What is the difference between last-mile and hyperlocal delivery?

As a new business owner, it is pretty normal to get confused between the terms Hyperlocal Delivery and Last-mile delivery. They appear to be similar in meaning but, in reality, they are slightly different in terms of function.

The end target for both these terms is pretty similar though viz. getting the items delivered at a quick pace and providing a safe delivery with the best possible consumer experience.

Let’s take a deeper look at the meaning of both these terms.

What is Last-Mile Delivery?

As the definition goes, last-mile delivery is the transportation process of a specific package/item from a central hub to a location specified by the client. This is the final stage of the fulfillment process of an e-commerce company. 

There is no specific product category involved in last-mile deliveries. Any item apart from food items and groceries can be delivered. There are no restrictions on the item’s weight. The charges for the delivery service are levied depending on the volume of the package. 

Normally there is a last-mile delivery fleet in operation for a specific courier service that takes care of this kind of delivery. There are some specific delivery agents out there that carry some packages by using their bikes, vans, or some other means of transport.

What is Hyperlocal Delivery?

The Hyperlocal delivery model uses a kind of delivery process where a package is delivered directly from the seller to the consumer. A specific courier agent is involved in this kind of delivery process who picks up a product from a particular seller and delivers it directly to the doorstep of the customer.

The entire delivery process is restricted to specific geographical areas and these deliveries are normally completed in a few hours. There are certain product categories involved in this type of delivery.

Key differences between last-mile delivery and hyperlocal delivery

Time required for the delivery

The maximum time required for the completion of last-mile delivery is close to 12-16 hours. In case a consumer receives a message from the e-commerce operator about the package being delivered on the same day, he/she can expect the package to be delivered within 12 to 16 hours or on the next business day.

Sometimes, when the area in question is pretty big like in the case of metropolitan cities, this delivery can take in excess of 16 hours for reaching the desired location.

Hyperlocal delivery on the other hand works a lot faster. The delivery agent is looking to deliver the package in 2 to 3 hours. Well, 6-8 hours maximum.

As their geographical area of operation is much smaller, there is much lesser ground to be covered than compared to the last-mile delivery method. So, the overall delivery process in case of hyperlocal deliveries takes up lesser time than compared to the last-mile delivery model.

Responsibility for the delivery

The overall responsibility of the procedure, in case of the last-mile delivery method, lies with the courier agent. This agent, is assigned by the stipulated courier company. The complete end-to-end process is taken care of by single partners.

In the case of hyperlocal delivery, on the other hand, the overall delivery process is not the responsibility of a specific entity. This responsibility can be picked up by the seller’s fleet or the delivery organization that is employed for this purpose.

Covered delivery area

When it is time for handling the last-mile deliveries a delivery area will not be limited. The delivery person may cover even a distance of 30 kms for on-time delivery of packages. This delivery area for last-mile deliveries, is normally decided by the location of the central hub for transport.

The delivery area in case of hyperlocal deliveries on the other hand is pretty small compared to the last-mile deliveries. The maximum distance covered for every delivery is within a radius of 5 to 15 kms. Many times, these deliveries are conducted in the form of intra-city transport where it is possible to cover a distance of even 20 kms.

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Challenges and Opportunities of Last mile Delivery

Weight and volume restrictions

For the last-mile delivery method there are no restrictions placed on the packaging. A full amount is charged by the seller depending on the weight and volume of the package. For the last-mile delivery method, delivery charges are inclusive, and there is no additional amount charged by the seller.

In the case of hyperlocal deliveries, there is a restriction on the product weight. The maximum weight that is permitted is between 10 to 12 kg. As the delivery agent is responsible for taking the package over his 2 or 3-wheeler, they have to be cautious about the weight of the product. When this weight exceeds the designated number, an additional fee is charged.

The product delivered

You can expect to deliver all kinds of products in case of last-mile deliveries. For example, there could be products ranging from the fridge, cutlery, cosmetics, clothes, TV, cooler, and other accessories, etc.

There are no specific categories for items that are to be delivered via the last-mile process. But the food items and grocery items are usually not included in last-mile delivery.

For hyperlocal delivery, the area is usually limited. So, it takes less amount of time to perform the deliveries. Some of the item categories include grocery items, medicines, small containers, food items, and tiffin boxes.

Relevance of last-mile and hyperlocal deliveries

If you take a closer look at the modern-day scenario, you will find that both hyperlocal and last-mile deliveries have a role to play. Due to the advent of the COVID-19 pandemic, the buying pattern of people has changed. With the e-commerce industry encountering a big hurdle, only the essential items could be made available to the people.

Some courier companies started delivery of essential items across the country. So, they have an excellent last-mile delivery process in place. They have ensured that the customers and delivery agents are completely safe.

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7 reasons for SMEs to go for hyperlocal commerce 

Many people like to buy essential stuff from the nearby local shops. In this case, a hyperlocal delivery can become a game-changer. Due to the lockdowns, people were not allowed to visit the shops, where there was a possibility of a gathering. So, it became impossible for people to buy essential items such as food items, medications, and groceries.

This resulted in sellers adopting the hyperlocal delivery system for the delivery of essential items to the doorstep of their consumers. The e-commerce industry has seen a great deal of development and doorstep delivery has become a viable alternative. So, both these delivery methods have significance.

Conclusion

Due to the advent of modern technology, there is plenty of encouragement for the e-commerce industry that provides online access to their items. Customers these days expect the items to be delivered quickly. You may describe this trend as a diversion of time or a revolution, but technology and delivery logistics have taken a big leap.

People are adapting to new lifestyles and many people prefer to buy things online rather than visiting conventional stores. Due to this development, both last-mile and hyperlocal delivery methods hold a lot of relevance.

If you are looking to develop a hyperlocal or last-mile delivery platform for your e-commerce business get in touch with Jungleworks pronto, for expert assistance. Both these delivery business models are pretty relevant to the modern business scenario and you are bound to find success for your business by using them.