The Growth of Location-Based Services
As smartphone usage continues to rise globally, location-based services have seen tremendous growth in recent years. According to reports, over 65% of smartphone users now use location-based applications on a regular basis. This growth can be attributed to the increasing accessibility of GPS and other location technologies in mobile devices. Customers have become accustomed to finding information tailored to their specific geographic location through their phones.
A major factor driving this adoption is the rise of on-demand Online Hyperlocal Services. Apps like Uber, DoorDash and Instacart made ordering a ride, food delivery or household essentials as easy as a few taps on your phone screen. By leveraging real-time location data, these platforms were able to offer highly customized, convenient services to customers located near merchants and drivers. This proved immensely popular and paved the way for further growth of localized on-demand offerings.
The Emergence of Hyperlocal Services
Building upon this trend, a new category of digital services emerged - hyperlocal services. These applications focus their offerings within small, well-defined geographic regions like cities, towns or even neighborhoods. Rather than catering to broad, nationwide audiences, hyperlocal platforms optimize for ultra-local relevance by deeply understanding the needs, habits and businesses within local communities.
Some key characteristics of hyperlocal services include:
- Geographic targeting within 1-10 mile radii to small, well-defined local regions
- Inventory of local merchants, services and listings tailored to each specific area
- Real-time local information, community updates and citizen engagement features
- On-demand delivery of food, groceries, packages and other items from local stores
- Directory and discovery of local professionals like housekeeping, repairs, tutoring etc.
- Micro-job platforms for tasks like delivery, installation, assembly within communities
- Geo-tagged content sharing, local business reviews and community bulletin boards
Growth of Grocery, Food and Package Delivery
One of the fastest growing hyperlocal verticals is on-demand delivery of groceries, prepared meals and packages. Driven largely by Covid-19 lockdowns and demand for contactless shopping, major online grocers, food chains and courier services ramped up their local fulfillment capabilities.
For example, Instacart partnered with thousands of local supermarkets and stores nationwide to offer same-day delivery of all items through its platform. Customers can shop from their desired store’s inventory and have orders delivered directly from that merchant within a few hours.
Food delivery giants like DoorDash and Uber Eats also expanded their hyperlocal models. In addition to chains and restaurants, these platforms brought hundreds of thousands of independent, local food establishments online. Customers gained access to a huge variety of cuisines from nearby mom-and-pop shops easily through the apps.
On the package delivery front,regional carriers like DHL Express ramped up last-mile capabilities in dense cities. Their partnership with Yahoo allowed Postmates to launch hyperlocal delivery of packages within major metro areas like New York and San Francisco within a few hours.
Small Business Digital Transformation
The rise of hyperlocal platforms presented a major opportunity for SMBs to digitize and reach customers online. Services like Yelp, Foursquare and Google Business helped local shops create digital profiles listing their addresses, menus, reviews etc. This allowed customers searching and browsing on their phones to discover nearby establishments.
Many hyperlocal delivery startups also partnered with shops to bring them onto on-demand platforms. While some charged commission fees, others helped SMBs list inventories, set up online ordering and fulfill hyperlocal deliveries – helping counter Covid losses through digital transformation.
Local Services Provisioning
An emerging trend is on-demand provisioning of professional and personal local services. Apps like TaskRabbit, handy and Porch connect customers with local handymen, cleaners, laborers etc for same-day appointments. Customers can book tasks requiring local skills like furniture assembly, plumbing repairs or event staffing through the platforms.
Similarly, hyperlocal professional services platforms allow users to find and book local tutors, trainers, craftspeople and more. For example, Sittercity and UrbanSitter help families find and book babysitters, nannies and senior caregivers available in their neighborhoods for one-time or recurring needs.
Future of Hyperlocal Services
As local commerce and communities continue to move online, hyperlocal digital services are poised for substantial growth. Research estimates the global hyperlocal services market will reach over $1 trillion by 2025. With more localized opportunities and skill-sets digitized, SMBs and independent professionals can better serve local customers through on-demand platforms.
As 5G network deployment accelerates and IoT devices become more pervasive, hyperlocal platforms will increasingly leverage real-time data to offer AR/VR-enabled, autonomous and predictive services. While addressing localization challenges, this will deliver even more tailored, seamless experiences for customers. The hyperlocal approach presents a major opportunity to digitally empower communities as digital transformation of industries and lifestyles continues across the world.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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