Undoubtedly every worse situation brings a window of opportunity and perhaps requires you to do something new. However, COVID 19 has struck and has changed the way we live our day-to-day life. The virus spread has reorganized to ensure continued access to supplies and essentials in time of self-quarantine, social distancing, and lockdown. Most people are quickly moving to hyperlocal delivery platforms, assuring to cater to all their requirements. The adaption of the hyperlocal business model has become a business reality is evidenced in its demand in the delivery business space. It is considered to be the most challenging segment to perceive within the commerce bandwagon.
According to a BusinessWire report, the online hyperlocal service market is estimated to grow by $451.64 million between 2020 and 2024. It is predicted to grow at an 18% CAGR during the forecasted period. The online hyperlocal services market provides market size, forecast, trends, holistic analysis, growth drivers, challenges, and vendor analysis covering around 25 vendors.
The hyperlocal delivery business model has raised new possibilities for the prosperity and profit of businesses everywhere globally. The competition requires to be equal; else, it is not fair. However, if you are looking to know what is a hyperlocal business model and how it impacts new normal and benefit business, then keep on reading further right here.
What is the Hyperlocal Business Model?
Hyperlocal is a buzzword representing something that is nearby. It could be a spa, service, or store. To make it understandable, think of someone active; you can even call a hyperactive person—hyperlocal means near you. At the same time, the hyperlocal business model satisfies a closed and small group of people efficiently.
Platforms such as BigBasket, Swiggy, Ola, Ubereats, Zomato, etc., are famous examples of hyperlocal business models. The most advanced emerging business is Dunzo, a delivery app that delivers your things from one location to another place of your desire. All these business models primarily focus on consumer satisfaction by providing products at their desired location within minutes.
With the advent of digital platforms and media, hyperlocal delivery is rising drastically. It is easy for individuals to get a product delivered from other places to another just with a tap on their smart device. A hyperlocal business model is beneficial for every individual. It saves time and effort that they require to travel to a store and stand in a queue for purchasing something and making payments.
What is Hyperlocal Commerce?
Hyperlocal commerce targets customers within a geographical area like a neighborhood, street, city, county, community, etc. As social distancing becomes a way of life, more customers resort to online orders; simply, in-person supply is continuously decreasing.
The hyperlocal trend is driven by demand for premium services, shifting customer behavior, and convenience. The latter became a prior amid pandemic. Customers’ preference for online increases; this shift is rising hyperlocal deliveries and has a significant impact on logistics and supply chains.
How to Start a Hyperlocal Business?
Hyperlocal deliveries of fruits, vegetables, and other essential-have accelerated with the introduction of multiple online delivery stores, eCommerce platforms, and other delivery-based platforms that have partnered with local stores and supermarkets. Local stores can register themselves on grocery apps helping them to reach and satisfy the need of the new generation willing to embrace technology. The in-store experience has evolved into an in-hand shopping experience due to mobile apps.
However, the hyperlocal players reduce friction by offering last-mile delivery and online payment facility to the neighborhood stores. Few essential things are required to start a hyperlocal business, includes:
Retailers;
Mobile App;
Logistics.
Retailers
Without having a product to offer, you can’t decide to start a hyperlocal business. Hence it becomes essential for you to select products that you are willing to sell. You can consider selling groceries, fruits, or any other things online. Once you finalize what to sell, it’s time to tie up with local vendors. You can choose to work with them on a commission-based model.
You can earn a marginal commission that happens through your brand platform; it will benefit both you and local retailers. The local retailer can enhance their business visibility and sales through mobile. Whereas with hyperlocal marketing, you can even make a profit with increasing sales.
Mobile App
Pew Research shows that more than 95% of adults use smartphones. However, 64.3% of smartphone owners use it for more than an hour. The report represents that mobile phone usage has increased over the years.
Hence having a mobile app is the first step to start a hyperlocal delivery business. However, grocery app development is the best option to choose when you are ready to set up a successful hyperlocal delivery business. The feature-rich app will help you provide the best user experience as they are easy to use, helping you create a good customer base.
Logistics
Developing apps and partnerships with retailers is worthless unless you have good logistics to make deliveries. Proper functioning logistics is what supports in delivering the ordered things to customers’ doorsteps. You can have logistics along with a warehouse facility. You can even consider tying up with a third-party logistics provider. Once after starting your hyperlocal business, make sure to pay attention to customer satisfaction.
Role of Hyperlocal Delivery Model in COVID 19
The hyper-local delivery model has a unique significance in COVID 19 situation. Local administrations and communities are searching for ways to balance economic activities and social distancing as well. However, the hyperlocal delivery model is an accurate way to prevent COVID 19 spread as it helps to maintain social distancing, which is the best way to avoid COVID 19 spread. It even plays a vital role in:
# Sustaining local economies;
# Supports local vendors;
# Do away with intermediaries.
What Technologies Helps to Make Hyperlocal Business?
Hyperlocal business models often require extensive reference to infrastructure development. It seems pretty challenging, especially when it comes to developing a hyperlocal marketplace. Some of the technologies which help to make a hyperlocal marketplace operation can be as follows;
# Navigation system;
# Online payments;
# E-commerce platforms;
# Supplier relationship management;
# Customer relationship management;
# Logistics and shipping.
Benefits of Hyperlocal Business Model
The hyperlocal business model provides direct and indirect advantages to local retailers, delivery providers, as well as the digital platform owner. Some benefits that stand above all are:
# It helps build a sustainable & futuristic ecosystem;
# Creates a transparent system;
# Single device management;
# Support local vendors.
Hyperlocal Business Model Has Long Way to Go!
Undoubtedly hyperlocal marketplace is the future. It’s a new trend in the eCommerce sector that is helping brands to provide a better experience to customers. Brands have realized the actual value of customers; hence it becomes essential for them to focus on last-mile deliveries. And the hyperlocal business model is the answer for all question, including:
# How do customers find their brand?
# Was the product delivered to the customer’s door on time?
# What is customers’ experience?
# How does the delivery provider navigate to the delivery location?
Developing an eCommerce platform and starting a hyperlocal business is the new norm in the present world. Struggling to acquire products, long wait, and much more is no more a need, now customers can get everything with few clicks on their smartphones.
