Blog

Mar 30, 2022

Growth of Hyperlocal Delivery: An Era of Quick Commerce

Due to lockdowns that prevent consumers from visiting shops for weekly groceries, hyperlocal delivery has emerged as a game-changer.The local shops sell essential products such as grocery, food, medicine, medical equipment, and hygiene products.

The convenience of hyperlocal delivery ensures that essential goods are delivered to customers' doorstep without any hassle. This has become the most convenient method to access high-priority products quickly, thereby helping businesses to stay afloat during COVID-19. 

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What is Hyperlocal Delivery?

Delivery that is restricted to a certain geographical area is known as hyperlocal delivery, connecting local retailers and merchants with customers. Based on this principle, it caters to the needs of customers within a specific geographical area.

The hyperlocal delivery industry was worth $1,324 billion in 2019 and is expected to grow to $3,634 billion by 2027, with a CAGR of 17.9% (source: allied market research) throughout that time.

Several factors have been driving the growth of the hyperlocal services market, including smartphones, urbanization, changing consumer preferences, and improved lifestyles. This is mainly due to the growth of e-commerce business funding and business digitalization trends. Moreover, many e-commerce giants are adopting and acquiring hyperlocal businesses to reduce transportation costs and minimize significant delivery times.

As a result of the proliferation of e-commerce 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 entrepreneurs.

Increasingly well-funded start-ups, curated products and services, and on-demand delivery have contributed to hyperlocal e-commerce'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.

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Industry Use Case For Hyperlocal Delivery

Quick Commerce Categories

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Why Choose Hyperlocal Retail?

As a new business model, hyperlocal has been adopted rapidly because it offers great advantages that common e-commerce platforms cannot. Customers can get goods delivered quickly to their homes. It has more credibility since products are delivered from local shops to local customers.

It is also important to note that hyperlocal businesses have a physical location prior to setting up an online presence, so customers can visit them, which makes hyperlocal markets trustworthy.

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Benefits of Hyperlocal Delivery

Competitive Unique Selling Proposition

Businesses specializing in Quick Commerce get new value propositions because customers who need immediate delivery are willing to try new brands and order from new stores. Additionally, Q-Commerce businesses can compete with global marketplaces and brick-and-mortar businesses.

Increased margins

Most online shoppers spent extra money to get convenient delivery of the products they needed during the pandemic. These customers also paid extra for on-demand fulfillment. 

Quick Commerce businesses can drive sales for their most profitable product lines since Quick Commerce has a relatively small product assortment. Because wealthier demographics require convenience, there is a potential for higher margins. Professionals who are time-pressed prefer convenience over discounts, for instance. 

The customer experience is paramount

Quick commerce allows retailers to meet customer expectations and exceed them, fostering brand loyalty. Customer pain points such as running out of food before a party or buying a birthday gift for a friend can be addressed with quick commerce. It can help people who can’t make it to the shop or stock up essential items.

quick commerce flow design

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How XStak HYPR enables Hyperlocal Retail

XStak’s product Hypr provides complete functionality to enable retailers to start hyperlocal delivery operations. Best use case of Hypr is, software use in these retail industries like grocery chains, pharmacy, supermarkets and hypermarkets.

HYPR provides a consumer web and mobile app to retailers on which retailers can make their catalog visible to a geo-restricted customer base. A customer can view all nearby stores of retailers and the inventory present in those stores in the consumer app. He can visit any store on the app and add items to his cart. 

Then there is a packer app for the packer role. When a consumer places an order in the store, all packers of this store receive notifications on whether they want to pack this order. Once a packer accepts an order, he can see the items requested by the customer. He packs the order based on this list and marks it done. After the packer packed this order, the order is sent to the next step for further processing.

Next is the delivery app for the delivery role. When a packer packs an order, all delivery guys of that store receive a notification whether they want to deliver this order. Once a delivery guy accepts an order, the best route to the customer's address gets opened on the map and he can deliver the order. Once he delivers the order, he can mark it as done. 

All these activities are updated in real-time on a master admin dashboard which can be the store manager or supply chain manager. All the website and marketing content can be managed from the HYPR admin panel. In addition, HYPR provides extensive business intelligence into metrics like average basket value, no of customers, repeating customers, conversion rate, sell-through rate, retention by cohort, total GMV, not-packed GMV, total orders, completed orders, lead time, average packaging time, average transit time, number of orders packed/delivered per employee in a day, top 5 categories sold and many others.

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XStak HYPR Client Case Study

Chase Up

Chase up is one of the largest departmental stores in Pakistan, having six stores in Karachi, 1 in Multan, 1 in Faisalabad, and 1 in Gujranwala. Chase Up offers a complete shopping experience with everything under one roof, from Grocery to Garments to Crockery and much more.

The e-commerce business of Chase Up has grown rapidly since partnering with Hypr. Chase up was able to establish its online presence with the help of mobile and web apps provided by HYPR. By adding another channel, Chase up was able to improve its brand visibility, sales and customer experience. 

Since HYPR does not require any capital expenditures, it eliminates the requirement for massive upfront investments in technology. In addition, Hypr’s built-in reporting and insights enabled Chase Up to improve operations massively. They were able to reduce inventory carrying costs with the help of a built-in Hypr inventory management module. Hypr makes a win-win situation for the business owners, customers and all other stakeholders.

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Future of Hyperlocal Retail

The following is the future growth expected in Hyperlocal Retail:

Hyperlocal delivery of non-essential products

Some retail outlets will expand their hyperlocal deliveries to clothing, cosmetics, and other categories after the COVID-19 pandemic period finishes

Hyperlocal deliveries will shift to rural areas

As hyperlocal ecommerce evolves, under-tapped two-tier and three-tier cities and rural areas will benefit.

Retail outlets will expand their storage capacity

To satisfy omnichannel customer needs, retail stores will expand their storage space near their physical location.

An increase in the use of Artificial Intelligence

AI adoption by local retail businesses is expected to increase.

XStak

XStak is an All-In-One operating system for omnichannel retailers. It enables retailers to perform all their Omnichannel Commerce, Marketing and Payments operations with an integrated BI layer for these Operations. 

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XStak Offers Retailers

For Commerce Operations

Online order and inventory management system 

Cloud-based next generation Point of sales system

Hyperlocal Delivery Management System

For Marketing Operations

Loyalty and retention management system 

Acquisition marketing suite for digital marketing operations 

For offline and online Payments Operations

Omnichannel Payment solution

For Business Intelligence

Integrated BI layer for all these operations 

Interested?

Request a Demo on how XStak can help you start your journey towards  omnichannel commerce.

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