The new buzzword in the e-commerce space is an on-demand hyperlocal delivery service. The term ‘hyperlocal’ refers to ‘a small geographical area’, so a hyperlocal company picks up and delivers orders within a particular zip code. This is a same-day delivery app, cutting down delivery time from 24 hours to a couple of hours, by networking with offline retail stores and service providers who are in the vicinity of the client’s home. Hyperlocal e-commerce businesses started out helping senior citizens who could not step out easily and busy professionals, in particular working women, and students. They delivered everything from medicine, groceries, and household items to providing services like plumbing, house cleaning, home remodeling and roofing, lawn care, personal care, and electrical and appliance repair. Pandemic boosts growth During the ongoing pandemic, especially during the weeks of lockdown, online grocery shopping helped many more people replenish dwindling supplies without having to stand in long queues and get personalized service without having to step out of the safety of their homes. Online grocery stores were already in demand in developed countries where time is money and household help a luxury, but now, even developing countries have woken up to the advantages of online supermarkets. According to the ResearchAndMarkets.com report, the hyperlocal service market size, which was valued at $1,324.2 billion in 2019, is estimated to reach $3,634.3 billion by 2027, registering a CAGR of 17.9% from 2021 to 2027. Their growing popularity also makes them viable career options for many struggling to hold or find jobs during the economic slowdown. Ways to enter the market The question that arises now is: How do you start an online delivery business? First, decide what products or services you want to deliver. Since this is a supply and demand chain, it is imperative to pinpoint what is in demand in one’s geographical area. Don’t stop at the industry, zero in on your niche as this will help customize your hyperlocal delivery app. So if it’s fruits and vegetables that you want to market, decide if your USP should be seasonal produce, straight-from-farm staples or a more exotic and expensive range. Identifying your target audience is also important to build your own express delivery service. Then, to seal the deal, you need to create a delivery network. The way these online grocery stories work, when a customer places an order for goods through a dedicated mobile app, the aggregator passes on the details to his delivery partner who sends a delivery person to pick up the products from a retail store or local merchant within a radius of a few miles and drop them off. The same goes for services. Fast and furious You might be asking yourself how can I increase my fast delivery? The answer is to pick up dependable local stores that guarantee availability and delivery partners who are reliable. The world’s best e-commerce businesses build a hyperlocal application and create separate mobile apps for iOS and Android, for customers, merchants and delivery drivers. A single mobile app can help track, control and manage the entire hyperlocal marketplace. This is what makes a good delivery service. There is a growing concern that when people shop online for groceries it threatens traditional stores. That’s just a misconception. A hyperlocal delivery app supports other businesses. In fact, it helped them survive the pandemic when physical stores were shut down or not visited as often. Even after Covid restrictions were lifted, hyperlocal e-commerce businesses help restaurants, fast food chains, grocery stores, fruit, vegetable, meat and seafood, allowing them to focus on their business without worrying about delivery. Top players Some of the top-rated players in this online market are Delivery Hero, Just-Eat, Takeaway.com, GrubHub, Grofers, Instacart, Housekeep, Uber Technologies Inc., Handy, AskForTask, Swiggy, and Zomato. Revenue comes from commissions given by the merchant-partners. This is an agreed upon percentage on the order amount on every order placed. If the orders go up, so too does the commission. Some hyperlocal ecommerce businesses also charge customers a convenience fee, though the world’s best wave off delivery charges to bring back customers. Robots and drones as delivery agents? In the future we will see many award-winning eCommerce giants entering the hyperlocal market. They may acquire retail outlets or combine with local warehouses to build the best delivery chains and penetrate different cities, smaller towns, even rural centers. Hyperlocal delivery apps may expand to non-essential goods like clothing, cosmetics and alcohol while retail outlets will expand storage space to ensure uninterrupted, perennial supply. AI technologies could be incorporated by the most-reviewed hyperlocal apps to build a hyper fast delivery service and in the years to come, we could also find robots and drones turning up on our doorstep or rooftop with deliveries and services. We leave you with that image and the assurance that online supermarkets are here to stay. Want to carve your own niche in the ‘online delivery business’ space? Having a dynamic website is the first step. Getting hold of the skilled hands to do the job is next. Our senior web development team is waiting to work up magic and help you elevate your business to the next level. Don’t hesitate to call us at +1.408.621.8481 or drop us an email at team@sdi.la.