Anand Mahindra, chairman and member of the Mahindra Group team, took to social media to talk about how “new-age technology-based services” are a significant part of India’s service economy, shifting focus away from core sectors such as “IT exports or global capability centers”.
In X’s post, Anand Mahindra said that in Kerala one can now call a coconut harvester the same way one books a cab. “A uniformed professional will arrive on a bike, equipped, trained and ready to go,” he said while sharing the video.
On this example, Anand Mahindra wrote: “We often talk about India’s service economy in terms of IT exports or global centers of competence. But we are digitizing even our most traditional hyperlocal services.”
He said one particular detail from the video — that the young man who climbed those trees was from Chhattisgarh” — stuck with him.
Anand Mahindra recalled that, “When I started my career in our group’s steel business, many of our associates working in our furnaces and foundries came from states like Bihar and Madhya Pradesh and traveled far from home in search of opportunities.”
“Today, the same aspirations seem to be finding their way not only in heavy industry as in the past, but also in new, technically based services,” he said.
“People who move, adapt and grow are a powerful economic force. And also a force for integration. If they are welcomed by host nations!” wrote on X.
The hyperlocal delivery industry
Today, service apps like Blinkit, Urban Company, Dunzo, Zepto, Coox and Swiggy Instamart provide hyper-local services in urban areas. From providing personal chefs and home services to enabling print delivery to helping customers get in-home salon and massage services, several companies are currently hiring gig workers not only for food delivery but also for several other day-to-day services.
According to Allied Market Research, the hyperlocal delivery industry was valued at USD 1,324 billion in 2019 and is expected to grow to USD 3,634 billion by 2027, growing at a compound annual growth rate (CAGR) of 17.9% throughout this period, read the report published PR News wire.
The hyperlocal delivery application market was valued at USD 952.7 million in 2021; It is projected to grow to USD 8,856.6 million by 2032, representing a growth rate of 22.6% during the estimated period from 2022 to 2032.
Research paper published in 2023 by IIM Publications — “Emergence of India’s Hyperlocal Food 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 that likes to shop for their daily grocery needs on an evening or morning walk in their locality.
“The social experience of grocery shopping still attracts most people to their local Kirana and organized retail stores. Hyperlocal players like Blinkit, Zepto, Instamart and Dunzo are all vying for the same consumer market. As the industry is still young, competition is expected to remain high. Over time, the number of players may further diminish as winners push them out of small business categories,” he adds.
