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On demand hyperlocal delivery model: Blending physical stores and ecommerce presence to serve local customers

On-demand hyperlocal delivery model is interestingly getting liked by one and all

By Dr. Shamael Zaheer KhanPublished about a year ago 8 min read
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On-demand delivery model- Helping businesses reach customers in quick time

Technology has played an instrumental role in influencing the way customers behave and businesses operate. As if it’s coming into being and consequent usage was not enough, that people around the world were forced to use more of it when the pandemic struck them three years back. One commendable produce of technology that gained immense traction during covid was hyperlocal ecommerce delivery model aka the on-demand hyperlocal delivery model- the one about which people knew before, but they familiarized themselves to the hilt when the need arrived.

Isolated and quarantined, when customers and businesses had nowhere to go, the on-demand hyperlocal delivery model came as a blessing for them, the essence of which is going to resonate in the hyperlocal industry for years to arrive.

Yes! The on-demand hyperlocal delivery model characterized by some satisfying hyperlocal ecommerce delivery solutions viz a viz instant and safe deliveries, real time order tracking, contactless deliveries, etc., which pleased and benefitted the pandemic-hit customers and businesses respectively became the go-to option for a majority of people at the suffering end. The hyperlocal delivery model, efficient and effective in its capacity, continues to fulfill the needs convincingly till today- perhaps, that’s why all the hyperlocal craze that exists there.

So, let us understand bit by bit the on-demand delivery model and its growing need among the consumers and businesses at a global level.

What is an on-demand hyperlocal delivery model?

The on-demand hyperlocal delivery model uses a digital platform to connect local offline business holders and customers. In other words, this delivery model entails meeting the growing needs and demands of customers through local offline shops, outlets and kiosks via a digital platform. All in all, the model as of today, has become pretty symbolic of enhanced efficiency, increased effectiveness and the one that helps businesses reach the pinnacle of success in their respective industries. Swiggy, Zomato, Blinkit, UrbanClap, Dunzo are just some of the examples that have occupied tremendous positions in their industry and are leading players of hyperlocal ecommerce, owing to the use of a hyperlocal delivery model.

Attribute it to the unfailing and tireless working of a robust hyperlocal ecommerce delivery software at the backend, that the on-demand delivery model is affordable and convenient for the local masses. In this delivery model, the logistics provider acquires the requested product from nearby shops and delivers it to the clients. This makes on-demand delivery model pretty quick and in tandem with the needs of the modern-day customers. This model overcomes the bottlenecks of a traditional commerce otherwise observed in a physical store to door delivery, wherein the buyers and sellers may be distant from each other.

By virtue of being in close proximity to the buyer, hyperlocal businesses, through an on-demand delivery model can reach out to them in quick time and quite a number of times in quick succession, if need be. The on-demand services being hyperlocal in nature, cater to the immediate needs of the customers thereby making it a preferred choice.

Moreover, the on-demand hyperlocal delivery model provides great logistical solutions for businesses. Hyperlocal businesses do not have to worry about warehousing, long-distance transportation, and other legs of logistics. They are just highly efficient. Let us learn about how logistics make for a good part of hyperlocal ecommerce.

A brief discourse on the role of logistics in hyperlocal ecommerce

Logistics, quite traditionally and fundamentally is viewed as the overall process through which the buyers receive orders, they place online from an ecommerce business. Lately though, as the ecommerce sector worked hand-in-hand with logistics companies to streamline the process of delivery, the avenue for hyperlocal logistics also opened up.

Logistics in hyperlocal ecommerce or hyperlocal logistics, is something that is actually worth a discourse. It is so because we as consumers, are quite frequently, if not daily, using hyperlocal logistical services. Every time we order a hot pesto and basil veg pizza with sweet corn, jalapenos and pesto and basil sauce topping, veg quesadillas or anything else from Swiggy or Zomato, or even when we order a paracetamol tablet, or any other medicine from netmeds or 1mg, we are somehow becoming a part of the hyperlocal logistics space. In essence, right from food to pharmaceuticals, hyperlocal logistics makes use of local supplies and resources to give customers their products in record speeds.

