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The global online grocery market size had been valued at just under USD 300 billion in 2021, and there is no stopping. Carrying on the trend, the compound annual growth rate (CAGR) of over 25% is expected to skyrocket between 2022 and 2030, according to Grand View Research. It is all due to advancements in mobile technology and a significant change in the shopping habits of people.
While on-demand business models for startups are in the rage these days, traditional stores selling groceries and other items too are pushing them for online sales. The boom in providing online goods and services a few years ago had attracted enterprises from all over the world to venture into the sector, but today, the competitive advantage is to those who provide hyper-local commerce i.e. an on-demand delivery service provider such as a 10-minute grocery delivery app.
To enhance customer satisfaction and experience, online grocery stores are now changing their marketing strategy and getting into faster good delivery. That said, the hyperlocal marketplace is the best way to grow business today overcoming traditional ventures. The fastest way to deliver goods is to buy them from the nearest (local) vendor and send them to the buyer’s doorsteps; hence, any item ordered on eCommerce would be delivered within an hour or maximum a day. No wonder why the on-demand delivery market is now wholeheartedly adapting hyperlocal delivery app development models.
The new-age commerce is a hyperlocal on-demand delivery model, especially after the covid19 impact on grocery shopping. An obvious surge in service provider application for everything has made eCommerce owners think beyond general goods delivery; now it is a hyperlocal market where the ordered parcels from grocery stores and supermarkets are received in a much quicker way.
The hyperlocal on-demand delivery model defines one of the business models that cater to the requirements of selected geographical areas. From apps for house care to personal care and online food ordering and delivery to online grocery shopping and delivery, the hyperlocal eCommerce platforms bring in potential buyers and providers on the same platform for trades that is much easier and faster.
This is how the hyperlocal on-demand delivery for ordering and receiving goods works.
The best part of the hyperlocal on-demand delivery model is it is a win-win situation for all the users and stakeholders. The quickest delivery of goods makes buyers happy receiving goods at the lowest costs and the shopkeepers and supermarket owners receive more orders resulting into more sales and profit. If you are an owner of a hyperlocal on-demand delivery application, you enjoy the best commission from all the accounts.
Just like other types of eCommerce business models, some experts in eCommerce models support a different angle of creating a hyperlocal delivery business model as mentioned below –
Single store model: it is suitable for those who are already in the market but still want to expand their reach throughout the area. The hyperlocal on-demand delivery app would list their products and services for the same purpose.
Store-pick model: as the name suggests, the store-pick model allows consumers to place an order online and pick up their products from the nearest stores. As the order is placed, the vendors prepare the packet or parcel and keep them ready for the buyers.
Aggregator model: the hyperlocal delivery service providers serve as a mediator between the vendors and consumers as an aggregator. As a result, online stores can expand their reach by grabbing all the consumers in the area. Zomato is one of the best examples of an aggregator model.
Hybrid model: in the hybrid model for a hyperlocal delivery business, the stores keep both the options free for their consumers -picking up at the store and delivering at their doorsteps.
Any business would bring certain risks and hyperlocal on-demand business idea is no exception. The on-demand delivery business models come with their challenges. Prismetric helps you overcome all of them as we implement the best features of the technology stack available for hyperlocal eCommerce apps along with strategically integrated user-oriented features.
Here are a few to list –
Increased competition has affected the hyperlocal eCommerce market. There are many players in the market for quick delivery services. Hence, the on-demand delivery business models chosen should be foolproof and according to the market demands to stay competitive.
The courier provider or fleet service vendors that deal in groceries, medicines, foods etcetera are tend to hike their prices without any prior notice. Hence, for hyperlocal grocery delivery mobile app business owners it could be a challenging task to control the shipment partners.
Hyperlocal businesses, just as any eCommerce business, witness fluctuation in consumer demands and choices. For instance, during the festive season, there is a sudden spike in online ordering and at times, there is a big slack season where online ordering drastically comes down. For business owners of hyperlocal, it is difficult to handle such a big fluctuation throughout the year.
Being customers’ favorite marketplace, hyperlocal grocery delivery applications have found their places on all mobile app stores. Nevertheless, due to its immense popularity, some platforms charge marketplace fees that sellers have to shell out from their budget. The extra costs, at times, cost them an arm and a leg depending on the popularity of a particular platform. Hence, for someone who is a novice and with a limited budget, it difficult to venture into the hyperlocal on-demand delivery application.
The hyperlocal marketplaces have attracted many brands and big players from the market and as a result of it, there are chances of monopolizing the market. The smaller vendors or sellers find it difficult to register their businesses and services among big fishes. The exclusivity of the stores is polarized and hence selling on hyperlocal marketplace grocery stores has been not as easy as it was. Even further, some hyperlocal on-demand delivery business owners have started manufacturing goods by themselves pushing the place further to a more saturated market.
One of the biggest challenges hyper-local commerce businesses face is expansion or growth. Since the hyperlocal marketplace model works on limited geographical regions, the expansion of any such business has a gloomy future. The market saturation is unavoidable and therefore the last-minute delivery business owners find it challenging to grow their business in the same area beyond a certain point or in some case beyond a certain area.
As with any business, there is a growing concern about the marketing costs of the hyperlocal on-demand delivery application. This adds to hyperlocal delivery app development costs when the project is outsourced to an offshore IT solutions company. Limited geographical area and limited consumers in a small region are already a big challenge to most hyperlocal market owners because of the competition. Hence, they need to depend on unique hyperlocal on-demand business ideas and their marketing.
When you hire dedicated developers at Prismetric, you are assured of facing all the challenges with bespoke solutions that we help you build customized to your local business needs. Not only do you get many advantages from the app, but we also set you free from any deployment worries.
