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Press Release: Global Online Hyperlocal Services Market to Exhibit CAGR of 32.6% Over The Forecast Period
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Online Hyperlocal Services Market - Insights
Online hyperlocal services refer to online business models that cater to consumers in specifically defined geographic locations that are under the reach of their regional service providers’ presence. These business models portfolio include restaurant food deliveries, superstores & hypermarkets grocery deliveries, logistic services, and home utility services such as laundry, plumbing, carpentry, electrical repairing, and personal tutors. Growth of this industry is predominantly reliant on websites and application platforms, in addition to availability of GPS technologies.
According to GSM Association Intelligence Report’s published in October 2016, 44% of the global smartphone users are subscribed to Internet connectivity and this is projected to surpass 60% by 2020. Proliferation of smartphones and Internet in conjunction with significant paradigm shift of consumers from physical payments to digital transaction is among the chief trends projected to fuel the market growth over the forecast period. Accelitec WalletBuilder, Adyen, Airtel Money, Paytm, Allied Wallet, Alipay, and Amazon Pay are some of the prominent payment modes that have gained significant traction in the recent past. Increasing ease of transactions through these payment mediums has led to significant increase in consumer confidence towards utilization of online hyperlocal services and this is expected to be a major growth factor for the market.
Figure 1. Global Online Hyperlocal Services Market, 2016, By Region
Increasing competition among key players to enhance their consumer base has led to significant investments in promotional campaigns and marketing strategies, and this is anticipated to fuel growth of the market
Significant discounts on signing in on a multiple platforms and continuous changes in product pricing to attract large consumer base are among the key strategies for the new market entrants in this industry space. This in turn has led to increased competition among the global and local industry participants, compelling the participants to introduce frequent discounts and competitive product pricing for better consumer retention. Affordable costs and efficient delivery of services are expected to be among the major factors that are expected to propel the global online hyperlocal services market growth over the forecast period.
Offering consumers the required quality at marginal prices and generating revenues over the business’ break-even point in rural and remote locations has been a significant challenge in the recent past. Moreover, consumers are highly price sensitive and are attracted towards higher discounted products. Expansion in rural regions and maintaining optimum profitability is among the key challenges for companies in this space. Some of the participants including TinyOwl, Dazo, Fashionara, PepperTap, and Purple Squirrel were shut down or forced to withdraw operations from certain areas in India in 2016, owing to the above mentioned challenges.
Grocery ordering segment is expected to witness highest growth over the forecast period. Value propositions offered by the players in terms of optimum price, quality products, easy website navigation, and home delivery is among the chief factors driving the segment growth.
North America dominated the global online hyperlocal services market share in 2016. Developed Internet infrastructure, high penetration of Internet enabled devices, and high adoption of e-businesses owing to the requirement of on-demand services are among the prominent factors that have positively influenced growth of the region. Asia Pacific market is expected to witness highest growth rate over the next few years, owing to high untapped consumer base in the region and changing lifestyle in the region. Moreover, growing middle class population, increasing spending capacity, and increasing Internet penetration are among the major factors that are expected to influence growth in the region. According to the Internet World Stats estimations in 2017, China and India together contributed to over 1.2 billion Internet users as of June 2017. Development of the Internet infrastructure and online businesses in the region are expected to provide substantial growth opportunity over the forecast period.
Some of the players in the global online hyperlocal services market include Delivery Hero AG, Instacart, Uber Technologies, Rocket Internet SE, Ibibogroup (redBus, goibibo, and ryde), Airtasker, ANI Technologies, AskForTask, Laurel & Wolf, PriceGrabber.com, Swiggy, and Taskbob.
Online hyperlocal services refer to the online businesses that utilize online applications on smartphone or websites and GPS technology to cater to the service requirements of well-defined regional population or community. These businesses include an extensive range of services and product delivery as part of its offerings, which includes food, groceries, concierge, logistics, automobile, home services, beauty services, networking, and laundry services. End consumers range from individual to commercial and enterprise consumers that require on-demand services or immediate solutions to their needs.
Market Dynamics
According to Internet World Stats (IWS) update in June 2017, internet penetration rate was pegged at 51.7% by percentage of global population, which witnessed an increase of 976.4% in the period of 2000 to 2017. According to Zenith’s Mobile Advertising Forecasts in 2017, global smartphone penetration reached 63% in 2017 is expected to reach 66% in 2018 in the 52 key economies across the globe. High proliferation of mobile and internet enabled smart devices, growing internet penetration, and shifting inclination of consumers from physical stores and services to on-demand services is expected to be the major factor leveraging the global online hyperlocal services market growth. However, intense competition among the players, primarily owing to large number of new entrants and highly fragmented industry space has in turn led to significantly low profit margins. For instance, cab aggregator industry space in India is affiliated by the presence of players that include Ola, Uber, Meru, EasyCab, Tab Cab, mGaadi, Scoot, GO4Cabs, Jugnoo, and mGaadi. These factors are expected to hinder the market growth over the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
Table of Contents
*Browse 60 market data tables and 40 figures on "Online Hyperlocal Services Market - Global forecast to 2025”.
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