Hyperlocal Business Model: Building Apps for Hyperlocal Marketplace.
Finding new concepts to build your business around these days is a tough nut to crack. Chances are, there are about a hundred other big-time players playing the same game that you thought you discovered. Uber and Amazon, however, cracked open real gems when it came to the on-demand and ecommerce sectors respectively. They can be viewed as pioneers of the era, their respective sectors can be described as the houses that they built. On the contrary, the truth remains that they found a concept to build their businesses around, did it perfectly, and have been reaping the rewards ever since. Recently, the hyperlocal business model has been gaining popularity and it seems that a lot of people are wondering how to follow the mobile-first approach in the hyperlocal business model. In this post, we are going to discuss the hyperlocal business model. Following this, we will also discuss how to build mobile apps for a hyperlocal marketplace.
Because of the time factor, a new concept known as a hyperlocal business model and it’s different versions has come up, and is surely a buzzword among all entrepreneurs and developers in the on-demand sector.
Hyperlocal? What do you mean?
What is hyperlocal business model? Why hyperlocal business model is important?
When you order your favorite pizza, you get it delivered from a restaurant closest to your home, and not some Domino’s located 1000 miles from where you live, frozen in cold storage. The point we’re trying to make is, the hyperlocal concept is totally different from on-demand, and it involves service providers in close proximity of users. Let’s take some other examples of the hyperlocal business model.
A very specific area, or an area close to your location is what would come under a hyperlocal network. It only makes sense that most of the on-demand economy is based around the hyperlocal business model, as people want stuff delivered fast. Home services, food delivery, taxis, and grocery delivery all come under the hyperlocal on-demand business model since people usually need these services almost immediately when they order them, making sense to connect them with service providers in their proximity.
Why hyperlocal business model? The answer cannot be any more obvious. In addition to the convenience benefits stated above, building and maintaining a workforce to deliver services is easier when a smaller area is under consideration. Aggregators that do so receive benefits from both parties involved, i.e. the buyer and the seller in the hyperlocal business model. This is how Postmates and many other on-demand apps earn their profits, and as we can judge from their valuation, these profits are pretty steep. Considering all the aforementioned factors, it only makes sense to model your business around a hyperlocal on-demand system.
Creating Mobile Apps for Hyperlocal Business Model.
Ever since the “Mobile-First” era took over other ways of doing business, having a mobile app for doing business is getting more beneficial day-in and day-out, no matter what you business is. Especially so, in the industries where personalization is of utmost importance. Building a mobile app for hyperlocal businesses operating on a hyperlocal business model is even more crucial. So, let’s discuss the process of creating the mobile app for the hyperlocal business model:
Order Histories and Booking Scheduler
In the hyperlocal business model, the users are more often found ordering the same stuff over and over. So to make your mobile app based on the hyperlocal business model more successful, it’s important for you to catalog the past orders made by the customers. Using analytics, you can even generate key insights about the consumer behavior for your customers. In case of the services where you book a visit by a person (eg. plumber, beautician, barber etc) through the mobile app, having a booking schedule is very important for the smooth functioning of your app.
Managing Subscription for Users
Since the whole premise of the app would be the ability for customers to order services and goods from shops and service providers in their local areas, managing the subscription as per the rates, the frequency of orders and the nature of the product itself would be a priority. Separate profiles for the customers and the vendors/suppliers as well can be created and features like delivery schedule along with managing their accounts can be added.
Location Tagging and Delivery Tracking
Using the various geolocation methods, tracking can be accomplished in your hyperlocal based mobile app. Not only this helps your customers to stay updated about the deliver of their orders, it even helps you to monitor how the various parts of your business are functioning. Not only this, the very nature of hyperlocal business model is that the search results have be localized as much as possible. This makes the importance of “Location Tagging” even more profound.
Streamlined and Frictionless Payments
Like any other app, having a streamlined and frictionless payment method within your app in this modern age of “we don’t carry cash no more”. We curated a massive in-depth and very useful guide on called “Payment Gateway Integration in Mobile Apps Made Simple”.
Other Side of the Wall (The Admin Panel)
A lot of people don’t give enough attention to this side things quite often. And understandably so, creating the mobile app for the customers end in a hyperlocal business marketplace is overwhelming enough. When we create the admin panel for any of our clients, our sole focus is towards understanding their requirements as per the business model and what is their product and then crafting the perfect admin panel from scratch.
The benefits to the brands From Hyperlocal Business Model
But how on earth building a mobile app for a hyperlocal marketplace is beneficial for the brands? The times are a-changing, and with them, brands need to keep up with the continuous innovations and developments in their sector. It is understandable as to why companies like IBM and Walmart stay on top of their respective sectors, because they invest in new technologies and try their hands at different new concepts. You see, there is a huge business potential if you develop a mobile app for hyperlocal marketplace. Businesses in the on-demand sector must follow suit, utilizing the hyperlocal on-demand model and hit a growth spurt of sorts. In this age of fiery competition, it becomes important for brands to understand what their customers want, and optimize their processes according to demands. The hyperlocal sector is a whole new avenue for brands, and just might be the best opportunity for growth in the on-demand sector.
For brick and mortar stores, the development of the hyperlocal on-demand business model comes as a blessing in disguise. Connecting better with customers and increasing sales are just two of the many benefits involved in this alliance. Making the right moves can help them achieve levels of growth never imagined before. Optimizing your business to support a hyperlocal delivery model couldn’t have been any more beneficial.
