The delivery boom is real, folks. Thanks to our love for online shopping and the push from the COVID-19 pandemic, delivery services are more popular than ever.
According to IBM's U.S. Retail Index, the pandemic accelerated the shift to digital shopping by roughly five years. Right now, 70% of Americans shop online. Around the world, more than 2 billion people bought online in 2022 alone, and the number has increased 40% in the past five years. So there has never been a better time to think about starting a delivery business, or adding a delivery service to your existing business.
Whether it's meal kits or pet food delivery, there's a niche in the delivery industry with your name on it.
And you don't need a business degree to tap into this goldmine. A lot of delivery businesses can be started with not much more than a rental van and some sweat equity, especially if you focus on local delivery. Here are our top ideas that you can turn into a delivery startup today.
9 great delivery business ideas for you
These ideas are ranked from easiest to most difficult to start. We’ve considered what entrepreneurs need to get started, what regulations you might need to comply with, and how much competition there is in the space. Some of the most competitive new business opportunities are also those with most potential!
- Book subscription delivery
- Art and craft supplies delivery
- Office supplies delivery
- Coffee and tea delivery
- Pet supplies delivery
- Fitness equipment delivery
- Meal kits delivery
- Gourmet and specialty foods delivery
- Elderly care supplies delivery
💡 Once you have an idea, the next step is a business plan. Check out our free delivery business guide and template!
1. Easiest to start: Book subscription delivery
Book subscription boxes (think Book of the Month) really took off during the pandemic, and growth is estimated at 10% per annum. After cooking and baking, reading is the most popular hobby in the US, even ahead of pets and video games!
Books are a low-guilt treat for a lot of people, and a subscription can help them save browsing time as well as money. If you’re able to curate a box that delivers reliably high quality for a specific audience, you’ll be more like likely to build a dedicated fan base and keep churn low.
Ideas to spark your business planning
- Offer boxes based on different genres or spotlighting specific authors.
- Choose a niche market: toddlers, early readers, vegan or keto cooks, true crime fans, hobbyists — your imagination is the only limit here!
- Collaborate with authors for signed copies and exclusive releases.
- Consider offering different plans, such as monthly, quarterly, or annual subscriptions, to cater to different customer needs.
- Include small bonus items like bookmarks, reading lights, or book-related merchandise to make the box more appealing.
Pros
- Lower startup costs compared to other businesses, as you don't need a production setup or large inventory.
- High customer retention if you offer quality selections.
- Opportunity for partnerships with publishers and authors.
- Your best customers will have a nearly unending appetite for more books.
Cons
- Competition with digital reading platforms.
- Logistics can be complex, especially if shipping internationally.
- Requires a good understanding of customer preferences to curate successful boxes.
How to get started
- Research the market to identify your target audience.
- Partner with publishers or authors for book selections.
- Decide on your subscription model and pricing.
- Create a website and social media presence to attract subscribers.
Key regulations
- None
2. Art and craft supplies delivery
Global interest in arts and crafts, from knitting to woodcarving to beer brewing, shows no signs of slowing down. Business Research Insights estimates the global market will grow at a compound annual growth rate (CAGR) of 5.4% in the five years to 2028, reaching a total value of $63 billion. In the United States alone, the yarn and needle arts (think knitting, crochet and embroidery) are worth $3 billion a year!
All those crafters need supplies, and many are willing to spend a little extra on high quality, exclusive items.
Ideas to spark your business planning
- Choose a hobby that you, or someone close to you, already practices.
- Curate themed craft boxes tailored for different age groups – see Cratejoy for some examples.
- Add value by including access to online workshops led by artists and crafters.
- Focus on items local to your region, that are hard to find anywhere else. Think local styles and independent artisans.
Pros
- High demand for creative outlets.
- Opportunity to support and collaborate with artists and crafters.
- Subscription model can provide consistent revenue.
Cons
- Competition from big-box retailers and specialized art stores.
- Inventory management can be complex due to the variety of supplies.
- Shipping delicate or bulky items may be challenging.
How to get started
- Research popular art and craft trends.
- Source quality supplies from trusted vendors.
- Build an online platform for orders and subscriptions.
Key regulations
- Safety regulations for children's art supplies.
- Copyright issues if including designs or patterns from artists.
3. Office supplies delivery
The demand for office supplies took a major dive during the pandemic, but it has since rebounded – and there’s a lot of room for nimble new players. According to RetailDive, “consumers have been spending more on office supplies during the pandemic, but not at Office Depot and OfficeMax.”
Globally, the market is expected to show a CAGR of around 3.9% in the five years to 2028. Delivery is where it’s at: Office Depot has even partnered with delivery apps like DoorDash and UberEats to provide on-demand deliveries in some markets. For a new startup, the key will be finding the right niche.
