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On-Demand Apps

What is a Hyperlocal Delivery Model and How it Works?

Sanjay Kidecha,

“Delivery at unbelievably fast speed” is what the hyperlocal delivery model promises to its customers. Hyperlocal delivery applications are becoming the one-stop-solution to meet the customer’s desperate demands for food, pharmacy, groceries, and more. It is disrupting the one-week-delivery margin trend set by the eCommerce applications. 

The on-demand hyperlocal delivery model looks more sustainable & far-reaching, especially for small scale retailers and merchants. The hyperlocal app caters to a specific geographical area to provide services at the earliest opportunity. 

If we were to believe the articles, even big giants like Amazon & Instacart are planning to enter the hyperlocal frontier. I am sure, you are as excited as we are to discover the hyperlocal market and grab a spot for yourself, but as you know, nothing is possible with half knowledge. So, here is the series that will help you with all the nitty gritty requirements of hyperlocal delivery solutions. Read this, before you miss it. 

Hi, I am Sanjay Kidecha, CMO at Kody Technolab. I feel ecstatic with the response received from the audience over our first series: Mobile app development process. I thank you all our readers for being glued to the screen throughout, and the response has really encouraged me to come up with something more interesting and trending. 

Yes, as many of you requested, I am coming up with a new series revolving around the talk-of-the-town topic, the Hyperlocal delivery business model. In this series, we will discuss every minute information about hyperlocal delivery, including the list of challenges, list of features, marketing strategies, etcetera. I am sure you wish to learn more about this new market trend, don’t you? 

Well, we promise that you would be tempted to save this article, share it across, and use it for your implementation. But you know what the best thing to do is? The best thing is to contact our executive team and uncover the secret. 

The hyperlocal delivery app development process series will include the following topics. 

1. What is the Hyper-Local business Delivery model and How it Works?

2. Why It’s the perfect time to Invest in Hyper-Local Delivery App Development For Your Startup?

3. Top Hyperlocal Delivery App Idea to Start Your Business

4. What Are The Problems and Challenges For Hyperlocal Delivery App? Dos & Don’ts

5. Why do Hyperlocal Delivery Startup Fails and How To Avoid Failure?

6. Must Have & Advance Features For Hyperlocal Delivery App Startup

7. How to Choose Right Technology Stack For Your Hyperlocal Delivery App Startup?

8. Top Marketing Strategies For Your Hyperlocal Delivery App Startup

9. How much does it cost to develop a hyperlocal delivery app?


Let’s begin with the introduction to a hyperlocal delivery solution:

A hyperlocal delivery solution provides a platform that connects local retailers and merchants with customers, limited to a specific geographic region. It caters to the various needs of customers located in a particular geographic limit to that of the seller. 

Retailers or service providers who sell their services/products offline have a chance to uplift their business. It gives them an opportunity to sustain their business without suffering any huge losses. 

The main USP of a hyperlocal delivery model work is the geographical boundary and the timeline. Let me explain it to you by giving a narrative. 

Suppose that you want to purchase a 5-liter sanitizer (probably the only emergency purchase in current times) for your house. You will probably resort to some popular eCommerce applications and checkout for reliable options. When you have found out the sanitizer purchase option of your choice, you go to the payment checkout and initiate the payment. Well, the next course of action asks you to wait for a minimum of 3 days until you receive your order. 

This means your emergency needs no more remains an emergency. On the contrary, a hyper-local delivery model works to satisfy your emergency needs. As you move forward with the series, you will figure out that most of the categories covered under hyperlocal delivery umbrella are promptly & frequently required by the customers. The on-demand hyperlocal delivery app receives the product request, processes it, and passes it to a local vendor. 

The local vendor receives the product requests, accepts them, and delivers them to the customer within the minimum timeframe. The delivery timeframe can be within an hour or two, same-day delivery, or maximum next-day delivery.

I hope this clears up the concept and working of hyperlocal delivery applications. This is a promising spectrum for the new-age entrepreneurs who desperately want to enter the online battlefield. You can also refer to this Forbes article to find out how hyperlocal delivery markets will unfold opportunities in the coming years. 

If you are still unclear, we have some popular names of on-demand hyperlocal delivery apps to share. Dunzo, UberEats, BigBasket, Postmates, Zomato, etc., work on hyperlocal delivery models. We will be covering the details in the next topic of the series and explain how a hyperlocal delivery app works? 

