How hyperlocal delivery models are feeding into India’s urgent needs economy

Currently, there are 141 million hyperlocal commerce shoppers in the country. This number is expected to grow at a rate of 52 percent to reach 214 million by the end of 2022. The sheer growth amplifies the opportunity that lies for SMEs to leverage the hyperlocal delivery network.
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“The internet makes human desires more easily attainable. In other words, it offers convenience. Convenience on the internet is basically achieved by two things – speed and cognitive ease,” said Twitter co-founder Evan Williams. Rightly so, we live in an on-demand world where our mobile devices give us a sense of entitlement to quick and convenient interactions and transactions. And as more devices and apps aim to deliver instant gratification, the hyperlocal delivery format has been increasingly gaining traction.

Moreover, ever since the onset of the pandemic over the last two years, India's e-commerce market has been in a whirlwind with the evolution of quick commerce as one of its most in-demand verticals. Multiple lockdowns forced companies to rely on locally available products or resources to fulfill demand.

According to a recent report titled ‘Digital Commerce in India - Hyperlocal Commerce’ by WATConsult’s research division, Recogn, currently there are 141 million hyperlocal commerce shoppers in the country. This number is expected to grow at a rate of 52 percent to reach 214 million by the end of 2022. The sheer growth amplifies the opportunity that lies for SMEs to leverage the hyperlocal delivery network.

When it comes to hyperlocal service usage, food delivery tops the list, followed by groceries and vegetables, apart from local logistics of items and packages, and ordering of services related to home. Customers prefer hyperlocal apps, due to benefits like quick delivery, availability of unique products/services, and easier returns.

Express delivery – the new normal

“The pandemic has shifted the buying behavior of consumers across the world. Hence, express delivery has become a necessity in the buying process rather than just being a delight factor. Consumers want their orders to be dispatched and delivered as soon as possible. This shift has increased pressure on the supply chain operations, which has led to companies finding more ways to fulfill the quick dispatch and express delivery to stay ahead of the competition. With a commitment to 10-20 minutes of grocery and food delivery, it is evident that express delivery has become the new normal and is not limited to certain customers,” emphasizes Devesh Gangal, Marketing Manager, Borzo.

On the other hand, same-day delivery has the potential to revolutionize the way consumers purchase forever. It combines the convenience of online shopping with the immediacy of physical stores. Given the compelling value proposition of same-day delivery for consumers, demand has skyrocketed, making urgent delivery habits a pressing priority for brands to stay ahead of the competition.

In fact, many brands and companies are now exploring the shift towards a hyperlocal and direct-to-customer delivery model, where several players in the market have evolved their distribution channels and executed direct deliveries to the customers. This model empowers local retailers to increase their market coverage and allows FMCG players to push their inventories and effectively scale the business.

Borzo is taking the lead in hyperlocal deliveries with its tech platform, which allows its SME clients to place orders on-demand, and get responses from delivery partners within minutes. This is very convenient for growing businesses to handle unpredictable demand from their customers and still allow them to connect with their customers on the same day or maybe even in a few hours.

Currently, Borzo accepts packages up to a maximum weight of up to 20kgs with clear transparent, fair-flexible pricing for both businesses and riders. Another important highlight is that it is not restricted to geography. Unlike some of its competition, which opens particular segments in the city, Borzo usually operates the entire list of pin-codes, which belong to the city. For example, in Mumbai, it serves distant areas like Navi Mumbai, Kalyan, or Vasai-Virar, while in Delhi, it serves satellite cities with booming economies like Noida, Gurgaon, Ghaziabad, and Faridabad.

“Speed and affordable pricing have made our service very handy for individuals and businesses. We are also developing a few other High SLA products for SMEs and Enterprise segments to help them with the hyperlocal-last mile same-day deliveries, which will be cost efficient with maximum utilization of the dedicated fleets,” Devesh informs.

Why choose a hyper-local delivery partner?

Hyperlocal delivery is undoubtedly beneficial to all types of businesses, especially for customers. E-commerce and retail businesses do have their share of challenges given the speed and increasing competition that they have to deal with. But choosing a hyper-local delivery partner like Borzo will help mitigate the complexities and inefficiencies of hyper-local deliveries that otherwise prevent retail businesses from offering a satisfying customer experience” ratifies Devesh.

All it takes is for SMBs to register on the platform to get a better hold on consumers, thus offering them an opportunity to test new markets with limited investment. Delivery-related constraints such as vehicle capacity, delivery windows, riders’ skill sets, and rider allocation process are efficiently managed by the hyper-local delivery partner. Combining swift deliveries with intuitive technology and optimum resource utilization will result in a reduction in logistics costs. Thus, efficient hyper-local delivery partners are capable of handling multiple and complex delivery schedules during peak delivery hours. This, in turn, will enhance customer experience. Customers may be more inclined to pay delivery fees to cover your logistics costs when the experience is better.

Way forward

From greater visibility to faster tracking, opting for a hyperlocal on-demand delivery model has eased the worries for many e-commerce and retail businesses. What’s more, with a well-planned hyperlocal delivery model, SMBs and local vendors can maximize their order fulfillment, offer a wider range of delivery options and also pass on discounts and best rates to their customers. Want to take the leap toward an efficient hyperlocal on-demand delivery model? Partner with Borzo now.

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