Global Hyperlocal Service Market to Grow at a CAGR of 18% During 2022 to 2030

Introduction

Consumers receive delivery of goods and utility services from hyperlocal service providers. Goods delivery includes groceries, meals, pharmaceuticals, personal items, and others, while utility services include plumbing, home cleaning, lawn care, and electrical services. Local businesses and individuals offer these goods and services. Without worrying about a delivery, hyperlocal service platforms assist restaurants, hotels, fast food outlets, fruit or vegetable, seafood, and other sellers in successfully engaging and managing their business.

Smartphones' growth and Internet accessibility have primarily increased demand for hyperlocal services. The online food and grocery delivery sector is propelled by an increasing working population and income levels. Moreover, due to the rise in COVID-19 cases, several industry leaders, including McDonald's Corporation, Domino's Pizza Inc., and Zomato, have implemented contactless delivery services. This is anticipated to increase demand in the market for hyperlocal services.

Market Dynamics

Changing Lifestyle and Food Habits to Drive the Global Market

Consumers' shifting culinary preferences and hectic lifestyles have increased demand for hyperlocal services such as meal delivery, supermarket shopping, home utility services, furniture delivery, and medicine delivery. Rapid shifts in supporting factors, such as disposable income, consumer preferences, increased working women, and digitization, increase demand for hyperlocal services. In addition, the increase in demand for consumer products has led to a rise in the number of supermarkets, hypermarkets, and retail stores, which has stimulated the expansion of the hyperlocal service sector.

Increasing Smartphone Penetration and Growing Internet Users Provide Opportunities for the Global Market

An increase in smartphone users is the primary growth driver for the hyperlocal service market. This is due to the growing reliance on cell phones for daily activities and demands such as billing, money transfer, and other services such as bus and movie ticket purchasing. Demand for various hyperlocal services, such as food ordering, grocery ordering, drug delivery, and home services, has increased significantly due to an increase in the number of netizens around the world, which is expected to provide lucrative opportunities for new entrants who wish to enter the hyperlocal market.

Regional Insights

Region-wise, the global hyperlocal service market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

North America was the highest revenue contributor, accounting, and is estimated to grow at a CAGR of 14.3%. The market for online hyper-local services in North America held the largest share in 2016 and is expected to maintain its dominance during the forecast period. During the projected period, the North American market for online hyper-local services will be propelled by the increasing acceptance of modern technologies in daily life. UberEats is the fastest-growing meal delivery business in the United States, challenging industry leader GrubHub. During the projection period, the expansion of the hyperlocal service market is anticipated to be driven by the increasing number of startups and their funding partners in the U.S., According to NASSCOM. There were 203 unicorns in the United States in 2019. A startup company with a valuation of over $1 billion in the venture capital sector is referred to as a unicorn. Aileen Lee, a venture capitalist, coined the term. The ranking of the U.S. in global startup ecosystems is presented in the table below; this ranking is anticipated to continue during the forecast period, hence boosting the growth of the hyperlocal service industry. 

Europe is the second largest region. %. It is estimated to reach an expected value of USD 1570 billion by 2030, registering a CAGR of 21.3%. Deliveroo, a London-based food delivery company, is estimated to have pushed its valuation to approximately $4 billion, which is likely to put the company on track to increase its share of the food delivery market. This is primarily attributable to the growing demand for online food, high-level promotions, advertisements, and heavy discounts that encourage consumers to order online. Europe is home to several food delivery titans: Just Eat, Takeaway.com, Delivery Hero, Deliveroo, Glovo, and Wolt have all integrated themselves into the daily lives of millions of customers throughout the continent, generating substantial revenues as a result. Increasing investment in startup enterprises and the assistance of large corporations for companies in their infancy inspire young entrepreneurs to expand their businesses, which stimulates the expansion of the hyperlocal service market. According to Dealroom data, venture capitalists continue to have a solid hunger for the sector: in 2019, over $1.76 billion was invested in European food distribution and delivery companies. Moreover, food delivery services such as Deliveroo ($575.3m), Glovo ($350.9m), and Helsinki-based Wolt ($129.8m) account for the majority of 2019 funding.

Asia-Pacific is the third largest region. The Asia-Pacific hyperlocal service market is examined in China, India, Japan, Australia, South Korea, and the remaining Asia-Pacific nations. The region consists primarily of developing countries with a large customer base, rising purchasing power, and a large working-age population, enticing multinational giants to invest in the region; thus, this factor is boosting the hyperlocal services industry in this region. Growing disposable income, working-age population, and smartphone proliferation have been driving the expansion of the hyperlocal service market, which is anticipated to continue over the projection period due to increasing investment in startups and government backing for the made-in-country agenda.

Key Highlights

• The global hyperlocal service market was valued at USD 1845 billion in 2021 and is estimated to reach an expected value of USD 8185 billion by 2030, registering a CAGR of 18% during the forecast period (2022 - 2030).
• Based on type, the global market is segmented into food ordering, grocery ordering, home utility service, logistic service providers, and others. The home utility services segment accounted for the largest market share and is estimated to grow at a CAGR of 11.6% during the forecast period. 
• Based on nature, the global market is segmented into goods delivery and utility services. The utility services segment was the highest contributor to the market and is estimated to grow at a CAGR of 15% during the forecast period. 

Competitive Players

Competitive Landscape

The major global hyperlocal service market players are Delivery Hero, Just-Eat, Takeaway.com, GrubHub, Grofers, Instacart, Housekeep, Uber Technologies Inc., Handy, and AskForTask.

Recent Developments

Market News

• July 2022 - Today, Delivery Hero, the world's top local delivery platform, is happy to announce that it has joined the United Nations Global Compact ("UNGC") program in keeping with its desire to develop a company of which future generations can be proud. The United Nations Global Compact is a framework for voluntary leadership in developing, implementing, and disclosing responsible corporate practices. Delivery Hero is happy to join the more than 15,000 businesses and 3,800 non-profit organizations headquartered in over 160 countries around the world that actively pledge to take responsibility for their environmental and social effect. With its decision to join the UNGC, Delivery Hero has committed to following the UNGC principles and contributing to developing a more sustainable environment through its CSR & Sustainability efforts, such as its existing sustainable packaging program and worldwide food donation program.
• April 2020 - Delivery Hero has set up tech and product teams to enable local innovation to be scaled for impact globally. With over ten tech hubs on four continents (Africa, Asia, Europe, and South America), it designs and implements solutions that enhance the overall customer experience and shorten iteration cycles and foster a culture of innovation. 

Segmentation

Global Hyperlocal Service Market: Segmentation

By Type

• Food Ordering
• Grocery Ordering
• Home Utility Service
• Logistic Service Providers
• Others

By Nature

• Goods Delivery
• Utility Services

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA.