Glovo, the food delivery platform.
'Easy access' can be defined as anything-to-your-doorstep in 24 hours or less. Research from Glovo indicates that southwestern Europe has become particularly reliant on this category, with share of overall growth in the past year standing at 31%.
Daniel Alonso Moreno, VP of Q-Commerce of Glovo, spoke to ESM about the increasing consumer demand for convenience and accessibility and how Q-commerce is diversifying to address consumer needs.
ESM: What is behind the evolution of the gig economy in retail?
Daniel Alonso Moreno: The gig economy in retail is propelled by a shift in consumer desires and expectations. Individuals seek immediate gratification through a personalised shopping experience in the online world, mirroring the kind of interactions they have in-store.
Thus, Q-commerce emerges not merely as another component, but as a critical element in this fast-evolving landscape, driving a transformative shift that caters to a sophisticated and demanding consumer base.
How is Q-commerce diversifying to address consumer needs?
Since the pandemic, Q-commerce has been on a journey of continued evolution. It has pivoted from being a cost-intensive treat-based service to one that can get people essentials, and it shows no signs of slowing down.
Q-commerce players have initially focused on groceries, providing small baskets focused on everyday essentials. But consumer interest is pivoting towards other categories, and Q-commerce is starting to embrace a larger scope with some players truly becoming multi-category, with a healthier, more sustainable product offering.
In 2023, one of the fastest-growing verticals in Glovo were non-grocery options, delivered in one hour or less. This includes items such as flowers, books, electronics, personal care products, and home goods.
How important are efficiency and convenience for Glovo's customers?
We’ve seen users taking the lead in tailoring when and where they want their orders delivered, indicating a shift in consumer habits where convenience continues to be the main priority.
To adapt to constantly changing schedules and busy lifestyles, consumers are relying more upon the possibility of scheduling orders in advance or picking them up on the go. This holds particularly true for non-food categories like retail.
How does Glovo seek to create a unique and personalised experience for users?
To craft a tailored experience for our users, we deliver precisely what they need – relevant, timely, and convenient content. Glovo’s platform stands out because of the variety of categories and the extensive assortment of products.
We are always working to further enrich the content in our platform and offer our users further distinctive features like promotions and loyalty program integration.
What role will technology play in the future of the gig economy?
Technology is the backbone of the gig economy and of Q-commerce, and it will continue to play a role in its future development, enabling further developments across the entire value chain.
For example, it enables us to optimise order preparation through the development of customised picking solutions aiming at minimising waiting times for customers. We work closely with our partners to improve the management of product replacements when items ordered by our customers are not available, to offer them a seamless shopping experience.
Do you think the COVID years played a role in the evolution of the gig economy and what consumers expect from retailers in terms of convenience?
The pandemic acted as a catalyst for the gig economy, sharply raising consumer expectations for convenience and online shopping.
As consumers have gotten used to connectivity and omnichannel experiences, their baseline for convenience and their expectations are higher than prior to the pandemic.
However, demand has been growing way past pandemic levels, and Q-commerce has become a fully-fledged channel for retailers to meet consumers demands and offer them seamless convenience.
How will the emergence of LaaS (Logistics-as-a-Service) enable retailers to optimise their delivery operations?
Logistics-as-a-Service (LaaS) is the next step in Q-commerce’s evolution, allowing retailers to access world-class fleets from delivery companies that enable faster and more flexible courier services. This model significantly reduces overhead and operational costs by eliminating the need for in-house delivery systems and logistics capabilities, minimising risks for retailers by leveraging a turnkey solution.
LaaS offers the convenience of door-to-door delivery jointly with bigger basket sizes. Not only does this eliminate the hassle of going to the store, picking it up, and transporting it yourself, but the flexibility of LaaS means that customers have control over their delivery experience.
They can schedule their deliveries at their preferred time slot, whether it be the same day or at another time that suits them. Retailers can also leverage LaaS to offer delivery for larger baskets and weekly shopping, expanding their customer base and service offerings.
LaaS is an avenue that we’re actively exploring in Glovo. At the beginning of 2024, we launched Glovo XL in partnership with Biedronka, one of Poland’s largest supermarket chains. Our goal is to build and scale a fully customisable technology platform to enable customers to receive an order within two hours after placing it, or to choose a same or next-day slot.
What future trends do you predict for the industry?
In the near future, online delivery will transition from a perk to a standard expectation.
While people will still shop in stores, online delivery will transition from a perk to a standard expectation as people increasingly rely on it due to time constraints. Moreover, 24/7 online delivery services will cater to the continuous and evolving needs of consumers, breaking free from traditional business hours.
At Glovo, we are dedicated to not only matching but surpassing the in-store experience by integrating competitive pricing, loyalty programs, and a diverse product range into our offerings.
