business plan for delivery services

Delivery Service Business Plan Template

Written by Dave Lavinsky

Delivery Service Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their delivery service companies.

If you’re unfamiliar with creating a delivery service business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a delivery service business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Delivery Service Business Plan?

A business plan provides a snapshot of your delivery service business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for a Delivery Service

If you’re looking to start a delivery service business or grow your existing delivery service company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your delivery service business to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Delivery Businesses

With regards to funding, the main sources of funding for a delivery service business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for delivery service companies.

How to Write a Business Plan for a Delivery Service Business

If you want to start a delivery service business or expand your current one, you need a business plan. The sample below details the necessary information for how to write each essential component of your delivery service business plan.  

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of delivery service business you are running and the status. For example, are you a startup, do you have a delivery service business that you would like to grow, or are you operating a chain of delivery service businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the delivery service industry.
• Discuss the type of delivery service business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of delivery service business you are operating.

For example, you might specialize in one of the following types of delivery service businesses:

• Courier Delivery Services : This type of business provides air, ground, or combined courier delivery services.
• Express Messenger Services : This type of business provides express messenger and delivery services.
• Package Delivery Services : This type of business delivers parcels, documents. and packages.
• Packing and Sorting Services : This type of business prepares items to be delivered.
• Transporting and Trucking Services : This type of delivery business transports items via truck.

In addition to explaining the type of delivery service business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of delivery drivers you employ, the number of items delivered, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the delivery service industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the delivery service industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the delivery service industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your delivery service business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your delivery service business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of delivery service business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Delivery Service Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your business plan today.

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other delivery businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other third-party delivery services, ship-to-store services, and other types of delivery services. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of delivery service business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for local and long distance delivery?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a delivery service, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of delivery service company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide express delivery, air transit courier services, or long distance delivery services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your delivery service company. Document where your company is situated and mention how the site will impact your success. For example, is your delivery service business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your delivery service marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your delivery service business, including answering calls, scheduling pick up and delivery of items, managing drivers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your X number of deliveries made, or when you hope to reach $X in revenue. It could also be when you expect to expand your delivery service business to a new city.  

Management Team

To demonstrate your delivery service business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing delivery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a delivery service business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.  

Income Statement

In developing your income statement, you need to devise assumptions. For example, will you schedule 5-10 deliveries per driver per day and have 6 drivers? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your delivery service business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a delivery service business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of geographic locations you serve.  

Writing a business plan for your delivery company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert delivery service business plan; download it to PDF to show banks and investors. You will understand the delivery service industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful delivery service business.  

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business planning advisors can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

• Sample Business Plans
• Retail, Consumers & E-commerce

Delivery Service Business Plan

The demand for delivery services is increasing today along with the surge in online shopping. If you are planning to launch a delivery service business or to grow one, you will need a plan.

Need help writing a business plan for your delivery service business? You’re at the right place. Our delivery service plan template will help you get started.

Free Business Plan Template

Download our free delivery service business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Delivery Service Business Plan?

Writing a delivery service business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:’

1. Executive Summary

An executive summary is the first section to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Business Overview: Start your business overview section by briefly introducing your business to your readers.
• This section may include the name of your delivery service business, its location, and when it was founded. In short, a brief introduction to your business.
• Market Opportunity: Outline the market you serve, discuss user demographics and preferences, and highlight the problems you intend to solve with your services.
• Product and Services: Highlight the delivery services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may provide international delivery services too, then mention that in this section.
• Marketing and Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Business Overview

The business overview. section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business Description: Describe your business in this section by providing all the basic information:
• Food delivery services
• On-demand delivery services
• Courier delivery services
• International delivery services
• Package delivery services
• Express messenger services
• Company structure: Describe the legal structure of your delivery services, whether it is a sole proprietorship, LLC, partnership, or others.
• Location: Explain where your business is located and why you selected the place.
• Ownership: List the names of your delivery services business’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business history: If you’re an established delivery service provider, briefly describe your business history, like—when it was founded, how it evolved, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The Market analysis section of your business plan should offer a thorough understanding of the delivery service industry with the target market, competitors, and growth opportunities. You should include the following components in this section:

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• Market size and growth potential: Offer an overview of the delivery service industry. Include necessary information like market size and growth potential for new entrepreneurs.
• Competitive analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your delivery services from them. Point out how you have a competitive edge in the market.
• Market trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Here are a few tips for writing the market analysis section of your delivery service business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Grocery delivery services
• Medical delivery services
• Packing and storing delivery services etc
• Information on how orders will be processed,
• How packages will be picked up and delivered,
• What technology or delivery management tools do you employ, etc..
• Delivery Logistics: Provide details on how the delivery process will work, including information on the delivery vehicles, delivery routes, and delivery personnel. Include information on any special equipment or technology that will be used to facilitate deliveries, such as GPS tracking, delivery management software, or temperature-controlled vehicles for perishable items.
• Additional Services: Throw light on additional services you provide in this section, such as package tracking or real-time delivery information, customer services, etc.

In short, this section of your delivery service plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique selling proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you to plan your marketing strategies.
• Pricing strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your service.
• Marketing strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales strategies: Outline the sales strategy as in – partnering with other businesses and healthcare providers to establish referral programs that can help you generate more business. Consider offering incentives for referrals or special discounts for partnerships.
• Customer retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing discounts on annual membership, personalized service, etc.

Overall, this section of your delivery service business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your delivery service business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section, of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees needed. Include their qualifications, the training required, and the duties they will perform.
• Operational process: Outline the processes and procedures you will use to run your delivery service business. Your operational processes may include handling clients, customer services, timely delivery, training employees, etc.
• Equipment & Technology: Describe the tools you’ll need to run your delivery services, such as the equipment, technology, and trucks. Be explicit about the number of vehicles you’ll need, the tools you’ll need, and any apps or software you’ll be using.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your delivery service business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your delivery service company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include senior management, and other department managers (e.g. operations manager, customer services manager).
• Organizational Structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your delivery services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance sheet: Create a projected balance sheet documenting your delivery service business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing needs: Calculate costs associated with starting a delivery service business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section, of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the delivery industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your delivery service business should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This delivery service business plan sample will provide an idea for writing a successful delivery service plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our delivery service business plan pdf .

Related Posts

Food Delivery Business Plan

Courier Business Plan

Comprehensive Business Plan Examples

Simple Process for Writing Business Plans

Business Plan Presentation Tips

How to Write a Business Plan Outline

Frequently asked questions, why do you need a delivery service business plan.

A business plan is an essential tool for anyone looking to start or run a successful delivery service business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your delivery service company.

How to get funding for your delivery service business?

There are several ways to get funding for your delivery service business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your delivery service business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your delivery service business plan and outline your vision as you have in your mind.

What is the easiest way to write your delivery service business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any delivery service business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Delivery Service Business Plan: Guide and FREE Template

Did you know that the delivery service industry is expected to reach $658.3 billion by 2031 ? If you’ve been thinking about starting a small business like food delivery or grocery delivery, there has never been a better time. Customer demand is at an all-time high and startup costs are under $10,000 on average. 

The first step to creating a successful delivery service business is — no surprises here — writing a business plan. In this guide, we’ll outline everything you need to know to turn your business idea into reality, and provide a free template for you to get started.

