Anand Mahindra Hails Digitising Hyper-Local Services, Shares Video: 'In Kerala, Call Coconut Harvester The Same Way...'

(MENAFN- Live Mint) Anand Mahindra, Chairman & Team member, Mahindra Group, took to social media to talk about “new-age, tech-enabled services” making a significant part of India’s services economy, shifting focus from core sectors such as “IT exports or global capability centres.”

In a post X, Anand Mahindra said that in Kerala, a person can now call a coconut harvester the same way one books a cab. “A uniformed professional arrives on a cycle, equipped, trained, and ready to work,” he said, while sharing a video.

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Using this as an example, Anand Mahindra wrote, “We often speak about India’s services economy in terms of IT exports or global capability centres. But we’re digitising even our most traditional, hyper-local services.”

He said that a particular detail from the video – that the young man who climbed those trees was from Chhattisgarh" – stayed with him.

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Anand Mahindra recalled that: “When I began my career in our Group’s steel business, many of of our associates working in our furnace and foundry shops had come from states like Bihar and Madhya Pradesh, travelling far from home in search of opportunity.”

“Today, it seems those same aspirations are finding avenues not just in heavy industry, as in the past, but in new-age, tech-enabled services,” he said.

“People moving, adapting and rising are a powerful economic force. And also a force for integration. As long as they’re welcomed by the host states!” he wrote on X.

Hyperlocal delivery industry

Today, service apps such as Blinkit, Urban Company, Dunzo, Zepto, Coox and Swiggy Instamart provide hyper-local services in urban areas. From providing personal cooks and home services to enabling printout delivery to helping customers get at-home salon and massage services - several companies are currently engaging gig workers not just to deliver food, but several other day-to-day services.

According to Allied Market Research, the hyperlocal delivery industry had a value of $1,324 billion in 2019 and is anticipated to grow to $3,634 billion by 2027, growing at a compound annual growth rate (CAGR) of 17.9% throughout this time, read a release posted by PR News wire.

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The market for hyperlocal delivery applications was valued at $952.7 million in 2021; by 2032, it is projected to increase to $8,856.6 million, representing a growth rate of 22.6% over the estimated period from 2022 to 2032.

A research paper published in 2023 by IIM publications - “The emergence of the Indian hyperlocal grocery delivery industry: Dunzo v/s Blinkit” - states that while Hyperlocal platforms are becoming popular, kirana stores remain the most preferred channel for a large customer base who like to shop for their everyday grocery needs while taking an evening or morning stroll in their locality.

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“The social experience associated with grocery purchases still lures most people towards their local Kirana and organised retail stores. Hyperlocal Players such as Blinkit, Zepto, Instamart, and Dunzo are all vying for the same consumer market. Considering that the industry is still young, their competition is expected to remain high. As time progresses, the number of players may reduce further as winners either acquire the small players, drive them out of business or restrict them to niche categories,” it adds.

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