How Hyperlocal deliveries will be the only way forward in India?
When Covid-19 hit the county and we were locked inside our homes, there was no way to go outside and purchase their daily needs, especially for the first 21 days. At that time, the only way to receive the groceries was to contact our nearby Kirana store and place an order which they would deliver by their worker. This was in essence the most appropriate utilisation of the Hyperlocal delivery system in India.
So far to say I would even claim that in a country like India, the only way forward is the Hyperlocal delivery system, in which people in a particular area are served by the local businesses of that area. The Indian startup ecosystem is now full of companies replicating the same hyperlocal delivery system that already existed in society. In 2021 alone Grofers’s (now Blinkit) revenue shot up by 78.5% showing a promising business model. The company aims to deliver groceries within 7 seven minutes from any of the warehouses nearby.
Hyperlocal being a Behavioural change
A big boost to the Hyperlocal Phenomenon was also provided by the fact that due to on-road traffic and the hectic life of metros, people are preferring to purchase groceries from their homes. According to a survey conducted by WATConsult, India will have 214 million hyperlocal shoppers by the end of 2022. Eventually, people are looking into shooting nearby.
At a time when the world is already in the grip of the worst economic crisis of the 21st century, India needs to be more self-reliant. The clarion call for ‘Vocal for Local’ that Prime Minister Narendra Modi gave amidst the Pandemic is a much apt way toward the country’s self-reliance. Rather than purchasing international goods, we should boost local consumption and instead go one step further to make it hyperlocal.
Some of the most successful Hyperlocal delivery Companies that have brought a revolution in the market are Zomato, Swiggy, Blinkit, Tata 1 Mg, Grab, Pidge, Rush etc. Most of these companies have grown to an extent of diversifying themselves to provide deliveries of items outside of food and pharmaceuticals.
Reasons for the rise of Hyperlocal Delivery Services
It is faster than e-commerce — The customers do not need to wait for weeks for the items to arrive at their doorstep. Unlike regular e-commerce which takes days to weeks, hyperlocal delivery apps deliver products that are required immediately.
It interconnects the local population — App users know from where they are ordering their products. They recognise the shops that are present on Swiggy, Zomato and this helps the population to be interconnected.
Local Business is happy — One of the backlashes that big e-commerce brands have received over the years is that of invading the market which was earlier catered to by local businesses. In the hyperlocal delivery system, the businesses are happy and supportive as they do not feel they are being ousted from their area. The products that they make are consumed by their regular as well as upcoming customers. Therefore their reach and sales are increased.
Hyperlocal is the way Forward
With the advancement of technologies such as AI, ML and Big Data, the hyperlocal delivery apps will become more efficient in their operations, therefore being able to serve more customers. Some businesses are coming with their sole reliance on these apps, putting an end to traditional brick-and-mortar stores. The rise of social media has further boosted businesses to micro-target their local customers. Behavioural change has been a plus for businesses. Altogether the customer and the businesses are happy. The only resistance that has come up is from the delivery partners regarding their wages, but once the economy becomes profitable, these issues would be solved as well. Time holds a bright future for HYPERLOCAL Businesses.
