Global Hyperlocal Delivery Market Size (2023 – 2030)

In 2022, the Global Hyperlocal Delivery Market was valued at USD 1703.60 billion and is projected to reach a market size of USD 5032.82 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 14.5%. 

Industry Overview:

Hyperlocal services are delivered inside a small geographic region and allow vendors to provide a product or service in a short amount of time. Delivery of products and services is included in hyperlocal services; for example, delivery of goods includes meals, groceries, pharmaceuticals, furniture, and electronic equipment. The hyperlocal service model is distinguished by the fact that the whole supply chain is located relatively near to both the buyer and the vendor.

Smartphone proliferation, urbanization, changing customer preferences, and better lifestyles have been driving the hyperlocal services market's growth and are projected to continue to do so over the forecast period. This is mostly due to rising e-commerce funding and the growing trend of company digitization. Furthermore, several e-commerce behemoths are embracing and purchasing hyperlocal businesses to decrease transportation costs and shorten delivery times.

The geographical boundaries and delivery timeframe are two significant advantages of hyperlocal delivery. E-commerce works on a national and international scale. It is unable to meet clients' immediate requirements and burning expectations. It works on a bigger scale to meet less urgent consumer requirements. For example, if a consumer needs a sanitizer right away, they won't be able to purchase it from a standard e-commerce merchant. A local vendor, on the other hand, can take this order and deliver the product to the consumer in as little as an hour or two, or same-day or next-day delivery.

Impact of Covid-19 on the industry:

Local stores sell vital items such as food, medications, medical equipment, hygiene goods, and so on. Hyperlocal delivery has proven to be a game-changer, with lockdowns preventing people from visiting stores for weekly shopping purchases. Customers may get critical supplies delivered right to their doorstep thanks to hyperlocal delivery. It has become the simplest way to obtain high-priority items rapidly, allowing firms to remain competitive during COVID-19. The demand for such apps noticed a high surge due to nationwide lockdowns all over the globe.

Consumer demand patterns are shifting predominantly towards purchasing basics, as a result of COVID-19's unparalleled alteration of consumer lifestyles. Brands face issues such as maintaining required inventory levels, staffing shortages, urgent reliance on middlemen, and delayed delivery cycles. As a result of this predicament, several businesses have banded together and formed partnerships to form a robust hyperlocal delivery ecosystem. Consumers are being conditioned to make purchases online as a result of the lockdown in many regions and nations, and hyperlocal players are cracking the code of last-mile delivery by enhancing routes and drop density for their operations to be cost-effective.

Market Drivers:

The outbreak of the pandemic gave rise to hyperlocal delivery apps:

Players in India, such as Zomato, Swiggy, Grofers, BigBasket, Dominos, and Dunzo, are riding the hyperlocal wave in the wake of rising demand for basics that aren’t being provided by a fragmented supply chain. These players plan pickups from nearby businesses and stress the hygienic measures that have been implemented to assure safe delivery to gain a major share of the same-day delivery market. They also provide contactless and cashless delivery, ensuring convenience and security while capitalizing on changing customer behavior as a result of the COVID-19 epidemic. The lockdown made many restaurants and other utility shops join this delivery app to keep the business going.

The market penetration strategy used by the delivery apps will drive the market growth:

These delivery apps are using a market penetration strategy to grow their client base. They do this by providing the food at a lower price than the restaurant provides for on-table service. This attracts many people to use the app and eventually they get used to ordering food and groceries through a delivery app that sustains the user base of these delivery apps.

Market Restraints:

Hyperlocal delivery apps have to bear the cost of free delivery:

The commissions collected from merchants and the delivery costs obtained from customers are the two main sources of income for hyperlocal firms. Customers nowadays, on the other hand, are extremely sensitive to additional delivery charges and anticipate free delivery with every order. In addition, the consumer wants flexible delivery. Last-mile delivery costs might rise as a result of such requests. As a result, automation is your only remaining choice for sustaining the costs of free delivery.

Maintaining the efficiency of the fleet act as a growth restraint for the market:

Maintaining the fleet's productivity and efficiency is critical for any hyperlocal logistics organization. In this crazy technological era, the only viable choice for improving fleet efficiency is to use appropriate technology. The optimization of delivery routes can assist save additional expenditures.

HYPERLOCAL DELIVERY MARKET REPORT COVERAGE:

This research report on the global hyperlocal delivery market has been segmented and sub-segmented based on Type, Nature, Region.

Global Hyperlocal Delivery Market- By Type

• Food Ordering

• Grocery Ordering

• Home Utility Service

• Logistic Service Providers

• Others

The residential utility service category accounted for the largest proportion of the worldwide market in 2019, and this trend is likely to continue throughout the forecast period for hyperlocal services. Home utility service has taken up in wealthy nations such as the United States, Japan, Germany, and Russia. This is mostly due to a rigorous schedule, service innovation, enhanced mobile technology, more connection, and an urbanized population. Appliance repair, carpet cleaning, home renovation, house cleaning, personal grooming, and lawn care are examples of home utility services. Home moving services have grown in popularity among urban residents due to a shortage of time and domestic help, as well as features such as one-click booking, enhanced payment getaway, and service tracking, all of which contribute to the hyperlocal services market's growth.

Global Hyperlocal Delivery Market- By Nature

• Goods Delivery

• Utility Services

The product delivery industry was worth $608.0 billion in 2020, and it is predicted to increase to $2,048.8 billion by 2030, with a CAGR of 20.7 percent. Food, groceries, furniture, and medicine or pharmaceuticals are among the items that can be delivered. The rise of the hyperlocal services industry through the products delivery segment has been fueled by an increase in smartphone users and the availability of online services. Furthermore, customers are rapidly preferring online shopping platforms for a variety of reasons, including convenience, discounts, combination deals, and cost-efficiency. During the projected period, the hyperlocal services market is likely to rise due to innovations and improvisation in delivery services.

Global Hyperlocal Delivery Market- By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• The Middle East and Africa

North America was the most important market in 2020, accounting for the largest part of the market, and is likely to maintain its position over the forecast period. Growing investment for new businesses and rapid acceptance of technology advancements are two main factors driving the hyperlocal services market's rise in North America. During the lockdown, restaurant digital orders and grocery ordering grew dramatically in the region, as individuals were advised to stay at home, creating a big demand for hyperlocal services. Furthermore, during the predicted period, growing urbanization, a high working-age population, and a shortage of domestic help have favored the rise of the hyperlocal services sector.

Global Hyperlocal Delivery Market- By Companies

1. ASKFORTASK INC.
2. DELIVERY HERO SE
3. GROFERS INDIA PRIVATE LIMITED
4. GRUBHUB INC.
5. HANDY TECHNOLOGIES, INC.
6. HOUSEKEEP LIMITED
7. INSTACART
8. JUST EAT PLC
9. JUST EAT TAKEAWAY.COM N.V.
10. UBER TECHNOLOGIES, INC.

NOTABLE HAPPENINGS IN THE GLOBAL HYPERLOCAL DELIVERY MARKET IN THE RECENT PAST:

• Service Launch: - In 2022, Google-backed Dunzo launches instant grocery delivery services in Mumbai.
• Merger & Acquisition: - In 2022, Delivery Hero SE, a meal delivery platform, has agreed to buy Hugo, a multi-category marketplace, for its core food delivery and rapid commerce business in Central America and the Caribbean.
• Business Rebranding: - In 2021, hyperlocal grocery delivery app Grofers rebranded itself as Blinkit with an eye on quick commerce.