For millennia, people have been transporting goods from point A to point B, with the first documented examples being the Egyptians transporting materials over vast distances to construct the infamous pyramids. From human messengers who had to physically run many miles to homing pigeons that flew home to deliver important documents, there have been many methods of transporting goods throughout history.
However now, as time evolves the mode and the ways of delivering goods has completely changed. Humankind has figured out a way to make very fast deliveries anywhere on the planet Earth, from carrier pigeons to shipping boxes using on-demand delivery solutions to commuting with the fastest route possible.
Customers expect efficiency and dependability from all shipping services in today’s modern world. You must have confidence in your shipping or courier service to deliver your package to the intended recipient safely and on time. As we get more into this topic, we over here present you the reliable and trendiest delivery models for your business. By stating out the comparison between the last mile and hyper-local delivery, one can easily calculate and measure which delivery model will reinforce your online delivery business.
The e-commerce industry is enormous. A few terms are frequently misunderstood, and we use them interchangeably. And the terms are – “Hyperlocal delivery” and “last-mile delivery” comes to mind. Despite the fact that they perform similar functions, they have slightly different specifications and functionality. But the end goal is the same for both: get things delivered faster, in a tamper-proof manner, and with the best possible customer experience.
Let’s dig a little deeper and do some micro-analysis to see which delivery model is best for what.
Hyperlocal delivery is a type of delivery in which goods are delivered directly from a seller to a customer. It includes the services of a courier agent who collects products from a seller and delivers them to the customer’s address. It spreads quickly in small geographic areas, and deliveries are usually completed in a matter of hours. As a result, it is more preferable because it saves time.
In this Covid-19 scenario, the hyper-local delivery model has taken on a new meaning. Communities and local governments are attempting to strike a balance between social isolation and economic activity at the same time. A hyperlocal delivery model is a powerful tool for preventing the spread of disease. Because when people see each other, social distancing often takes a back seat.
Last-mile delivery, as the name implies, is the final stage of the delivery process, from the distribution center to the customer’s doorstep. Last-mile delivery can be as short as a few blocks or as long as 50 to 100 miles.
The primary goal of last-mile delivery is to get the package to the customer as soon as possible. In the logistics and supply chain industry, the last mile is regarded as the most crucial component. It’s also essential for ensuring customer satisfaction. The last mile of the shipping process is the most time-consuming and costly part of the entire process. If done correctly, it can save a significant amount of time and money, resulting in a more efficient and profitable business.
There is no such thing as standard last-mile delivery. Some are simple, involving travel on major highways and roads carrying a large number of shipments.
The others, on the other hand, are more difficult, requiring navigation in a congested city, as well as exploration of all the corners and depths of the rural area in order to complete the delivery.
Let’s check out the top factors that set apart last-mile delivery vs hyperlocal delivery.
In the last-mile model, delivery time can take anywhere from 12 to 16 hours. If your eCommerce company sends you a message stating that the delivery agent will deliver the product today, you can expect to receive it within the next 12-16 hours, or even the next business day. When the delivery area is larger, such as in metro cities, the time taken can also exceed 16 hours. A courier delivery agent’s goal in hyperlocal delivery is usually to deliver the product in 2 to 3 hours, with a maximum of 6 to 8 hours. Deliveries do not take as long as last-mile deliveries because the geographical perimeter is smaller.
The courier company that was assigned to carry out the first-mile delivery is solely responsible for delivering the product to the customer. One partner manages the entire process from start to finish.
Hyperlocal delivery can be done by the seller’s fleet or by a delivery company he hires.
The delivery area is not constrained to last-mile delivery. In order to deliver goods to customers on time, the delivery agent can travel up to 30 kilometers. The location of the central transportation hub determines the last-mile delivery area. The delivery area is typically much smaller for hyperlocal deliveries. Within a 5-to-15-kilometer radius, the majority of deliveries take place. When the distance is greater than 20 kilometers, they can be done intra-city as well.
There are no package restrictions for last-mile deliveries. The seller is responsible for the delivery fee, which is calculated based on the volumetric weight. The last-mile delivery is included in the delivery charge, and the seller does not charge any additional fees.
When delivering products in hyperlocal areas, there is usually a gap of 10 to 12 kgs. Because the delivery agent is transporting the package on his two-wheeler, three-wheeler, or car, the weight must be considered. Extra charges are applied if the weight exceeds the specified limit.
