Due to the coronavirus pandemic, most consumers are trapped in their homes and have turned to on-demand delivery to get essential goods and services. To meet this need, logistics businesses are trying to create an on-demand local delivery business model.
The perception of retailers about on-demand deliveries has been changed by the COVID-19 epidemic. On-demand deliveries can cause huge losses for retailers who do not engage in them. They are looking for alternative options to help sustain their business.
On-demand hyperlocal delivery connects local business owners to customers via a digital platform. This allows customers to order products and services immediately, such as food, medicine, or consumer goods.
This delivery model allows the logistics provider to purchase the product from local shops and deliver it to the customers. The entire delivery process can be monitored by customers in real-time.
Why are logistics providers and consumers more inclined to order hyperlocal on-demand deliveries?
On-demand services are needed by communities and localities. On-demand services cater to immediate needs and are hyperlocal. In hyperlocal on-demand business, the entire transaction is completed in less than an hour.
Consumers trust hyperlocal on-demand deliveries more than non-hyperlocal ones because of their physical presence. It is possible to respond to consumer grievances by being physically present in stores.
Hyperlocal and non-hyperlocal business owners do not have to worry about healthcare logistics companies and delivery. Local businesses don’t have to worry about long-distance transport, warehousing, and other logistics. Hyperlocal businesses are only affected by the last mile delivery routing. Their businesses depend on local retailers.
Hyperlocal on-demand businesses are limited in their operations. They don’t need reverse logistics.
What services are included in the on-demand hyperlocal service model?
These businesses can be accessed via the internet and are convenient for urban residents.
These are the services available to hyperlocal on-demand companies:
- Personal Homecare services: Beauty, Salon Spa services, etc
- Order food online
- Handyman services: Plumbing, carpentry, electrician, gardening, etc
- At-Home Healthcare Services: Babycare, senior care, caregiving, etc
- Grocery Delivery Services
How to build your business around an on-demand hyperlocal delivery system?
Investors and logistics businesses are looking at the potential for hyperlocal on-demand delivery as a lucrative business. They want to make shopping online easy by meeting customer demands.
If you want your logistics company to be able to offer local delivery services on demand, then you must follow the traditional route of starting your business. They must be completely process-driven. These are the steps to follow to create a hyperlocal, on-demand delivery model for business.
- Your industry should be chosen based on its potential for growth, market size, level of competition, etc.
- Choose a niche within the industry and target market. Also, consider your resources.
- Identify your target market and create a marketing strategy for your service
- Establish a partnership with local delivery and business companies
- Your revenue flow plan should be based on merchant partners’ commissions and customer delivery charges
- Find a technology partner or on-demand app developer services.
How technology can benefit hyperlocal, on-demand delivery models
Logistics companies that are entering hyperlocal, on-demand businesses need to improve their customer experience. Technology can play a significant role in creating a positive user experience and instilling confidence in the product.
Traffic congestion can be countered
Consumers might have different needs in different areas. Hyperlocal deliveries become more complicated due to inter-urban traffic. It is possible to reduce traffic time by planning efficiently. The complex task of planning interurban delivery routes is made simple by technology.
Route planning solutions make it easier to drop packages at customers’ homes. This reduces fuel costs and makes last-mile logistics more cost-efficient.
Be prepared to pay for free delivery
Two sources of revenue for the hyperlocal logistics company are selling commissions from locality shops and consumers paying delivery fees. Consumers have grown more sensitive to additional shipping costs and expect no additional shipping charges. They also expect flexible delivery options.
Costs for last-mile delivery to cater to these needs will be incurred. Automation is the only way you can keep shipping costs low.
Easy to allocate delivery zones
In the past, logistics companies used to look for delivery agents to assign them tasks manually. Hyperlocal businesses now serve hundreds of communities. The result is a decrease in productivity when drivers are sent to new areas. It is, therefore, crucial to set delivery areas so that assigning delivery agents is easier.
It is difficult to manually assign delivery zones when there are thousands of orders coming from different localities. It is necessary to use shipment sorting software and rider allocation software. This software automatically assigns riders to delivery zones and makes the rider allocation process easy and efficient.
Maintaining an efficient fleet
Hyperlocal logistics companies must ensure that the fleet is efficient and productive. It is becoming increasingly difficult for fleet drivers and logistics businesses to deliver on time due to the increasing volume of orders. In inter-urban areas, idling expenses are high. This increases fuel consumption and makes delivery fleets less efficient.
Technology is the best option to maintain fleet efficiency. Delivery route optimization software lowers idle time during delivery. It makes it easier to have more active fleets available for delivery and decreases maintenance time. It also reduces the time that fleet drivers spend on deliveries, making them more productive and busy.
Managing logistics during peak delivery periods
The biggest challenge for hyperlocal delivery companies is peak delivery periods To manage peak delivery periods, companies hire additional delivery staff. They must not only expand their operational capabilities but also manage the volume of orders effectively.
Technology provides the best support for logistics management during peak delivery times. Automation software and logistics optimization make it easier to manage your logistics during peak delivery times. It makes it easy to manage multiple deliveries and complicated delivery times. It makes your reverse logistics process easy and efficient.
The key to success in logistics is managing customer expectations and meeting them. Customers expect hyperlocal delivery companies to deliver fast. Logistics companies are faced with the challenge of managing these customers’ expectations for fast deliveries without technology.