What Is Hyperlocal Delivery? Quick Tips for Driving Hyperlocal Deliveries

What is Hyperlocal Delivery?

Hyperlocal Delivery refers to the deliveries within the particular geography. This is typically a delivery model which is best suited for delivery of food, grocery, meat and medicines. While this is gaining a lot of adoption and different platforms specialize in specific categories alone, large enterprises and retailers are shifting to this model too. 

While many platforms act as hyperlocal aggregators and build profitable businesses out of such offerings, it does make a lot of sense for retailers and organizations to launch their own hyperlocal models considering that it will save the margins and cuts they share with the aggregator. However, the biggest challenge here is that it is next-to-impossible for most brands to achieve the fine balance between service quality and costs. 

To understand this deeper we would need an understanding of what are the critical aspects of hyperlocal on demand deliveries. 

Demand Management

The nature of demand in the hyperlocal ecosystem is very different as that of a traditional brick and mortar ecosystem. Everything from inventory management to fulfilment models will change drastically. 

Service Time

The hyperlocal deliveries come with a time bomb ticking for every single order. Speed of delivery and precision in ETA adherence is a key driver of customer experience and ETA miss in this world amounts to an unforgivable cardinal sin. 


Sourcing the right set of delivery agents at the right time in a cost-effective manner is key to achieving error-free execution. This bit can get quite tricky if there isn’t adequate support in terms of technology and know-how. 

Tools and requisites to execute flawless hyperlocal deliveries 

FarEye, as a logistics platform that has helped several enterprises execute deliveries efficiently and effectively, has the capability set that any enterprise needs to execute hyperlocal deliveries. 

Some of the key highlights include: 

Delivery Scheduling 

One of the major factors influencing customers’ loyalty to a brand is the say and control they’d like to have on the entire process. This starts with scheduling the delivery as per their convenience. This does affect the entire process at the back-end as to how to allocate the delivery and execute it. However, the customer cannot be made to part with the choice. As a platform, delivery scheduling is a native capability and enterprises can empower their customers right at the first step which is the foundation of the hyperlocal ecosystem. 

Order Broadcasting 

Once there is an incoming order, the next step is to broadcast the order and source the delivery agent who could get to the nearest pickup point at the shortest time and deliver within the committed time. This means that drivers need to have apps where they can accept or reject orders and also follow the in-app navigation to reach the pick-up location on time. 

Driver Crowdsourcing 

The nature of demand in food grocery, meat and medicines especially for home deliveries is of a highly volatile nature. In order to cater to the fluctuating demand while not inflating the operational cost, driver crowdsourcing can be an effective solution. FarEye allows companies to crowdsource drivers and handle surge demands and demand spikes in a profitable manner. 

Real-Time Dynamic Routing 

As the time window for deliveries and the unit economics in hyperlocal deliveries is really different from other kinds of deliveries, efficiency at every step(quite literally) is key. Real-time dynamic routing not just allows efficient execution of order but also helps in saving empty miles and fuel costs which all can potentially impact the bottomline. 

Service Point Deliveries 

In a lot of scenarios, customers would want choice in terms of picking up their orders from authorised service points. There should be flexibility to execute authorised service point deliveries and FarEye has helped one of the leading organizations in Europe achieve this for grocery deliveries. You could learn more about it here. 

ETA Visibility 

The track and trace experience defines the entire hyperlocal experience. The customer anxiety levels for hyperlocal deliveries are naturally expected to be significantly higher as compared to other deliveries. One of the key reasons for this is that these are essential commodities that we are talking about. In addition, these can be perishables in a lot of cases and it becomes even more important to deliver them on time. In this battle of experiences, the retailer who provides and adheres to ETA guarantee takes the cake. FarEye leverages its extensive routing engine to compute ETAs and provides order-level ETA visibility to all stakeholders. 

Digital Payments

Customers expect flexibility even when it comes to payment options. Digital and e-wallet integrations are an important part of the hyperlocal on demand delivery model. FarEye supports multiple payment options and can empower retailers to be future-ready in this aspect. 

Contactless Deliveries

The new normal post-COVID has made contactless the de facto standard for deliveries. FarEye has helped leading parcel and food delivery companies with the ability to deliver zero contact deliveries. This has not only enhanced customer trust and ensured a sense of trust and security but is also the most responsible thing to do by ensuring the safety and security of all stakeholders involved. 

If you are an organization looking to deliver on-demand or venture into hyperlocal deliveries, FarEye could certainly help you achieve the same in the shortest possible time window. Talk to our experts and let us get ready for the future.

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