💡If you’re already done your homework and just want to get started, go ahead and start filling out our free delivery service business plan template .

Six reasons to create a business plan for your delivery service 

Did you know that 71% of fast-growing companies have a detailed business plan? And entrepreneurs who have a written plan are 260% more likely to actually start their business and see success. 

That’s because your business plan is your blueprint for getting started, and then guiding you to success in your new business. It will help you:

• Decide if your business idea is viable.
• Conduct a market analysis to understand your competition, customers, and growth ability.
• Set your goals, and create strategies for achieving them.
• Make important decisions about products, marketing, staffing and funding. 
• Raise funding from banks or other investors. 
• Track your progress, growth and profitability.

The main components of a delivery service plan

A business plan is a summary of all your business’s potential operations, so it includes multiple components. Here they are:

1. Executive summary

This section is an introduction to your business, so you want to make it appealing. Answer the following questions: 

• What’s going on in the delivery service industry? 
• What type of delivery service business are you opening? 
• What sets your business apart from well-known delivery options, like FedEx and USPS? 
• Who are the key members of your team? If you are just starting out, your only team member might be you. In this case, list your experience and commitment to success. 
• What are your financial projections showing? What are your operating margins and tentative profitability? 

You don’t want to bore the reader in this section. Make it engaging, and outline key points and advantages of starting your business. Don’t include any negative information.  For example, you shouldn’t say that the delivery service market is oversaturated. If it was, opening a new business wouldn’t be very successful, would it? 

Another common mistake to avoid is understating the qualifications of your team. Don’t say you lack the capital to hire team members, or that you don’t have the necessary experience to run the business. Instead, stay positive with words like “the (company) plans on hiring additional help once we enter a growth phase.”

2. Company overview

The company overview is a deeper dive into the fundamentals of your delivery service. Here, you will pinpoint the type of business you will operate. For example, will you be a pure delivery company, like a courier or express messenger? Or will you be delivering your own products, like food, beverages or flowers? Or maybe you’ll deliver on behalf of other producers, like many grocery delivery services that work with different farmers. Will you offer same-day delivery?

A courier service business plan will be different in some ways from a plan for a grocery delivery service company, but you’ll need to answer all the same questions.

It’s not uncommon for delivery service businesses to engage in more than one service. List all services that you plan on operating. 

In the company overview, you will also outline your “why” for starting the business, important milestones you have already achieved, and information on the legal structure of your business. You may also want to include a mission statement here. 

3. Industry analysis

Now, it’s time to get down to the facts. Include industry growth facts, such as that the compound annual growth rate in the United States is 5.7% or that there are currently over 250,000 courier and local delivery companies . 

Properly completing this section will require some industry and market research. Great research starting points include IBISWorld , the Small Business Administration (SBA), and your state’s website, if you are offering local courier services.  This is not only beneficial to show the opportunities in the market, but you will also develop insights into how to set yourself apart from competitors. 

Be sure you include information on market conditions, main competitors, key suppliers, current trends, and where the industry is headed. 

4. Customer and market analysis

Who is your primary customer? Are you looking to work with individuals or businesses? What types of businesses or individuals are your ideal potential customers? Identifying your target market, and how will you win new customers, is critical to developing accurate marketing strategies. 

Try to be as detailed as possible. Pinpoint the age, gender, geographic location, income levels, and needs of your target market. 

5. Competitive analysis

The competitive analysis section will highlight your competition and how you plan on setting your business apart. You should uncover data to back up your claims. For example, recent studies show that 73% of customers have had bad delivery experiences , and 16% have advised friends or family to avoid the retailer. 

Statistics like these can help to show that prioritizing customer service is how your business will shine. You might choose to include a chart or graph on common traits that your business and competitors have. Identify weaknesses, strengths, pricing differences, and the target market of competitors as well. 

Could you offer local delivery to companies in your area to boost their revenue? How about delivering outside of normal hours, such as overnight? Do you have the capabilities to specialize in fragile package delivery? These are all ways that you can differentiate yourself from competitors. 

6. Marketing strategy

Using all of the information and data you have accumulated, you will piece together a marketing strategy. Going through the four Ps can give you a comprehensive marketing plan:

• Product: Discuss the type of services you are providing again, including the specifics, like late night delivery or fragile package options. 
• Price:   Reinforce your pricing structure and make a comparison with competitors. 
• Place: Identify where you will be delivering. This could be local, regional, or national. 
• Promotions: Put together a general strategy for how you will attract customers. Will you advertise in local papers, or go for a pure e-commerce model? How about social media or email marketing? Talk about how your delivery service website will use SEO, how you’ll build relationships with local businesses, or how you’ll search for jobs on courier listing sites. 

Your marketing strategy is very important for displaying how you will attract customers using your competitive edge. 

6. Operating strategy

This section of your delivery service business plan will outline both the day-to-day operations and the long-term goals of your business. In the executive summary, you touched on a few of your main goals. In this section, you will elaborate on those items. 

Common day-to-day operations might include listing the tasks of your team, like answering calls, scheduling, and dispatching routes to delivery drivers. How will you plan your deliveries? Will you hire your own drivers, or use contractors? What about a vehicle fleet? What software will you use to track deliveries, customer requests, and costs? 

Long-term goals might be increasing revenue by a certain percentage each year, or adding a specific number of trucks every few months. Maybe you want to grow revenue by 3% each year. What can you do to get your business there? Will you increase prices to match inflation, win new customers or hire additional staff? 

Both your short-term and long-term goals need to be reasonable. Don’t say you’ll grow revenue by 50% in your first year, or have 20 delivery team members right from the start. Reasonable goals are easier to work toward and can keep you and your team motivated. 

7. Management team

Your team is essential to the success of your delivery business. If you have a partner with years of industry experience or a manager with a stellar record, incorporate that expertise and experience into this section. 

You should have a clear management structure and chain of command. Keep in mind that job roles can overlap, especially if you only have a few team members. Identify who will handle hiring, day-to-day operations, high-level decisions, and customer service. 

Also, be sure that you include any mentors that are guiding you along the way. This could be an advisor in the industry, a family member, or a friend. 

8. Financial projections

A key component of your delivery business plan is projected financial statements. If you are just starting out, you might not have years of historical financial information. This is why you need to project your expected revenue, operating expenses, assets, and profit based on industry research and your specific business characteristics. 

Your financial plan should include at least five years of financial projections. This helps you determine your business’s chance of being successful and profitable. Prospective lenders and investors will also want to see this information. Here are the main financial statements you will develop: 

• Income statement : This outlines your revenue, expenses, and bottom-line number, known as net income. A positive net income indicates a profitable business, while a negative number suggests you are losing money. 
• Balance sheet : The balance sheet tracks your overall financial health by outlining assets (what you own), liabilities (what you owe), and equity (what you’ve earned, contributed, and taken out of the company). 
• Cash flow statement : This tracks the movement of money in your business. The three main categories found in this document are cash earned or spent from operations, financing activities, and investments. 

It can be hard to plan out all of these expenses, which is why many delivery service businesses use an accountant to help. 

Don’t just hire the first accountant you come across. Interview a few to confirm that you feel comfortable with them and can develop a good working relationship. Also check that they have experience helping startups, especially in the delivery service industry. This is because the business model that delivery service businesses follow isn’t the same as other industries. 

