hyperlocal delivery
What is a hyperlocal delivery model and how does it work?

What is a hyperlocal delivery model and how does it work?


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There’s been a lot of buzz about the hyperlocal marketplace model or on-demand near me delivery model ever since it has been uncovered. The reason behind the hype is pretty clear because the hyperlocal delivery model offers both convenience and efficiency at the same time to the seller and the buyer. Since products are delivered to customers in a comparatively shorter time period, the popularity of the Hyperlocal marketplace model is increasing at a great speed. This model opens a door of opportunities for small business owners which is a reason why many businesses are adopting this model.

A complete guide to Hyperlocal Delivery Model

Now that you are still reading, we will be assuming that you must be looking forward to implementing the hyperlocal delivery model into your online business. So, here’s your get-to-know list for the hyperlocal model so that you can gain proper knowledge of what you’ll be jumping into.

In the proceeding sections, we will be covering all the aspects of a hyperlocal marketplace model including how it works, its features, and its components. With this blog, we bring you a guide to a hyperlocal delivery model that will help you in assisting through the hyperlocal delivery model in the best way possible. So, let’s first understand the very fundamentals of the hyperlocal marketplace model!

Do you want to create your own hyperlocal marketplace? Click on the button to get started! 

Create marketplace

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What is a hyperlocal marketplace model and its concept?

The hyperlocal marketplace as the name suggests is a market that caters to the needs of a limited geographical area. A walk around your residence would most definitely make you come across a similar market, however big or small but self-sufficient in its own right, fulfilling almost all the requirements of the local residents.

The latest buzzword in the e-commerce space is a hyperlocal system. Grocery delivery, ordering food, house care, personal care services, etc. have taken another dimension altogether ever since the popularity of hyperlocal e-commerce platforms rose.

Local offline retailers and service providers got a new lease of life for their business ever since the advent and rise of hyperlocal platforms. The concept is new but thanks to the massive internet penetration the world is not new to it anymore. It holds the capacity to exalt the business of offline sellers to entirely new levels.

The USP of hyperlocal e-commerce businesses lies in their ability to deliver products and services at an unbelievably fast speed. Getting hold of the product you ordered within a short span of time as less than an hour is something that hyperlocal delivery models promise to their customers. Be it ordering food from restaurants that otherwise do not home deliver to ordering groceries needed by you in a short time has become very much possible and easier credit to the hyperlocal platforms.

This is the right time to get online, especially for offline merchants who might be facing business ups and downs during this crisis. It’ll be a fully wise decision to start with an online business today so that even after the COVID19 crisis, you can get better growth. For more information on how and where to start, click here. Make the best of the Corona crisis today!

How does an e-commerce hyperlocal marketplace work?

The hyperlocal marketplace model is a perfect example of how technological advancements can amalgamate with the age-old favorite shopping methods and come up with a unique formula for success.

A hyperlocal business is a platform to enable local offline businesses to reach out to their targeted customers ensuring product delivery within a very short time. The service ambit of a hyperlocal business could fall anywhere starting from a few meters to a few kilometers from the location of the business.

Given the very focused geographic spread of a hyperlocal space, the local ventures are almost guaranteed visibility and customers until they ensure good product and service quality. It ensures product delivery at a great speed that too from the customer’s very local trusted store.

A hyperlocal marketplace works by providing goods and services to the customers from the offline stores available within the proximity of a few kilometers. Think not only FMCG but also house maintenance, grooming, and other services that are valuable for customers. So if there is a restaurant nearby that does not offer home delivery for food a hyperlocal business can step in and do the job. A mobile application works wonders for such types of business models.

There are marketplaces today that offer product delivery within 24 hours, which indeed is applaudable but a hyperlocal marketplace can do the same job in just a matter of an hour(s). Here not only the speed is an attraction for the customer but the fact that products come from their very trusted shops well known to them is also an added advantage.

Also Read: Hyperlocal Marketplace – The latest buzz in the e-commerce industry

What is the importance of the Hyperlocal Delivery Model Amidst COVID-19?

