Last Mile Delivery vs Hyperlocal Delivery – Key Differences

The COVID-19 pandemic forced people to stay away from the physical world of retail and grocery shopping. Moreover, online shopping convenience made it less attractive for the masses to go out and expect on-demand delivery for almost everything. However, a significant increase in e-commerce transactions has also resulted in the rise of hyperlocal deliveries or on-demand delivery model. Is there any difference between last mile delivery and hyperlocal delivery? Let’s check out.

What is Last Mile Delivery?

As the name suggests, last mile delivery is the last or final stage in the journey of products from the warehouse to the customer’s doorstep. It is the most crucial, expensive, and time-consuming part of the shipping process. Businesses always ensure the process is quick and efficient.

What is Hyperlocal Delivery?

Hyperlocal delivery is the process where goods are delivered directly to the customer from the seller. The delivery process is faster and less expensive and involves minimum handling.

Difference Between Last-mile Delivery and Hyperlocal Delivery

Let’s check out the top factors that set apart last mile delivery and hyperlocal delivery.

1) Delivery Time

As per experts, the last mile delivery of a shipment can account for 53% of its total cost. The average delivery time required by the last mile model is typically between 12-16 hours. If the delivery area is greater, especially in metro cities, the time taken can also be more than 16 hours.

Meanwhile, in hyperlocal delivery, the delivery agent delivers the product within a minimum of 2- 3 hours. The main reason for a faster delivery time is the limited geographical perimeter compared to last mile deliveries.

2) Delivery Area

In the case of last mile delivery, the delivery area is not limited and can range up to 30KM. The delivery area is determined depending on the location of the central hub.

The entire supply chain is located closer to the buyer and seller in the hyperlocal delivery model. Most of these delivery orders are based on customer’s exact proximity and are not dependent solely on their address.

3) Type of Products

All kinds of products, including consumer goods like TV, appliances, clothes, etc. are covered in the last mile delivery.

However, in hyperlocal delivery, the order typically comprises food, groceries, personal care items, medicine, house maintenance, along with other consumer and retail goods. Most of these shipments are based on your exact proximity and are not dependent solely on the street address

4) Product Volume and Weight

There are no specific weight restrictions for products under the last mile delivery model. The seller is responsible for the delivery charge that depends on the volumetric weight.

Meanwhile, in hyperlocal deliveries, there is a certain limit on the weight and volume of products, as only one delivery agent typically delivers them on a bike or a scooter.

Final Thoughts

Both last mile delivery and hyperlocal delivery have a key role to play in the present market dynamics. A recent Accenture analysis says that by 2023, more than half of all e-commerce purchases will be delivered from local inventory, highlighting the traction that hyperlocal last mile deliveries have gained.

Dista is an AI-enabled location intelligence platform that provides delivery management software to manage and automate last mile deliveries.