Accountants will usually list the clientele they work with directly on their websites. Otherwise, don’t be afraid to reach out and set up a consultation. 

9. Appendix

The appendix will contain additional schedules, financials, graphs, maps, and supporting information for your delivery service business plan. 

Top things to know before writing your delivery service business plan

Before you create your delivery service business plan, you will need to think about the big picture. This includes evaluating the following components: 

1. What delivery service model will you choose?

In your delivery business plan, you will need to decide exactly what kind of courier or delivery service you want to offer.

First, consider how you will run your daily delivery operations . Will you do it all in-house , including hiring and managing your own drivers? This is how Walden Local in New England does it, using their own branded vehicle fleet and drivers to deliver local meat and fish directly from farms to customers. This gives you total control over delivery operations, but you will need your own delivery vehicles. This can increase the costs, especially when you factor in vehicle maintenance.

Alternatively, you could outsource your actual deliveries via a gig economy app like DoorDash or Uber Eats. Many restaurants and ghost kitchens choose this operating model, preferring to focus their effort on the actual product they’re delivering. 

Second, what delivery time frames will you offer? The three main options here are:

• On-demand delivery: This literally means you will deliver (or pick up and deliver, in the case of a courier service) as soon as the customer places their order. Depending on the exact product, this could be the same day (groceries) or the same hour (restaurants). This is highly convenient for customers, but expensive to operate.
• Batched delivery: If you expect very high volumes, or if you choose to offer next-day delivery or later, you have the option of creating delivery batches so you can create more efficient delivery routes and schedules. This makes it easier to deliver profitably, but isn’t suitable for a business like a restaurant.
• Scheduled delivery : This is a favorite delivery model for subscription services like meal prep companies, and it can make delivery operations much easier. It means pre-planning deliveries to specific areas on specific days — for example, I subscribe to a flower delivery service that means I get fresh blooms on my doorstep every second Wednesday. You will need to be very clear upfront with your customers about how their deliveries will work, but if you manage expectations clearly this can be an excellent option.

Finally, how much will you charge for deliveries ? It may be tempting to offer free delivery to win customers, but the costs can really eat into your profitability. Do the work to figure out what you can afford to offer for free, and how to make your delivery charges palatable.

You can read more insider tips for starting your own delivery business here . 

2. How will you set up and staff your business? 

During the  business planning process, you should form a legal business structure. This entails registering your business name with your state and applying for an Employer Identification Number. You will need to pick out a business structure, such as a single-member LLC, a partnership, or a corporation. Talking with an accountant can help you find the most favorable structure. 

Keep in mind that staffing can take some time, especially with talent shortages. Before you can accept your first delivery order, you need to go through the hiring and training process with staff members. Knowing how to hire and retain delivery drivers , in particular, can help you save a lot of time and money. 

Do your research on a competitive wage, determine how you will process payroll, pinpoint the benefits you will offer, and create job listings. The right team members working alongside you can help your business thrive. 

3. What delivery management software will you use?

If you want an efficient, profitable delivery service business , sooner or later you’ll need proper delivery management software . Plenty of delivery businesses have started out using nothing but Excel spreadsheets, but that can quickly become a brake on your growth. Considering your delivery software while you’re making your business plan can give you an edge. Look for software that will make it easy to:

• Upload orders
• Use route optimization to plan efficient delivery routes
• Dispatch to a mobile driver app
• Track delivery progress in real time
• Send customer notifications
• Manage driver timesheets and payroll

The right delivery management software can help you achieve profitability, offer a great customer experience, and ensure on-time deliveries.

How to use the template

Now that you know what to include in your delivery service business plan, it’s time to get started. You can open a copy of the template right now and start writing. Here are some tips we’ve learned along the way: 

• Don’t jump around: Work on your delivery business plan section by section, starting at the top. Jumping around results in missed information and confusion. 
• Re-read Sections – It’s helpful to read through each section a few times before you create your own. 
• Be Thorough – The more thorough you are, the more beneficial your plan will be. After all, the goal of a delivery business plan is to provide you with guidance for starting your business. 
• Be Honest – Oftentimes, delivery service business owners adjust their plans to make their business look more attractive. You want to be honest throughout the plan to give you an accurate roadmap of what you need to do to become successful. 

If you are still struggling to piece together your business plan after reading this guide, don’t hesitate to reach out to an expert for help. 

Final Thoughts and Access to Your Free Template

A delivery service business plan is a resource that can bolster the success of your new delivery business. Take the time to conduct research and put thought into your plan. You don’t want to start your business and scramble to figure out who your target market is or how to display your competitive advantage. Here is our free template . 

If you’re in the market for delivery management software, Routific has you covered. We infuse accuracy and efficiency into our platform, giving you the tools to increase profit, meet customer demands, and ensure your team maximizes productivity. Reach out to schedule your free consultation.

Frequently Asked Questions

Related articles.

Liked this article? See below for more recommended reading!

Starting Your Own Delivery Business In 2024: Insider Tips

4 Best Practices For Local Grocery Delivery In 2024

Best Last Mile Delivery Software 2024: Reviews & Guide

8+ SAMPLE Delivery Service Business Plan in PDF

Delivery Service Business Plan

8+ sample delivery service business plan, what is a delivery service business plan, different types of business plans, benefits of a business plan, tips for maximizing delivery services, how to write a delivery service business plan, what are the costs involved in opening a delivery service, who needs a business plan, why should you have a delivery service business plan.

Project Delivery Service Business Plan

Delivery Service Business Operations Plan

Sample Delivery Service Business Plan

Restaurant Delivery Service Business Plan

Standard Delivery Service Business Plan

Basic Delivery Service Business Plan

IT Delivery Service Business Plan

Food Delivery Service Business Plan

1. executive summary, 2. business overview, 3. market analysis and competition, 4. sales and marketing plan, 5. ownership and management plan, 6. financial plan, share this post on your network, you may also like these articles.

In this comprehensive guide, we explore the essentials of creating an effective Floor Plan. Whether you are designing a new home, renovating an existing space, or planning an office…

Nursing Care Plan

In this comprehensive guide, we explore the essentials of creating an effective Nursing Care Plan. Whether you are a nursing student, a new graduate, or an experienced nurse, this…

browse by categories

• Questionnaire
• Description
• Reconciliation
• Certificate
• Spreadsheet

Information

• privacy policy
• Terms & Conditions

• Business Ideas
• Registered Agents

How to Start a Delivery Business in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The global delivery market hit $188.14 billion in 2021 . With an estimated compound annual growth rate (CAGR) of 9.59% from 2021 to 2028, it could reach a whopping $258.42 billion by 2028. For those interested in learning how to start a delivery business, now is the perfect time.

This comprehensive guide will help you learn how to start a delivery business. We’ll walk through the entire process of starting a delivery business, from assessing the market opportunity to obtaining licenses and insurance, recruiting drivers, setting rates, and getting your first customers. Here’s everything to know about starting your own delivery business.

1. Conduct Delivery Market Research

Market research offers valuable insight into starting a delivery service business. From your target market and local market saturation to niche delivery services and products to offer, research is the key to a strong delivery service business plan.

Here are some details you might learn during your research on starting a successful delivery service.

