Hyperlocal Delivery Model
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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Hyperlocal-The 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 buzz word 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 although 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.


Image result for what is a hyperlocal marketplace


The USP of hyperlocal e-commerce businesses lies in their ability to deliver products and services at unbelievably fast speed. Getting hold of the product you ordered within a short span of time as less as 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 credits 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 starting 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 the technical 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 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.



What is the future of 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 continues 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 business 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 the 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 upon the requests received.


To start out with your hyperlocal business give a proposal of partnership to other similar local stores who are providing the 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. Hyperlocal Business Model is created to serve the customers better.


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


hyperlocal delivery model

Source: Inc 42



According to YS Research, in the first half of 2018, hyperlocal delivery startups raised $82.6 million in funding. During the same period last year, the amount raised was $15.2 million.


Hyperlocal Model

Source: YourStory



Let’s see How a Hyperlocal Delivery Model Works


1. 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




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


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



Hyperlocal Delivery

Source: The Pointy Blog



3. 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 partnership and ask their delivery boys to deliver goods to home.



4. 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.



5. Make an income model


You can collaborate with nearby stores who 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.



6. Build up a hyperlocal portable application


Build your own 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.


Hyperlocal Delivery

Source: The News Minute



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:
i) Filter products by distance

  1. ii) Filter products by zip code

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


CedCommerce’s Vendor Hyperlocal Addon help to connect the vendors, customers and Admin to a 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 stored can be displayed accordingly.


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



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  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

    • Avatar for Saket Tripathi

      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


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