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Summary of our market study
The French fast-food market is estimated to be worth between 2.4 and 4.8 billion euros.
Defined by its fast delivery service - often within just 10 to 15 minutes of placing an order online - this new form of e-commerce is shaping the way consumers interact with food delivery services.
Demand for fast food delivery has been integrated into consumers' daily habits, particularly in urban areas, with an annual growth rate of 30%.
The fast-food market is rooted in France's urban fabric, targeting the 41% of the population living in urban areas - estimated at between 25 and 30 million people. The market is estimated to be worth between 2.4 and 4.8 billion euros (taking into account spending on convenience goods and local services, and potential market share in urban areas). The French population in urban areas spends around 50 billion euros a year on FMCG and food products.
Fast-food operators are establishing themselves by leveraging "dark stores" to offer deliveries within minutes, and cities like Paris have become battlegrounds for these companies, including Gorillas, Cajoo and Frichti, among others.
It is estimated that fast-food represents 5-10% of urban convenience retailing. The sector attracts mainly young, affluent and connected consumers.
Since the arrival of Uber Eats and Deliveroo on the market, there has been a steady increase in home delivery services, which are not limited to ready meals but also include groceries.
Numerous companies are entering the market. at the heart of their operations are "dark stores" - local warehouses or distribution centers that serve as hubs for rapid order fulfillment. These entities compete with traditional supermarkets in a sector that has accelerated since the onset of the Covid crisis.
The global fast commerce market has grown rapidly, and is estimated to be worth $72 billion.
Qwick Commerce players
- Gorillas: This Germany-based startup is the epitome of rapid growth in the fast commerce sector. Benefiting from an impressive flow of investment, Gorillas demonstrates the seductive potential of the "Dark kitchen". The company is present in Germany, the UK, the Netherlands and France.
- Flink: competitor to Gorillas
- Cajoo: French start-up
- Dija: UK-based Dija launches into the fast-food sector with a high-end strategy.
- Frichti: Frichti, a mix of dark kitchen and dark stores, sets itself apart by expanding its offering beyond groceries to pre-prepared meals. Present on the French market since 2015, this company synergizes meal delivery and mass-market products, responding to the evolving needs of the contemporary consumer.
- Getir: Getir originates from Turkey, and has extended its activities to the borders of Europe.
- Picnic: This Netherlands-based platform adopts subscription models for the delivery of fast-moving consumer goods.
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Summary and extracts
1 Market overview
1.1 Definition and scope of study
Quick commerce is a new e-commerce concept that combines speed and flexibility of delivery. It requires customers to shop online using an application owned by a quick commerce company. These customers are then delivered within 10 to 15 minutes of placing their order at the desired location.
Since the arrival on the market of Uber Eats and Deliveroo, home deliveries of all kinds of products have continued to increase. After ready-made meals and groceries delivered by supermarkets, we are now witnessing an explosion of companies offering home delivery of food products.
On a global scale, this market has seen its already sustained growth propelled by the Covid-19 pandemic. Following the various confinements and the succession of restrictive measures, it seems that some consumers have definitively changed their habits to include grocery delivery in their daily routine. Worldwide, the estimated growth of this market in the coming years is very encouraging: +30% per year until 2024.
In France and Europe, many new players are positioning themselves in the express segment (less than 30 minutes elapsed between order and delivery), banking on an integrated value chain and high logistics capacity. Their operations are based on "dark stores" - small warehouses closed to the public where delivery personnel can pick up orders - strategically positioned in the cities they serve. Their positioning enables them to differentiate themselves from the traditional players in grocery delivery, which are the major supermarket chains, and to capitalize on the boom in the sector since the Covid crisis.
The proliferation of startups offering deliveries in under thirty or even ten minutes augurs two phenomena: the accentuation of already sustained growth, but also fierce competition between companies, as was the case a few years ago with the arrival of restaurant food delivery companies and then self-service electric scooters.
1.2 The global quick commerce market
The global quick commerce market is booming. Propelled by the health crisis and confinements, quick commerce is becoming more and more a part of everyday life for certain populations. According to Prnewswire, this market will triple in value by **** to reach a total of $** billion. This would imply a lasting change in consumption patterns, already observed in many countries.
Quick commerce market size World, ****-****, US$ billion Source: ****
In some Asian countries, quick commerce is already part of everyday life for a large proportion of consumers. In fact, according to Kantar, e-commerce in general already accounts for almost **% of FMCG purchases ...
1.3 The French market
It's hard to put an exact figure on the size of the quick commerce market in France. According to an estimate by Olivier Dauvers, a journalist specializing in mass retailing, quick commerce should generate between *** and *** million euros in revenues by ****(***). However, given that the market is in full expansion, it's surely more interesting to put a figure on the market's potential rather than its current size. To do this, we need to look at potential consumers on the one hand, and competitors' revenues on the other. Quick commerce depends on a strong territorial network, which means that companies in this ...
2 Demand analysis
2.1 Young, affluent, connected consumers
It's difficult to draw up a profile of the typical quick commerce consumer, so new is this market. However, we can easily identify those who are most likely to be tempted by this new offer. It's important to note that the use of delivery is becoming increasingly common across all categories of the population. According to Harris Interactive, grocery delivery has grown by almost **% between **** and ****, and **% of the household budget dedicated to food is spent via the Internet.
The profile most inclined to order groceries online is that of the omnichannel consumer, who supplements his or her in-store shopping with ...