• Competitors: Competition is fierce with apps like DoorDash and Uber Eats , but there’s still room for new players with the right niche or localization.
• Niche products: Focusing on underserved cuisine types or optimizing operations for small delivery zones can be a recipe for success.
• Special services: Partnering with local retailers to provide same-day delivery of in-store purchases is one avenue worth exploring.
• Other delivery fields: The medical delivery sector is also ripe with opportunity as an aging population requires more prescriptions and medical equipment transport.
• Popular locations: Urban areas where consumers live in closer proximity naturally favor speedy delivery across shorter distances.

Overall, the delivery sector contains immense potential for new businesses to carve out a distinct niche. With the right mix of efficiency, specialization, localization, and strategic partnerships, an entrepreneur can capitalize on consumers’ appetite for delivery speed and convenience across markets.

2. Analyze the Competition

Competitive analysis is another important detail in starting a delivery service. Even an Amazon delivery service partner should know who else in the area is competing for jobs. In the fast-paced and ever-evolving delivery market, understanding the competitive landscape is essential for businesses to stay ahead.

Competitive analysis in this domain involves systematically evaluating the strategies, strengths, and weaknesses of current and potential competitors. By doing so, companies can identify gaps in the market, potential threats, and opportunities for differentiation.

Some key factors in analyzing competitors include:

• Coverage area
• Reliability
• Customer service

Get to know local competitors by:

• Visiting shops in person
• Checking websites for products and services
• Evaluating online presence through social media and search engine ranking
• Speaking to local consumers about delivery experiences
• Reading online reviews

A thorough competitive analysis gives you a leg up over local businesses in your market as you start your courier business .

3. Cost to Start a Delivery Business

Launching a delivery service requires careful budgeting and cost analysis even before the first order is delivered. Between initial investments in equipment, licensing, and staff to ongoing costs for marketing, insurance, and maintenance, expenses add up quickly.

Startup Costs

Starting costs for a delivery business typically range from $10,000-$30,000. The exact capital needed depends on size and model, but expect at least $10k minimum to cover core start-up needs:

• Business Registration Fees – $50-$500 to formally register your business structure and name with state/local agencies
• Commercial Auto Insurance – $2,000-$5,000 annually for commercial policies covering all fleet vehicles
• Fleet Purchase – $5,000-$10,000+ per vehicle to buy reliable used cars, motorcycles, e-bikes, etc. Plan for at least 2-5 to start.
• Vehicle Branding – $500+ per vehicle for custom wraps/decals with your logo and branding
• Driver Recruitment – $2,000+ for job listings and background checks to build your driver team
• Tech Integration – $1,000-$5,000 to build a website, integrate ordering platforms, payment processing, and fleet tracking
• Professional Services – $1,000-$2,000 for legal fees establishing compliant contracts and terms of service
• Office Equipment – $500-$2,000 for a computer, phones, printer, supplies
• Working Capital – $2,000-$5,000 reserve as a contingency buffer before revenue begins

Ongoing Costs

Ongoing monthly expenses typically range from $5,000-$20,000 depending on operations. Key costs include:

• Vehicle Fuel – approx $100 per vehicle for gas assuming local delivery range
• Vehicle Maintenance – $50-$200 per vehicle for routine service, cleaning, repairs
• Driver Wages – $2,500 per driver for fair hourly pay and/or per delivery commissions
• Technology Fees – $100-$500 for website and software subscriptions
• Office Rent – $500-$1,500+ depending on location size
• Utilities – $200-$500 covering electricity, Internet, phone
• Insurance Premiums – $500-$1,500 to cover fleet, liability, worker’s comp
• Accounting Fees – $200-$500 for a bookkeeper to handle finances
• Advertising – $500-$2,000 for digital, print, and social media marketing
• License Renewals – $100-$500 to renew key registrations and permits
• Legal/Professional Fees – $1,000-$3,000 for accounting, HR, and legal retainers
• Fleet Upgrades – $5,000-$20,000 to replace aging vehicles

By forecasting both start-up and ongoing costs accurately, delivery businesses can budget properly, secure financing, and establish profitable pricing to achieve sustainability. Upfront planning and cost control remain crucial even as revenues scale.

4. Form a Legal Business Entity

When starting a delivery business, one of the first key decisions is choosing your legal structure. The four main options each have pros and cons to weigh.

Sole Proprietorship

A sole proprietorship is the simplest structure with no formal registration needed beyond licenses. You retain full control and get taxed only once on business income. However, you have unlimited personal liability for debts and lawsuits. This poses a major risk given delivery drivers’ exposure to accidents.

Partnership

Partnerships like a general partnership or LP allow you to share ownership with one or more partners. You can combine strengths and capital. But you are personally liable for the actions of the other partners or the business as a whole. Disagreements over control or profits can also dissolve partnerships.

Corporation

A corporation provides limited liability protection for shareholders but requires extensive formalities like board meetings, annual filings, and corporate taxes. The legal complexity is often overkill for small delivery businesses. The sale of stock shares can make ownership transfer easier than other structures if you want to eventually exit the business.

Limited Liability Corporation (LLC)

An LLC or limited liability company provides the best of all worlds for most delivery startups. It protects your assets from business debts and claims, unlike a sole proprietorship or partnership. An LLC has flexibility for pass-through taxation if you remain a single member, but the ability to add partners and issue ownership shares like a corporation.

5. Register Your Business For Taxes

One of the crucial legal steps for any new business is obtaining an Employer Identification Number (EIN) from the IRS. This unique 9-digit number functions like a business’s social security number for tax purposes.

An EIN is required for key needs like opening a business bank account, hiring employees, and applying for licenses. Sole proprietors can use their SSN initially but should secure an EIN as soon as incorporating or adding staff.

The EIN application process is simple and free through the IRS website. You can obtain your EIN immediately by following these key steps:

• Navigate to the EIN Assistant page.
• Select view application as a sole proprietor, LLC, corporation, etc.
• Enter your personal info and business legal name/address.
• When prompted, state the reason you need an EIN. Select “Started a new business” or “Hired employees” etc.
• Submit the online form and your EIN will display immediately upon approval.

The entire process takes less than 15 minutes in most cases. The EIN is free and results instantly in an official IRS confirmation notice. Print this for your records.

You’ll also need to register with your state taxing authority for sales tax collection needs. Visit your Secretary of State website to find the registration form, submit it online, and receive your state tax ID. Costs vary by state from $10-$100+.

Having an EIN and sales tax ID enables delivery businesses to operate legally, open bank accounts properly, and avoid issues with vendors or tax agencies down the road. Don’t let this easy process slow down your progress!

6. Setup Your Accounting

With drivers on the road full-time, orders rolling in, and expenses mounting, delivery businesses quickly become accounting quagmires without proper financial systems in place. However, developing solid accounting habits from the start is crucial for success.

Get a Business Bank Account

Begin by separating business and personal finances. Open a dedicated business checking account using your EIN rather than SSN. This simplifies tracking income and expenses, provides records if audited, and protects your assets.

Accounting Software

Utilizing accounting software like QuickBooks streamlines the entire financial process through automated categorization, reporting, and syncing with bank/credit accounts. The basic QuickBooks package starts around $25/month and can save delivery businesses hours of manual work.

Hire an Accountant and Bookkeeper

As your delivery empire grows, consider hiring a bookkeeping service starting around $300/month. They can reconcile bank statements, code expenses, manage payroll, and provide financial reports to simplify oversight.

