Hyperlocal: The future of online pharmacy business model

Authored by Parth Parekh on August 19, 2020

The pandemic has turned the wave for the future of online pharmacy business model towards hyperlocal. In fact, the same can be said about every other business. 

With consumer lifestyles having undergone an unprecedented transformation due to COVID-19, consumer demand patterns can be seen shifting primarily towards purchasing essentials. 

Brands are facing challenges such as maintaining inventory levels for essentials, shortage of manpower, urgent dependencies on intermediaries and delayed delivery cycles.

This situation has pushed multiple brands to come together and build partnerships to create a strong ecosystem for hyperlocal deliveries. Due to the lockdown across many regions and countries, consumers are getting conditioned to make their purchases online and hyperlocal players are cracking the code of last-mile delivery by improving routes and drop density for their businesses to be cost efficient.

From multinational to hyperlocal

Players operating in India, like Zomato, Swiggy, Grofers, BigBasket, Dominos and Dunzo, are riding the hyperlocal wave in the wake of increasing demand for essentials being unmet by a disrupted supply chain. Aiming to capture a significant size of the same-day delivery market, these players schedule pickups from local stores and emphasize the hygiene procedures that have been undertaken to ensure safe delivery. They also offer contactless and cashless delivery, thereby providing convenience and safety, while leveraging evolving consumer behaviour brought on by the COVID-19 pandemic.

However, some players have been seen taking alternate approaches, like Amazon and Grofers, who set up their own warehouses and are using a hub-and-spoke model. Spencer’s Retail has symbiotically partnered with Uber and Flipkart to leverage support from local retailers but eventually preferred to launch Supermart, which is backed by its own warehouses for operational efficiencies.

Swiggy and Dunzo, who have been players for a significantly longer period, have deployed a different strategy than their traditional operating model, and tied up with wholesale establishments located on the outskirts of major Indian cities, also known as dark stores, which don’t often supply walk-in customers. Through this strategy, the platform is enabling such stores to grow their volumes organically.

Benefits beyond the delivery

Even major FMCG players such as Marico, Godrej and Britannia are leveraging the existing infrastructure of food delivery and hyper-local delivery apps such as Rapido, Ninjacart, Swiggy and Zomato, which are helping them in getting a tighter grip on consumers and providing them with an opportunity to test new markets. 

Underutilized labor across industries can be leveraged by businesses that are facing acute labour shortages to execute smooth product deliveries. This synergy has the potential to pave the way toward creating a strong impact on how different brands and retailers handle their inventory.

One of the most noteworthy impacts on inventory management could be the adoption of ‘just in time’ inventory. Rather than procuring goods only when needed, companies will start focusing more on emergent strategies. The adoption of local sourcing is also expected to rise for speedy movement of goods in the market.

The long-term impacts

A greater number of market players are exploring the shift towards a direct-to-customer (D2C) delivery model, where products are directly sold to customers, thus reducing the dependency on intermediaries. Several players will be able to evolve their distribution channels and execute direct deliveries to consumers. This model will enable local retailers to increase their market coverage and allow FMCG players to push their inventory and efficiently achieve scale. While supply chain and procurement strategies around the response for COVID-19 are still evolving, the long-term impact on businesses is yet to be seen.

The level of disruption in the hyperlocal business model

Well, this is something to be noticed. The introduction and application of Hyperlocal concept have taken on-demand businesses to a new level. The main objective of this conceptual innovation is to ensure a positive online shopping experience. In simple words, your customers will place an order of the things they want to buy, and you will pass the order details to the nearest store of customers’ location to ensure delivery within an hour’s time.

This is one of the main reasons why modern-day entrepreneurs are approaching top mobile app development companies. They want to facilitate faster delivery of products ordered by the customers. They want their customers to get things delivered at their desired location instead of making them come physically to their store. It is just for giving them a highly positive online shopping experience.

Taking this into notice, it is easy to understand the level of disruption likely to cause by the application of this conceptual innovation.