As the world got hit by the wave of the pandemic at the beginning of the year and people were bound to live inside their houses, the brick-and-mortar stores weren’t able to complete the demand for day-to-day essential goods. So, the only way left for the customers was to turn to online retailers which increased the popularity of the on-demand delivery model to a great extent. COVID-19 outbreak caused a major panic among the consumers which led them to bulk up the essential goods on a priority basis via e-commerce platforms.

It concludes the fact that COVID-19 caused a major shift in the change of consumer behavior because it made online shopping their only resource for meeting their daily needs and they apparently seemed to get familiar with it. The major concern of online retailers at the current moment is to deliver goods and services in a shorter span of time. And a hyperlocal delivery model does exactly the same.

This is the point when the Hyperlocal marketplace model became the savior and superior of all. The hyperlocal delivery model is a promising one for the case of on-demand delivery. Standing up to the current market standards, this model is appealing enough for your online business to engage and fulfill faster deliveries.

Do you also want to create your own hyperlocal delivery marketplace to extend the reach of your business during the tough times of the pandemic? Well, worry no more! Click on the button below to begin your hyperlocal marketplace journey!

Create hyperlocal marketplace

What is the future of the hyperlocal marketplace?

Hyperlocal marketplaces and supporting mobile apps are soon rising in popularity. Research by YourStory reveals that hyperlocal marketplace startups have managed to raise $170 million from investors and continue to attract funds.

It should not come as a surprise if giant e-commerce marketplaces begin to acquire hyperlocals or start investing in them owing to the interesting concept they are built around and the attractiveness of their future prospects. Hyperlocal businesses hands down have an advantage over e-commerce marketplaces in smaller cities where the latter is yet to make a mark. Thus, hinting at a promising future for hyperlocal marketplaces in the years to come.

If you want to use the Hyperlocal Delivery Model you have to catalog all the local store items in a mobile application and pick dedicated resources to deliver the products in the shortest time possible.

As the name ‘hyperlocal’ proposes, the desired products should be acquired locally from offline stores and delivered to consumers within a short span of time. This involves picking a dependable store for every region and guaranteeing that the nature of the items is kept up. These stores earn commissions for delivering the required items based on the requests received.

To start out with your hyperlocal business give a proposal of partnership to other similar local stores who are providing different products and services and agree on the commission. Once you establish the partnership with other local retail stores your hyperlocal marketplace is ready to work. The hyperlocal Business Model is created to serve the customers better.

Here is a figure that shows that in the future the hyperlocal delivery model is expected to show a great growth rate.

hyperlocal service

Image source: Allied Market Research

Let’s see How a Hyperlocal Delivery Model Works

    • The first thing that comes is that Pick what you need to deliver

The hyperlocal delivery model starts when you start to think that what products or services you would choose to deliver. You will start by delivering daily basic needs products, restaurant food, vegetables, and grocery items. For this, you can target the local geographical locations.

Hyperlocal Model

Source: Biteheist

    • The next thing is targeting the local group of audience who are looking for your services

Targeting is the next important point that comes to your mind. If you are thinking that who should be your local target audience then you can target office professionals or college students who do not reside with their families, or old people who can’t go to market for daily needs items.

Hyperlocal Delivery

Source: The Pointy Blog

    • Build Partnerships with Home Delivery Partners or Local Merchants

After figuring out what you need to deliver and who will be your targeted audience is the next thing that comes is a pitch for the partnership with local businesses and delivery companies.

You can build your business without an immediate partnership with both of them or only go about as an aggregator of nearby supermarkets.

Like I have seen many merchants send their boys to deliver grocery items to the home. So you have to ask these local merchants to build a partnership and ask their delivery boys to deliver goods to home.

    • Characterize Associations

In the event that you get a considerable measure of delivery orders, it will be profitable as delivery partners fare you per delivery and what remains is the delivery capital.

Finance or contract? You can get an organization to do home deliveries for you, or you can hire a force of young delivery boys.

Teaming up with nearby stores, notwithstanding acquiring commission, will accelerate the dispatch of the on-request delivery technique. That is, a judicious shipper accomplice will keep the delivery prepared and the delivery boys wouldn’t need to purchase before racing to the delivery spot.

  • Make an income model

You can collaborate with nearby stores that will pay you a commission each time you pick their stuff. This may expect you to limit to specific shippers in a specific area and, in the long run, contain your operations.