Come tax season, an accountant becomes invaluable. For delivery service, expect to pay $500-$2,000 for an accountant to handle fiscal year-end filings, depreciations, and deductions and ensure IRS compliance. If audited, having professional records readily accessible provides peace of mind.

Get a Business Credit Card

Applying for a small business credit card also simplifies accounting by consolidating expenses. Business cards don’t use your credit – issuers consider factors like business revenue, EIN age, and personal FICO score. Maintain a 30% or lower credit utilization for optimal approvals.

7. Obtain Licenses and Permits

Launching a delivery operation without the necessary licenses opens the doors to potential legal issues and penalties. Learn about federal license requirements through the U.S. Small Business Administration . The SBA also has a local search tool for state requirements.

Business License Registering your business entity with the state is the first step, but a separate local business license is often required within your city or county. Business license requirements and costs vary widely based on location. In Los Angeles for example, the initial license fee is $291 with an annual renewal of $143.

Commercial Driver’s License Delivery drivers operating vehicles over 10,000 lbs like box trucks will need a valid Commercial Driver’s License (CDL). Acquiring a CDL involves both knowledge and behind-the-wheel testing through your local DMV. Costs range from $50-$200. All delivery fleet drivers must have a non-commercial license at minimum.

Vehicle Registrations Registering all vehicles involved in your delivery operations is mandatory. Typical automobile registration fees range from $20-$80 annually depending on your state. Registration provides license plates and verifies all vehicles meet inspection, insurance, and emissions requirements.

Operating Authority Interstate delivery businesses shipping goods across state lines require federal operating authority through FMCSA. Gain this through the Unified Carrier Registration for $59 annually plus state-level fees. Intrastate movers can skip this step.

Food Handling/Prep Permit Delivering food, groceries, or other perishable goods? Many states require a food handler permit demonstrating your understanding of safe food prep and transport regulations. Courses and exams are offered online for fees ranging from $7-$50.

8. Get Business Insurance

Operating a delivery fleet without proper insurance is reckless given the risks drivers face daily. The right policies can save your business from financial ruin.

Consider the following:

• Scenario A: A driver gets in an at-fault accident injuring another motorist. Without insurance, you pay their soaring medical bills.
• Scenario B: An employee delivering packages slips on a wet porch and sues for damages. Lacking coverage, the legal judgment could bankrupt you.
• Scenario C: A late-night driver crashes into a storefront, destroying inventory. Without commercial insurance, you must cover the owner’s lost income.

These examples demonstrate how quickly an uncovered incident can upend an otherwise thriving delivery operation. But obtaining adequate policies to mitigate risks is straightforward:

• Inventory insurance needs like commercial auto, general liability, cargo, and worker’s comp.
• Request quotes from providers like Progressive, Geico, Travelers, and local brokers.
• Compare coverage terms and pricing to find the optimal balance of protection and affordability.
• Purchase required policies based on a business scale and locations served before opening.
• Review limits and exclusions annually and adjust coverages as needed as the business evolves.

Follow this checklist so your delivery enterprise can operate without fear of financial catastrophe. Minor monthly premiums today shield against potentially company-ending claims tomorrow.

9. Create an Office Space

While much of a delivery operation happens on the road, securing office space provides a critical home base for coordinating logistics and administration needs.

Home Office

A home office works well initially since overhead is low and you can deduct a portion of household expenses like utilities. However, conducting meetings with drivers in your living room has limitations.

Coworking Office

Coworking spaces like WeWork offer affordable, flexible shared offices starting around $300/month. Great for a lean startup, they provide amenities like meeting rooms, business MFPs, and networking. But space is limited as you scale.

Retail Office

Commercial retail space can enable customer walk-ins for deliveries and supplies if your model includes a storefront. Expect rents around $20-$30 per square foot in most markets. Limitations can include inflexible leases and renovations needed to convert retail to office use.

Commercial Office

Dedicated commercial office space provides room for expansion, storage, large teams, and freedom to operate 24/7. While traditional office leases run $25-$100 per square foot, cheaper options like older Class B buildings or suburban locales can keep costs affordable.

10. Source Your Equipment

A delivery operation relies on having the right vehicles and gear to handle orders efficiently. While buying new may be ideal, startup budgets often require more creative sourcing.

Purchasing new vehicles like cargo vans enables complete customization for your needs. But at $50k per van, the costs add up quickly. Economy cars like Toyotas can provide more affordable options under $20k. Shop dealerships negotiating fleet discounts.

Buying used through private sellers or auctions is a cost-effective way to acquire an initial fleet. Search major listings like Facebook Marketplace , eBay Motors , and AutoTrader for deals on lightly used cargo and passenger vehicles.

Renting through traditional agencies like Enterprise starts at around $500 weekly for cargo vans and could serve short-term needs like seasonal peak delivery times. Compare rates across major national brands and look for weekly/monthly discounts.

Don’t overlook leasing as an attractive middle ground when needing multiple vehicles long-term. Leasing provides reliable newer vehicles with maintenance included averaging $300-$500 monthly. Avoid mileage overages and wear-and-tear fees.

11. Establish Your Brand Assets

Distinguishing your delivery business starts with creating a strong brand identity. An iconic logo, professional website, branded collateral and more enable you to stand out from competitors and connect with customers.

Get a Business Phone Number

A unique business phone number builds credibility and appeal. Services like RingCentral provide local or 800 numbers with call routing, voicemail, and analytics starting at $30/month. Custom greetings and menus project the professionalism clients expect.

Design a Logo

Crafting a memorable logo is also invaluable. Consider name integration and icons representing speed and reliability. Graphic design platforms like Looka make logo DIY simple with customization options starting around $20.

With a logo set, complete your visual identity system with complementary letterheads, menus, uniforms, and vehicle decals. Consistent branding boosts recognition as you scale.

Print Business Cards

Business cards make an impression and build your network. Services like Vistaprint offer affordable, high-quality cards with your logo – perfect for leaving with merchants and hungry delivery takers. Keep a supply handy for chance encounters that convert to customers.

Get a Domain Name

Online domains reinforce your brand and drive discovery. Aim for domain names containing your business name or keywords related to delivery. Providers like Namecheap offer domains starting at around $15 annually.

Design a Website

An engaging website on your custom domain is vital for credibility, especially in e-commerce. Simple drag-and-drop builders like Wix allow anyone to create sites at no cost up to advanced paid plans. For large-scale sites, hiring a pro web developer from freelance sites like Fiverr ensures quality.

12. Join Associations and Groups

Joining relevant local organizations provides invaluable connections and insights for delivery businesses. Surrounding yourself with others and navigating similar hurdles accelerates growth.

Local Associations

Local associations like the National Home Delivery Association or Digital Restaurant Association open doors to large networks for referrals, tips, and potential partnerships. Membership fees are reasonable starting around $100 annually. Attend mixers and events to build your community.

Local Meetups

Local business meetups offer low-pressure networking and education through panels, speakers, and open discussions. Use sites like Meetup to find events like the Chicago Small Business Meetup or LA Delivery Business Mixer. The connections made can bring sales and hiring opportunities.

