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Hyperlocal ecommerce- The modern and urban side of it

Urbanization has facilitated hyperlocal ecommerce and its modernization

By Dr. Shamael Zaheer KhanPublished 12 months ago 7 min read
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Growing urbanization has led to increased hyperlocal ecommerce

Hyperlocal ecommerce has had an enormous spread in the recent few years. It has impressively reached out to urban households and has provided brilliant on-demand delivery solutions.”

Introduction

With lifestyles getting increasingly busy and with technology ruling the roost, hyperlocal ecommerce has been at the helm of businesses’ growth and development. The urban consumers, with both the husband and wife working and with them having little or no time to visit the stores physically or cook food for themselves once they get back home from office, have been left to pick and choose products and services of their need and liking, online. This is where the role of hyperlocal ecommerce delivery software companies actively come into play. And this is where hyperlocal ecommerce scores big in terms of achieving sales, generating profits, acquiring markets and satisfying the ever-ravenous bunch of contemporary customers.

What is urbanization?

Urbanization commonly refers to the population shift from rural to urban areas, the corresponding decrease in the proportion of people living in rural areas, and the ways in which societies adapt to this change. It is predominantly the process by which towns and cities are formed and become larger as more people begin living and working in central areas.

As the global population continues to climb and the amount of space left to build traditional single-family houses declines, more people are moving into the city. This rapid migration has been deemed ‘urbanization,’ and it is just the humble beginning of what enormity is to arrive. Yes! The UN has forecast that over two-thirds of the world’s population will live in urban areas by the year 2050- and that’s over a whopping 5 billion people.

So, this leaves us with one question in mind- What’s the relationship between urbanization and hyperlocal ecommerce?

The above provided statistics are symbolic of the fact that the way people live, has changed and whatever remains of it, will be significantly impacted by growing urbanization. As more people make the transition into tier-1 and tier-2 cities, what they desire out of their neighborhood is changing. Within urban areas, 70 percent of citizens want walkability, a short commute and highway access, and 88 percent of residents say their quality of life improves tremendously when there are nearby walkable places. Furthermore, 17 percent of survey takers said they’d be willing to spend “a lot more” to live within walking distance of parks, shops and restaurants. Another 43 percent said they’d spent “a little more” for the same thing.

This connotes consumer’s evolving needs and changing preferences towards things that evoke a sense of happiness and satisfaction in them. This makes way for hyperlocal ecommerce to address their needs and preferences in a way that they feel good about their urban lives.

To this idea, the role of hyperlocal ecommerce delivery software companies is pretty fundamental. If there has been a rapid urbanization around the world in the recent few years, hyperlocal ecommerce too hasn’t kept itself away from progressing and helping businesses scale. In fact, it is the right intermingling of elements of urbanization and the timely coming into being of feature-packed hyperlocal ecommerce delivery software partners, that has set the platform for hyperlocal businesses to make the most of what we know as ‘urbanization.’

Urbanization and hyperlocal ecommerce- Making a consistent upward move

The hyperlocal ecommerce market is growing rapidly. The key factors driving the growth of this market are increasing demand for online shopping and changing consumer behavior towards goods and services.

Furthermore, increased preference for quicker delivery of goods has led to the development of new technologies such as drones, autonomous vehicles, and robots. The popularity of ecommerce platforms such as Amazon Prime Now, Walmart Grocery, etc., has also made consumers more comfortable with the idea of paying for an instant product delivery or a quick service.

If you read about hyperlocal ecommerce in the above paragraph, but had urbanization in your subconscious minds, this is precisely what urbanization, along with some other factors, has done to the contemporary consumers. It has pushed them to go for more hyperlocal deliveries and seek on-demand delivery solutions. This is so because an urban living does not appear good and satisfying without a hyperlocal delivery service in the vicinity.

Besides urbanization, several other factors have been driving the growth of the hyperlocal ecommerce deliveries including smartphones, changing consumer preferences, both husband and wife working and increasing sedentary lifestyles. This is mainly due to the growth of ecommerce business funding and business digitalization trends. Moreover, many ecommerce giants are adopting and acquiring hyperlocal businesses to reduce transportation costs and minimize significant delivery times.

As a result of the proliferation of ecommerce platforms, online marketplaces, and delivery-based enterprises, consumer expectations are increasing. Companies that deliver faster than their competitors tend to attract more customers, so the hyperlocal delivery model opens up a slew of opportunities for ambitious start-ups and entrepreneurs.

Increasingly well-funded start-ups, curated products and services, and on-demand delivery have contributed to hyperlocal ecommerce's popularity. Their success has led to interest and participation by some of the large business houses and online giants. Google shows that the bulk of information people need is from within one kilometer or a few more.

How is urbanization shaping up the hyperlocal industry?

In the present times, the term ‘hyperlocal’ applies to more than just marketing. When population density increases within a particular geographical space, herein an urban area, it creates a demand for easily accessible and nearby resources. And this is what hyperlocal ecommerce businesses precisely cater to.

With most people living in close proximity to where they work, long commutes will be a thing of the past, meaning the typical resources you would otherwise be exposed to on a long drive will no longer be in demand. Grocery stores and restaurants, etc., all need to be within a few miles to be easily accessible, which is why hyperlocal ecommerce goes hand-in-hand with mixed-use developments that offer offices, living space, food and entertainment all within one block and sometimes even under the same roof. In order to activate hyperlocal services in an area, most of a person’s everyday needs just have to be met as instantly and conveniently as possible.

Hyperlocal ecommerce delivery software partners and numerous delivery providers allow hyperlocal businesses to function efficiently. If there’s a product a customer needs, it’s easy for him to hop on his smartphone or laptop and press ‘buy now’ instead of battling traffic snarls, driving to a store and facing parking hassles. The benefits of ecommerce have been further enhanced by the introduction of shorter delivery times by companies like Amazon or Instacart’s ‘within an hour’ delivery. Rapid urbanization has also opened a window in hyperlocal economies to offer convenience-as-a service and has provided businesses a platform to flourish.

Wrapping up

Hyperlocal ecommerce has been going pretty well among the urban consumers. It has been offering them the perfect and most sought-after combination of ‘economy and convenience’ to their doorsteps. For some who desire contactless deliveries, hyperlocal businesses have that characteristic too, to extend to them.

Since urbanization evokes a certain standard of living among consumers, hyperlocal ecommerce, by virtue of its pervasive nature, has more or less become a part of every urban household. Whether you think of immediately satiating a food craving (the urban need of having a home nearby a restaurant or food outlet) or you plan to buy a pair of shoes for your daily morning jog (the urban need that implies consumers preferring to buy homes nearby such areas where they can easily take a walk), hyperlocal ecommerce is the answer.

Now, with urbanization happening every where around, hyperlocal deliveries and on-demand delivery services do not have to go too far to find a target market. It is all in there. As and by more and more people continue to move from rural hinterlands to urban areas, businesses would not have to go too far to find a customer base for themselves. They can easily target the markets, aim promotional strategies at them and provide them with increased logistical support.

If hyperlocal businesses can offer the urban customers of today those speedy, economical and convenient delivery services and impeccable on-demand delivery solutions, it would be the modernization of ecommerce in real sense. And only then the urban customers would feel satiated.

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About the Creator

Dr. Shamael Zaheer Khan

Dr. S.Z. Khan is a revered academic. He brings a unique blend of theory and practice to his position as Vice President (Marketing & Strategy) at a leading SaaS firm. He is also an expert contributor to several platforms of repute.

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