The hyperlocal industry has gained significant traction in recent years beginning with food deliveries to now growing to deliver anything — from groceries to gaming consoles in just 15–20 minutes.
Take Zomato’s (food delivery) acquisition of Blinkit for about $600 million — a distressed buyout… that sparked widespread discussion.
Until today :
The hyperlocal food delivery market is projected to reach Rs 2.12 lakh crore by 2030, driven by the growing demand for instant deliveries. (Source).
Looking at the future of the hyperlocal industry, we see parallels with e-commerce. Just as companies like Flipkart and Amazon dominated online shopping, triggering a rise of D2C brands through platforms like Shopify (brand identity) and Shiprocket (deliveries), the hyperlocal industry is witnessing a similar trend.
Zomato and Swiggy dominate the market, leading many standalone brands to regain control of their value chain using various tools. However, managing deliveries remains a challenge with gaps still present.
Hyperlocal deliveries are fragmented in India, with delivery fleets operating in silos and limited pincodes. Further, no technology deployment with such delivery partners make it difficult to integrate them into existing systems at scale.
India handles about 400,000 hyperlocal food deliveries daily, primarily through the existing duopoly of aggregators. This impacts:
- Supply side, who pay up to 30% of their revenue to cater to the online demand.
- Demand side, who bear extra delivery costs and platform fees.
Auxano has identified an opportunity to aggregate local delivery fleets, helping them in overcoming underutilization while creating an efficient way for merchants to make deliveries.
This trend mirrors the e-commerce sector, where the dominance of Flipkart and Amazon led to alternatives like Shopify and Shiprocket both being Unicorns — $1Bn. + Valuation.
The hyperlocal delivery landscape is being reshaped !
Interesting times ahead…
Author:
Kanuj Jadwani
