Rapid delivery offerings fall behind consumer interest, Uber Direct Retail Economics research

Fifty two per cent of UK consumers would pay a premium to receive goods within two hours of ordering, but only 22 per cent of retailers are currently offering rapid delivery options, according to new research.

Uber Direct and Retail Economics surveyed 2,014 UK consumers and 200 retailers about delivery preferences, noting that on-demand offerings are now “well established” in UK shopping habits. Fifty two per cent of respondents said they would be willing to spend up to £10 to get goods delivered within two hours, when their basket was worth £100 or more.

The survey also found on-demand delivery is even more popular amongst Gen Z consumers (18-25 year olds), with 66% having used these services in the past 12 months, compared to just 40% of consumers overall.

“As demand in rapid retail grows, there’s a real opportunity for retailers to win over customers, boost sales and maintain their loyalty,” says Mia Yamaguchi, Retail Development Lead at Uber Direct UK & Ireland, which recently reported its billionth delivery in the country, less than ten years after its launch.

With just 22 per cent of retailers currently offering on-demand delivery options, the research also highlights key reasons for the slow roll out. Retailers cited cost (44 per cent), operational strain (40 per cent) and infrastructure challenges (39 per cent) as key reasons for not yet offering on-demand delivery.

Despite these challenges, Retail Economics forecasts that non-food on-demand sales will surpass groceries by 2030, as consumers look for speedier delivery of other items. The survey found “significant interest” in on-demand delivery for flowers, DIY and gardening items.

“There are many retail categories where one or two-day delivery windows are no longer enough to satisfy customers,” says Richard Lim, CEO at Retail Economics. “Consumers increasingly want goods in their hands within minutes of buying online.

“As retailers find ways to meet that interest, expect on-demand delivery to accelerate over the coming years. The market may still be in its infancy but the potential is huge.”

In March 2025, luxury retailer Fortnum & Mason teamed up with Zapp to launch 24/7 on-demand delivery in London.

2025 RTIH INNOVATION AWARDS

On demand delivery will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in April, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.