Facebook Groups

Industry-specific Facebook Groups enable connecting with delivery professionals across your region or country. The Delivery Drivers and Entrepreneurs Networking Group provides spaces to crowdsource advice on operational issues, marketing tactics, and scaling challenges from tens of thousands of members.

13. How to Market a Delivery Business

Implementing an ongoing marketing strategy is essential for delivery businesses to gain visibility and sales. While word-of-mouth referrals from delighted customers provide the most valuable promotion, you must supplement with targeted outreach across channels.

Explore Your Inner Network

Leverage your personal and professional network at launch by offering free meals for social media endorsements. Incentivize referrals with discounts for both new and existing patrons. Building an army of brand advocates reinforces quality perceptions.

Digital Marketing

Digital campaigns enable cost-efficient scaling if optimized effectively. Consider tactics like:

• Google Ads geo-targeting local delivery zones
• Facebook/Instagram ads promoting new menu additions
• Email collection pop-ups on your site for drip campaigns
• Search SEO optimization to rank for “food delivery” queries
• Starting a YouTube channel with driver interviews, service overviews, etc.
• Guest posting on local news sites relevant to your audience
• Social media contests awarding free delivery for a year

Traditional Marketing

While digital efforts expand your reach online, traditional marketing also has select applications:

• Direct mail postcards to households in your coverage zone
• Branded flyers distributed on doors and cars around large offices
• Promoted tweets targeting local followers based on delivery area
• Billboards on busy roads within your delivery footprint
• Radio ads on local stations touting your speed and reliability
• Sponsoring Little League teams and having a concession stand
• Vehicle wraps reinforce your brand as rolling billboards

Balance digital efficiency with real-world visibility. As you scale, consider opportunities like airport kiosks and university campus promotions. Experiment across channels to determine the optimal mix based on response and conversions.

14. Focus on the Customer

Providing exemplary customer service is mission-critical for delivery businesses to drive growth. In an increasingly crowded market, serious attention to supporting and satisfying your customers separates thriving operations from those that quickly fold.

Speedy, accurate deliveries are the baseline expectation – fulfilling this simply earns you the right to compete, not win. Look for opportunities to wow clients instead:

• Call after a first delivery to ensure satisfaction and ask for feedback. This personal touch and proactive care delights.
• Empower drivers to provide credits if an order is slightly late due to traffic. Avoiding finger-pointing builds trust.
• Send handwritten thank you notes to repeat customers congratulating their loyalty.
• Prominently display your support number on all materials so help is always accessible.
• Monitor social media for mentions and immediately address any complaints posted.

With digitally-enabled convenience prioritized over relationships today, rediscovering genuine customer service pays dividends. Word spreads quickly when you offer an outstanding end-to-end experience. Satisfied customers become your best promoters when you start a delivery service.

You Might Also Like

April 9, 2024

0  comments

How to Start a Dog Clothing Business in 14 Steps (In-Depth Guide)

Have you ever considered turning your love for canine couture into a thriving business? ...

How to Start a Vintage Clothing Business in 14 Steps (In-Depth Guide)

The vintage apparel and second hand clothing industry reached an evaluation of $152.5 billion ...

How to Start a Bamboo Clothing Business in 14 Steps (In-Depth Guide)

The global bamboo fiber market is expected to grow at a compound annual growth ...

How to Start a Garage Cleaning Business in 14 Steps (In-Depth Guide)

Starting a garage cleaning business could be the perfect solution! The U.S. garage and ...

Check Out Our Latest Articles

Delivery Service Business Plan Template [Updated 2024]

Delivery Service Business Plan Template

If you want to start a successful delivery business or expand your current delivery service company, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of delivery service business plans.

The following delivery service business plan template and example gives you the key elements you must include in your plan. It can be used to create a business plan for a food delivery service, same day delivery, restaurant delivery service, grocery delivery or any other type of delivery services businesses. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.  

Example Business Plan For Delivery Service Businesses

I. executive summary, business overview.

[Company Name] is a new delivery service that operates in [location]. Our mission is to deliver parcels, documents, and packages for a variety of businesses and individuals located in [location] and the surrounding area. We offer delivery for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure great customer service, special services, and speedy delivery for a moderate price. We aim to be as good as larger chains (such as FedEx and UPS) but offer more unique services for a more affordable price.

Services Provided

[Company Name] will deliver parcels, packages, and documents from local companies and residents to their local destinations. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods, from economy to same day delivery. We are flexible with the goods we deliver, as we want to fulfill all our customer’s delivery needs. Below are a few of the services that our customers will enjoy with us:

• Same day delivery
• On-call services
• Monthly rates and volume discounts
• Route delivery
• Special handling services and requests

Customers can order their services either by calling us, scheduling a delivery on our website, or setting up a service in our app.

Customer Focus

[Company Name] will primarily serve businesses and industries in or near [location]. As the company grows, we will look to serve nearby communities as well. We are open to serving any business or industry that fits our needs. These can include, but are not limited to:

• Medical industries and health professionals
• Corporate offices
• Retail establishments
• Food and beverage
• Attorneys and law firms
• Real estate agents
• Insurance companies
• Construction companies
• Accountants and personal finance consultants

Though we expect to primarily work with local businesses, solopreneurs and local residents are also welcomed to utilize our services.

Management Team

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but noticed that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Though he has never run a delivery service himself, he has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• The company will provide valuable delivery services to local businesses who don’t want to work with impersonal national chains.
• The management team has a track record of success and experience in the delivery service market.
• [Company Name] will provide high quality customer service and a variety of services catered to every business that partners with us.

Financial Highlights

[Company Name] is currently seeking $575,000 to launch. Specifically, these funds will be used as follows:

• Office design/build: $200,000
• Vehicle purchases and maintenance: $200,000
• Technology development and maintenance: $50,000
• Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new delivery service that operates in [location]. We will provide local businesses with fast, efficient, and smooth delivery services to ensure all their packages and parcels get to their destination quickly and in perfect condition. We offer delivery services for all local industries and businesses, including the medical industry, retail establishments, corporate offices, and more. We ensure quality, good customer service, and speedy delivery for a moderate price. We aim to be the dominant local delivery service that [location] can count on for all their delivery needs.

[Company Name] is run by its founder, [Founder’s Name], who has worked for the delivery service market for [X] years. He worked for national delivery chains during that time but wanted a company that offered more moderate pricing and focused on local relationships. He surveyed many local businesses and residents to see if they would be interested in a more localized delivery service. The survey had overwhelmingly positive responses, so [Founder’s Name] immediately began to research all the necessary elements to build his own delivery service.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] on [date of incorporation]. He has been primarily running the business from his home and personal vehicle but has found a potential commercial office space to lease. Once the lease is approved, all operations will be run from there. He will also purchase delivery vans that will be specifically used for delivery services and other business-related reasons.

Since incorporation, the company has achieved the following milestones:

• Located a commercial office space and wrote a Letter of Intent to lease it
• Developed the company’s name, logo and website
• Developed the app and began testing it
• Began recruiting key employees and drivers
• Began partnering with local businesses and stores
• Surveyed other possible locations for expansion

[Company Name]’s Products/Services

[Company Name] will deliver parcels, packages, and documents from local companies to their local destinations. We can deliver almost any product, including medical products, perishables, and legal documents. Packages can be of any size and weight, as long as they fit into one of our vehicles.

