Hyperlocal Delivery Model: Everything You Need To Know

A Complete Guide to build your own Hyperlocal Delivery Business Model

Definition of hyperlocal

Hyperlocal refers to the information aimed at the geographical area that is just next door. Simply put, it is what is happening in the neighborhood. Hyperlocal delivery, hyperlocal forecast, and hyperlocal news- all convey information regarding a specific area.

What is a Hyperlocal Delivery Business Model?

A Hyperlocal Delivery Model refers to a business model that meets people’s demands nearby instantly. The delivery of either a product or service happens through local stores via a digital platform such as the delivery of medicines, alcohol, groceries, food, beverages, etc.

Unlike e-commerce, hyperlocal delivery ensures same-day delivery within a few short hours or minutes. This is the major unique-selling-proposition (USP) of a hyperlocal delivery business.

Let’s say you want fresh groceries and you order through a hyperlocal delivery app (e.g. Dunzo/Instamart/Swiggy), the app receives the order and transfers the information to the hyperlocal store and delivery agent. Now, the delivery agent picks up your groceries from the store and delivers you in 15-20 minutes. This is how the hyperlocal delivery takes place.

Now that you know what this model is all about, let’s look into a few features of a hyperlocal business.

Features of a Hyperlocal Delivery Business Model:

  • - It focuses on the population of a specific area for on-demand products and services.
  • - The USP of this model is delivering quality services and products at an effective and unexpectedly faster rate to local consumers.
  • - It targets a local community that adds up to the local economy.
  • - It unites the consumers, marketplace, and aggregators effectively and promotes a fair market condition.

Why opt for Hyperlocal?

The hyperlocal industry is going to see a significant rise in consumers as well as the marketplace due to lifestyle changes, urbanization, and more tech-savvy generations. The consumer wants everything at a single click and hyperlocal is going to do just that.

‘The global Hyperlocal Service Market Size was valued at $1,714.60 billion in 2020 and is projected to reach $5,188.60 billion by 2030, growing at a CAGR of 14.9% from 2021 to 2030.’ – Allied Market Research

The data suggests that the market is going to rise notably during the forecast period.

What’s in for the investors to opt for hyperlocal models- 

  • - This model is easy to scale as it only targets a specific locality.
  • - Low funding is required because there is no urgent need for an inventory, unlike an inventory-based model where warehouses are a necessary part of the model.
  • - Execution is easy, as a local community is targeted, say, orders are delivered from a nearby store to people within minutes.

Operation of a Hyperlocal Delivery Business based on different supply chain models:

A hyperlocal model bridges the gap between consumers and retail suppliers via the existing framework of local marketplace and technology. It builds an ecosystem where consumers, aggregators, and suppliers are connected in one place, and thus order management and delivery happen conveniently.

In a hyperlocal model, e-commerce businesses build partnerships with local vendors and delivery agents to ensure quick delivery. Hyperlocal delivery has become a significant option for the delivery of products and services as it ensures that the delivery to the consumer is quick and smooth.

Hyperlocal businesses operate on three supply chain models generally-

Inventory-led Model

In this model, hyperlocal businesses create an inventory by buying directly from local retailers or produce their own goods. There is no need for the local retailers to interfere after the order is made as there is already an inventory present to fulfill those orders. But managing and tracking inventory for customer demands becomes quite a task for businesses.

Aggregator Model

In the aggregator model or zero-inventory model, a hyperlocal business acts as a mediator, which sells the services and goods under its own brand. The business partners with retailers and delivery agents to ensure that the customers are delivered their goods efficiently. 

For example, consider the aggregator model of Airbnb. A customer books a stay in a hotel via Airbnb and it connects the customer to that hotel but under its brand. However, behind the scenes, Airbnb has partnered with those hotels or restaurants and is offering the service to customers via their platform.

Hybrid Model

This model is a hybrid of the inventory and aggregator models. Businesses can opt for a hybrid model depending on their flexibility and convenience. A hybrid model offers the pros of both an inventory and aggregator models and can be shaped according to the target consumers.

Benefits of a Hyperlocal Business Model

Going hyperlocal has many benefits as it targets a local economy. A few of them are listed as follows:


More and more businesses are focusing on creating a sustainable ecosystem, and that is what a hyperlocal business can help to build. It reduces carbon footprints as it is only focused on a specific geographical area, thus reducing long transportation.

Supporting local businesses

With globalization, the market condition tends to make the rich richer, and the poor poorer. This leads to a poor rural and local economy which can be saved by going local. A hyperlocal business aims to support local stores and brands, it supports rural startups and helps every business to grow and succeed.

Effortless management

A single platform e.g. an app or a website or a cloud-based service can help businesses control and manage the entire market in one place. This makes it easy for the retailers and local vendors to go hyperlocal and increase their visibility and growth.

Fighting inflation

A hyperlocal model links consumers and producers directly, eliminating the intermediaries thereby ensuring that the producers get what they deserve without any inflation in their prices. Going hyperlocal can help fight inflation as the consumer directly buys through the producer so that the consumer and producer both pay and receive a fair price respectively.

