eCommerce companies unfamiliar with hyperlocal delivery can make the assumption that it’s an extension of last-mile delivery. Well, they won’t be wrong for having that impression. After all, it can be easy to confuse hyperlocal with same-day delivery, which is a new favorite last-mile delivery option for customers.
In reality, however, there are certain differences between them. In this article, we’ll take a look at what these are so that you can decide which delivery method will suit your business best. But first, let’s understand what hyperlocal and last-mile delivery are.
Overview of Hyperlocal Delivery
Hyperlocal delivery operations involve the transportation of products directly from the seller to the consumer. But, it is done at the hyperlocal level, within the boundaries of a geographical territory. The best example is food delivery services like Zomato or grocery delivery platforms like BigBasket.
The process usually only involves a single party between the seller and the consumer, i.e. the hyperlocal delivery partner. It is responsible for delivering the orders placed at the eCommerce store from local vendors or a retail outlet. In this way, hyperlocal deliveries are facilitators of omnichannel logistics.
For example, a customer placing an order at Sugar’s website can get it delivered by a hyperlocal carrier from a nearby Sugar retail store. Hyperlocal deliveries are usually restricted within 15-20 kms.
Overview of Last-Mile Delivery
Last-mile or final-mile delivery is the last leg in the supply chain of a product’s lifecycle. It’s the final stretch of the distance a carrier covers to deliver products to customers. As a crucial component in the logistics process, it’s carried out after a multitude of operations in the order fulfillment process.
Last mile deliveries start after an order is dispatched from the eCommerce company’s warehouse or fulfillment center and reaches the penultimate distribution center. From here, the last-mile delivery partner picks up the shipment and hands it over to the customer at their doorsteps.
It is a major determinant of customer satisfaction and their willingness to continue engaging with the brand. The last mile delivery software follows up after first-mile and middle-mile shipping from one state to another or even one country to another.
For example, you dispatch a product from Surat to Kolkata. The last mile would consist of the distance from the warehouse or in-transit hub in Kolkata that received the order to the customer’s doorstep.
Differences between Hyperlocal Delivery and Last-Mile Delivery
While both last-mile and hyperlocal delivery aim to reach the end consumer, the two processes are very different from each other. Both are used by different kinds of businesses, for different kinds of products and even for different locations.
Here is how hyperlocal delivery and last-mile delivery are different from each other:
1. Time frame
Hyperlocal delivery is labeled bullet deliveries because of the super short window of delivery time. Depending on the distance from customer’s location and the supplier, hyperlocal deliveries can be carried out under 60 mins to 2 hours.
Businesses that use hyperlocal delivery are usually located in close vicinity to their customers and aim to reach them in the shortest possible time.
On the other hand, last-mile deliveries are usually bound by the time frame of the expected delivery dates. It takes into consideration the time needed to reach the transit hub of the customer’s destination and then their doorstep.
As such, last mile deliveries can take anywhere from 12 to 16 hours. This is also the reason why ‘out for delivery’ notification typically mentions a full-day window for the delivery partner to reach a customer.
2. Coverage
Hyperlocal deliveries are generally restricted to a limited geographical area, be it a city or even a cluster of pincodes. It is used by businesses who cater to customers within reach of their stores and easily navigable with GPS.
The use of hyperlocal delivery is to extend the convenience of getting products at the doorstep as against expecting customers to step out to gain access to them. Therefore, the standard distance covered in hyperlocal delivery is 5-15 kms.
Last-mile deliveries can be made across the breadth and width of the country. Usually, last mile delivery companies have access to all 9 pin code regions of the country, and even abroad. So, they service Tier 1 to Tier 4 cities, including remote areas.
Therefore, the last-mile delivery process helps connect products from across the globe. However, to quote a number, all last mile deliveries are conducted within an approximate 30 kms of the transportation hub of the customer’s city.
3. Size
Hyperlocal deliveries have weight restrictions on the products to be delivered and usually it is capped at 15 kgs. Ordered items are generally small in dimensions as well.
Anything that goes beyond the weight threshold would mean extra charges at the time of delivery. This is to ensure that the weight requirements are maintained to ease the delivery agent’s load of carrying and transporting them.
Last-mile deliveries are more flexible in terms of the size and weight of the products that can be delivered. No extra charges are involved beyond the shipping rate that was decided at the time of order placement.
Usually the shipping carriers have their own weight charts and packaging supplies for different products. But, they deliver products in shapes, sizes, dimensions, and volume, be it as parcels or freight.
4. Type of products
Hyperlocal deliveries are generally used to deliver products that are consumed quickly, or regularly. One of the most common use cases for hyperlocal deliveries is FMCG goods like packaged food, grocery, medicines and small items. There is significant focus on delivering perishables in the process of hyperlocal deliveries.
Last-mile deliveries are open to all types of products. Last mile deliveries involve the use of different types of fleet depending on the shipment weight and size- trucks, bikes, vans, etc. So, it is equipped to handle small items like cosmetics, apparel, shoes, documents and bulky items like fridge, wheelchairs, television, you name it.
Conclusion
Though hyperlocal delivery and last-mile delivery may have similar purposes, they do so in distinct ways. While hyperlocal deliveries are used by businesses to reach customers in close proximity, last-mile deliveries allow businesses to connect with customers all over the country. They use different technology and offer different benefits to businesses. Both form an integral part of the logistics industry and are critical to business success.