How is the hyperlocal delivery model different from the eCommerce model?

Hyperlocal delivery, as the name suggests, connects customers to the neighborhood stores. Customers can access any general merchant, restaurant, market anything located in their vicinity. It bridges the gap between local customers and local vendors in a beautiful way. There is no role of any intermediary involved in the hyperlocal delivery app model. 

eCommerce on the other hand functions nationally or internationally. However, this eCommerce business model can not fulfill the immediate burning demands of the customers. There are many obstacles which it might face, resulting in the delay in product delivery. 

Hence, I would say eCommerce operates on a larger scale and is suitable for fulfilling human needs that are not too urgent. And the hyperlocal delivery model is suitable when you aim at delivering services in no time. 

Well, I would not deny, eCommerce might allow you to offer some lightning deals for which customers don’t mind waiting. 

Why do service providers, as well as consumers, prefer on-demand hyperlocal delivery models?

Desperate times, desperate needs demand desperate solutions (too much of desperate, I know). But with a hyperlocal on-demand business model, the entire cycle from purchase to sell is completed within hours. 

This builds up transparency and trust amongst the customers as well as the vendors. It more or less gives a feeling like physical shopping from the retail store. And this is the reason why the vendors as well as customers, go for hyperlocal shopping.

How does a hyper-local marketplace work?

The hyperlocal can be divided into two primary categories, that includes,

  1. Hyperlocal services delivery like logistics, laundry, home services, etc.
  2. Hyperlocal delivery of products like food, groceries, medicines, electronic gadgets, etc. 

Hence, to make your hyperlocal marketplace work, you need to decide what services you want to deliver. 

  • Conclude the services that you wish to deliver:

As mentioned above, a hyperlocal marketplace can have a broad range of spectrum to cover. And therefore, you need to sit with your team and decide what basic services you wish to cover. 

However, be smart enough to think of local vendors’ availability while you think of launching a hyperlocal platform.

  • Research about your target audience:

Well, just like any other on-demand application, a hyperlocal delivery solution also needs audience research. It would be best if you analyzed the instant needs & demands of the target audience. As a budding entrepreneur, you also have to check your target audience’s age, gender, preferred shopping time, etc.

This will give you an idea about their shopping pattern, which further will help you shape your business platform. You can collect all these requirements and discuss them with your on-demand app development company. 

  • Look out for local partners to collaborate with:

The local delivery partners have a pivotal role in hyperlocal delivery app models. Depending on the type of service you wish to provide, you need to check for the local partners you can collaborate with.

If you go for a product delivery model, you can ask them for a partnership of goods. Similarly, if you go for a service delivery model, you can check for delivery partners accordingly. 

An important part of the partnership collaboration is to decide your income model. To elaborate this further, you need to discuss your commission and earning model over an order placed using the hyperlocal delivery application. 

You should also think of giving a discount over the fixed commission if the vendor receives orders in bulk.

What are the important elements of hyperlocal delivery app development?

By now, you would have understood that physical vendors and consumers are the primary elements of hyperlocal delivery models. However, there are other two elements without which a hyperlocal application would not be able to function. The other two important elements are:

Delivery and logistics:

It is difficult to manage every hyperlocal order delivery by yourself, isn’t it? For this, you need a logistics service or hire a delivery executive who would take care of all the deliveries in a respective area. 

Mobile application;

Well, all the research and partnerships that you have done for your hyperlocal business setup needs to be executed over a platform. This platform, aka application, will be the connecting bridge between your vendors and consumers. Hence, it is important to contact a hyperlocal delivery app development company to help you develop a flawless, functional app for your project. 


The future demands hyperlocal delivery solutions, and I guess it is the best time to develop an application for this particular industry. It is a little less explored yet, and there are higher chances of you succeeding in the business module. Well, there is more to the story that you can explore once you read the next blog of the series. 

But, the pinch of secret still remains with us! Connect with our executive team to discuss your next project. We follow a defined set of procedures for developing a mobile app including Lean Canvassing, Functional/non-functional requirements document, wireframing, etc. Be rest assured of the quality when you hire our mobile app developers.

Sanjay Kidecha

Sanjay Kidecha is the Chief Finance Officer at Kody Technolab and a Fintech geek. With one foot in finance and the other in tech, Sanjay likes to write on emerging Fintech trends, ideas, and how-to guides to keep industry leaders updated with the ever-changing world of fintech!

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