Business Overview

A grocery delivery service will do people’s food shopping for them. They’ll typically partner with a grocery wholesaler to get a wide selection and may offer additional services to their customers to assist with meal planning.

Who is this business right for?

People who are organized, creative and familiar with technology. Grocery delivery involves a lot of details to get right so it helps to start with a strong foundation and a focus on accuracy and value.

What happens during a typical day at a grocery store delivery business?

The name of the game is flexibility when it comes to grocery delivery businesses. Owners may find themselves doing everything from maintaining relationships with wholesalers to completing the actual deliveries. In addition, owners also need to coordinate pick-up times with staff, keep up with invoicing, and figure out ways to market their services to a greater audience. But the biggest thing an owner may need to do is work with their automated features. Most delivery businesses find they need constant fine-tuning to ensure the customer experience goes well.

What is the target market?

The target market is anyone who can afford luxury, time-saving services or for those who may be unable to drive to the store or shop on their own.

How does a grocery store delivery business make money?

Grocery delivery businesses charge people a membership fee for their services and a markup on the cost of food. They may also charge additional fees based on quantity of food ordered and location of the home.

What is the growth potential for a grocery store delivery business?

People are starting to shift a significant portion of their income into services and they’re willing to pay a premium for convenience. As cities like NYC and LA continue to become more condensed, grocery delivery can look more and more appealing to a young professional who probably doesn’t want to navigate traffic or spend time perusing 30 different supermarket aisles.