Last mile vs hyperlocal deliveries- The details that we all need to pay attention to

There is no denial about the fact that the sudden outbreak of the covid19 pandemic forced people to stay away from the physical world of retail and grocery shopping. Quite interestingly though, the convenience of online shopping made it less attractive for the masses to go out and expect on-demand delivery for almost everything. However, a significant increase in ecommerce transactions has also resulted in the rise of hyperlocal deliveries or on-demand delivery model. Is there any difference between last mile delivery and hyperlocal delivery? Let us check out.

What is meant by a last mile delivery?

As its nomenclature has it, last mile delivery is the last or final stage in the journey of products from the warehouse to the customer’s doorstep. It is the most crucial, expensive, and time-consuming part of the shipping process. Businesses always ensure the process is quick and efficient. A last mile delivery is essentially all about transporting a particular good or package from a central hub to any exact location stated by the customer. It is in fact the final wing of a fulfillment process followed by modern day ecommerce businesses. A last mile delivery can take somewhere around 12-16 hours to help reach the product to the end point.

Hyperlocal delivery- What does it mean?

The word ‘hyperlocal’ is in itself pretty contracted. Similarly, a hyperlocal delivery is a form of delivery that is done in areas that are just too localized or too geographically close. It is actually a delivery process that entails delivering packages right from the sellers to the customers. In a hyperlocal delivery, a particular delivery agent picks up the specific product from the accurate seller, then delivers the package directly at the consumer’s doorstep. The whole delivery process is limited to a specific geographical area and the deliveries are usually completed within a few hours, may be 2-3 hours or 6-8 hours at the max.

Insights about last mile and hyperlocal deliveries

As the modern world prepares itself for the most refined form of deliveries, it becomes incumbent and binding upon us as readers, businesses, consumers and individuals that we discuss the intricacies of both these concepts without which clarity would not emerge.

• Delivery area- In a last mile delivery, the delivery area is ascertained depending upon the location of the central hub. In this, the delivery area is generally wider than in hyperlocal deliveries. The last mile delivery agents can make deliveries up to a range of 30 kilometers and often even slightly more.

Whereas, in a hyperlocal delivery model, the entire supply chain is located extremely close to the seller and the buyer. They exist in a close geographical proximity to each other thereby eliminating the need to go for long distance deliveries. Hyperlocal deliveries are usually made within a radius of few meters to 15 kilometers.

• Delivery responsibility- Last-mile delivery agents are exclusively those that are employed by logistics partners. Generally, the entire responsibility of the last mile product delivery lies in the hands of the courier agent assigned by the authorized courier company. In this, the end-to-end procedure is taken care of by a single partner.

On the other, in a hyperlocal delivery model, the entire delivery is not an individual’s sole responsibility. This means that delivery agents can either be selected from the workforce of each seller or store, or they can be hired for each order through a logistics partner. The responsibility to complete the delivery generally lies in the hands of the seller but it may often be fulfilled by the delivery company as well.

• Delivery time- In a stark contrast to hyperlocal deliveries, last mile deliveries generally take 12 to 16 hours to reach the customers. In some cases as that of the area being too large as that of any tier 1 city or a metropolitan, last mile deliveries can take even longer hours. However, if a customer gets a message from the ecommerce operator that the package will be delivered by that day, then the customers can expect the product to be delivered within 12 to 16 hours or in some cases, as the one mentioned above, it may be delivered on the next consecutive business day.

On the other hand, in hyperlocal delivery, the delivery agents aim at delivering the package within a window of a few minutes to 3 hours or 6 to 8 hours max. Since, the geographical area is limited and there is a great degree of proximity between the buyer and the seller, the distance to be covered is way less than the last mile delivery and thus the hyperlocal deliveries take much less time in comparison to the last-mile deliveries.

• Product volume and weight- In the last-mile delivery, no restrictions are provided on the packaging. The entire amount is charged from the seller depending upon the volumetric weight of the package. In the last mile delivery, the delivery charges are inclusive and no extra amount is charged from the seller.