Hyperlocal logistics is all about meeting rapid-fire demands by making lightning-speed deliveries. It has been a boon for both businesses and consumers of today’s times. Not just this, but even during the trying times of the pandemic and multiple lockdowns, hyperlocal logistics fared differently and helped businesses reach out to the isolated and quarantined customers quite successfully, effectively and quickly.

Ever wondered how in the world the customers are getting deliveries this quickly? This simply means all backend operations have to be taken care of equally fast. Really fast! And the usual methods of logistics management may not all apply here. Hyperlocal logistics is a wholly separate and fully functional part of the logistics industry- one that enables unbelievably quick and convenient deliveries. This may involve an active participation from companies developing and making immaculate hyperlocal ecommerce delivery software, owing to them using state of the art technology.

In fact, a lot of success of on-demand delivery can be attributed to the efficiency in logistics. And this efficiency is gained by them only through a delivery software that keeps a conscious and regular track of all the things a consumer thinks of, frequently checks upon over the internet, and the moment he places an order, they know how to go about making lightning-fast deliveries to their doorsteps.

What’s in store for an on-demand hyperlocal delivery model? How can they build their business?

The on-demand delivery model, since it brings the physical stores and consumers together, has become a hotspot destination not just for the local retailers and shop owners. Instead, logistics businesses and investors are also eyeing hyperlocal on-demand deliveries as a profitable business. They, in their individual capacities aim to provide a positive online shopping experience by facilitating customer needs to the hilt.

But the going isn’t that easy. Aspiring logistic businesses that want to set their foot in on-demand hyperlocal deliveries should follow a rather traditional pattern of launching their business. They should be completely process-driven. Here are the steps they should follow to build an on-demand hyperlocal delivery model of business. The following points tell what all should be prioritized.

• The primary task is to judiciously select an industry based on its development potential, market size, degree of competition, number of existing players, threat of new players in the industry, etc.

• Then select a particular niche in the industry, a particular target market that your business wants to cater to, and your sets of capabilities and resources. Weighing your strengths and weaknesses is an important preliminary step before a business sets its foot out in the highly competitive hyperlocal space.

• Having identified your target audience- their likes and dislikes, their needs and wants, etc, your business must go about devising a plausible strategy to market your products and services- whatever is there to offer.

• Then make coalitions that benefit your business. Build a partnership with local businesses and top-notch delivery companies- ones that develop immaculate hyperlocal ecommerce delivery software to provide your business with the best delivery solutions available around.

• Having done that, it is important to plan your business’s revenue flows based on commission from merchant partners and delivery charges from customers.

• Finally, find a technology partner or an on-demand app and software development company that deals with extending the associated services to the ultimate buyers.

Wrapping up

There is no denying the fact that hyperlocal ecommerce has got the better of traditional ecommerce in contemporary times. The on-demand delivery model does bring with itself sets of conveniences, efficiencies and efficacies that just about quite beautifully, blends the ecommerce presence of businesses with the physical stores available around. It is this interaction of the physical stores/outlets and ecommerce that has led to the whopping growth and success of the hyperlocal on-demand delivery model.

This particular model has not just benefitted local retailers and sellers but, as discussed above, it has been a widely preferred choice of investors and businesses that deal in logistics. Moreover, the hyperlocal ecommerce delivery software companies are too making significant gains out of it by providing a hyperlocal marketplace platform and bridging the gap that otherwise existed between the buyers and the sellers. What’s more? The customers are happy and delighted with the use of this trending on-demand hyperlocal delivery model, which is just continuing to impress and convince them day by day.

As technology shifts gears and ameliorates, it is highly likely that the existing gap between the physical stores and hyperlocal businesses is going to shrink even more, and for the consumer part, this fondness amongst them, towards the much popular on-demand delivery model is going to grow by leaps and bounds.

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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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