Google giving importance for local business and 100% relevancy…people who are searching something if this is available near from them then google show the result local results as well.
It’s results depends on the query inserted. There is no predefined number of results to be displayed in the Google for local or Global. It can show all 10 or not a single local result. Usually the search works in a way that they serve the local result when they feel the query can be satisfied with the local merchants or shops. It’s all based on the triggered algorithm of Google.
Google is always in the testing phase. It can be due to one of the following reasons –
1.Google local listings usually becomes more important on mobiles and on mobile devices, people might be clicking through on the first 3 listings, thus it makes more sense to display only 3 listings.
2. They might want to gauge the effectiveness of 3 listings versus showing 7 listings.
3. It’s likely some combination of improving user experience and/or increasing ad revenues. I’m leaning toward the latter, since they also removed phone number and address from the SERP, which isn’t great for UX.
4. Google Shopping is a way to reduce advertising space for companies while making more money out of the own distribution channel. Fewer Google Local listing might have the same Intention, but you will never exactly know.
There is no definitive answer here. Google is the boss, it can do whatever it likes 🙂