On-demand Hyperlocal Delivery Model: Blending Physical Stores and e-Commerce Presence to Serve Local Customers
The hyperlocal services market was valued at $ 1324.2 billion in 2019 and is estimated to reach $3634.3 billion by 2027 registering a CAGR of 17.9% from 2021 to 2027. - Hyperlocal Services market, Market Research Report, Allied Market Research, 2019
We are moving towards post-pandemic normalcy, but we have not attained it. The COVID-19 pandemic has transformed the perception of retailers towards on-demand deliveries.
An uptick in online demand for essentials has forced retailers to move towards on-demand hyperlocal deliveries to sustain their business.
What is an on-demand hyperlocal delivery model?
The on-demand hyperlocal delivery model uses a digital platform to connect local offline business holders and customers. This model is affordable and convenient for local masses.
In this delivery model, the logistics provider acquires the requested product from nearby shops and delivers it to the clients.
Services that fall under hyperlocal delivery model
Personal Homecare services
Beauty, Salon Spa services etc
Handyman services
Plumbing, carpentry, electrician, gardening, etc
At-Home Healthcare Services
Babycare, senior care, caregiving, etc
Food ordering services
Grocery Delivery services
Why do consumers prefer a hyperlocal delivery model?
Hyperlocal businesses run on the all-mile delivery within a particular locality. Here are some reasons for consumers to prefer a hyperlocal delivery model.
- Caters to immediate customer needs as transaction gets done quickly
- Physical store presence makes it easier to attend customer issues
Steps to build business around hyperlocal delivery model?
Businesses that wish to step into hyperlocal delivery models should follow a process-driven traditional model. Here are the steps to build a hyperlocal delivery model.
- 1Select your industry based on its development potential, market size, degree of competition, and so on
- 2Select a particular niche in the industry, target market, and your resources
- 3Identify your target audience and devise a strategy to market your service
- 4Build a partnership with local businesses and delivery companies
- 5Plan your revenue flows based on commission from merchant partners and delivery charges from customers
- 6Finally, find a technology partner or on-demand app development services
Benefits of using a delivery logistics software in a hyperlocal delivery model
Counter Traffic congestion
Makes optimal delivery route plans for inter-urban routes ridden with high traffic restrictions. Beyond reducing fuel costs, make all-mile logistics cost-effective.
Free delivery costs
Builds dynamic delivery route schedules that reduce cost pressures arising from free shipping.
Allocating delivery zones
Factors in delivery constraints like driver skill set, vehicle capacity and delivery windows etc. before allocating deliveries. It makes the rider allocation process simple and efficient.
Fleet efficiency
Minimizes the time spent on the road for the fleet, thereby saving idling costs and reducing maintenance time.
Peak delivery period logistics
Helps logistics managers handle multiple and complex delivery schedules during peak delivery periods efficiently. It enables them to develop a convenient and cost-effective reverse logistics process.
Cope with rapid delivery expectations of customers
On-demand hyperlocal delivery model has helped retailers to match their sales goals with recent customer trends. The COVID-19 pandemic has accelerated many retail businesses to adopt this delivery model.
Locus Delivery Logistics software provides dynamic delivery route plans that make on-demand deliveries efficient. It helps businesses in the hyperlocal delivery model to utilize the limited available resources and maximize their fleet performance. It minimizes the failed deliveries and wait times, thereby enhancing customer experience.
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