MANY people have tried this. It sounds nice in theory but it just doesn't work. I actually had an idea like this before and researched competitors. None of them caught on. Yet it's a startup that people try over and over and over again hoping it's some undiscovered market.

To most people, hyperlocal = less impact + less audience + less circulation + less reach. People don't want "hyperlocal" they want "giant stage", lots of reach, huge audience. Sure, dealing with people closer to you is better. But what people really want is just Craiglist with a "sort by closeness" filter.