Why is Hyperlocal business better than eCommerce

Read the blog ‘Why is Hyperlocal business better than eCommerce explained‘ to understand how important and effective the Hyperlocal delivery model has become in the past few years. But the discussion on the benefits of the Hyperlocal business model will still be incomplete if the micro-delivery service model isn’t mentioned. In fact, the micro delivery model serves as the definitive backbone for most businesses that are reliant on the Hyperlocal delivery model. This is why we have written an entirely independent article explaining what is micro delivery model in detail.

Effects of hyperlocal delivery model

This is something to be taken into notice by businesses as well as their customers. The main reason is the number and nature of benefits businesses and customers get to reap with it. Some of the benefits of Hyperlocal concept for businesses and customers are as mentioned below:

Increase in sales post eCommerce

The rapid growth of e-commerce has affected offline retailers negatively. The majority of them now see e-commerce as a threat to their business. Acceptance and application of Hyperlocal concepts offer them a great opportunity to gain visibility and increase their sales, customer base, and revenue to stay alive in the business market.

Fewer efforts needed by retailers

This is another reason why top mobile app development companies are focused on the development of mobile apps based on the idea of the Hyperlocal concept. This concept actually allows offline retailers to get their store enlisted with one of the respective platforms. Once the order is placed by some customers, the delivery partner will assign the order to a delivery executive. Delivery men will be managed by the delivery partner. Hence, embracing Hyperlocal concept is a great opportunity for them to save and grow their business like never before.

Transparency and efficiency

Your customers receive the lion’s share benefit offered by this delivery model. They get the luxury to evaluate options available for reaching an informed decision. The biggest benefit customers get is efficient delivery. This is something that adds to the CSR (Customer Satisfaction Rate) offline stores to help them get new customers in the future.

Increased competition

Customers get the most benefit from this innovative delivery model. It acts as an effective system that encourages offline retailers to improve the quality of their business efficiency, transparency, and relevant standards and practices. As a result, customers get the best quality of products or services at a competitive price.

A single device for all your errands

Just a few taps on your smartphone’s screen and everything is done for your customers on the go. This is something on-demand business apps are now trying to provide you through the application of Hyperlocal concept.

How can the hyperlocal concept help you

This must be an important question spinning in your head. The answer to this question is very simple. You just need to follow a traditional pattern of launching your business. 

Once your business is launched effectively, it is now time for you to market it similarly. This is where you need to be process-driven. In simple words, follow the process mentioned below:

  • Choose your domain (Industry) of business.
  • Choose your niche.
  • Determine your target audience.
  • More importantly, focus on closing the deal with merchants (targeted offline retailers)
  • Have a foolproof revenue model ready in place.
  • Approach a reputed mobile app development company like Archisys and get your app ready.

Hyperlocal is fast becoming the hottest business trend for many e-commerce companies. It has come into play now. This is why many e-commerce businesses are now able to fulfill the demands of their customers at their desired locations within a very short period of time on a daily basis. 

The application of Hyperlocal concept is now all set to revolutionize the e-commerce industry in association with offline retailers pushed back to the wall with the growth of the online shopping trend. 

If you are also doing some thinking about joining the party, you will first need to get your app ready from the best mobile app development company. We have everything to be that for you.

Here’s a suggestion that we’d like to make to you. Retail pharmacy that was thought to be almost dead or useless in the past few years has had its biggest resurrection from March 2020 and is booming now more than ever due to the customers’ choice of going Hyperlocal.

Let me tell you more about it

What is Online Pharmacy?

If we talk about starting a Pharmacy Marketplace, then the first thing that comes in mind would be what is an online pharmacy and how to start it?

Well, online pharmacy is a pharmacy that is operated through the online website. Customers place the order using a pharmacy website or by uploading a prescription.

Orders are assigned to the sellers based on the hyperlocal on-demand delivery model.

Thus, the sellers accept the orders online and then ship them to the customers through the shipping companies.

Why choose e-Pharmacy marketplace

According to a report by oberlo, The number of online shoppers is expected to grow by 2.14 billion by 2021.