Business transparency

Suppose you order food through an app, and the app shows you all the operations taking place such as ‘your order is being prepared’, ‘the delivery agent is on its way’, ‘your order is picked’, ‘your order is delivered.’ This is the kind of transparency that a hyperlocal delivery provides which builds trust among consumers as well as other partners thereby promoting growth and demand.

Role of technology in smooth functioning of a hyperlocal business

Building a hyperlocal model requires a comprehensive infrastructure involving partnerships with vendors, and retailers and linking it to the technology facilitating the required hyperlocal delivery process. Technology is a vital constituent of a hyperlocal marketplace that fortifies the whole business model.

The technologies that build a functional hyperlocal marketplace-

E-commerce framework

An e-commerce framework consisting of an app or a website assures effortless communication between the hyperlocal business, retailers, and consumers. A few examples of popular e-commerce platforms are Shopify, WooCommerce, Salesforce, etc.

Payment gateways

Payment gateways like PayPal, Stripe and Square act as the cash register in an electronic transition. The payments in a hyperlocal business are adopted to be digital to speed up hassle-free transactions in a single click.

Global Positioning System (GPS)

A navigation system like Google Maps helps track the location of nearby stores and the customers who order from a locality. A GPS navigation system ensures smooth delivery by helping customers find a nearby seller, helping the delivery agent deliver the goods to the exact location, and helping retailers target a locality with high demands.

Supplier relationship management (SRM)

Supplier relationship management links the suppliers to retail stores building effective connections between buyer and supplier. The suppliers can list their products and services online and connect with retail stores via the SRM platform.

Customer relationship management (CRM)

It is a platform for businesses to maintain engagement and interactions with customers and potential customers. A CRM builds stronger relationships with customers and partners, increasing sales and making processes more efficient.

Shipping and Logistics

Shipping and logistics is the major process in a hyperlocal delivery that implements the last-mile delivery. Without logistics, the products won’t reach the customer and thereby halting the hyperlocal delivery model.

Building your own Hyperlocal Delivery Business

A hyperlocal business model can be built by keeping in mind the above information regarding the marketplace, it’s working, and the constituents. You can build your own hyperlocal marketplace with the all-in-one JW Hyperlocal Stack which helps you manage, and expand Ordering, Delivery, and Marketing for your business. Jungleworks 3D suite helps you start, sustain and scale your local business.

Before starting your own hyperlocal business with Jw Stack, let’s get into the depth of the crux of the hyperlocal networks.

Niche Industry

Choose a niche industry to work in, e.g. Food delivery (Zomato), Grocery delivery (Instamart), Medicine Delivery (1MG), Services (Urban Company), etc. When you know the industry you want to focus on either product-based or service-based, you can move on to choosing a product or service.

Choosing a Product/Service

Begin with investing in minimum products or services to test the local market. Expand later with more improved quality products and track your customer behavior. When the product or service is ready to sell, the next step comes to targeting the potential customers.

Customer Targeting

When you have chosen a product and the industry, track down users who might be interested in your product and target them. For example, you are a company that provides salon services at home. Your target audience might be of the age range 18-40 who would require your service. Target your potential customers and let them know that you are in business by apt marketing and brand visibility.

Brand Visibility

Make your brand visible with the right tactics of advertising and marketing. Build your digital, and local presence by taking the most appealing measures for your business in the local marketplace. Connect to consumers via social media, by word-of-mouth, or even by using traditional advertising (flyers, billboards), etc.

Building relationships

Build your hyperlocal network by partnering with local stores, vendors, and delivery agents as your network help create a sustainable relationship. Business relationships help stabilize your business in the long run.

E-commerce platform

Launching an app or a website helps you track and manage things efficiently. You can engage with customers, help solve their queries, manage tracking and orders, etc. Technology is a vital tool for your hyperlocal business that ensures hassle-free management of CRM, SRM, logistics, customers, and every part of the hyperlocal model.

Income Model

By the three supply chain models we discussed above, you can choose one that suits well with your business.

Future of a Hyperlocal Delivery Marketplace

Customer experience and the changing lifestyle has led to a growth in the hyperlocal marketplace that will keep rising. Especially post-covid, people tend to choose services that are convenient and quick. With the boom of technology and the internet, consumers are moving towards effortless options and the hyperlocal model is enabling just that. With hyperlocal models, businesses can capitalize on customer experience and loyalty.

There is a scope to go hyperlocal even in the non-retail sector such as alcohol, cosmetics, and clothing. Also, if rural e-commerce goes hyperlocal, there would be tremendous growth in the economy.

The rise in technology can completely change the face of hyperlocal deliveries if Artificial Intelligence(AI), drones, and robots come into action.

Customer convenience has made the hyperlocal model competitive and with the right knowledge and tools, you can build your own successful hyperlocal delivery business.

For the right tools for your business, Jungleworks’ Hyperlocal Stack is to help you build your sustainable and scalable hyperlocal delivery network. 

Jungleworks is no-code hyperlocal commerce and delivery stack to set up and manage on-demand businesses. The Stack includes a marketplace plan, hybrid ordering, and merchant apps, Tookan Growth plan, and Hippo marketing automation. 

Request a free demo today to start your entrepreneurial journey with Jungleworks Hyperlocal Stack. From ordering to delivery management and customer engagement platforms, our products Yelo, Tookan, Hippo provide an end-to-end solution for your entire business operations.