Fast and curious: why quick commerce is going downhill in SEA

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Hello reader,

Those of us who live in Singapore (and perhaps the rest of Southeast Asia) probably remember the bubble tea craze and how it unfolded over the years. If I remember correctly, there were about three phases that came and went until the trend became something more permanent.

The first wave consisted mostly of neighborhood businesses that sold simple things like blended ice drinks with a scoop of pearls.

Big brands including the likes of Koi and Gong Cha cropped up during the second wave. They usually had several branches to their name, and many of the outlets were in shopping malls. The drinks felt a bit more “premium,” but that also meant they were a tad more expensive.

Neighborhood bubble tea shops still existed, but they weren’t as popular as they used to be.

In recent years, it seems like the trend has shifted to almost exclusively brand names, and there are even more of them now. While the overall increase in quality is great taste-wise, I do miss having a significantly cheaper option that’s readily available.

But that’s business: What’s hot right now may not necessarily be true years or even just a few months later. Sometimes, the trend changes slightly, while other times it could just disappear entirely.

Today’s story delves into quick commerce in Southeast Asia and whether it’s poised to go down the latter path.

Today we look at:

• Quick commerce’s downward turn in Southeast Asia
• A Singapore-based loyalty platform that bagged US$2.6 million
• Other newsy highlights such as JD.com taking full control of its budget shopping platform and DBS’s tie-up with Paxos

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Gone in a flash

Image credit: Timmy Loen

Just as swiftly as it arrived on the scene, could quick commerce be headed for an equally fast exit in Southeast Asia? The sector has been struggling lately, with many firms shutting down or pivoting to other business models. Let’s take a closer look at the situation.

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