A Guide to starting your On-Demand Hyperlocal Delivery in India

In the food and retail industry, the hyperlocal delivery business model is gaining a lot of traction. Experts predict that the grocery home delivery market will grow dramatically in the near future and adopting the hyperlocal delivery business model is a win-win for all parties involved.

Online grocery stores are profitable, and most people prefer shopping online to going to the store. You’ll need a plan to deliver groceries, food, personal care items, or any other services, and this article will walk you through the process of launching your hyperlocal marketplace or online marketplace.

People use hyperlocal e-commerce to meet their everyday needs in an advanced way. As a result, it grew in popularity among global distribution markets which is why a lot of young entrepreneurs want to get into the hyperlocal marketplace. However, merely expressing interest is ineffective; you must be specific about the niche you wish to serve, as there are numerous ways to start a hyperlocal delivery company.

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Aside from that, you must consider the business model that you will employ for your company. You can choose the best business model based on your requirements from a variety of options. Some of these are:

Aggregator model:

Many entrepreneurs prefer the aggregator model because it does not necessitate a large amount of money. The distribution startup acts as a middleman between the manufacturer and the consumer in the aggregator model. The on-demand delivery startup has no stock or assets in this place. The aggregator business model is commonly used in on-demand businesses such as food, retail, package, personal care services, home services, and so on.

Single store model:

Retailers who want to expand their well-established company online typically use the single store model. The merchant creates an on-demand distribution app to offer the items he has on hand in this business model. Most food distribution companies operate on a single-store model. Dominos, Pizza Hut, are some popular businesses that use the Single Store Model.

Store pick model:

Customers who use the store pick model first place their order online via an on-demand app or the company’s website. Customers can pick up their orders in the store after making an online order. The main advantage of this model is that consumers will receive orders at their leisure.

Hybrid Model:

A hybrid model combines two or more business models. The shop allows you to order items online and pick them up in the store using this model.

What does a hyperlocal marketplace require?

Hyperlocal marketplaces have made on-demand applications the focal point. These on-demand applications will also soon become the most effective means of contact for both companies and consumers. Hyperlocal marketplaces also make use of a variety of elements and infrastructures. Let us take a closer look at each of them:

Navigation System:

Hyperlocal e-commerce companies may increase their income by using the power of real-time monitoring and GPS functionality. Hyperlocal businesses may use these built-in GPS features to provide information to their customers such as store position, nearby retailers, approximate time, driver location, and so on. Retailers in the hyperlocal marketplace find it easier to sell goods because of this.


Multiple payment integration:

Payments are an important part of every industry, and hyperlocal companies are no exception. Customers would have a better payment experience if a hyperlocal store owner integrated multiple payments into its on-demand app. Credit cards, debit cards, mobile wallets, QR codes, and other payment methods are few options that should be available for the customer.


CRM tools:

Hyperlocal retailers must develop a seamless and stable e-commerce platform to enable the selling of their products and services online. A network for online sales or an e-commerce platform is software that enables seamless communication between the seller, consumer, and supplier. E-commerce systems are classified as SaaS (software as a service), PaaS (platform as a service), and on-premise.

However, selecting an e-commerce platform is not a simple task; the hyperlocal business must ensure that the platform they choose has all the required functionality to meet consumer needs. 

Network for online sales:

Customer relationship management, or CRM, is one of the key components of a hyperlocal framework that improves communication between customers, businesses, and on-demand delivery service providers. CRM is also a tool for communicating and resolving issues.

Hyperlocal e-commerce companies may also use CRM tools to segment their customers based on their location. This allows them to develop personalized offers for each customer. Additionally, hyperlocal companies may use CRM software to monitor customer reviews.



The most difficult time for hyperlocal delivery companies is during peak hours. Hyperlocal e-commerce companies recruit more distribution workers to handle the unexpected increase in demand during peak hours. They must also effectively manage the volume of orders.
Technology, on the other hand, can assist hyperlocal e-commerce companies in managing logistics at peak distribution periods. Multiple drops and complex distribution schedules can be managed with logistics optimization and automation tools. It also improves the efficiency and convenience of your logistics operation.

It will take time and effort, but selecting the right target demographic, forming strong relationships with restaurants and delivery services, and focusing on the most basic aspects of the right business model will give your company the competitive advantage it requires. If you are looking for a solution to start a marketplace for a grocery or food delivery business, then MIMO has exactly what you are looking for. Curated by technical experts and evaluated by industry professionals to empower local businesses with an online grocery store or a food delivery marketplace, our Hyperlocal Delivery Model can bring your store to a digital platform and help you start your home delivery business.

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