Online Hyperlocal Delivery Business Model | Complete Guide for Food and Grocery Marketplace


The hyperlocal delivery business model is spreading its wings in the food and grocery market. Experts assume that in the coming future, the Grocery home delivery business will expand remarkably, and incorporating the hyperlocal delivery business model is a win-win for all the focuses involved. If you are looking for a solution to start a marketplace for grocery or food delivery business then KnowBand has exactly what you are looking for.

The modules developed for creating a hyperlocal marketplace are very well curated by the technical experts and analyzed by industry specialists to empower local businesses with the online grocery store or a food delivery marketplace. Online grocery shops have high profitability and the majority of people prefer online shopping rather than visiting the stores.

Bring your store on a digital platform and start your home delivery business with Hyperlocal Marketplace Module. For the beginners’ guide, you can refer to this article on on-demand Grocery Marketplace.  To deliver grocery, food, personal care products, or any services you need to make a plan and this article will be a step-by-step guide for launching your online home delivery store or an online marketplace. The hyperlocal delivery business model gives a platform to small businesses; they can become a seller on a marketplace and start selling immediately.

Companies like Amazon, Flipkart, Alibaba, Airbnb, etc, have established their brands in the marketplace industry and it is not easy to compete with these hotshots. Still, you have an opportunity to grow as people are supporting small businesses locally.

Step-by-step guide for a hyperlocal delivery business

Finding difficulty in deciding the right industry?

Don’t worry!

We have a plan.

Step 1- Select the industry you want to work in:

To finalize the industry for your hyperlocal home delivery business, do some market research. ECommerce has a lot of potentials if you do it right. Before establishing your hyperlocal marketplace business talk to industry experts, take help from the consultants or you can conduct surveys nearby.

Make good survey forms including all the necessary questions for the sellers and customers. List the benefits you will have and the sellers can enjoy. This will help you in finalizing your domain for the home delivery business.

Step 2- Decide your niche:

Once, you have decided on the industry, now it is time to determine the niche. The specific area you want to focus on. The hyperlocal delivery model for the food industry starts when you begin to think about the product and service you will deliver. You can choose basic needs products like dairy and bakery items, packaged food from a restaurant, lunch box delivery, essential grocery, or fresh vegetable delivery in local areas.

Here is the list of the top 10 budget-friendly hyperlocal business ideas. I’m sure this will help!

Step 3- Analyze what fits into your pocket:

Money comes next! Do not tempt the idea and dispose of your savings. Look into your budget and see what you have and how much you have to spend? Market research is important if you are putting your step into the hyperlocal delivery business. In my opinion, food and grocery delivery businesses are the best choices out there because this comes in the essentials and the essentials never go off the market. We already have witnessed the COVID 19 crisis scenario and boom in the hyperlocal grocery marketplace.

Step 4- Time to develop a website

Since you have to start your store online, you will need a website to enlist your products and services. You can either start a grocery, food, or personal care delivery business of your own, or you can create a marketplace web store and provide a platform to other small businesses.

A website can be created in a few simple steps:

Step 5- Attract sellers to your marketplace

attract-sellers-to-food-hyperlocal-delivery business

Sellers are the most important part of a marketplace. If you are planning to start a food delivery marketplace similar to UberEats then you need to contact multiple restaurants and show them the benefits they can have if they sell on your marketplace. The food delivery marketplaces follow the hyperlocal delivery business model and we know how they are flourishing globally.

Read: How to Attract Sellers on OpenCart Marketplace

Step 6- Built strong customer base

In a marketplace, customers and sellers are interdependent. If you succeed in attracting sellers you will automatically invite a large customer base. Grocery home delivery and food delivery from their favorite food stall is the preference of every person as this gives them convenience and save time.

You can use Social Media to attract the audience by creating pages on different platforms. Read these articles for some of the best ways to attract more customers to a hyperlocal marketplace.

Recommended Reads:

Step 7- Make delivery set-up and tie-up with courier services

The success of an online grocery company depends heavily on how easily you can deliver the goods to the home/office of your client.

This makes it a vital factor in the entire start-up process to set up an effective distribution system.

Most consumers in India prefer delivery on the same day, more so for food and grocery products, and any unreasonable delay in this specific segment is generally frowned upon.

This is also not feasible, however, solely because of a shortage of human capital or the unavailability of vehicles to transport goods.

Deliveries often seem to come at a large cost-to-company, accounting for almost 30-40 % of total company costs. You can reduce shipping costs with some of the pro tips suggested in this article.

Step 8- Develop a Marketing strategy

The marketing strategies for the home delivery business can be a game-changer. You can use various social media platforms, go for email marketing, run campaigns; offer discounts, and a lot more can be done. You can attract sellers and customers by writing blogs and sharing success stories.


Although major online grocery players such as Big Basket and Amazon have the budgets on many media fronts to afford high-profile celebrity campaigns, you don’t have to follow the same path.

Instead, you can choose to market your online grocery store using local avenues that are equally successful, such as;

  • Putting a commercial in the local newspaper
  • Running a campaign on social media.
  • Sending SMS in bulk.
  • Putting up hoardings at famous places in your local area
  • Word of mouth is the best you can do
  • You can also hire food bloggers

Step 9- Allow Buy online In-store pick-up

It is a new trend to follow. Set up your Online Grocery Business with Store Pick-up Facility. This can save you from extra shipping charges and people sometimes prefer this to maintain safety and hygiene. COVID 19 outbreak expanded the market for BOPIS.

Read: Start your online grocery store with buy online and pick in-store functionality.

Before starting a hyperlocal delivery model for a food business you need to take care of some legal requirements and documentation work.

  • You need to form a legal entity
  • Register your firm or company for taxes
  • Open a business account to handle business transactions
  • Accomplish your licenses and permits as per your country’s policy and take the licenses according to state & local Business requirements
  • Since you are selling food products, follow all the food safety measures and regulations
  • Do vehicle’s registration and hire a licensed driver for transportation

Create a Mobile App:

Considering the numbers, the smartphone consumer base is wide and about 80% of the smartphone users did online shopping through mobile phones in the year 2020.


After the successful launch of your home delivery website, you can create a mobile app as the number of smartphone users is more than the desktop user. Built a grocery store mobile app for eCommerce and you can refer to this article to read the success story of our happy clients.

Read: [Success Story – Goldengrocery] Grocery Mobile App for E-Commerce

Wrapping up:

This article and the attached reads are sufficient to guide you on starting a hyperlocal home delivery business and a food delivery marketplace. The successful food delivery apps like DoorDash, UberEats, Zomato, etc. created a marketplace for small and big restaurants and increased their customer base and sales. Gear up for the new venture! You tell us what you want and let us think.

You can write to us at or visit our website for further assistance. Our technical experts will guide you and help you throughout the journey.

Vishakha Nathani

Vishakha Nathani

Vishakha can be found writing, crafting or digging Earth. Her love for writing made her switch her profession from a Geologist to a Writer. Additionally, she likes keeping herself engaged in crafting and redecorating spaces. You might found her posting 3 am poetry on her Instagram story. Her proclivity for writing is never-ending.

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