Instacart and Uber will surpass Target’s digital business by gross merchandise value sales by 2025, reaching $27.33 billion and $27.58 billion, respectively, according to research from Edge by Ascential. In addition, the firm predicts that DoorDash will overtake eBay.com and become the third largest e-commerce banner in the U.S. in 2025, behind Amazon and Walmart.
“E-commerce is growing and evolving rapidly,” said Deren Baker, CEO of Edge by Ascential, in a statement. “Consumer behaviors and shopping habits have been changed forever by COVID-19 and we are living now in the future of retail. The delivery intermediary market is an exciting, fast-moving space, defined by big mergers and acquisitions, market-moving announcements, and emerging rivals with new business models that are attracting the eye of cash-rich venture capital firms. One thing is for sure: consumer packaged goods firms can’t ignore these companies in their quest to succeed in the new world of retail.”
Edge by Ascential also predicts that the on-demand grocery market will continue to accelerate, jumping by 150 percent to have $76.27 billion in gross merchandise value sales by 2025.
“As more retailers cooperate with these intermediaries as a cost-effective way to scale up fulfilment capacity quickly, we see them becoming essential points of influence in a shopper’s purchase decision,” said Xian Wang, VP of Edge Retail Insight, Edge by Ascential’s market research arm, in a statement. “Brands must start treating intermediaries as customers to win visibility on these platforms. On-demand delivery will be a key sub-channel in retail in the future and CPG brands will need to work out who to partner with and develop tailored product, pricing, and promotional strategies to drive conversion on these platforms.”
Related: Report: Delivery Speed Increasingly Important to Consumers; Online Grocery Sales Up From Last Year.
Image: DoorDash