Furthermore, we offer a variety of shipping methods from economy to express and priority. We are flexible with what we deliver, as we want to fulfill all of our customer’s delivery news. Below are a few of the services that our customers will enjoy with us:

Customers can order their services either by calling us or setting up an order in our app.

III. Industry Analysis

Thanks to the digital age, there is great demand for delivery services. From food and groceries to medical products, every industry needs to transport goods and packages to its partners and customers. Almost every business and customer buys their products online these days, meaning that every business of every sector has some need for a delivery service.

Moreover, industries are demanding more from their couriers, such as same day delivery and special handling requests. Many national chains do not offer flexible pricing and services to meet their needs. Luckily, local couriers and delivery services can meet this demand.

The global courier service market was valued at $381 billion last year and is projected to reach $658.3 billion over the next 10 years. Furthermore, the industry is expected to grow at a compound annual growth rate of 5.7%. This shows that the courier industry is booming and has no plans to change anytime soon. There has never been a better time to start a delivery service.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will primarily serve local businesses located in [location]. We are open to serving most industries, including medical, legal, and real estate. However, we are also open to helping local residents with their delivery needs as well.

Customer Segmentation

We will primarily target the following customer segments:

• Local businesses : Our primary customer segment will be local businesses across a variety of industries. We aim to develop long-term relationships with these businesses while providing specialized delivery services that exceed expectations. We expect to make a majority of our revenue from these businesses so much of our marketing efforts will target them.
• Solopreneurs : Solopreneurs (such as solo attorneys and personal financial advisors) have unique businesses and require exceptional delivery services. Their needs are often not accommodated well by large chain delivery models. We offer flexible and special services to help solopreneurs with all of their requests.
• Individuals : Local residents have their own unique delivery needs as well. Though we expect most of our sales to come through businesses, we will offer special delivery services to individuals who want a more personalized delivery experience.

V. Competitive Analysis

Direct & indirect competitors.

The following delivery service companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Downtown Courier Services Downtown Courier Services has been a successful courier and delivery service in downtown [location] for years. They provide delivery services to a variety of businesses located downtown and offer great services such as same day delivery, special handling requests, and on call services.

Though Downtown Courier Services is likely to remain successful, they operate in an extremely limited market. They only cater to businesses located in downtown [location] and only deliver packages for a handful of industries. [Company Name] will have a much larger market and geographic range of operation.

National Parcel Service Established in 1977, National Parcel Service has been a dominant delivery company nationwide. Offering a variety of print, ship, and delivery services, it has become a convenient delivery service for both businesses and individuals.

While we expect National Parcel Service to continue to thrive, the business’ reputation has drastically decreased over recent years. Price hikes, restrictions on services, and labor strikes have given the company a negative public outlook. Individuals and local businesses expect high-quality services when prices increase, and National Parcel Service has not delivered on that. Furthermore, National Parcel Service does not have a history of maintaining long-term relationships with its customers nor treating its employees well. Local residents and companies are looking for a more ethical and friendly service to use instead.

Medical Delivery Inc. Medical Delivery Inc. has provided an essential service for medical offices and health professionals since 1995. They deliver all sorts of medical products, including equipment, lab specimens, and test results. They also offer on-call services, same day delivery, and fixed route deliveries.

While Medical Delivery Inc. will continue to thrive, they only deliver medical products and are not open to delivering for other industries. Therefore, we will only see competition from them in this one sector.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Client-oriented service : [Company Name] will put a focus on customer service and maintaining long-term relationships. We aim to be the best delivery service in the area by catering to our customer’s needs and developing a strong connection with them.
• Management : [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best delivery and customer service experiences. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
• Relationships : [Founder’s Name] knows many of the local leaders, business managers and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
• Technology : The delivery service market is one industry that struggles to keep up with technology. Unlike our competitors we will develop an app that will make scheduling delivery services quick and painless. However, we still have a phone number and website for those who prefer to schedule their services through those mediums.

VI. Marketing Plan

The [company name] brand.

[Company Name] seeks to position itself as a strong competitor in the delivery service market. Customers can expect great customer service, speedy delivery, and an overall wonderful experience by ordering through our delivery service.

Promotions Strategy

The [Company Name] brand will focus on the Company’s unique value proposition:

• Safe and secured local deliveries of any package type, size, or weight
• Service built on long-term relationships and personal attention
• Premium services at affordable prices

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The company will advertise its company offerings in popular local magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews to increase audience awareness and loyalty.

Website [Company Name] will develop a professional website where people can learn about our service and the industries covered. The website will utilize SEO to increase traffic, and to ensure that the company’s website will appear at the top of search engine results.

Billboards [Company Name] will secure a billboard in the area that captures the attention of residents and local businesses. The billboard will draw attention to the new business and its service offerings.

Referrals [Company Name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced.

Special Offers Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat deliveries, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value for their customized and professional delivery services. The customer can expect to receive quality services at a more affordable price than what they pay at pricey national courier services.

VII. Operations Plan

Functional roles.

To execute [Company Name]’s business model, the company needs to perform several functions, including the following:

Service Functions

• Driving to customers and picking up packages
• Delivering packages in a timely manner
• Getting signatures when required
• Providing excellent customer service throughout the process

Technology Functions

• Curating the app and website for the best customer experience
• Troubleshooting problems and errors
• Creating frequent updates to keep up with latest technology changes

Administrative Functions

• Bookkeeping
• Scheduling deliveries
• General customer service
• Hiring and training staff

VIII. Management Team

Management team members.

[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer for much of that time. He has found the work highly rewarding, but discovered that national chains are often too expensive for customers and lack the personal detail a local company can provide.

Hiring Plan

[Founder’s Name] will serve as the Manager and CEO of [Company Name]. The following personnel are what the company needs to hire:

• Drivers (3 to start)
• Administrative staff (1 to start)
• Software and app developers (1 to start)
• Customer service associates (2 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenue will primarily come from delivery fees and providing extra services (such as on-call services).

The major costs drivers for the company will consist of salaries, marketing costs, vehicle purchases and maintenance, and lease expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $575,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

Key Assumptions

  5 Year Annual Income Statement

Comments are closed.

Building a Business Plan for Delivery Services

Unlock the secrets to crafting a robust business plan for your delivery service in 2024, ensuring growth and operational efficiency.

Introduction

Launching a delivery service requires more than just vehicles and drivers; it necessitates a comprehensive business plan that outlines your strategy, goals, and the steps you will take to achieve them. In today’s competitive market, a well-thought-out business plan is essential for securing financing, guiding your operations, and scaling your business effectively. This article explores the key components of a business plan tailored for a delivery service, helping you lay a solid foundation for success.

Table of Contents

• Market Analysis and Industry Trends
• Business Model and Value Proposition
• Operations Plan and Logistics
• Marketing and Customer Acquisition Strategies
• Financial Planning and Projections
• Risk Management and Compliance
• Technology and Infrastructure
• Management and Organization
• Sustainability and Growth Strategies
• Executive Summary and Final Thoughts

1. Market Analysis and Industry Trends

Understanding your market is crucial for the success of your delivery service. This involves identifying your target demographic, analyzing competitors, and keeping up with industry trends. A thorough market analysis helps in tailoring services to meet specific customer needs and staying ahead of competitors. For example, the rapid increase in e-commerce has significantly boosted demand for local delivery services, a trend that is expected to continue growing.

