How To Start A Delivery Service – There are many niches within the delivery service industry, but few are as exciting as food service. Nothing beats the joy of dreaming up a bowl of Pad Thai and having it magically appear on your doorstep.
Even with the giants in the competition (Postmates, Grubhub, Uber Eats) there is still room for the little guy. If you want to make money and manage your schedule, shipping services is one of the most desirable types of business.
How To Start A Delivery Service
In this post, we’ll give you the guidance you need to get your food delivery service online, so you can start making people’s days.
The Abridged Guide On How To Start A Delivery Service In Your Business
A food delivery service is a business that delivers food to a paying customer. The most popular ones, like Postmates, Grubhub, and Instacart, are probably already on your phone.
Food delivery services may be booming in the days of public delivery, but their popularity has been a long time coming. As of 2021, 60% of Americans will order takeout at least once a week, and by 2024, the food service industry is expected to reach $32.
Starting a delivery service can give you the freedom to run your business, work as often and as often as you want, and help other small businesses that are growing. And because you don’t need to rent a shop or hire a large team, they won’t break the bank on start-up costs.
If you already have a vehicle that you can use to deliver goods, you can start a restaurant delivery service (or any other type of food delivery service) at a low cost.
How To Start A Food Delivery Service
According to the latest statistics on delivery people, couriers can make upwards of $20/hour, and some make over $50,000 a year – and that’s for people couriers who do not work in food or have their own delivery business. If you manage the entire process, the profits can be even higher.
As with any new business, starting a delivery service requires forethought and planning. Will you use your car, or will you buy a new one? What types of restaurants or businesses will you support? Will you be delivering food, groceries, alcohol or something else?
It’s easy to get overwhelmed by the options early in the process. But by following these five steps, you can be on your way in no time.
Food delivery is already a staple of the delivery service industry, but it is a large category in itself. When starting your courier business, it’s a good idea to focus your efforts on your target market.
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Most of the food delivery services we’re used to operate in this area: think of your favorite mobile food ordering app, like Postmates, Grubhub, or Uber Eats.
If you work in this sector, you will deliver to customers who have purchased food online. From restaurant delivery to your doorstep, this type of catering service is a very popular choice.
While there is still room for new ready-made food delivery services, it is important to note that the major players in the industry will have created this market. If you are a food delivery startup, you may have a hard time connecting with established restaurant chains through a popular food delivery app.
Restaurant owner. This may be a unique, personalized service, fast delivery, low operating costs, and easy access online and by phone.
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Marketing yourself as a dedicated delivery driver to a restaurant or two is a better way to build your clientele than presenting yourself as just another Postmates brand.
If you want the largest possible audience, starting a grocery delivery service is a great option. Everyone needs groceries, and no one
To go out and get them. Estimated to be worth 39 billion dollars as of 2021, Instacart takes the cake as the most popular grocery delivery service.
Even if you sign up as an Instacart customer, you can try your hand at starting your own grocery delivery service. If you choose the latter, consider connecting online or over the phone with a local grocery or food retailer that doesn’t use Instacart. This can increase your chances of making a profit.
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You can also set yourself apart from the rest of the guys by offering delivery routes to certain rural areas, or unusual delivery times for customers with busy schedules.
Alcohol delivery services like Drizly are becoming more and more popular. By starting one, you can eliminate last-minute beer runs, helping to reduce drinking and driving,
Do you have a favorite store in your city? Consider partnering with them to drive six-packs or growlers to paying customers. Since the alcohol is prepackaged, you and your favorite watering hole can cut down on expenses like grocery bags and paper packaging.
Not all food delivery services require working between the restaurant and the customer. There are fewer options available in the business-to-business (B2B) space, which means more space for you and your new food delivery platform.
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Starting a B2B catering business can look like many things. You can deliver produce from a farm to a commercial kitchen, coffee from a roastery to an office, or cakes from a bakery to an event planning company. Working
Businesses are a great way to support local organizations, and do your part in the process.
Are you a sucker for a good celery juice or turmeric supplement? If so, you may be inclined to focus your delivery services on healthy foods. As the health culture continues to grow, specializing in healthy food options is a solid business plan.
You can contact a juice shop, a local organic farm, or an herbalist in town to offer health products. Want to win over eco-conscious consumers in the world of health? Consider delivering goods by bicycle, or connecting with charities that allow consumers to reduce the carbon footprint of their purchases.
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Starting a food delivery business is one of the most unique options on this list, although it is not suitable for everyone. However, if you are a chef, farmer or chef, starting a food delivery service can be a good business strategy.
The most popular in the business is Blue Apron, which sends customers meal plans, pre-portioned ingredients, and recipes for using them.
If you have the means and knowledge to start a food delivery business, or you can partner with someone who does, it can be a great option. Food processing continues to grow in popularity, and is expected to be a $33 billion industry by 2026.
Important: As with any type of business, finding a niche for your meal kit is key. This could be a certain type of diet or dietary restriction that you can adopt.
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Once you’ve decided what type of catering service you plan to start, it’s time to deal with the logistics.
There are four important things you need to organize: your delivery vehicle, your business registration, your budget and your marketing strategies.
You can’t start a food delivery business without a food delivery system. Although a car is the most popular option, you can also use a bicycle, van, or even a motorcycle.
Regardless of the type of vehicle you use, you will need to get it properly insured and registered. If you drive a car, you will need commercial car insurance or car liability insurance. If you choose something larger, such as a semi or truck that transports B2B goods, your fleet may require additional licenses or insurance policies.
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If you need to buy a car, consider buying used to reduce start-up costs. Be sure to check mileage and engine life if you do—paying thousands for repairs will undo the savings you’ve saved by buying used.
Ongoing costs will vary depending on what type of food service you choose to start. Ready-made food delivery businesses may only need to purchase and maintain a few insulated food carriers, while B2B services that ship large quantities of goods may require moving equipment, dollies, or a cargo van.
You can also choose a hybrid or electric car (which will save gas money and help save the planet), or coordinate your route to avoid backtracking and wasting energy.
Once you have your car, your website, and your food product, it’s time to tackle your business plans. This means dealing with the legal structure of your business, and creating a financial plan.
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To be honest, we don’t need to tell you how to avoid legal and financial damage to your business. We can provide research and steps to get you started, but that seriousness should be up to you (and your lawyer).
Instead of telling you how to file your taxes, let’s do a quick rundown of the legal and financial hurdles you should keep in mind when starting your food business. There are two important points to consider:
The registration process varies slightly depending on your location, but a simple Google search will send you in the right direction. In the United States, you can register your business online, in person, or by email.
When you start your own food delivery service, you will
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