Ultra-fast, same day delivery on the rise for e-commerce

However, the trend might slow down due to inflationary pressures, Fitch said.

E-commerce firms are expected to offer ultra-fast delivery or delivery within two hours or less to remain competitive in 2022, led by the grocery sector, according to Fitch Solutions.

In a report, Fitch said that whilst the grocery segment will lead the trend initially, personal care and fashion are also likely to target to shorten their delivery times. Fitch also expected that some companies will start trialling robot delivery services this year.

Despite the re-opening of physical stores, this did not reduce the demand for e-commerce and companies to find ways to edge over their competitors which is offered by ultra-fast delivery.

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In Asia, Watsons in January announced its partnership with Amazon Singapore to introduce two-hour same-day delivery in the city-state.

Whilst key retailers and logistics firms adopted this trend, Fitch flagged that the trend may slow down in the last six months of the year, as this also comes with a higher price point or a membership to a subscription, requiring an initial extra cost.

“We, however, warn that demand for this trend might slow in the second half of 2022 as consumers faced with inflationary pressure might look to make cutbacks and so be prepared to wait longer for their products if it means not having to pay more for speed of delivery,” it said.