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Quick Commerce - Uganda

Uganda

The Quick Commerce market in Uganda is expected to witness significant growth in the coming years.
According to projections, the revenue in this market is anticipated to reach US$7.57m by 2024.
This growth is attributed to the increasing demand for quick and convenient delivery services.
Furthermore, the market is expected to maintain a strong growth trajectory, with an annual growth rate (CAGR 2024-2029) of 11.52%.
By 2029, the projected market volume is estimated to reach US$13.06m, indicating a substantial expansion in the Quick Commerce market sector.
In terms of user base, the number of users in the Quick Commerce market is projected to reach 2.1m users by 2029.
This signifies a growing adoption of Quick Commerce market services among consumers in Uganda.
The user penetration rate, which represents the proportion of the population using Quick Commerce market services, is expected to increase from 3.0% in 2024 to 3.8% by 2029.
This indicates a gradual expansion of Quick Commerce market services among the population.
The average revenue per user (ARPU) in the Quick Commerce market is projected to amount to US$5.07.
This metric highlights the average amount of revenue generated per user, showcasing the potential for profitability in the Quick Commerce market sector.
In a global perspective, it is worth noting that China is expected to generate the highest revenue in the Quick Commerce market, with an estimated revenue of US$80,840.00m in 2024.
This indicates the significant scale of the Chinese market and its dominant position in the Quick Commerce market industry.
Furthermore, China is also projected to have the highest user penetration rate in the Quick Commerce market, with a projected rate of 21.4%.
This showcases the widespread adoption of Quick Commerce market services among the Chinese population.
In summary, the Quick Commerce market in Uganda is poised for substantial growth, with increasing revenue, user base, and user penetration.
However, it is essential to acknowledge the global dominance of China in this market.
Uganda's quick commerce market is experiencing rapid growth, driven by the increasing demand for fast and convenient delivery services in urban areas.

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Analyst Opinion

Quick Commerce, also known as Q-commerce, is a rapidly growing industry in Uganda. This market segment has gained immense popularity in recent years due to its ability to deliver goods and services within a short period.

Customer preferences: Customers in Uganda are increasingly looking for convenience and speed when it comes to shopping. This has led to a surge in demand for Quick Commerce services. As a result, many businesses have adopted this model to cater to the needs of their customers.

Trends in the market: The Q-commerce market in Uganda is witnessing a significant growth trend. The rise of e-commerce platforms has led to a surge in demand for Quick Commerce services. Many businesses are now offering same-day delivery or even delivery within a few hours. This has led to increased competition in the market, with businesses trying to outdo each other in terms of delivery time and quality of service.

Local special circumstances: One of the unique aspects of the Q-commerce market in Uganda is the prevalence of informal markets. These markets, which are often located in low-income areas, cater to a large portion of the population. As a result, many Q-commerce businesses have started targeting these markets to tap into the large customer base.

Underlying macroeconomic factors: The growth of the Q-commerce market in Uganda can be attributed to several macroeconomic factors. Firstly, the country has a large and growing population, which provides a ready market for businesses. Secondly, the rise of mobile technology has made it easier for businesses to reach customers and offer their services. Finally, the government has implemented policies that are favorable to businesses, making it easier for them to operate in the country. In conclusion, the Q-commerce market in Uganda is on a growth trajectory. With the increasing demand for convenience and speed, businesses that offer Quick Commerce services are likely to continue thriving. The unique circumstances in Uganda, such as the prevalence of informal markets, provide opportunities for businesses to tap into new markets and expand their customer base.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.