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.
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