Last-mile delivery can include a variety of items such as televisions, refrigerators, cutlery, clothing, cosmetics, and more. There is no specific category for which last-mile delivery is used. Fresh foods, groceries, and other necessities are usually excluded.
Essential items such as groceries, medicines, food, tiffin boxes, and other essential items are usually delivered via hyperlocal delivery because it takes place in a small area and takes less time.
As you are now aware of the parameters of hyperlocal delivery vs last-mile delivery. Let us walk through the challenges both the models present.
The hyperlocal eCommerce market has long been a hotbed of competition. Hyperlocal delivery will no longer be an afterthought as time goes on. There is a lot of competition in the hyperlocal delivery market, with players like Shadowfax local, Dunzo, Grab, and others entering. You’ll need a large reach and a service that connects you to all of these delivery partners because the majority of sellers prefer to use services. The hyperlocal services provided by Shiprocket can assist you with this.
Hyperlocal sellers frequently hire their fleet to sell groceries, medicines, stationery, raw meat, and other items. This can be difficult due to the significant resources required to manage this workforce. Because orders are not scheduled at regular intervals, managing a large fleet can be difficult.
Hyperlocal items are widely dispersed in their distribution. Customers are loyal, but they do not always order on a consistent basis. These orders have a high volume at different times of the year. Aside from that, orders are rarely placed. Hyperlocal deliveries face a significant challenge as a result of these erratic operations.
Even though the challenges mentioned above completely make sense, yet in the comparison between the last mile and hyper-local delivery. Picking hyperlocal delivery solutions is efficient.
It’s not easy to deliver last-mile items. With missed delivery schedules, higher fuel costs, and incorrect deliveries, it can quickly spiral out of control and turn into a disaster. Let’s look at some of the other last-mile delivery challenges.
Limited visibility is one of the major issues with last-mile delivery. The lack of visibility is caused by the fact that most fleet owners in most countries come from an unorganized sector.
The demand for same-day and next-day delivery, as previously stated, is rapidly increasing. Customers expect flexibility and customization, as well as real-time tracking, especially from millennials. It can be difficult to ensure seamless delivery when you have to meet a variety of customer demands.
This may appear to be a minor issue, but it is a significant challenge that every company must face. At the delivery location, the customer is frequently absent or out of reach. Being in this unfavorable situation is a waste of time and money. Furthermore, it increases the likelihood of the package being damaged or stolen.
Another significant challenge is ensuring your drivers’/delivery executives’ productivity and regularly optimizing routes. If you fail in either of these areas, your customer experience will suffer and your operating costs will rise.
Many packages require expert unpacking and assembly when they arrive. As a result, shippers must ensure that the final product is a true reflection of what was promised and sold. Furthermore, some products necessitate the use of trained technicians for installation. As more bulky items migrate from traditional retail to eCommerce, shippers will need to hire more technicians to fill the void.
Last-mile delivery faces numerous challenges and roadblocks, only a few of which have been mentioned.
Both last-mile deliveries vs hyperlocal delivery are critical in the current situation, where the entire world is under lockdown.
The purchasing habits of customers have shifted dramatically. Customers can only buy necessities like groceries, medicines, food, medical equipment, pet supplies, and other necessities now that eCommerce has come to a halt. Some areas are under complete lockdown, and residents are not permitted to leave their homes. This is where eCommerce enters the picture.
Some courier companies have started delivering essential items across the country today. As a result, their last-mile delivery operations must be top-notch in order to ensure the safety of both the person delivering and receiving the package. Masks, sanitizers, and other safety equipment must be readily available. Furthermore, in order for customers to receive their orders on time, delivery operations must be quick.
People usually buy essential items from nearby stores, so hyperlocal delivery can be a game-changer. Nobody is permitted to go to the store to purchase their weekly groceries or medicines. Sellers who want to make their products available to customers right at their door can use hyperlocal delivery.
Even last and hyperlocal delivery are critical to the success of your business. As a result, both must be prioritized in terms of functionality. Without a strong last-mile network, delivering hyperlocal orders is impossible. As a result, hyperlocal delivery can be thought of as a subset and a micro-arm of last-mile delivery.