The demand for grocery delivery services is on the rise in Uganda, driven by several factors that are unique to the country.
Customer preferences: Customers in Uganda are increasingly looking for convenience and efficiency in their shopping experiences. With the rise of e-commerce and mobile technology, many consumers are turning to online platforms to purchase their groceries. This trend is particularly prevalent in urban areas, where busy lifestyles and traffic congestion make traditional shopping methods less appealing.
Trends in the market: One of the key trends in the grocery delivery market in Uganda is the emergence of new players in the industry. Several local start-ups have entered the market in recent years, offering a range of grocery delivery services to consumers. These companies are leveraging mobile technology and innovative logistics solutions to provide fast and reliable delivery to their customers.Another trend is the increasing popularity of subscription-based services. Many grocery delivery companies in Uganda offer weekly or monthly subscriptions, which provide customers with regular deliveries of essential items such as milk, bread, and eggs. This model has proven popular with busy professionals and families, who value the convenience and time-saving benefits of regular deliveries.
Local special circumstances: One of the unique challenges facing the grocery delivery market in Uganda is the country's infrastructure. Poor road conditions and limited transport options can make it difficult for delivery companies to reach customers in some areas. Additionally, many consumers in rural areas may not have access to the internet or mobile technology, which can limit their ability to use online grocery platforms.
Underlying macroeconomic factors: The growth of the grocery delivery market in Uganda is also being driven by broader macroeconomic factors. The country's economy has been growing steadily in recent years, and this has led to an expansion of the middle class. As more people move into the middle class, they are increasingly looking for convenient and efficient ways to shop for groceries. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping in Uganda, as consumers look for ways to avoid crowded stores and limit their exposure to the virus.
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.
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