2.2 Consumer demand differs according to the purchase path
According to Harris Interactive, the reasons for buying are very different. So-called traditional channels are preferred for the human touch and when consumers don't know exactly what they want, while connected channels are chosen for more practical reasons. Here are the main reasons cited by consumers in our survey:
Traditional channels See and touch products More choice More human
Connected paths Time saving Shopping comfort Promotions Respect for social distance
Breakdown of household shopping budget by distribution channel France, ****, % Source: ****
It's clear that most shopping is still done in-store, and that online shopping is more of a complement than anything else. ...
2.3 Demand trends
In its May **, **** issue, the trade magazine Hôtellerie Restauration devotes an article to the expectations of young consumers, or GenZ (***). While fond of innovative and gourmet products, and inclined to indulge in the food trends seen on social networks, these young people are particularly attentive to environmental and health issues.
Reasons for young people to reduce their meat consumption France, ****, % of young people who said they would like to reduce their meat consumption, in agreement with the reason given Source: ****
Furthermore, omnichannel consumers, likely to switch to quick commerce, are particularly attentive to the products they buy. According to Harris ...
3 Market structure
3.1 Quick commerce features
Quick commerce appears to be the logical evolution of mass retailing, which follows a pattern of personalizing purchases and optimizing the consumer's time. To highlight the characteristics of quick commerce, we have drawn up a comparative table:
3.2 How quick commerce works
Quick commerce companies depend heavily on their supply chain if they are to function properly and deliver to their customers quickly. To ensure that this chain runs smoothly, three elements are essential:
Territorial coverage
If you want to prepare, pack and deliver products in under an hour, you need to be located fairly close to your customers. That's why quick commerce relies on local warehouses (***) that can serve people in the immediate vicinity. Most quick commerce companies are based in cities and employ their own community of delivery drivers to deliver products. Two-wheeled deliveries are less likely to be affected by ...
3.3 Complex logistical challenges
The main challenge for quick commerce companies is to master the value chain and develop an infallible supply chain. To this end, consulting firm Deloitte has detailed how to address the various obstacles normally encountered in managing the "last mile" (***).
Source: ****
3.4 A business model yet to be defined
Strong growth and the large number of new entrants can give the impression that the sector is profitable. According to LSA Conso, EBITDA (***) are between -**% and -**%. These negative margins are the direct result of the investments needed to roll out the offer, and of the advertising campaigns and promotions carried out in every town where companies want to set up shop. This raises questions about the profitability of this market. As with home delivery and self-service scooters, the first few years of operation are really a race to the top. However, companies such as Frichti in France and Getir ...
3.5 Market share of major players
The delivery model based on self-employed delivery drivers, with virtually no guarantees and no safety net, is becoming increasingly problematic. According to a survey conducted by Ouest France in Nantes, here are the main problems caused by this delivery format:
Registration is time-consuming and requires investment: delivery drivers must obtain autoentrepreneur status and purchase their own equipment Delivery drivers are paid less than the minimum wage There are migrant exploitation networks, which operate on an account rental model The work is so unprofitable that many delivery drivers have switched to scooters, exacerbating traffic problems in some cities
All these problems have ...
4 Offer analysis
4.1 Market players
Quick commerce is developing very rapidly in France, and now boasts a number of players:
Gorillas: born in **** and of German origin, this startup offers FMCG delivery in less than a quarter of an hour. Present in Germany, the UK, the Netherlands and France. Cajoo: created in February ****, Cajoo is the leading French player in this market. Dija: born at the end of ****, the English company is also positioning itself in a more upscale segment with its Dijanow app. Frichti: since ****, this French company has been mixing the concepts of dark kitchen and dark stores. Frichti offers prepared meals and FMCG. Flink: ...
4.2 Geographic expansion
Quick commerce players initially rushed to Paris, but are now beginning to expand their activities in France and internationally:
Getir launched this year in London (***). In France, Getir expects to have *** mini-warehouses by December **, in Paris, Marseille, Lyon, Nice and Toulouse. Gorillas has opened ** urban mini-warehouses in less than six months, in Paris, Lille, Lyon, Bordeaux and Nice. Opening soon in Marseille and the Lille area, among others. Cajoo is already present in ** French cities, with ***,*** users to date. It plans to double the number of its dark stores in Paris to around twenty by December, and is targeting several European ...
4.3 Historic fund-raising and partnerships with traditional players
According to Bryan, Garnier & Co, quick commerce companies have raised a total of *.* billion euros since ****, including * billion in ****. We have compiled a list of the most important deals that have taken place recently:
Gorillas: over *** million euros raised from Tencent and Delivery Hero. This is the biggest fund-raising in the history of the retail sector, bringing Gorillas' valuation to $* billion Flink: having already raised almost $** million, Flink has raised a further $*** million from US leader DoorDash, taking its valuation to over $* billion Picnic: for its fifth round of financing, Picnic raised $*** million to increase its operational capacity and launch automated ...
5 Regulations
5.1 Current regulations governing delivery platforms
Regulations on platforms
The Loi d'orientation des mobilités (***).
In particular, this law intends to impose the following changes:
"Platforms [***] shall communicate to workers, prior to each service, the distance covered by that service and the guaranteed minimum price they will benefit from, less commission fees". No more accounts suspended for inactivity: "Workers choose their working hours and periods of inactivity, and can disconnect during their working hours. Platforms cannot terminate the contract when a worker exercises this right". The possibility for platforms to propose a social charter: "The platform may establish a charter determining [***] its rights and obligations as ...
6 Positioning the players
6.1 Positioning the players
- Gorillas
- Flink
- Cajoo
- Frichti (La Belle Vie)
- Getir
- Picnic
- La Belle Vie
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