Ideas to spark your business planning
- The home office/corporate office debate is likely to continue for years, so why not play both sides? Think about supplies that will make a home office productive and ergonomic; and items (like healthy snack foods or games) that might help businesses tempt their employees back to the office.
- Customised office supplies have been identified as a growth market.
- Demand for eco-friendly and sustainable options is also high.
- Try offering customizable monthly office boxes tailored to individual business needs
Pros
- Stable demand from businesses and remote workers.
- Opportunity for B2B and B2C sales.
- Subscription model can provide consistent revenue.
Cons
- Competition from big retailers like Staples and Amazon.
- Inventory management can be challenging.
- Shipping costs for furniture delivery.
How to get started
- Identify your target market: small businesses, remote workers, or both.
- Source quality products, possibly with a focus on eco-friendly options.
- Develop an online platform for ordering and customer management.
Key regulations
- There are no specific regulations for office supplies, but electronic items must meet quality and safety standards.
- Certifications may be required if you are offering eco-friendly products.
4. Coffee and tea delivery
The market for hot drinks like tea, coffee and chocolate was expected to hit US 20 billion in 2023, with a CAGR of 13% to 2027. In the United States, growth is expected to be even higher, with a starting value of $2 billion and a CAGR of over 20% — and almost all that growth will come from online sales and deliveries. Whether it’s freshly roasted coffee or single-origin tea, this can be a lucrative delivery business to start. There are even businesses dedicated to supporting coffee delivery businesses!
Ideas to spark your business planning
- Think about how much your target market values freshness. For coffee beans, the freshest roast is the best, especially if you’re delivering ground coffee. For tea drinkers, age can be an advantage. This will affect how you plan your deliveries.
- Think about collaborating with local importers, roasters or retailers who don’t already offer delivery services.
- Offer curated subscriptions like a “tea of the month” or “coffee plantation of the month” club.
- Think about how to offer exclusivity and value-added services.
Pros
- High profit margins on premium products.
- Opportunity for subscription-based revenue.
- Growing market, especially among millennials.
- Coffee and tea are staple goods in many households, guaranteeing constant demand.
Cons
- Competition from established services.
- Depending on where you’re located, you may need to comply with health and safety standards.
- Coffee beans and tea leaves can expire or lose flavor, so inventory must be carefully managed.
How to get started
- Check what licences or permits you might need.
- Look up local importers and distributors who can supply you.
- Create an online platform for orders, age verification, and payments.
Key regulations
- Food preparation and food safety regulations may apply.
- You may need certifications to offer organic or fair-trade products.
Want to know more? Read our detailed article about how to start a coffee delivery business.
5. Pet supplies delivery
The pet industry was expected to show a CAGR of 6.70% in the next 10 years, growing to about $45 billion by 2023. And pet owners are love convenient ways to pamper their furry friends. Offering a pet supplies delivery service can tap into this demand, bringing everything from food to toys right to the customer's doorstep.
Ideas to spark your business planning
- Try a monthly pet box subscription with curated items for cats, dogs, or other pets. Personalize the box with treats and toys based on the pet's preferences and even celebrate their birthdays with special items. BarkBox is an example of a company in this industry.
- Pet health is big business. Consider pet supplements or locally made, organic pet food.
- The drive for sustainable, environmentally friendly products includes pet owners. Think about how your products, your packaging or even your delivery methods can help you stand out.
Pros
- High demand as pet ownership rates continue to rise.
- A subscription model can provide a consistent revenue stream.
- Opportunity for personalization and value-added services.
Cons
- Competition from big retailers like Amazon and Chewy.
- Logistical challenges in storing and delivering a variety of products.
- Regulatory considerations for pet food safety.
How to get started
- Research the market to identify target customer segments.
- Partner with pet supply manufacturers or wholesalers.
- Develop an online platform for orders and subscriptions.
Key Regulations
- Compliance with pet food safety standards is essential.
- Business licenses and permits for operating a retail business.
6. Fitness equipment delivery
The market for home fitness equipment was expected to grow from just over $15 billion in 2022 to $16.55 billion in 2023, at a CAGR of 9.3%. This makes it a rich opportunity for new delivery businesses like Gainz Box.
Ideas to spark your business planning
- Consider offering curated monthly fitness boxes that include workout gear, supplements, and even access to virtual workout sessions with certified trainers.
- Attract a broader customer base by offering bundled packages with equipment and supplements.
- Consider a rental model for more expensive equipment to lower the entry barrier.
