Difference between Hyperlocal Delivery Vs Last-Mile Delivery
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
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
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.
Difference between Last-Mile and Hyperlocal Delivery,
Let?s check out the top factors that set apart last-mile delivery vs hyperlocal delivery.
Time Necessitated for 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.
Taking Charge of Delivery
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.
Area of Delivery
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.
Restrictions on Weight and Volume
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.
Delivered Products
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.
Challenges associated with Hyperlocal Deliveries
Increasing Competition
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.
Fleet Management
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.
Unconventional Operations
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.
Challenges associated with Last-mile Deliveries
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.
Confined visibility
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.
Not Ensuring seamless deliveries
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.
Collaboration between the customer and the delivery person
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.
Layout optimization
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.
Conventions, skillful unpacking, and installation
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.
The Importance of Last-Mile and Hyperlocal Search in Today?s World
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.
In Conclusion
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.