Hyperlocal Services Market Size, Share, Industry Analysis, By Type (Food Ordering, Grocery Ordering, Utility Services, Pet Food and Medicines, and Others ), By End-user (Residential and Commercial), and Regional Forecast, 2024-2032

The global hyperlocal services market size was valued at USD 3,379.30 billion in 2023. The market is projected to grow from USD 3,668.81 billion in 2024 to USD 9,974.09 billion by 2032, exhibiting a CAGR of 13.32% during the forecast period. North America dominated the Hyperlocal Services Market with a market share of 43.46% in 2023.

Hyperlocal services mainly refer to the transfer of goods or services to a specific physical location, usually within a small radius of a few kilometers or less. The prime objective of these services is to provide fast and efficient delivery to customers within a particular area. Recently, the rise in smartphone usage has significantly transformed consumer connections with local businesses. Smartphones facilitate easy access to various online services, including food delivery, grocery shopping, home utility services, and others. This convenience aligns with the on-demand lifestyle of modern consumers, fueling the market’s growth of hyperlocal services. Moreover, there is an increasing demand for efficiency and convenience, particularly in urban areas where busy lifestyles limit the time available for tasks such as shopping and home maintenance. Hyperlocal services cater to this need by providing quick and easy accessibility to goods and services, thereby boosting the market’s size.

The COVID-19 pandemic heightened safety and hygiene concerns among consumers, leading to a greater focus on contactless delivery by hyperlocal service providers. This drove growth in the demand for these services. With lockdowns and social distancing measures in different regions, most consumers turned to online shopping for essentials, such as groceries and medicines. This benefited the hyperlocal services market, which resulted in the shift of consumer purchasing behavior toward online services during 2020.

Hyperlocal Services Market Trends

Increasing Demand for Convenience to Boost Service Demand

Urban consumers often lead hectic lives, leaving them with limited time for everyday tasks such as shopping and home maintenance. Hyperlocal services provide on-demand access to goods and services, allowing consumers to save time and effort. This acts as a crucial aspect of their convenience-driven preferences, boosting service demand. Moreover, the hyperlocal service market has expanded beyond traditional food delivery offerings to include a wide variety of services, including home repairs, beauty services, and healthcare. This diversification allows consumers to fulfill multiple needs through a single platform, enhancing the convenience of using hyperlocal services. For instance, according to the U.S. Bureau of Labor Statistics, the number of people employed in the U.S. reached ~ 161,266 in July 2024, grasping an employment-population ratio of ~60% in the same period.

Hyperlocal Services Market Growth Factors

Technological Advancements in terms of Online Channels to Surge Market Growth

Technological advancements, such as automation, data collection, augmented reality, visibility, and Artificial Intelligence (AI), have become indispensable due to shifting demands from suppliers and customers. These innovations have enabled hyperlocal service providers to optimize their offerings and enhance customer experiences through personalized recommendations and efficient service delivery. Besides, e-commerce and mobile commerce platforms have progressively embraced and acquired hyperlocal services to reduce delivery costs and times. These digital platforms facilitate transactions between consumers and service providers, enabling easy access to a wide range of offerings such as food delivery, grocery shopping, and home maintenance. For instance, in April 2023, Hindustan Unilever, India's largest consumer goods company, developed a mobile application that empowers millions of small-scale retailers across the country to embrace digital transformation. The app enables these retailers to optimize their purchasing decisions, streamline day-to-day operations, and ultimately enhance the overall profitability of their businesses.

Rapid Urbanization and Widespread Local Business Expansion to Bolster Market Growth

Rapid urbanization and the widespread expansion of local businesses significantly increase the demand for online services. As more people move to urban places in search of better opportunities, the demand for convenient services rises. Urban residents often have busy lifestyles, leading to a greater need for quick access to goods and services. Hyperlocal services cater to this demand by offering on-demand solutions, such as food delivery, grocery shopping, medicines, and others, which are essential in densely populated areas. Furthermore, the expansion of local businesses in urban areas creates a positive ground for hyperlocal services. As these businesses seek to reach more customers, they often partner with hyperlocal service providers to enhance their visibility and accessibility. This collaboration allows local businesses to compete effectively against larger corporations by leveraging the convenience of hyperlocal delivery, thus driving demand. For instance, according to the World Bank, ~56% of the global population, i.e., about 4.4 billion people, are currently residing in urban areas. This trend is projected to persist, and the number of urban residents is anticipated to double by 2050. By that time, nearly 7 out of 10 individuals are anticipated to live in cities.

RESTRAINING FACTORS

Cybersecurity Issues Related to Online Transactions to Hinder Market Growth

Cybersecurity threats can disrupt hyperlocal service operations, leading to service downtime or delays in order fulfillment. Moreover, frequent reports of data breaches and cyberattacks can lead to a decline in customer’s trust and loyalty. When consumers perceive these services as vulnerable to security threats, they may hesitate to use these platforms for their transactions. Therefore, concerns about personal data theft, fraudulent activities, and the safety of online payments can discourage potential users from engaging with hyperlocal or online services, impacting the hyperlocal services market growth.

Hyperlocal Services Market Segmentation Analysis

By Type Analysis

Effective Marketing Campaign for Utility Products to Drive Segment Growth

On the basis of type, the market has been classified into food ordering, grocery ordering, utility services, pet food and medicines, and others.

The utility services segment has been projected to lead the market. Companies in the utility sector are leveraging digital media marketing and innovations in service delivery to attract customers from both residential and commercial. Moreover, the growing adoption of effective marketing and promotional campaigns through online channels further contributes to the high demand for home utility services, leading to segment growth.