- Think about the biggest problems facing home exercisers, and how you could help solve them. For example, if motivation to keep going is the issue, you might include planners and journals, or host an online support club.
Pros
- Growing market due to the increasing popularity of home workouts.
- High profit margins on fitness equipment and supplements.
- Opportunity to collaborate with fitness influencers and trainers.
Cons
- Initial investment in inventory can be high.
- Storage and logistics for bulky equipment.
- Seasonal demand fluctuations (e.g. New Year resolutions, summer body goals).
How to get started
- Market research: Understand your target audience and their fitness needs.
- Inventory: Decide on the types of equipment and supplements you'll offer.
- Logistics: Plan the storage and delivery of bulky and potentially heavy equipment.
- Online Platform: Create an e-commerce website and mobile app for easy ordering.
Key Regulations
- Safety standards for fitness equipment.
- Regulations on the sale of dietary and nutritional supplements.
7. Meal kit delivery
Many health-conscious individuals and busy professionals love to cook, but don’t enjoy or have time for detailed menu planning and grocery shopping. Enter home delivery meal kits, which saw a significant surge during the pandemic as companies like HelloFresh seized the opportunity. Meanwhile, grocery stores quaked.
Ideas to spark your business planning
- Consider offering themed kits, such as "Around the World" meals, to introduce customers to global cuisines each week. Add an authentic touch to each dish by collaborating with local chefs.
- People with special dietary needs are often poorly served by meal kits. Think about kits for vegetarians and vegans, those who work out a lot, people on low-calorie diets, or those with medical conditions like diabetes or allergies.
- Focus on local produce and local culinary traditions.
Pros
- High demand, especially among busy professionals and health-conscious consumers.
- Subscription-based model offers recurring revenue.
- Opportunity for partnerships with local chefs and food suppliers.
Cons
- High competition, especially from established players like Blue Apron and HelloFresh.
- Logistical challenges in sourcing fresh ingredients and ensuring timely delivery.
- High initial investment in marketing to build brand awareness.
- With any food delivery business, you may need to invest in an industrial kitchen or food processing facility, a refrigerated truck, or coolers for delivery.
How to get started
- Research your target market and their dietary preferences.
- Find a unique angle.
- Source high-quality, fresh ingredients from local suppliers.
- Create a business plan, including pricing and delivery logistics.
- Build a user-friendly website or app for easy ordering.
Key Regulations
- Food safety and handling certifications are a must.
- You will probably need business licenses and permits for operating a food business.
8. Gourmet and specialty foods delivery
Missing fine dining? Gourmet grocery delivery services have gained traction, offering everything from delicacies like cheese, chocolate, and meat products to freshly milled organic flour and more. This is a great business for those who want to cater to food enthusiasts and connoisseurs. Goldbelly is a company in this space.
Ideas to spark your business planning
- Think about how to differentiate your business from an everyday grocery delivery business. What niches will you focus on?
- As with many businesses, thinking local can give you an edge. What delicacies and food specialties are native to your city or region?
- Add value by including recipes and pairing suggestions for a complete culinary experience.
- What foods are hard to find in local supermarkets? Think about vegan specialties, kosher or halal requirements, herbs and spices needed for particular cuisines, etc.
Pros
- High profit margins on gourmet items.
- Opportunity to collaborate with chefs and food artisans.
- A subscription model can provide consistent revenue from online orders.
Cons
- Perishable items require careful handling and quick delivery.
- High competition, especially from established fine-dining restaurants offering delivery.
- Regulatory hurdles for importing international foods.
How to get started
- Research the gourmet food market and identify gaps.
- Source high-quality, unique products.
- Build an online platform or app for orders and subscriptions.
Key Regulations
- Food safety and handling regulations.
- Import regulations for international foods.
- Alcohol delivery permits if offering wine pairings.
9: Most difficult: Elderly care supplies delivery
Catering to the elderly by delivering essential care supplies is not just a business; it's a noble venture. With the elderly being the most vulnerable, especially during the pandemic, this service has become crucial. A company in the space is PillPack by Amazon Pharmacy.
Ideas to spark your business planning
- Consider monthly care packages that include health supplements, comfort items, and more.
- Partner with a pharmacy or clinic to offer virtual health check-ups or consultations.
- Think about family members who may be far away from their parents or grandparents — how can you help stay in touch and express their love long-distance?
Pros
- Stable demand due to an aging population.
- High customer loyalty when service is done right.
- Opportunity for partnerships with healthcare providers.
Cons
- Requires specialized knowledge of healthcare needs.
- Regulatory hurdles for selling health supplements and medications.
- Logistics can be challenging for same-day or emergency deliveries.
How to get started
- Research the specific needs of the elderly community in your area.
