David Quaife, Managing Director, MENA at Pattern, comments on Uber’s acquisition of Delivery Hero and what it means for the ecommerce landscape
Uber’s move to acquire Delivery Hero is another clear signal that the next phase of ecommerce will be defined by scale, infrastructure and the ability to serve consumers wherever and however they want to shop.
For the Middle East, this is particularly significant. Talabat and HungerStation are already embedded in the everyday lives of millions of consumers across the region, and bringing them into the same global group as Uber creates an extraordinarily powerful commerce ecosystem owned by one player.
This isn’t simply a food delivery story; it’s about who owns the infrastructure behind an increasingly large part of on-demand retail.
Serious retail channel
Quick commerce has rapidly evolved from a convenience or add-on service into a serious retail channel in its own right. Consumers increasingly expect to be able to order groceries, beauty products, electronics and everyday essentials with the same immediacy as a takeaway.
For retailers and brands, that means platforms such as Talabat and HungerStation need to be considered as part of their wider ecommerce strategy, rather than treated as something separate.
Consolidation also means brands are increasingly dealing with fewer, but much larger and more sophisticated, platforms. That brings opportunity through greater reach, data and infrastructure, but it also raises the barrier to entry.
Quick-commerce strategy
Brands need the right stock, pricing, content, fulfilment and marketplace expertise in place from day one. There is less room to slowly work out a quick-commerce strategy once your competitors are already established.
For brands, the takeaway is clear: quick commerce is becoming an increasingly important part of how consumers discover and buy products, particularly here in the Middle East.
As the market consolidates around bigger platforms with greater reach, data and technology, brands need to start treating quick commerce as a core retail channel. The opportunity is significant, but so is the risk of being left behind if your products aren’t available where consumers increasingly expect to find them.