The food ordering segment is expected to grow the fastest during the forecast period. Food is a daily necessity, and there is a consistent demand for meals throughout the day. Besides, food delivery services are adapting to growing consumer preferences by offering personalized food and beverage options, hence promoting segment growth.

By End-user Analysis

Increasing Demand for Convenience from Households to Foster Growth for Residential Segment

Based on end-user, the market is categorized into residential and commercial.

The residential segment is estimated to have the highest market share. Residential consumers increasingly seek convenience in their daily lives. Hyperlocal services provide quick access to essential services such as home maintenance, cleaning, and repairs, allowing users to save time and effort and thus fostering segment growth.

The commercial segment is likely to increase at a high rate in the coming years. Commercial spaces require flexible delivery solutions to adapt to changing business requirements. Hyperlocal services offer the ability to respond quickly to fluctuations in order volumes, seasonal demands, and special promotions, making them essential for businesses aiming to remain competitive.

REGIONAL INSIGHTS

The global hyperlocal services market has been fragmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

In 2023, North America gained the largest part in the hyperlocal services market share. North America, particularly the U.S., boasts the highest smartphone penetration globally. This widespread adoption of smartphones facilitates easy access to hyperlocal services, allowing consumers to order food, groceries, and other services seamlessly through mobile applications. For instance, as per the data from a U.S. Census, in the first half of 2024, approximately 97.1% of individuals in the U.S. accessed the Internet, up from nearly 75% in 2012. Besides, the U.S. is one of the largest online markets globally, and in 2022, there were ~299 million internet users in the nation.

In Asia Pacific, there is a surge in investments in hyperlocal startups, particularly in India, South Korea, and China. These investments support the development of innovative platforms that connect local businesses with consumers, enhancing service offerings and market reach. Besides, government initiatives also play an important role in fostering a supportive environment for these startups in the region. For instance, in July 2023, Dusminute, a company specializing in hyperlocal grocery and managed services, secured USD 1.56 million in a bridge funding round led by Inflection Point Ventures. The round was also comprised of contributions from present investors and other prominent investors coordinated by Bandana Kankani.

Europe is home to several prominent food delivery companies, such as Deliveroo, Glovo, and Delivery Hero. These platforms have integrated deeply into consumers' daily lives, driving demand for hyperlocal services in the region. Additionally, the competitive landscape encourages innovation and improves service offerings, attracting more customers and increasing revenues within the hyperlocal service sector in Europe.

The hyperlocal service market is experiencing significant growth in South America and the Middle East & Africa. Both regions have been undergoing rapid urbanization, leading to increased demand for convenient services. As populations move to urban areas, the need for hyperlocal services, such as food delivery, grocery shopping, and other services, grows to accommodate busy lifestyles, fostering service growth in regions.

KEY INDUSTRY PLAYERS

Increasing Investment of Business Toward Expansion of E-retailing Services to Propel Market Growth

E-retailing platforms provide businesses with extensive data on customer preferences, behaviors, and purchasing habits. This information is important for implementing marketing strategies, product development, and overall business decisions, allowing companies to tailor their service offerings to cater to consumer demands effectively. Moreover, investing in e-retailing enables key players to create a unified shopping experience that assimilates online and offline sales channels. This omnichannel method allows customers to relate with the brand across various platforms, enhancing convenience and customer satisfaction and thereby fostering market growth. For instance, in June 2021, Hindustan Unilever Ltd (HUL), India’s largest manufacturer of packaged goods, set out to enhance the online presence of several premium brands through standalone branded websites as well as its multi-brand shopping platform, UShop. The digital infrastructure and physical backend of UShop were intended to support all digital-first and high socio-economic class brands, such as Love Beauty and Planet, Simple, and Horlicks, providing a consumer experience similar to that of any other digital-first brand’s direct-to-consumer (D2C) site.

LIST OF TOP HYPERLOCAL SERVICES COMPANIES:

• Swiggy (India)


• Zomato (India)


• Delivery Hero SE (Germany)


• Grubhub Inc. (U.S.)


• Instacart (U.S.)


• Dunzo (India)


• Urban Company (India)


• Housekeep (U.K.)


• Big Basket (India)


• Uber Technologies, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2024 – Uber India is focusing on enhancing its hyperlocal delivery services sourced from neighborhood stores. The company has rolled out this service across nine Indian cities, utilizing two-wheelers to pick up customer orders from local shops.


• May 2024 – Reliance Retail, a subsidiary of Reliance Industries Limited, initiated a pilot program for the instant delivery of groceries and Fast-Moving Consumer Goods (FMCG) in select areas of Mumbai, India. The company intends to fulfill these orders using its network of stores and warehouses, as well as by collaborating with local stores that have participated in the JioMart Partner initiative.


• November 2023 – UPS,  a global shipping and logistics service, launched its hyperlocal delivery service, offering a selected group of customers a 'rapid' next-day delivery option. This new service aims to capture profitable B2B and B2C volume by providing expedited local deliveries within metropolitan areas.


• November 2022: Celcius Logistics, an Indian logistic service provider, announced the launch of its hyperlocal temperature-controlled delivery services for food and pharmaceutical orders in India. Currently, the company has partnered with Zomato and serves as their preferred partner for temperature-controlled deliveries across various cities for inter-city orders.


• September 2021 – Flipkart, an online shopping platform, introduced its hyperlocal service called Flipkart Quick, aimed at delivering electronics and groceries within a 90-minute timeframe. Through this initiative, the company intends to implement same-day delivery across 20 cities in India.

REPORT COVERAGE

The hyperlocal services report analyzes the market in-depth and highlights crucial aspects such as prominent companies, product types, sales channels, and application usage areas. Besides this, the hyperlocal services market research report provides insights into the market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation