‘Hyperlocal Logistics’ is all use of technology like Machine learning, predictive analytics and artificial intelligence to deliver Goods & services as soon as possible to the end consumer. Here, the end consumer usually uses an app or website to place an online order. This order is fulfilled by nearby businesses like retail shop or medicine stores via a third-party logistics provider. The logistic provider acquires the requested product from nearby shops and delivers to the end consumer. It facilitates a consumer to immediately purchase products or request for services like food, medicine, and consumer goods.
“ Hyperlocal logistics is about immediate real-time delivery that enables local businesses to target a wider range of consumers from the nearby area”
- Domino’s Pizza is an example of a hyperlocal business.
- Dunzo is a hyperlocal start-up from Bengaluru. It delivers cigarettes, sanitary pads, groceries, pet supplies, and even fruits and beer from the nearest stores. In addition, they can also deliver your charger from your home to the office, in case you forget to carry.
On April 22, 2020, Facebook entered into an exclusive deal with Jio by buying a 9.9% stake in Reliance Jio for $5.7 billion. This recent Reliance Jio-Facebook alliance also focuses on hyperlocal digital commerce with a focus on consumers residing in tier 2 & 3 cities and even rural areas. Companies like Amazon, Flipkart and Paytm mall have also started working toward a hyperlocal business model by getting retail Kirana stores onboard.
Advantages of Hyperlocal Model
- Growth opportunities for traditional retail stores
- Better service and real-time delivery for consumers
Challenges in Hyperlocal Model
- Increased competition with players like Shadowfax local, Dunzo, Grab, etc.
- Fleet management as the operation is scattered
- Additional marketing expenses
