Hyperlocal ecommerce- Making sense about an on-demand economy

“Hyperlocal ecommerce has continually evolved. It has led to the creation of on-demand economy- one that never gets satiated of instant hyperlocal deliveries.”

Introduction

Hyperlocal ecommerce has been the buzzword of modern times. It has contributed immensely to the ecommerce space and has provided global customers a plethora of delightful and enriching experiences. And courtesy to hyperlocal ecommerce, that not just the modern-day consumers have benefitted from the model, but businesses too have moved at a blistering pace of growth. This buyer and seller dyad has led to the creation of an on-demand economy- one which is getting more refined with the passage of time and hence is bound to face increased competition in the times ahead. In fact, the on-demand economy is tremendously revolutionizing the commercial behavior everywhere around.

But what is an on-demand economy? How has hyperlocal ecommerce contributed to it? And, what makes it so fascinating? And what are its benefits? Is it a bubble or has it got some future? Let us find out the answers to many such questions.

What is an on-demand economy?

In simple terms, an on-demand economy is defined as the economic activity created by technology companies that fulfil consumer demand via the immediate provisioning of goods and services. The on-demand economy is also sometimes referred to as the “access economy,”- one which provides a convenient way to provision goods and services to those who are in the market for them. There are scores of modern-day companies currently making use of the on-demand economy.

With consumer behavior changing to prioritize fast, simple, and efficient experiences, the on-demand economy is growing at an unparalleled pace. Convenience, speed, and simplicity are at the top of the priority list for consumers looking to have their needs met. The ease of filling spare time and picking and choosing one’s hours is also appealing to those with skills to meet growing consumer demand.

Ecommerce and the on-demand economy- A succinct perspective

The ecommerce industry has been a driving force behind the emergence and popularity of the on-demand economy, in which consumers can easily order goods and services online and receive them quickly.

In recent years, ecommerce sales have seen significant growth, with online sales globally reaching 5.2 trillion U.S. dollars in 2021 and is estimated to reach 8.1 trillion dollars by 2026.

The strange part is ecommerce had no existence before the birth of on-demand services. Experts say that the success of on-demand and ecommerce goes hand in hand.

With time, ecommerce has also evolved as the entire on-demand industry is evolving. This change in the customer’s demand has forced experts to work on ecommerce mobile app trends. And this has perhaps resulted in ecommerce getting more refined and instant, thereby getting popular as ‘hyperlocal ecommerce’. Contributing to the growth of this so-called ecommerce space, is the central role play of expeditious hyperlocal ecommerce delivery software and apps.

A lot of success and growth of ecommerce businesses is to be attributed to such intuitive delivery software and apps that have been a boon for the on-demand economies. Were there no such intuitive software and on-demand apps for the instant satisfaction of consumers’ evolving needs, the business world would have been pretty different.

The reasons for ecommerce to have become so rapid and catering to the immediate needs of the modern-day consumers has actually pushed the accelerator for the soaring of on-demand services. Be it the speedy delivery of groceries, food, medicines, clothing, home essentials or anything else, ecommerce, by becoming highly efficient, instant and convenient, has made a lot of room for on-demand services and has contributed immensely to it.

Therefore, it would not be wrong to say that ecommerce has pushed the on-demand economy to new heights by making products and services accessible than ever.

Benefits of an on-demand economy

Contemporary businesses prefer the on-demand economy for a number of reasons. In fact, there are many benefits to the on-demand economy, chiefly the real-time fulfilment of goods and services, and the ease and convenience of finding a skilled service provider to meet one’s needs.

• It allows them to satisfy the needs of consumers in a cost-effective, scalable, and efficient way.

• It also allows them to offer services and realize tremendous levels of profit, without all the overhead costs associated with traditional labour models.

• Since there is no staff to hire, train, or provide benefits for, and since work is often service-based, there are no direct costs associated with materials.

• The service provider assumes the direct day-to-day operating costs of the business, while the company maintains the technological network.

• Moreover, for those providing the services, the on-demand economy allows them to use their spare time in order to generate additional income.

• People can choose to work as much or as little as they want, and can often be paid out the same day for services rendered.

• Lastly, workers also don’t have to worry about sourcing and qualifying customers, as the hyperlocal ecommerce delivery software and apps are perfectly designed to provide a steady supply of requests.

Future of hyperlocal ecommerce driven on-demand economy

Rapid advancements in technology and high rate of smartphone adoption with easy internet access has pushed the number of orders placed online on a per day basis. The chain of technology pushing consumers and businesses to ask for and offer more on-demand services respectively, and they developing just immaculate and robust hyperlocal ecommerce delivery software and apps to meet the evolving needs of modern-day buyers has snowballed the entire game of hyperlocal ecommerce and on-demand delivery of products and services.

The on-demand services industry has overtaken traditional business models by providing goods and services to people at their convenience. Not just one or two but numerous industries have shaped from physical to digital in order to meet the evolving needs of the market.

From ride-hailing to food and grocery delivery, and transportation to booking doctors' appointments, one can avail all these services on-demand at their fingertips. It can be said, the future is all digital and on-demand.

As per a survey conducted recently, 51% of entrepreneurs who offer on-demand services have experienced their financial situation has improved far better than the previous year.

Moreover, the market for on-demand services is expected to reach a whopping $335 billion by 2025, according to the PwC report.

All these reports and statistics are emblematic of the fact that the craze for availing on-demand services has been an overwhelming one. In some time from now, the industry appears poised to grow even more promisingly.

Wrapping up

As we observe that the on-demand services have become an integral part of a consumer’s modern life and since it touches almost every aspect of our daily routines, it has sort of become inevitable. The more advanced the technology gets, consumers are bound to get even more habitual of availing such services, which is only going to contribute to and strengthen the on-demand services industry.

With the emergence of new technologies like artificial intelligence, robotics, internet of things and drone deliveries, the way we interact with the world is going to change rapidly, a glimpse of which is vividly reflected in the evolution of the on-demand services industry. Since the consumers of today adopt the technology no sooner it arrives, it becomes binding on prudent and futuristic hyperlocal businesses to stay tuned to the impending technology and adopt and incorporate it into business processes at the earliest. Any sort of procrastination or failure on their part to do so, shall obviously render them obsolete.

One thing that can enable businesses to stay afloat in such fierce industry times is the timely and instant fulfilment of on-demand services raised up by the contemporary consumers. Because they are going to buy anyway, and if it is not from you, it is definitely from your competitor.