Global Hyperlocal Delivery Market Size (2024 – 2030)

The Global Hyperlocal Delivery Market witnessed a valuation of USD 1950.62 billion in 2023, with a projected market size expected to reach USD 5032.82 billion by the end of 2030, exhibiting a forecasted CAGR of 14.5% during the period from 2024 to 2030.

Hyperlocal Delivery MarketIndustry Overview:

Hyperlocal services entail the delivery of goods and services within a limited geographic area, enabling vendors to fulfill orders swiftly. This model is characterized by a short supply chain, with both buyers and vendors situated in close proximity. The market encompasses the delivery of various products such as meals, groceries, pharmaceuticals, furniture, and electronics.

Factors such as widespread smartphone adoption, urbanization, evolving consumer preferences, and lifestyle improvements have been instrumental in driving the growth of the hyperlocal services market. This growth is further fueled by increasing investments in e-commerce and the digital transformation of businesses. Additionally, major e-commerce players are acquiring hyperlocal businesses to optimize transportation costs and expedite delivery times.

One of the primary advantages of hyperlocal delivery is its ability to cater to immediate consumer needs within defined geographical boundaries. While traditional e-commerce operates on a larger scale, hyperlocal delivery addresses urgent requirements, ensuring prompt fulfillment of orders.

Impact of Covid-19 on the industry:

Amidst the COVID-19 pandemic, hyperlocal delivery emerged as a vital solution, enabling the delivery of essential goods including food, medications, and hygiene products to consumers' doorsteps. With lockdown restrictions limiting physical shopping, hyperlocal delivery services played a crucial role in meeting urgent consumer needs, thereby sustaining business operations during the pandemic. Consequently, there was a significant surge in demand for hyperlocal delivery apps globally.

Consumer behavior shifted towards purchasing essential items online due to lifestyle changes brought about by the pandemic. Brands faced challenges such as inventory management, staffing shortages, and delayed deliveries. To address these challenges, businesses formed strategic partnerships to strengthen the hyperlocal delivery ecosystem. Additionally, consumers became accustomed to online purchases during lockdowns, prompting hyperlocal players to optimize their delivery operations for cost-effectiveness.

Market Drivers:

Rise of hyperlocal delivery apps amidst the pandemic:

In response to increased demand for essential items, hyperlocal delivery apps witnessed a surge in popularity. Players in markets like India, including Zomato, Swiggy, and Grofers, capitalized on this trend by offering same-day delivery services for essential goods. These apps prioritize hygiene measures and offer contactless and cashless delivery options to ensure customer safety. The lockdown prompted many restaurants and retailers to join these platforms to sustain their businesses.

Market penetration strategy adopted by delivery apps:

Hyperlocal delivery apps employ market penetration strategies to expand their customer base by offering competitive pricing and convenience. By providing lower prices compared to traditional dining or shopping experiences, these apps attract users and establish a loyal customer base, thereby driving market growth.

Market Restraints:

Cost of free delivery burdens hyperlocal delivery apps:

Hyperlocal delivery apps rely on commissions from merchants and delivery charges from customers as their main sources of revenue. However, consumers increasingly expect free delivery with every order, leading to rising delivery costs for these platforms. To mitigate these costs, hyperlocal delivery firms may need to automate operations and optimize delivery routes.

The efficiency of fleet maintenance poses challenges:

Maintaining the productivity and efficiency of delivery fleets is essential for hyperlocal logistics firms. Technological solutions such as route optimization can help minimize operational costs. However, ensuring fleet efficiency remains a growth restraint for the market.

Global Hyperlocal Delivery Market Segmentation

Global Hyperlocal Delivery Market- By Type

Food Ordering

Grocery Ordering

Home Utility Service

Logistic Service Providers

Others

In 2023, the residential utility service segment dominated the global hyperlocal delivery market, a trend expected to persist throughout the forecast period. Home utility services have gained traction in affluent nations like the United States, Japan, Germany, and Russia, driven by factors such as busy lifestyles, service innovation, advanced mobile technology, increased connectivity, and urbanization. Examples of home utility services include appliance repair, carpet cleaning, home renovation, house cleaning, personal grooming, and lawn care. Features such as one-click booking, enhanced payment gateways, and service tracking have fueled the popularity of home moving services among urban residents, contributing to the growth of the hyperlocal services market.

Global Hyperlocal Delivery Market- By Nature

Goods Delivery

Utility Services

The goods delivery segmentis projected to reach $2,048.8 billion by 2030, with a CAGR of 20.7%. Items such as food, groceries, furniture, and pharmaceuticals can be delivered through this segment. The growth of the hyperlocal services industry, particularly in the goods delivery segment, has been driven by the increasing number of smartphone users and the availability of online services. Customers' preference for online shopping platforms, driven by convenience, discounts, bundled deals, and cost-effectiveness, is further fueling the expansion of the hyperlocal services market during the forecast period.

Global Hyperlocal Delivery Market- By Region

North America

Europe

Asia-Pacific

Latin America

The Middle East and Africa

North America emerged as the leading market in 2023, capturing the largest share of the hyperlocal delivery market and expected to maintain its dominance in the forecast period. Factors such as increased investment in new businesses and rapid adoption of technological advancements are driving the growth of the hyperlocal services market in North America. The region witnessed a significant surge in restaurant digital orders and grocery ordering during the lockdowns, as people were encouraged to stay at home, creating a substantial demand for hyperlocal services. Additionally, factors such as growing urbanization, a high working-age population, and a shortage of domestic assistance have contributed to the expansion of the hyperlocal services sector in North America.

Global Hyperlocal Delivery Market- Major Companies

• ASKFORTASK INC.
• DELIVERY HERO SE
• GROFERS INDIA PRIVATE LIMITED
• GRUBHUB INC.
• HANDY TECHNOLOGIES, INC.
• HOUSEKEEP LIMITED
• INSTACART
• JUST EAT PLC
• JUST EAT TAKEAWAY.COM N.V.
• UBER TECHNOLOGIES, INC.

Recent Developments in the Global Hyperlocal Delivery Market:

Service Launch: In 2022, Dunzo, backed by Google, introduced instant grocery delivery services in Mumbai, expanding its reach in the hyperlocal delivery sector.

Merger & Acquisition: Delivery Hero SE, a prominent meal delivery platform, announced its acquisition of Hugo in 2022. Hugo, a multi-category marketplace, was acquired to strengthen Delivery Hero's core food delivery and rapid commerce operations in Central America and the Caribbean.