Whereas, in case of hyperlocal deliveries, a restriction on the weight of products to be delivered is imposed. The maximum weight that is allowed is generally up to 10 or 12 kilograms. As the delivery agent is responsible for carrying the entire package on mostly on their two-wheelers, they ought to be careful about the package weight. If somehow the weight tends to exceed the designated numbers, then an extra amount may be levied.

• Kinds of product delivered- Last-mile delivery deals with inter and intra-city deliveries so the items delivered can be varied. They may include equipment, furniture, cosmetics and apparel, among many others. Fresh food items or those with limited shelf lives are usually excluded.

On the other hand, since a hyperlocal delivery is carried out over a smaller area, the products delivered usually constitute essential items like groceries, medicines and food. These items are locally sourced and are therefore selected in accordance with the stores selling it and stock available for it.

Relevance of last mile and hyperlocal deliveries in today’s modern and demanding times

The seller-buyer duo having been pushed to the limits expects nothing less than a speedy and blazing fast delivery nowadays. The need to have products delivered quick and fast was always there, just that the outbreak of the pandemic facilitated that need and hyperlocal ecommerce deliveries showed them the way. Had it not been for a hyperlocal model or some immaculate hyperlocal ecommerce delivery software at the backend, last mile and instant hyperlocal deliveries would not have witnessed growth and prosperity the way they have done.

At a time when the world activities were halted, ecommerce, through its hyperlocal model, smoothened the way for businesses and consumers through last mile and hyperlocal deliveries. In fact, such delivery options were the most sought-after alternatives when people were quarantined and getting essential home supplies became nothing less than a challenge for them.

Attribute it to the hyperlocal model that when the ecommerce industry faced a major halt back then and circumstances turned increasingly daunting, essential items like medicines, grocery items, healthcare equipment, food items and many as such were made available for the people through delivery apps. Some courier companies in fact started their last mile delivery services to reach out to the customers that were left out of their service. Such services proved to be the game changer not just for the pandemic-hit customers but for the entire industry.

As more and more retail businesses partner with hyperlocal ecommerce delivery software companies, it appears that the relevance of such delivery models would get a more whole hearted embrace from retailers, entrepreneurs, investors, and customers in just a short time from now. Having said that, the present momentum of hyperlocal deliveries has been wonderfully maintained by the companies till now- or to say so, it is even getting better and refined.

Now as the scenario for hyperlocal delivery exists (well! We all know that it has become a habit), it is highly likely that such delivery services are going to ameliorate with each passing day. Where on one hand, last mile deliveries can be seen increasing their area of service to a few more kilometers, on the other hand, we may be witnessing hyperlocal deliveries starting to happen through drones and robots, pretty widely and more often. How soon this happens would be decided by the sort of improvements and transformation a hyperlocal ecommerce delivery software company can make in its pursuit of raising the hyperlocal ecommerce standards to new and unfathomable levels.

Wrapping up

While last mile delivery and hyperlocal delivery share one common feature (i.e, direct delivery to customers), there are numerous differences between the two, as we have elucidated above. While on one hand, last mile delivery is a duty of the logistics partner alone and relatively larger volumes of goods can be delivered through this process from much greater distances and cross-country warehouses; on the other hand, hyperlocal deliveries depend on the workforce and stock available with local sellers and suppliers and is limited to orders of a specific nature and size. Perhaps one of the most prevalent differences is that hyperlocal delivery is an added service to be availed by businesses, while last mile delivery is a built-in service when it comes to ordering fulfillment.

With all the pros and cons weighed and insights gathered, we can be assured of the fact that all that people want today is instant deliveries. As time to browse through and choose products gets even more reduced, it will be interesting to see how hyperlocal businesses shape up their strategies and courses of action in the times to arrive.

But one thing that we all can vouch for is that the benefits a business can reap from last mile and hyperlocal delivery services are just endless.