Since the hyperlocal delivery model enables businesses to meet consumers’ demands almost instantly, the goods are being ordered from the nearest and picked up quickly by the delivery partners who are on standby mode. Today, express delivery is for everything and not just groceries including medicines, flowers, fuel delivery, food beverages, and even alcohol. Setting up your on-demand delivery business through an app is one thing and to get the best results from delivery app is all-together a different game. The biggest advantage of a hyperlocal on-demand delivery app is to get better quality goods at competitive rates. Considering the entire scenario, today, hyperlocal delivery app development companies like us are in demand.
The societal advantages of this special app are many –
Hyperlocal business models also benefit investors in multiple ways –
The core features of the hyperlocal delivery app are many depending on the panels and various users. We can classify the features into core (key features), admin features,
Vendor features, and customer (user) features.
The core or key features of a hyperlocal delivery app are the ones that drive the main force of the application.
The features related to the admin pane in the hyperlocal marketplace and delivery mobile application include special privileges to the administrator of the software. These features can be enhanced as per the customization requested by the buyer.
The hyperlocal grocery delivery applications can have the wonderful vendor or seller features so that the registered vendors stay loyal to the platform. Even further, word-of-mouth can bring more vendors onto the platforms due to easy and useful features offered to every business owner.
The buyers can have customized features for them on the hyperlocal grocery delivery mobile application. The features help customers to have the mobile app on their devices for a longer duration because apps that don’t entertain users with their features end up getting deleted from the devices.
The eCommerce industry is huge and includes various sections or categories. There are many terms used for eCommerce that confuse people. Two such terms are hyperlocal delivery and last-mile delivery. Though both of these have quite similar functionalities, there is a subtle difference in specification and characteristics.
Last-mile delivery: Such deliveries are performed by a last-mile delivery fleet belonging to courier companies specially deployed for shipment. The agents carry deliverables on their vehicles and reach their destinations. Hence, it can be defined as a parcel’s journey from a central hub to the buyer’s doorstep.
Hyperlocal delivery: Hyperlocal delivery model delivers goods directly from a vendor to a customer. The delivery partners pick up the packages from sellers and then send them straight to the consumers’ addresses. Generally, the vendors and buyers are geographically as near as possible. The deliveries happen in a quite short time.
The difference: the difference between last-mile delivery and hyperlocal delivery is in the form of time taken, responsibilities, delivery area, products delivered, and weight/volume restrictions.
The last-mile delivery model works on early delivery of the products ordered but it comes to an average of 12-16 hours. In other words, if the buyer gets a message that it is a one-day delivery product, it generally takes 12-16 hours or it could be even the next business day. If the delivery area is bigger, say a metro city, the delivery can even take more time. On the other hand, the hyperlocal delivery business model works on the fastest possible delivery i.e., around 1-3 hours or maximum, for that sake, 6-8 hours. It is possible because the on-demand hyperlocal grocery delivery app model works in restricted or smaller geographical areas.
While last-mile delivery responsibilities solely lie with the couriers assigned to ship, the complete process is taken care of by a single partner. On the other hand, in hyperlocal delivery, the responsibility is the vendor’s fleet or through the delivery company registered with them.
The delivery area has no restriction in the last-mile delivery model and the agent can travel up to a 30-kilometer radius to deliver the parcels to buyers on time. The geographical area of the central transportation hub fixes the area for last-mile deliveries. However, the hyperlocal deliveries are bound to smaller geographical areas and therefore the deliveries may happen within a 15 km radius. In rare cases, the delivery can go up to a 20 km radius.
There are no restrictions for the last-mile deliveries as such and the vendors pay for the delivery charges depending on the weight of the goods ordered. The delivery charges are included in the prices of the items ordered. No extra costs or hidden costs are charged for last-mile delivery business models. Nevertheless, the hyperlocal on-demand delivery models have a cap of up to 12 kilograms while delivering the products. As the carriers use smaller vehicles (such as a motorbike or a car), the weight of the parcels is kept in mind.
The hyperlocal delivery model works in smaller areas as the delivery time is much lesser than any other eCommerce or online grocery shop, the essential items such as medicines, food, beverages, and FMCGs are the goods types for hyperlocal business. On the other hand, last-mile delivery works on a larger scale and in bigger geographical areas. The delivery goods could range from a refrigerator to television to clothes and cosmetics. Furthermore, last-mile deliveries generally do not include fresh foods and grocery items.
Building a network is the backbone of any hyperlocal delivery business model. A strategic approach helps you run a successful hyperlocal company. Here are the basic steps to building a hyperlocal delivery network –
Building a hyperlocal delivery requires you to follow easy steps. You can either conduct research in building the strategies or can hire an expert in the hyperlocal business model.
Here is the graphical representation for easy glance –
Hyperlocal delivery app development cost is estimated to range from USD 15000 to 80000 that includes the basic features that are common in most eCommerce mobile applications.
It will be helpful to know that the app development cost depends on a lot of factors, but most importantly the type and features that the buyers want to have integrated and location of the developers. Nevertheless, hyperlocal on-demand delivery app development is affordable and cost-efficient for most entrepreneurs with a decent budget. By opting for a company like Prismetric for mobile app development, the journey to build your own customized hyperlocal delivery app becomes much easier.
Entrepreneur’s Guide to Development Cost for different applications and websites
To get competitive advantages, you need a better quality on-demand hyperlocal delivery mobile solution that proves itself with better customer satisfaction. The app should get you a 360-degree solution for hyperlocal businesses in particular and multiple geographical areas.
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