How Hyperlocal Business Model Differs from E-commerce Business?

The rise of the on-demand economy has brought about a tremendous change in the 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 at 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 smart phones have played the role of the game-changer for the on-demand delivery business model. It has not only simplified the whole process but has helped the 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, restaurant, mall, market, 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.

Another business model which has recently become popular is the e-commerce business. You can order any product online and get it delivered at 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 purchase. The appeal of the brands is strong and customers are also satisfied with both pay and wait for shipping.

Why go with Hyperlocal Business Model?

Though e-commerce has become popular option for many but still it is facing some of the challenges such as• Logistical challenges- late delivery of product• Cases of fraudulent- there have been many instances where 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. The technology have grown to that level where we can address the above two things in a very 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 retailers deliver your order either the next day or after few days of placing the order.

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


As far as delivery is concerned nothing is quick 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, 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 example for Businesses which adapted to this model is Zomato. You can see various branches of a same food brand in Zomato but based on your current location, Zomatowill 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 shipping charges as per the delivery range. All these make the communication easier. This is the main vital advantage of going Hyperlocal. Many small small things that occur as the communication barriers in normal ecommerce model gets better with Hyperlocal way of business.


Hyperlocal shops are not a big brand like a 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 set up, if any problem arises after delivery of the product then you can send it back and get it replaced by the company. But all these take 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 better customer experiences and improve their operational efficiency. Various apps have been developed which informs customers about the nearby stores and the available products.

Tagged: Hyperlocal

Leave a Comment