Ordering Blog

Hyperlocal and E-Commerce: How are they different?

Hyperlocal-minThe term Hyperlocal has been around for years now, yet many people still wonder what separates it from regular e-commerce shops and apps.

The hyperlocal business model generally refers to the geographical proximity between the seller and the customer. On-demand delivery businesses have been adapting this model to focus on efficiency and accessibility. A hyperlocal on-demand business acquires products or services locally and pursues the local customer base.

Hyperlocal on-demand products and services include groceries, food delivery, laundry, beauty, cleaning services, etc. Such as Spark delivery, Uber Eats, and Deliveroo.

E-commerce, on the other hand, is a much broader spectrum. It refers to the buying and selling of goods and services using the internet. It includes the B2B, C2C, B2C, and C2B models. In this case, there is no limit as to the geographical location.

Why is a hyperlocal model becoming the future of e-commerce?

The recent technological advancements, and the availability of ordering apps and delivery logistics platforms, caused the hyperlocal on-demand business market to grow very rapidly.

The hyperlocal business market size was valued at $1,324.2 billion in 2019 and is expected to reach as high as $3,634.3 billion by 2027. Making the compound annual growth rate (CAGR) of 17.9% between the years 2021 and 2027.

There is a long list of key benefits as to why more and more sellers turn to this business model, whether they are looking to expand or just launch a start-up.

Supply chain optimization

Since the beginning of the pandemic, supply chains have experienced many unexpected disruptions and bottlenecks during everyday operations. This has also intensified the need for business owners to find solutions that optimize their operations and shorten the journey between production and delivery to their customers.

This business model is inventory-led, giving the business owners more control and allowing them to directly manage supply and demand. Proximity to the customer base, allows sellers to frequently track the customer purchasing patterns, and save costs by avoiding overstocking.


With a decreasing attention span and increasing impatience of consumers, speed is definitely the biggest and most attractive benefit of hyperlocal marketplaces. Traditional e-commerce vendors cannot compete with sellers who offer quality delivery within minutes. ‘56% of consumers aged 18-34, expect to have same-day delivery. Additionally, 61% of consumers are willing to pay more for the same-day delivery

Aside from speedy delivery, having omnichannel access to on-demand products and services creates a simple and enjoyable customer experience. Even last-mile deliveries, such as Amazon last-mile, are also not as speedy and take hours to be completed, as opposed to hyperlocal businesses who deliver straight from the source.


Going hyperlocal gives sellers a window into their consumer’s everyday life. Conducting market research from a distance will never compete with understanding local nuances and being a part of the local society.
Having this level of insight on the targeted niche, allows business owners to foresee market trends and predict customer spending patterns.

Visibility for traditional stores

Now that many customers work from home and seek immediate solutions, going to your favorite store or restaurant on the side of town may seem like a big chore.

Sellers who enjoy the great interest in their traditional stores, turn to hyperlocal delivery in order to maximize their potential sales and reach the clientele who wish to enjoy their product from the comfort of their home. Such as bakeries, flower shops, and perfumeries. Additionally, retailers can enjoy single device management, with minimal effort. Having access to all the incoming, pending, and complete orders through one system.


‘The 2021 Label Insight Food Revolution Study reveals that 94% of customers consider how much information a brand reveals about itself to be important.’ For a customer, purchasing food or services locally means being closer to the process, and knowing what to expect.
Hyperlocal on-demand delivery allows the seller to give direct access to the process of preparation and real-time delivery, which increases the business’s reliability and makes the customer feel like they are in full control of their order.

To sum up

Hyperlocal businesses have already become very popular, yet still hold great future potential for sellers who are thinking of launching a startup marketplace or already have running restaurants.

Some of the key elements why this business model is becoming the future of eCommerce are:

Optimized supply chain
Speed of delivery
Customized products and services for the niche
Transparency of processes

If you are thinking of starting a hyperlocal on-demand delivery business, and have a vision of what you would want your app to look like, but need guidance in terms of technology, check out this all-in-one ordering and logistics platform, which does not require any coding skills.

Having the right software will allow you to easily update your app and seamlessly deliver products or services to your local customers.

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