How Hyperlocal Business Model Differs from eCommerce Business?

The rise of the on-demand economy has brought about a tremendous change in traditional business models. In the last few years, many newer options like Hyperlocal have developed and they are doing quite well. You can take the help of on-demand apps to order anything by just sitting in the comfort of your home.

You can buy groceries; book a cab, order food, purchase medicines, rent furniture and what not just with a few clicks. And today’s smartphones have played a role as a game-changer for the on-demand delivery business model.

It has not only simplified the whole process but has helped businesses to connect with the masses anywhere and everywhere.

In this article, we are going to talk about the Hyperlocal business model.

Hyperlocal means all the businesses in your surrounding area.

There are general merchant shops, restaurants, malls, markets, and service providers in your locality. This local ecosystem, where customers can buy anything from their neighborhood stores, is known as Hyperlocal. People can fulfill their immediate demands from the nearest stores in the most optimized manner. This effective fulfillment of local needs forms the bedrock of a thriving economy.

Another business model which has recently become popular is the e-commerce business. You can order any product online and get it delivered to your doorsteps. You get access to all the national and international brands sitting at home. E-commerce has been a great success with more and more consumers opting for online purchases. The appeal of the brands is strong, and customers are also satisfied with both paying and waiting for shipping.

Why go with the Hyperlocal Business Model?

Hyperlocal business model

Though e-commerce has become a popular option for many, it is still facing some of the challenges, such as:

  • Logistical challenges- late delivery of the product
  • Cases of fraud- there have been many instances where the wrong or damaged product was delivered.

If a Hyperlocal business intends to go online they need to make plans to overcome the above two barriers. Technology has grown to that level where we can address the above two things in a much better way.


Hyperlocal shops are within your reach. They are nearby to the customer and deliver products within an hour or so. The e-commerce retailer will deliver your order either the next day or a few days after placing the order.

The whole supply chain of a hyperlocal business is close to the customer and the vendor. This ensures that the transactions are easy and trustworthy.


As far as delivery is concerned nothing is quicker than a hyperlocal shop nearby. It quickly matches the customer demand with the nearest available supply. So if you wish to order food, get a haircut or a spa at home, the Hyperlocal system is the perfect answer.

If you order online, it takes time to get the product delivered. You will have to wait for a day or more. One of the best examples for Businesses which adapted to this model is Zomato. You can see various branches of the same food brand in Zomato but based on your current location, Zomato will only allow you to order from the nearest available kitchen of that brand.


Hyperlocal marketplace system is very helpful for the vendors as well as the customers. The vendors simply add the location where they can deliver their products and the customers simply enter their residing area, check which products and vendors are available in their area. 

The merchants can also add their location according to the products available with them. They can mention the shipping charges as per the delivery range. All of this makes communication easier. This is the main vital advantage of going Hyperlocal. Many small things that occur as the communication barriers in the normal ecommerce model get better with the Hyperlocal way of business.


Hyperlocal shops are not big brand like large online retailer but they are more trustworthy. When you order something from a shop nearby you are in control of the entire supply chain of that product. At first you know the shop personally and in case you have ordered furniture or an electronic device, you can get it assembled if any problem arises. The vendor also knows where they have delivered the item.

In an e-commerce setup, if any problem arises after delivery of the product then you can send it back and get it replaced by the company. But all this takes time.


Customer satisfaction should be the prime motive of any business. Bridging the gap between the online and offline shopping experiences of the customer is necessary. They should be able to easily navigate between the two.

Now-a-days retailers are using location-based technology to provide a better customer experience and improve their operational efficiency. Various apps have been developed which inform customers about the nearby stores and the available products.

About Gaurav Tiwari

Gaurav Tiwari is a blogger, influencer and designer with expertise in brand regeneration and growth hacking. He is the co-founder of Gatilab, a successful digital agency focused on content and design.