A recent survey by Uber Direct and Retail Economics reveals a striking gap between consumer demand and retailer capabilities in rapid delivery services. While 52% of UK consumers would happily pay a premium for goods received within two hours, only 22% of retailers currently provide such options. This research surveyed over 2,000 consumers and 200 retailers, confirming that on-demand offerings have become entrenched within shopping behaviours in the UK.
Particularly notable is the penchant for on-demand delivery among the younger demographic; 66% of Gen Z respondents aged 18-25 reported using these services in the past year, whereas the overall figure stands at just 40%. This shift indicates a growing trend where immediacy is highly valued. Mia Yamaguchi from Uber Direct highlights the potential for retailers to enhance customer loyalty and sales by meeting this rising demand.
Despite this, the report highlights several obstacles, with 44% of retailers citing cost as a barrier, followed by operational strain (40%) and infrastructure hurdles (39%). Nonetheless, projections by Retail Economics suggest that by 2030, on-demand sales for non-food items will eclipse grocery deliveries as consumers increasingly seek quick access to products.
For categories like flowers and DIY items, speedy delivery has become an expectation rather than a luxury. Richard Lim, CEO of Retail Economics, notes that fulfillment windows longer than a day are becoming outdated. The demand for immediate delivery is poised for growth as retailers adapt to these evolving expectations.
Exciting developments in the implementation of rapid services are underway, such as luxury retailer Fortnum & Mason’s collaboration with Zapp to introduce round-the-clock delivery in London by March 2025. Furthermore, on-demand delivery will be a focus at the upcoming 2025 RTIH Innovation Awards, celebrating tech innovation in the retail sector. The awards will honour advancements in areas such as automated supply chains and inclusive retail practices.
A survey shows 52% of UK consumers want delivery within two hours, but only 22% of retailers offer this. Younger consumers notably favour on-demand services, setting a trend towards rapid fulfillment. Retailers face challenges like costs and infrastructure. By 2030, it’s expected that non-food items delivered on-demand will surpass groceries.
The research highlights a significant disconnect between consumer expectations for rapid delivery and the current offerings from retailers. With over half of UK consumers willing to pay extra for faster service, there lies a golden opportunity for businesses to innovate and meet this demand. As rapid delivery continues to evolve, retailers must navigate operational challenges to keep pace with consumer preferences.
Original Source: retailtechinnovationhub.com