How does a mobile app for hyperlocal marketplace benefit your customers?
We all know that mobile-first approach is very helpful for the customers, too. The same can be said for the development of mobile apps for a hyperlocal marketplace. Needless to say, convenience is a major benefit that hyperlocal on-demand players provide. Most of us are now accustomed to sitting on our couches, binge-watching Netflix while munching on our favorite snacks. All of this and more has been made possible only by the diligent services of on-demand brands. Hitching a taxi was never as easy as it is with Uber. The point we’re trying to make is, convenience and speed is perhaps the most obvious benefit that customers can avail from a hyperlocal on-demand business model.
Apart from that, multiple brands when participating in the same race, produce a buffet-like situation for customers. In their constant efforts to outdo each other, brands put out the best products at the most reasonable prices. For customers, it is a celebration of competitive prices and the best services. Sit back and take the most advantage of this competition!
Modeling your business around the hyperlocal concept
Building your entire business around a certain concept requires tons of planning, research and coordinated effort to bring about the desired changes. The hyperlocal concept is no different. This section is divided into two parts. In the first, we talk about what it takes to do so, and then, we move on to how to go about doing so. Read on and find out how to model your business around the hyperlocal on-demand concept flawlessly. Following that, we will be discussing the whole process of creating a mobile app for the hyperlocal marketplace.
What it takes to run a successful hyperlocal business?
There are a few things every entrepreneur needs to keep in mind when modeling their business. After all, the foundation and the backbone of the business is what sets it up for future growth and success.
Balance distance and proximity
A hyperlocal concept need not be confined to a single locality or area. Understanding the difference between a local region and a locality is important here. Any region that is widespread but local would be a good fit for a hyperlocal business model. It may or may not be restricted to the coverage of a certain area.
Acknowledge your strengths and weaknesses
It is part of the business to admit when you cannot do a certain thing and to take pride in yourself when you can. In a hyperlocal business model, it is easy to go with the flow and think that you could do everything thrown at you. The truth is, learning to say no is an important feature of running any business, not just a hyperlocal on-demand model based one. Make sure that you focus considerable strength and expertise towards building a mobile app for your hyperlocal marketplace. This will give you a certain edge over your competitors.
Get your employees involved
Making your employees feel like they are entrepreneurs will do wonders for your business. They are the stakeholders in your company, and you should treat them the way they are meant to be. Recognizing people for their contribution, even if it is completing a targeted number of deliveries in a certain week, is a way to empower your employees and keep them going. A hyperlocal business model will not require you to maintain a workforce of thousands of employees. This gives you a chance to interact with them one-on-one and make them feel like they belong here.
Affiliations are key
Building and sustaining a hyperlocal on-demand business model is not a one-man/woman job. Getting the right tie-ups and affiliations is crucial to keep your business running and your competitors on their heels. Local shops and brick-and-mortar stores should be your primary targets for affiliations, preferably those which operate completely offline. This gives both parties involved an entirely new dimension. This is a very important part of building a successful platform based on the hyperlocal business model.
Build a solid revenue model
You’re running a business based on the hyperlocal business model. Your ultimate aim is to earn a profit, isn’t it? Deciding on what revenue model you want to implement early on is probably good practice when it comes to running on-demand businesses. You could take a commission on orders booked through your platform, or if you are delivering the services yourself, you could charge small delivery fees from customers on each order that they place.
The customer experience should be flawless
Implement your business around the hyperlocal business model in such a way that the customer always comes out on top. As you will be catering to a smaller area, you could perhaps spare a bit more attention towards your customers, in order to understand what they want and what they are expecting from your business. Train your employees in the handling of customers, because ultimately, they represent you.
Implementing the aforementioned points will certainly give you a head start when it comes to building a hyperlocal on-demand model business. You can also use developing the mobile app for your hyperlocal marketplace to create an amazing customer experience for your customers.
How to do it now, you ask?
Fear not. We have you covered.
The Final Word
Modeling your business around a hyperlocal on-demand strategy is one of the most innovative steps an entrepreneur can take these days. However, there are a few hurdles that need to be crossed along the way. Forming meaningful partnerships, training employees and scaling capabilities present some of the biggest challenges to hyperlocal businesses. Creating economically sustainable models, hence, becomes more and more difficult. However, following the procedures and steps outlined in this article, entrepreneurs can certainly build their businesses around the hyperlocal model as efficiently as possible and rake in huge profits. And in this age of technology and mobile-first approach, it is of prime importance to build a robust and scalable mobile app for your hyperlocal marketplace. It will help you gain more customers and hence drive tremendous growth.
So, what are you waiting for? Grab your phone, make some calls, and put your business on the (hyperlocal) map!
How can Sodio Help with your hyperlocal marketplace?
Are you looking for any help with creating a platform based on the hyperlocal business model? Well, Sodio is here to help you. Whether it’s about understanding the technology that’ll be used or even a simple question like what things you should include in the platform, anything you need to ask, feel free to get in touch with us. Our product managers and developers would be more than glad to help you out with anything regarding building the platform for your business based on the hyperlocal business model. We have developed more than 50 successful products with a number of clients from across the world. Our technology stack for Android and iOS apps are nothing but cutting-edge and we make sure that your product is made as per the end-users. So, do you have anything you need help with? Let us know.