Moreover, you can charge clients a comfort expense over the delivery charges. In case the request is too vast, clients anticipate that you will give some discount in delivery charge however comfort expense will, in any case, acquire you a few bucks.

Build up a hyperlocal portable application

Hyperlocal Delivery

Source: The News Minute

Build your hyperlocal application. Create different apps for different characters like drivers, shippers, and clients for this situation. I checked out the web and found these layouts with fundamental highlights for the client application, vendor application, and conveyance kid application.

Do you want to create your own hyperlocal delivery marketplace today? Click on the button given below!

create your marketplace

Benefits of building a marketplace based on a hyperlocal business model

Key Features of a Hyperlocal Marketplace

  1. Auto-detection of customer’s location
  2. Multiple online payment methods
  3. Shipment scheduling
  4. Product filtering based on location
  5. Social sharing options
  6. Reviews and ratings for products and services

Admin Features in a Hyperlocal Marketplace:

  1. The admin can add multiple ship areas and zip codes
  2. The admin can set the following different types of filters:
  • Filter products by distance
  • Filter products by zip code
  • Filter products by city, country, and state

Vendor Features in a Hyperlocal Marketplace:

  1. Sellers can add multiple ship areas and zip codes
  2. Sellers can edit/delete the ship location
  3. Auto fetch the correct location of the vendor

Customer Features:

  1. Auto geolocation detection of the customer
  2. Filtering products everywhere on the site based on the detected location
  3. Facility to change already specified location
  4. Validation at checkout


Hyperlocal system of delivery can be done with anything like cabs, cars, bikes, or any public transport and can happen with anything like car service, grocery, food, etc. Today most of the hyperlocal delivery models are just in time. It takes time to build partnerships with other merchants and delivery agencies, target the right audience, and build a great mobile app. But all these things will give your business the edge you need. 

CedCommerce’s Vendor Hyperlocal Addon help to connect the vendors, customers, and Admin to an eCommerce platform where customer can enhance the online shopping experience for a local market. Admin of a system needs to have a Google API key so that the customer Auto Location can be fetched and the suggested stores can be displayed accordingly. We also provide Food delivery app development services to create a hassle free marketplace.

Receive personalized guidance for your business from our experts. Schedule a session to connect directly!

Here at CedCommerce, our prime vision is to deliver efficient and advanced e-commerce solutions and online marketplace extensions so that your e-commerce experience can become as smooth as possible. Whether you want to build an online grocery store, a food store, or a delivery app, we can assist and help you out in everything related to e-commerce. If you’ve any queries, you can simply get in touch with us by hitting the button below!

Get The Link Of Vendor Hyperlocal Addon: Magento 2 Vendor Hyperlocal Addon

Get in touch with us

  1. Avatar for Saket Tripathi

    We are interested in Launching hyper local courier busienss and food delivery app on mobile. We would like to add restaurants on our platform

    Please share details


    Siju Abraham

    • Hi Siju,

      Thanks for reaching out to us and I hope you are doing well. Sure we provide solutions for food delivery and hyperlocal platform. You can check our product at this link: https://cedcommerce.com/marketplace-solutions/how-to-build-foodstore-marketplace

      Hyperlocal Solution: https://cedcommerce.com/magento-2-extensions/marketplace/vendor-hyperlocal-addon

      Also, you can reach out to us on Skype: live:support_35785

      Contact us: https://cedcommerce.com/contacts


    • Hi Vijay,

      Thanks for reaching out to us. We provide hyperlocal eCommerce solutions. You can check out these links:


      Also, you can reach out to our team at support@cedcommerce.com or call us at (+91) -7234976892.

      You can also connect with us on skype : live:support_35785

      Thanks and regards,

      Saket Tripathi

  2. Avatar for Saket Tripathi

    Hi, we are in construction field and like to go in hyperlocal delivery business, how can you help us in budget out?

    • Hi Rajesh,

      Thanks for reaching out to us. We provide hyperlocal eCommerce solutions. You can check out these links:


      Also, you can reach out to our team at support@cedcommerce.com or call us at (+91) -7234976892.

      You can also connect with us on skype : live:support_35785

      Thanks and regards,

      Saket Tripathi

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