What is Hyperlocal Delivery?

Hyperlocal delivery is a service that provides deliveries within local or limited areas. Its main objective is to provide superfast delivery. It is a perfect delivery model for vegetables, fruits, groceries, medicines, and other small-scale items. It manages the online business effortlessly and focuses on attracting new customers. 

Hyperlocal delivery offers adaptability and scalability, which are essential for business growth. Under this, online retailers tie up with local vendors to sell their available inventory to local buyers. It delivers the package to customers, irrespective of their location, within the delivery time window.

Features of Hyperlocal Delivery

Hyperlocal delivery logistics is attracting more and more companies due to its convenience and ease of functionality. Some of its core features are:

  • Delivery Area: It is known as hyperlocal because of its local delivery area. It is a small-scale delivery network conducted within a radius of 15km. 
  • Delivery Time: Since it delivers to local areas, its delivery time is very fast. It generally takes 10 minutes to 2 hours per delivery. 
  • Inventory Management: It provides real-time location and inventory sync that helps customers collect all details regarding the available stock items.  
  • Delivery Responsibility: The vendors and delivery firms handle the deliveries. Experienced delivery partners even ensure fast delivery while cutting delivery costs. 
  • Delivery Methods: Hyperlocal delivery is known as a subset of a comprehensive last-mile delivery network. Its delivery method is very efficient and effective. It rapidly delivers groceries and non-perishable products within the local region. 
  • Multiple Store Checkout: It allows shoppers to place orders from another store in case some products are not available in their shop.
  • Customer Support: A customer chat system is available in case of an order mismatch or wrong delivery. It assures shoppers that their grievances and other delivery issues will be resolved.

Steps to Build a Hyperlocal Delivery Network

If any company wants to offer hyperlocal delivery service, then they need to follow the steps listed below:

  • The first and foremost step is to decide the product you want to deliver. 
  • After this, select the target audience. 
  • The next step is to partner with local merchants.
  • Choosing a suitable revenue model is important for this delivery network. 
  • After this, register and get a hyperlocal delivery app. 
  • And, at last, selecting the perfect logistics technology partner to build an efficient and effective delivery network. 

Different Models of Hyperlocal Delivery

Generally, there are four types of hyperlocal delivery models:

Single Store Model: This model is suitable for stores that are well-established in the market and want to increase their online presence. Companies like Dominos and BigBasket are using this model. 

Store Pick Model: This is a popular model in which customers order online and pick up their goods from nearby stores. The store prepares and packs the order; customers can collect it within their specified time window. 

Hybrid Model: This model offers both home delivery and in-store pickup options. The hybrid model provides convenience and freedom to customers.

Aggregator Model: This model helps online stores extend their reach by connecting with local stores and initiating product deliveries. Companies like Zomato and Instacart use an aggregator model.

Advantages of Hyperlocal Delivery

Hyperlocal delivery is an effective solution for the logistics industry since it enhances the customer experience, maximizes delivery capacity, and smooths the flow of the supply chain. Some of its benefits are:

  • Acts as a lifeline for local vendors. 
  • It eases the operational pressure on online retailers.
  • It can track the orders in real-time.
  • It significantly reduces the logistics and storage costs.
  • It enhances the customer experience. 
  • It provides quick and timely deliveries. 
  • It encourages customizable delivery time.
  • Hyperlocal delivery has a diverse range of products and services.
  • It doesn’t require any additional investments and provides better inventory management.

Challenges of Hyperlocal Delivery

Some significant challenges faced by hyperlocal delivery are:

  • Stiff Competition: When big e-commerce companies collaborate with local businesses, the competition becomes stiff, especially for new or local business owners. To maintain their brand value, they must prevent any unintentional errors.  
  • Brick and Mortar Stores: People prefer to buy eatable items like fruits and vegetables from brick-and-mortar stores. They do not trust online stores to purchase perishable items. This creates a challenge for hyperlocal delivery services. 
  • Irregular Operations: During the festival season, a hyperlocal business receives a spike in orders, making timely deliveries difficult. To maintain a business reputation, it is essential to make timely deliveries, even in unpredictable situations.
  • Additional Costs: For newly emerged businesses, enlisting themselves in the local market is quite a challenge. They need to pay extra charges to establish and increase their online presence.
  • Extravagant Marketing: A hyperlocal business must require creative thinking and sound investment to attract new customers. By making extravagant expenditures on marketing, the business is likely to suffer. 

Hyperlocal delivery is crucial for the smooth flow of the supply chain and satisfying customer demands. It maintains communication among the different players involved in the supply chain and increases efficiency, service quality, and the company’s profitability. The technological solutions help hyperlocal delivery stand out and overcome all the delivery-related issues.