How Hyperlocal Delivery Works & What Is Hyperlocal Business Model?

. 8 min read
How Hyperlocal Delivery Works & What Is Hyperlocal Business Model?

Table of Contents:

1. What Is Hyperlocal Delivery?

2. What Is Hyperlocal Business Model?

3. How Hyperlocal Delivery Works?

4. On Demand Hyperlocal Delivery Payment Options

FAQs On Demand Hyperlocal Delivery

1. What Is Hyperlocal Delivery?

The hyper local delivery system has clearly become the future of the on-demand economy. As the term “hyper local” means that an extremely targeted local area is committed for the transactions. There have been plenty of platforms that provide the customers everything that they want. Now, the real competition boils down to who reaches first. Fast delivery can ensure a profitable business for new start-ups that want to stand out in the market than other brands.

There are a variety of models of the delivery business plan that have come up in recent times. They can cater to different types of areas and different categories of products. In this article, we will give you a guide on how to start your own delivery business that is fast and super-efficient.

2. What Is Hyperlocal Business Model?

The agenda of a hyper local business environment is that the customers are instantly gratified for their daily needs at their doorstep. While numerous entrepreneurs want to try their hand in the hyper local business, one has to come up with a solid niche to be successful. Let’s discuss a few popular models that can be considered-

1- Single-store model

Businesses that have already established an online business can consider the single-store model to be an ideal option. In this model, the retailer sells their item from their stores only for on-demand delivery. For example, food chains like Pizza Hut, Dominos, Taco bell, etc. have opened up stores in different localities and can instantly cater to an online demand within minutes.

2- Store pick-up model

This model allows the customers to do their own pick-ups according to their own convenience. Consumers can place their order on the online app or website and then go to a nearby store where the product is made ready for pick-up. In this model, the delivery time can be flexible and the task of pick-up falls on the customer.

man delivering the package to customer
On Demand Hyperlocal Delivery

3- Aggregator model

This can be considered to be the most popular choice for many entrepreneurs. In this model, the delivery platform acts as the mediator between the local retailer and the customer. It doesn’t require a lot of capital, but one has to be strategic to decide the right type of product. This model can be beneficial for local businesses to grow. Grocery items, bakery products, personal hygiene, and medicines can work in this type of model.

4- Hybrid model

As the name suggests, the hybrid model is a combination of two types of models. In this type, the store can deliver the products and also allow customers to pick them up according to their convenience.

3. How Hyperlocal Delivery Works?

  1. Choosing The Right Industry- When you are starting a delivery business, you must be careful about what items can sell in good amounts in a specific area. There are items for daily usage such as bread, milk, eggs, fruits, and vegetables that can be in high demand almost everywhere. You can sell prepared food items if you have started your own kitchen. You can create niches like vegan dishes or health-conscious items or a kitchen exclusively for vegetarians. In a hyper local delivery business, you should be very conscious of the target audience. Are you serving the regular school-goers or the busy businessmen who never have the time to cook something good? There are multiple ways in which you can target your audience and hence, market your product accordingly to appeal to their senses. If you have your own store, you may independently run your delivery business by getting in touch with some professionals. However, if you are aiming to be a mediator platform, you will have to make multiple connections. You will have to promote your brand and application so that more and more retail stores can use it. It should be appealing to the customers as well as retailers.
  2. Building an online business platform- Once you have planned the scope of your delivery business, you have to collect the right tools to get things started. Smooth communication is extremely necessary for a hyper local business environment. You must create a proper infrastructure with a dedicated team to cater to all your customers.
  3. Building an e-commerce platform- This should be the first step to attain a hyper local delivery business. It should be seamless software that should allow for easy communication between the seller and the customer. These platforms can be created to be on-premise, SaaS (software as a service), or PaaS (platform as a service). Whatever you choose, you must have some basic elements for a good delivery business as follows.
  4. Real-time tracking- This is an important element of the hyper local delivery business. GPS features can help the retailer as well as the customer to keep track of the delivery. These features can help in estimating different factors like the presence of the retailer in a specific area, the store location, the location of the delivery person, and the estimated time for the delivery to be executed.
Delivery boy of takeaway on scooter
On Demand Hyperlocal Delivery

4. On Demand Hyperlocal Delivery Payment Options

The customer should have multiple payment options to avoid any unnecessary hassles. It is essential that the latest payment trends are followed such as debit cards, credit cards, QR codes, and the local online platform.  All the payment methods should be integrated into the online app that can be smoothly used by the customer.

CRM tools and logistics must be incorporated into the delivery business for better growth and success rates. A CRM or customer relationship management helps in making the platform customer-friendly by catering to individual issues that may arise. Targeted offers can be created according to the type of customer and their area. Feedbacks can be recorded to increase the quality of service.

Logistics can be useful in several ways to manage the rate of demands and to cater to each customer equally. For example- peak hours can be a challenging time for a hyper local delivery business because demands may be too much to handle. Thereby, more staff is hired to manage all the customers.

Key Takeaways

A hyper-local delivery business can be very successful because of the increasing technology and abundance of tools. There is also a huge target audience that can be catered to with this business. By making a good delivery business plan, you can ace the hyper local economy and make huge profits out of it.

Also Read:

1) Is meal delivery a good business idea?
2) What are the best small business ideas in big cities?
3) Can I open a current account for a home-run business?
4) OkCredit: All you need to know about OkCredit & how it works.

FAQs On Demand Hyperlocal Delivery

Q. What are the best services that can be provided in a hyper local business model?

Ans. Some of the best services that can be provided in a hyper local business are the ones that are always in demand. Grocery items, bakery items, fruits, and vegetables are products that are demanded by every household. Similarly, personal care services can be provided like salon and spa services. Healthcare services can also be very profitable. Handyman services can also be provided like plumbing, gardening, electrician, and carpentry.

Q. How can start-ups bear the cost of free deliveries in a hyper local market?

Ans. With the rising competition, many businesses have to deal with the demand for free shipping. Shipping charges may form to be a considerable portion of revenue for a business. The best solution is to automate the processes and reduce the delivery costs that are incurred by the business. As your demands increase, automation can be a crucial step to help in better management of customer demands.

Q. What are the benefits of a hyper local business model?

Ans. A hyper local business model can have the capacity to revive the local retailers in an area who have been suffering losses because of corporate retailers. With the help of hyper local on-demand platforms, the local retailers can gain visibility and also benefit from the rising digital economy. The business model creates much better efficiency in sales for the retailers. Business transactions are more transparent and customers can make better-informed choices. The customers benefit the most as errands are reduced for daily tasks. It becomes much easier for them to get products and services at their doorstep without any hassling.

Q. Should I create a mobile app for my upcoming hyper local delivery business?

Ans. Yes, a mobile app can be extremely beneficial to increase awareness about your brand for users. It will also help in better management of the orders and services. Customers can also keep a better track of the order through a mobile app which is much easier to use than other platforms.