How can Hyperlocal Delivery Model Help in E-Commerce Businesses?

Let us understand what a hyperlocal delivery model is, how it works, and why big e-commerce players are rallying behind it.

The Hyperlocal Delivery Model has created large waves of discussions recently. The reason for this is straightforward – this newly popularising model boosts local sales and prioritises convenience and efficiency for both sellers and buyers.

Flipkart plans to offer 90-minute deliveries for groceries and home accessories as it intends to go head-to-head with Amazon in a key growth market for e-commerce. Its ultra-local service called Flipkart Quick will sell cell phones, groceries and other essential items, challenging the world-famous Amazon Prime express service.


Major e-commerce companies in India, including Flipkart and Big Bazaar, have announced that they will be using the hyperlocal delivery model, via new channels in Flipkart Quick and Big Bazaar’s “India ki Asli Dukan" .

What is the Hyperlocal Delivery Model?

The fundamental purpose of the hyperlocal delivery model is to deliver essential products ordered online to consumers as soon as possible. This includes choosing reputable stores for each region and preserving the nature of the products. These stores generate revenue based on the demand for essential products.

Because products are delivered to customers in a relatively short period, the hyperlocal market model is emerging at an incredible rate. This model offers opportunities for small business owners, so many companies are increasingly using this model.

How does the E-Commerce Hyperlocal Marketplace work?

The hyperlocal market model is an excellent example of combining technological advancements over time with successful sourcing and unique consumer satisfaction methods. A hyperlocal business platform enables offline local businesses to reach their target customers and ensure product delivery quickly.

The hyperlocal company’s range of services can vary from a few meters to a few kilometres from the company site. Such services are operated to provide goods and services to consumers from offline stores located just a few miles away via online ordering channels. This model not only benefits consumer products but also merchants and manufacturing units are boosted as demand increases for valuable consumer services. Popularly, mobile apps help smoothen the flow of business for hyperlocal businesses.

Importance of this Delivery Model during the COVID-19 pandemic

In 2020, when the pandemic first raided the world, people were forced to confine themselves in their homes. IN isolation, physical stores could not provide for people’s daily needs, and many had to go online to keep their business floating. Therefore, the hyperlocal delivery system gained enormous popularity in the e-commerce sector globally, as it is the only way for consumers to have on-demand delivery of goods rapidly.

The COVID-19 pandemic caused widespread panic among consumers, and they only managed to prioritise commodity collections through e-commerce platforms. Currently, the main goal of online retailers is to provide goods and services at short notice – this is precisely what the hyperlocal delivery model does. 

What is the Future of Hyperlocal Markets?

The hyperlocal delivery model and mobile utilities in the retail sector are set to become very popular in the near future. The research shows that the new hyperlocal market players have raised $170 million from investors and continue to attract money well into 2021.

It is no surprise that large e-commerce brands are starting to create hyperlocal infrastructure. The idea of a growing market strategy and the attractiveness of this model can rein in hordes of potential customers for them.

Hyperlocal businesses have an advantage over e-commerce marketplaces in smaller cities where the latter is yet to make a mark. This hints at an encouraging future for hyperlocal marketplaces in the years to come.

Aakash Sharma
Aakash Sharma
Aakash writes on Startup Ecosystem, Policies, Legal and Regulatory aspects of business planning. An alumnus of Delhi University, he is assistant editor at Dutch Uncles.



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