How does the Hyperlocal Delivery Model Work?

Let’s say a person wakes up one morning with an urge to make biryani for lunch. But, there’s no biryani masala at home. Now, he can order the masala online, but the delivery will take two days to arrive. Obviously, he can’t wait that long. This is where the hyperlocal delivery model can come to his rescue. As the name suggests, it refers to a model wherein the pickup point and delivery address are both within close proximity. Ideally, they should be in the same pin code.

How does it work?

An aggregator creates a website or an app listing all the products. The app may be accessible to customers in one city or across the country depending on the network of the website. When a customer places an order, it is forwarded to the pick-up point closest to the customer’s delivery address. A delivery agent is then sent to pick up the order and deliver it to the customer.

Speed and a short turnover are the two advantages of this model. It is beneficial for everyone. The customer is happy with quick delivery and the aggregator can provide service to a larger geographical region. For retailers, the system also helps in keeping the costs in check.

Baabae and the hyperlocal delivery model

The hyperlocal delivery model is one of the key features of Baabae. Instead of relying on a single warehouse, Baabae has a network of warehouses in the city. In this set-up, the area is divided into zones with a 2km radius, and each zone has at least one warehouse.

Grocery retailers can list their products on the Baabae website and have it stocked accordingly. When an order is placed, it is forwarded to the warehouse that is closest to customer’s location. A delivery agent picks up the order and transports it to the delivery address. The system works seamlessly and customers get the quickest service.

Now let’s say the customer suddenly realized that along with the biryani masala, he also needs some rice. Rice is a staple in Indian kitchens and when delivery agents pick up orders from the warehouse, they also carry a limited stock of such staples. So, when a customer places a second order for rice, the delivery agent does not have to go back to the warehouse. Instead, he can just take a pack of rice from his van and give it to the customer on the spot.

Advantages of the hyperlocal model

The hyperlocal model is a win-win situation for everyone- aggregator, retailers and the customers. Some of the advantages are -

· Increased visibility for traditional brick and mortar stores

A traditional kirana store can provide service only toa limited number of people at a time. For example, if a shop ownersends someone out for a delivery, the number of people he could attend to at a time, would reduce further. Also, a single delivery boy can deliveronly so many orders in a day. Witha hyperlocal model, the storecan expand its reach with minimal effort. Instead of spending time and money building an app, all the ownerneeds to do is list the products on the aggregator’s platform. When a customer from the area needs something, it will automatically be picked up from his store.

· Efficient delivery

A hyperlocal delivery model offers the fastest delivery timelines for customers. This boosts customer satisfaction levels and helps build loyalty. Customers also benefit from having a variety of options available to them for comparisons.

· Single point of contact for multiple needs

The traditional way of shopping involves going to multiple shops for different things. For example, one shop sells fresh vegetables and fruits while another sells dairy products. But apps that use the hyperlocal delivery model can cater to all needs on a single platform. For customers, this increases convenience. For retailers, it increases order values and makes the system more profitable.

Conclusion

In the current scenario,where inter-city travel is being regulated, the hyperlocal delivery model has gained a lot of traction. From retailers to customers, everyone has a reason to adopt this system. In the years to come, the model will grow further. If you are looking for ways to make your business grow, you should seriously consider this model. Baabae is one of the leading grocery e-commerce platforms that use the hyperlocal delivery model. Maybe, it is time you join hands.