- Partner with healthcare providers for virtual consultations.
- Develop an online platform for easy ordering and tracking.
Key Regulations
- FDA regulations for health supplements.
- HIPAA compliance for virtual health consultations.
- Local healthcare licensing and permits for medicine delivery.
If serving elders appeals to you, you might also be interested in starting a non-emergency medical transport (NEMT) business. This involves driving elders, people with disabilities or long term care residents to medical and other appointments.
Other delivery service business ideas
There are some delivery business ideas that are commonly suggested, but we’re not enthusiastic about. We could be wrong though! So here’s our list of runners-up, in case you want to explore them further yourself:
- Water delivery business: If your local tap water quality is great, you won’t have much demand. If your tap water is awful, you may need to go a long way, or invest in major equipment, to deliver a good product. And your customers can get bottled water cheaply and easily from a supermarket.
- Flower delivery business: Florists have been offering deliveries for decades and this is already a very well-served niche. Unless you have something really spectacular to differentiate yourself — an artistic genius doing your arrangements, or a rare flower supplier — this is not a promising new business. Houseplants may be a better bet.
- Gift basket delivery: There’s a LOT of very well-established competition in the market for generic gift baskets. It’s probably a better idea to choose a more specialist niche — like the books, arts and crafts, gourmet foods, or beverages we discussed above — and concentrate on building up a really well-curated selection.
- Newspaper delivery: Printed newspapers are a dying breed (much as we might miss them). This is not a business we’d want to get into.
What about courier services?
There’s a big difference between a delivery business and a courier service.
With a delivery business, a big part of your success depends on the products you choose to deliver. Whether you make your own products or source from suppliers, you’ll need to pay careful attention to quality, making unique and memorable selections, and offering value-added services like advice or assembly. Then on top of that, you’ll need to run an efficient delivery management operation to make sure your orders are delivered on time and in great condition.
💡 Delivery management is what Routific is all about. When you get to that part of your business plan, check out how we can help you deliver profitably.
With a courier service, your main concern is transporting other people’s products reliably and safely. You can do it with nothing more than a bike, or you might invest in special vehicles and equipment to handle sensitive items like medical samples. In any case, doing courier delivery is a whole different game. Check out our separate article on how to start a courier business for more details.
What makes a profitable delivery business idea?
Simplicity: A great delivery business idea doesn't have to be complex. In fact, the simpler it is, the better. Complexity often leads to confusion, and a confused customer is a lost customer.
Solves a real problem: The best business ideas solve real-world problems. They fill a gap in the market, offering a service that people didn't even realize they needed until it was available.
Scalability: A scalable business model is crucial. The idea should have the potential to grow, not just in your local area but possibly even globally.
Profitability: While passion is important, profitability is crucial. A great delivery business idea should have a clear path to revenue, ensuring long-term sustainability.
Adaptability: The market is ever-changing. A great delivery business idea should be flexible enough to adapt to market trends and customer needs.
Regulatory feasibility: Some of the best ideas are grounded in reality. They take into account the regulatory landscape, ensuring that the business can operate without legal hindrances.
Customer-centric: Above all, the idea should focus on the customer. It should make their lives easier, better, or more enjoyable in some way.
Fit: Finally, it should fit you! It needs to be something that you can be proud of, become passionate about, and have the skills to work on.
Adding a delivery service to an existing business
For many business owners, adding an online business component with a pick up or delivery service can help to reach new customers and increase sales. With tech advancements, it's easier than ever to manage orders via your website or social media.
1. Restaurants, caterers and other prepared food businesses
The pizza delivery business may be decades old, but other restaurants have also discovered since the pandemic that it’s relatively easy to add delivery services to their offerings. Third-party food delivery apps like UberEats, GrubHub and DoorDash have made delivery services an easy option for instantly expanding your customer base. They’re especially useful if you want to offer an after-hours delivery service.
2. Local businesses
There is still massive untapped potential for delivery services in local markets everywhere. Butchers, bakers, grocers, hobby shops, hardware stores, dry cleaners, bookstores, pet suppliers, pharmacies, clothing boutiques – if you’re a local business with a strong connection to your community, you have an opportunity to stand out from the crowd of chain stores.
If your delivery needs are small, a delivery service app like Instacart or an outsourced courier service provider might be all you need. But as deliveries expand, it’s often a good idea to bring them in-house, and maybe even contract a delivery driver. That’s when you’ll need your own delivery management system.
Fortunately, it doesn’t have to be a big deal. Routific’s delivery management system, for example, is easy to set up, easy to use and makes route planning, customer communication and driver management a breeze. Check out our 7-day free trial — no credit card needed!
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