This report is enough to explain how the market of the e-commerce industry is growing rapidly.

So, if we talk about e-pharmacy, it is the right time to dig into e-commerce with an idea to take your physical medical store into the online e-pharmacy marketplace.

With the move into the digital platform, many of the vendors will have an option to list and sell their medicines online.

Furthermore, if we talk about the market giants in the e-pharmacy marketplace, these are the few companies that have set the milestones for the other entrepreneurs.

Benefits of e-Pharmacy marketplace

  • The consumers can order the medicine from the e-pharmacy marketplace as per their convenience.
  • Consumers can use mobile applications to search and order medicines online.
  • It is hard to find medicines from different physical medical stores. Most of the time it becomes time-consuming for the consumers.
  • A record of the purchased medicines is maintained separately. The customers can see the history of their orders.
  • A record of the transaction is maintained with the tax details.
  • Medicines are available based on the prescription as prescribed by registered doctors or medical practitioners and provided by the user.
  • No charges for infrastructure.
  • Hassle-free order management system.

How to sell drugs online Fast

Read the blog ‘How to sell drugs online fast‘ to understand how useful an online pharmacy app can be for any pharmacy business.

Features a Pharmacy Marketplace Must Have


You can set up a Hyperlocal Marketplace System to provide an effective e-commerce platform to your customers and as well as to the vendors on your website.

So, using hyperlocal businesses, you build a local eco-logistics system that enables the customers to buy anything from their nearest register store on your pharmacy marketplace website.


The search feature enables the customers to find out the right medicine and products for them. You can make the search result more scalable using the elastic search. Elasticsearch is a highly scalable open-source full-text search and analytics engine. It allows you to store, search, and analyze big volumes of data quickly and in near real-time.

Seller Badge Profile

Getting authentic medicine from a verified seller or based on the seller badge helps the customer to find out the genuine products from a seller. The admin of the marketplace can decide the badge of the seller according to their performance.

Prescription Upload

Using order attachments or prescription upload a user can upload the prescription and the seller can manually pack the mentioned medicines in the same quantity as prescribed to the user and provided by the doctor.

  • Prescription upload allows the customers to upload the prescription for their orders.
  • The customer can upload the prescription while placing the order or after placing the order.
  • The admin can approve or disapprove the uploaded prescription by the customer.

Mobile app

The number of mobile users is increasing day by day. It will be an effective step if you can introduce your pharmacy marketplace to the users using a mobile app. It will help the users to find out the medicines while they are resting at home.

Deals and discounts

Well, running the deal and discounts on the marketplace is the first step to grab the attention of the customers and generate more sales. Options like daily deals will allow the sellers to build brand loyalty and quickly sell surplus inventory which means, the more the sale, the higher will be the revenue.

Choosing the right payment gateway

Well, if we talk about online shopping, the first thing that comes in mind of the customers to validate and ensure that the website on which they are making the payment is safe and secure.

So, choosing the right payment gateway is a very crucial part. Moreover, these payment gateways also need to provide features like split payments. Split payment enables the split of the payments between the seller and the admin.


According to the stats by Statista, the predicted global e-pharmacy market will grow to reach around 128 billion dollars by 2023.

Now, you have a complete idea on how to start an e-pharmacy marketplace and how to be the giant in the e-pharmacy industry.

So, if you’re thinking to start an online pharmacy marketplace then it is the right time to dig into the e-commerce industry and stand out among those entrepreneurs who are ready to change the world.

Motivational reads:

Why the demand for hyperlocal delivery will continue post-Covid

Hyperlocal: A Modern Commerce and A Revolution in On-Demand Economy

How ‘hyperlocal’ is emerging as the new business model

5 Areas in which Archisys helps in Digital Transformation of Healthcare

Online Pharmacy Netmeds Acquires Hyperlocal Medicine Delivery Startup Pluss

Hyperlocal drug delivery startup Pluss raises $1M

Online marketplace for medicines HealthKartPlus rebrands as 1MG; raises $6M

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