Hyper-local delivery is a model of delivering goods from local stores, restaurants and other to the consumer’s doorstep, in a certain radius. Over the last couple of years, we have experienced “hyperlocal delivery” services for food delivery from local restaurants and cafes mainly. The model is now extended beyond food to other segments such as logistics, groceries, pharmacies, horizontal and concierge services.
Essential / non-essential goods and services
In last couple of months, how we shop has changed, we have witnessed a surge in door-step deliveries for food items, medicines, groceries and other essential things. This would not be limited to essential items, as we open up cities. The delivery strategy will extend to categories like liquor, apparel, cosmetics and the nearby fashion store in a mall or supermarket. For services or goods that may need a consumer to stand in a queue or exposed to larger crowds businesses should think of a strategy to embrace a hyperlocal delivery platform. For retail store chains, this is an opportunity to expand their online presence.
Doorstep delivery to a vulnerable population
With restrictions to continue for a long time, our senior citizens and other vulnerable population will need banking services at their doorstep. India Post has made significant strides by leveraging post men and women to deliver banking services including cash services using AePS (Aadhar enabled Payment System). Hyperlocal delivery will also enable doorstep citizen services in the future.
Ecommerce giants revisiting last mile delivery
A hyperlocal delivery platform can also enable last mile delivery and help to control associated costs. Ecommerce giants are executing their last mile delivery policies, building a combination of owned warehouses and integrating with local stores to build robust supply chain framework.
Clearly, COVID-19 will have a lasting impact, which offers an opportunity for hyperlocal services to grow. This situation offers a unique environment for businesses to develop a deliberate strategy on collaboration, expand reach and use new technologies for door-step delivery.
What is coming next?
- An ecosystem of larger ecommerce players being supported by app-based hyperlocal delivery services for their last mile delivery.
- Independent hyperlocal services continuing the way they are doing now.
- Hyperlocal players forging joint ventures/partnerships with multi-carrier shipping providers for wider coverage.
- Acquisition (not PE or VC) of hyperlocal services by either ecommerce players or other larger logistics players.