How Hyperlocal Deliveries are Leveling Up the Logistics Sector
How Hyperlocal Deliveries are Leveling Up the Logistics Sector

With the emergence of e-commerce businesses, hyperlocal delivery has become one of the most sought-after terms since the outbreak of the pandemic. 

According to the statistics - the global hyperlocal service market is projected to reach $3634.3 billion by 2027 with a CAGR of 17.90 percent from 2021 to 2027. Delivering all kinds of products from groceries, home care, personal care, pharma, food, etc. hyperlocal models are not only providing products to the customers’ doorstep but also empowering them to become digitally active. 

The sudden rise of hyperlocal delivery models in the logistics sector is due to the push by the COVID-19 pandemic that enforced every vertical and industry to go digital overnight. To keep up with customers’ needs even during the lockdown, hyperlocal delivery players came forward to help businesses adapt to digital solutions and continue with their business. In addition, the busy lifestyle of consumers and the need to get everything delivered at home has augmented the growth of hyperlocal delivery players in the sector.

Apart from urban areas, hyperlocal deliveries are penetrating deep into Tier II and III cities. These delivery models are overcoming each barrier including omnichannel e-commerce challenges that act as a hindrance to the sector’s growth. 

Scaling Deliveries

New-age hyperlocal delivery models are backed by advanced technologies. The use of Artificial Intelligence in logistics management platforms leverages Machine Learning algorithms. This helps in analyzing various types of data to automate the process of third-party logistics (3PL). Further, hyperlocal delivery platforms are highly efficient in optimizing delivery patterns. Technology-based platforms enable single-pick multi-drop, provide 2-3-4-wheeler delivery modes, secure COD’s, enables technology to route, prioritize and track. Besides this, it opens multiple cities and states for B2B players to grow and expand their businesses. It helps in scaling deliveries and further contributes to structuring the unstructured in the logistics sector.

Ensuring Same-Day or Express Deliveries

A satisfied customer is an asset to a company. According to a research finding – around 36 percent of online shopping customers abandon their carts, if unsatisfied with the delivery date.  The customers’ expectations in terms of shorter delivery timelines have increased which requires hyperlocal delivery platforms to come up with agile solutions to expedite the same day, express or one-hour delivery process. New-age hyperlocal delivery models leverage the use of technology to optimize the delivery process and reduce the turnaround time of the delivery. Technology tracking and routing also eliminate downtime caused majorly by unnecessary stoppages whilst bringing efficiency in the logistics sector. 

Transparency and Real-Time Updates for Smooth Last-Mile Deliveries

Every customer tracks the dispatch and delivery status of the product as soon as they place the order. More often than not, the delivery of the product might be delayed despite the app/ website showing that it is out for delivery. The key reason is inefficiency, lack of real-time updates, and Non-Delivery Reasons (NDR). Up until recently, offline sellers had no way of tracking the shipment, and thus could not have stayed updated regarding the status of delivery.

With cutting-edge technologies such as AI/ ML, aggregators are now ensuring that real-time updates and Non-Delivery Reasons are being provided to the seller, which will help them keep the customer updated, provide a modicum of transparency, and increase customer satisfaction. Sellers can track the package until it reaches the customer’s doorstep, making for a seamless last-mile delivery process. 

Driving Profitability

Optimization in delivery processes saves huge costs. Automation and intelligent routing make time-efficient routes for delivery personnel from one point to the other. As a result, pickup and delivery requirements are rerouted to avoid traffic congestions and delays. This encourages multi-drop deliveries in a more efficient manner. 
Furthermore, the automation of deliveries in the hyperlocal segment eliminates repetitive and cumbersome tasks that can emerge out of human-oriented tasks. This can increase vehicle capacity and efficiency in the logistics sector. 

Improving Customer Experiences 

Offering impeccable customer experience is the key to business success. Customers take no time in switching to a different brand or retailer if they get poor customer service. Thus, it is one of the most crucial components of business success. With new-age hyperlocal delivery models, customers can choose their own preferred delivery slot. Moreover, with the integration of messaging apps such as WhatsApp and effective SMS marketing, customers get notified about the delivery of their order and track it in real-time. Having transparency throughout the delivery process can enhance the customer experience. 

Summing up

There is no doubt on the fact that hyperlocal delivery models are addressing the challenges of the conventional logistics sector. In the upcoming years, it is expected that more local and smaller merchants will be a part of the hyperlocal delivery segment in scaling their business.  This will enable them to reach out to their customers located across different locations. 

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