What is hyperlocal delivery?

Hyperlocal refers to going local with your business. A hyperlocal delivery model is an online delivery model wherein the on-demand customer needs are catered to via online shops using a digital platform. With this model, it becomes simplified to meet customer demands swiftly such as demands for groceries, laundry services, medicines, etc. 

Technology is the central player in this delivery system to provide a positive customer experience. The logistics companies catering to hyperlocal delivery systems benefit greatly since tech enables smooth functioning. 

Technology is used in hyperlocal deliveries to assist in the following ways:

  • Sustaining Shipping Costs: Automation assists immensely in lowering the shipping costs which is an attraction to the customers. Customers are increasingly becoming reluctant to pay the shipping costs and executing this is very difficult without automation. 
  • Easy to Allocate Delivery Zones: Finding new delivery areas every time leads to a fall in the productivity of the delivery agents. With local delivery, it becomes impeller for them to deliver better with easy-to-allocate delivery zones. 
  • Countering Traffic: With automated delivery routes and software, it becomes simpler to counter traffic while executing deliveries. It helps the deliveries become more cost-effective. 

Types of Hyperlocal Delivery Models 

We can broadly divide the hyperlocal delivery models and marketplace into four categories. These include: 

  1. Single Store Model: This model is best suited for businesses which already have a strong offline presence and wish to establish a strong online presence too. To execute this, they can build a hyperlocal online delivery app and begin delivering through online orders. Some popular brands that use this model include Domios, BigBasket, etc. 
  2. Store Pick Model: This is yet another model where customers can place orders for the goods they want online and collect their deliveries themselves from the nearby store. Under this system, the customers place the order and the company packs and prepares it before the customer arrives. This way the customers do not have to stand in long queues for their orders as they are pre-packed and ready to be picked. 
  3. Hybrid Model: The hybrid model caters to both the aforementioned needs. Companies who want to offer both these solutions to their customers pick this model. It provides greater flexibility to the customers as they can choose their preferred delivery type.
  4. Aggregator Model: In this model, the hyperlocal delivery delivery provider acts as a mediator between the customer and the store. It helps businesses expand their network by connecting with the local stores and initiating smooth and faster product deliveries. Some commonly known examples of the aggregator model include Zomato and Instacart. 

Process to Build a Hyperlocal Delivery System 

With an understanding of how the hyperlocal delivery system works and its different models, let us now look at how this process can be implemented. The steps to follow include: 

  • Begin by deciding the products that you want to deliver online through the hyperlocal delivery applications. Create a list of all the products and categorise them based on their utility to make the products easy to navigate for the customers on the applications.
  • Select the audience that you aim to cater to while working on the products and categories. It will help you include all the products and market your services and products accordingly. 
  • The next step is to find a suitable local delivery partner who can help you execute the order deliveries. Consider factors such as reliability, services and customer reviews of the delivery partner that you choose. 
  • Choose a revenue model that will help you receive payments made online in the process. Select a reliable payment partner to make this process smooth. 
  • Build a hyperlocal delivery app that lists out all your products, services and charges to reach the customers and start taking orders. 

Advantages of Hyperlocal Delivery Model 

Moving to the online model is no longer a choice for businesses if they want to stay competitive and expand their business. This is where the hyperlocal delivery model comes into play. The distinct advantages of the hyperlocal delivery model include: 

  • Smooth delivery management from a single dashboard or device
  • Speedy and efficient deliveries 
  • Enhanced operational visibility 
  • Extension of support to local businesses 
  • Competitive edge to beat the market competition 

Disadvantages of Hyperlocal Delivery Model 

While the model has numerous advantages, there are also a few disadvantages of the model that require consideration. These include: 

  • Increasing competition in the delivery sector 
  • Lacking fleet management 
  • Difficulty planning multi-drop delivery routes 
  • ETA adherence 

With reliable hyperlocal delivery partner support, you can manage all the deliveries successfully. Pidge is a reliable hyperlocal delivery partner and a last mile delivery company that helps businesses overcome all the challenges of hyperlocal delivery and work out the online delivery model to stay competitive in the market. Connect with Pidge to say goodbye to all your logistics concerns and focus on the more pressing demands of your business. 

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