2. Business Model and Value Proposition

Your business model should clearly outline how your delivery service will operate and generate revenue. Whether you’re focusing on B2B, B2C, or both, defining your value proposition is key. This includes detailing the types of deliveries you handle, pricing structure, and what sets your service apart from others. Effective value propositions might focus on speed, cost-efficiency, reliability, or customer service excellence .

3. Operations Plan and Logistics

The operations section should detail the day-to-day activities required to run your service. This includes route planning, vehicle maintenance, and the logistics of order management. Incorporating advanced tools like EasyRoutes can optimize your delivery routes, saving time and reducing costs. A well-planned logistics strategy ensures that your service can scale efficiently as demand increases.

4. Marketing and Customer Acquisition Strategies

Marketing is essential to attract and retain customers. Your plan should include strategies for building brand awareness and acquiring new customers through various channels like social media, online advertising, and local promotions. Additionally, developing partnerships with local businesses can provide a steady stream of clients. Leveraging SEO tactics to increase your visibility in local search results is also crucial.

5. Financial Planning and Projections

A sound financial plan includes detailed projections of startup costs, ongoing expenses, and anticipated revenue. It should outline the funding required to launch and sustain operations until the business becomes profitable. This section is vital for attracting investors or securing loans and should be supported by realistic, data-driven financial forecasts.

6. Risk Management and Compliance

Address potential risks involved in your delivery service, including vehicle accidents , data breaches, and regulatory compliance. Implementing risk management strategies such as insurance, safety protocols, and legal compliance checks can safeguard your business. Staying informed about local transportation laws and regulations is crucial to operate legally and avoid penalties.

7. Technology and Infrastructure

Investing in the right technology can greatly enhance the efficiency and reliability of your delivery service. This includes using software for route optimization , real-time tracking, and customer communication . Infrastructure considerations, such as the choice of vehicles and equipment, should also be aligned with your service requirements and operational goals.

8. Management and Organization

Outline your business’s organizational structure, detailing the roles and responsibilities of each team member. This section should also include information about the leadership team’s expertise and the hiring plans to fill key positions. A strong management team can drive the company towards its strategic goals.

9. Sustainability and Growth Strategies

Plan for the long-term sustainability of your business by outlining strategies for growth and adaptation. This could include expanding your service area, diversifying your service offerings, or leveraging technology for better efficiency. Sustainable practices, such as using electric vehicles , can also enhance your brand image and appeal to eco-conscious consumers.

10. Executive Summary and Final Thoughts

Conclude your business plan with a strong executive summary that encapsulates the key points of your plan and your strategic goals. This summary is often the first section that potential investors will read, so it should be compelling and concise.

Are you ready to launch or expand your delivery service with an unbeatable business plan? Visit Roundtrip.ai to discover how our solutions can drive your success with top-notch route optimization and fleet management tools. Start planning today and take your delivery business to the next level!

About Roundtrip

Roundtrip's mission is to equip every business with the software tools they need to deliver products to their customers in a delightful way. Thousands of worldwide choose EasyRoutes to power their local deliveries across dozens of product categories, from meal kits and groceries to coffee, cupcakes, kibble, and so much more. Our easy-to-use route planning and delivery optimization app is certified Built for Shopify, a two-time Shopify staff pick, and the top rated local delivery app on the Shopify App Store.

Check out these other articles

How to Avoid the High Cost of Delivery Delays

Electronic Proof of Delivery: Enhancing Your Deliveries

How to Run a Successful Ghost Kitchen – 6 Powerful Tips

Designed to make deliveries easy

EasyRoutes gives you full control over your local deliveries — from scheduling and route optimization to dispatch and tracking.

How to Start a Delivery Service Business: An Expert’s Guide

• By Rakesh Patel
• Last Updated: April 23, 2024

• Launching a delivery business requires meticulous planning. From thorough market analysis to identifying target demographics and assessing competition, each step plays a critical role.
• To protect your business and customers, prioritize safety and compliance. Ensure all drivers are licensed and qualified, and conduct thorough background checks before hiring.
• Emphasize customer satisfaction to build loyalty and trust. Offer exceptional client support through various channels, including phone, email, and live chat.
• Utilize data analytics and client feedback to assess and improve your delivery service continually. Monitor key performance indicators, such as delivery times, accuracy, and customer satisfaction ratings.

Have you ever been inspired by the success stories of delivery giants like Instacart, DoorDash, Skip The Dishes, and the legendary UPS?

If yes, then you must know that the market for local delivery services and couriers is expected to grow by a startling 4.1% in 2023 alone. It’s huge, isn’t it?

To inspire you even more, we will continue to see an upward graph in the coming days, reflecting the huge demand for convenient deliveries. 

So, if you are deciding whether to start a delivery business, let us share. That’s where we come in—to provide you with the guidance and support you need to turn your idea into reality. 

Don’t worry about questions like how to start a delivery service business and how to manage it to make it successful. We are here to answer your queries. 

We’ll walk you through the process of starting and operating a profitable delivery service, from knowing what services to provide to get the appropriate vehicle, permits, technology, and much more.

Just like Wishlistlist.Delivery managed and automated its delivery planning and optimization process with Upper’s advanced feature set, you, too, can streamline your operations and drive success with the right tools at your disposal. 

So, let’s embark on this journey together. 

Forget Spaghetti Routes, Optimize Routes for Your Entire Team with Upper

Table of Contents

Top Reasons to Start Your Own Delivery Service

Steps to start a delivery service business from scratch.

The delivery services sector is expanding and presents a compelling business opportunity. This is the reason why: 

• The need for reliable delivery services is growing as eCommerce and convenience culture take off.
• Delivery services provide diversification by serving a range of businesses, including the food and retail sectors. 
• The upfront and ongoing costs of delivery services are less expensive than those of physical stores.
• You may expand your fleet, service locations, and clientele as your company expands.  
• Being a delivery service owner gives you the freedom to be your own boss and shape your own future.

Hence, establishing a delivery business may be profitable if you have the correct plan in place.

G et the latest updates and insights to accelerate your delivery service business – Follow us on Twitter for a sneak peek of industry-related news, articles, and upcoming feature releases to streamline your delivery management!

When you start your own delivery business, you must know all the factors that help you build it from scratch. First, you’ll need to find your niche, form a loyal customer base, create a competitive pricing structure, and market your business. 

Here are the strategy plans and steps that will help you start your delivery service:

Step 1: Define your niche

Step 2: Build a delivery business plan 

Step 3: Develop a delivery process

Step 4: Setting up a legitimate delivery business

Step 5: Managing business finances

Step 6: Get business insurance policies

Step 7: Equip yourself with the necessary tools and software

Step 8: Hire and train drivers

Step 9: Market your business with successful branding

Step 10: Use route planning software to optimize last-mile delivery

1. Define your niche

The first step to starting a delivery business is coming up with an industry type of your choice. 

The niche you choose will greatly impact your startup and other related costs. The methods and processes involved in delivering packages are common for almost all businesses. Firstly, let’s look at the 2 standard delivery types:

A. Local delivery service

A local delivery service caters to delivering goods or merchandise to nearby businesses. If your goal is to make deliveries within a specific delivery route with a few zip codes, you can have a cargo van business . You can also tie up with contract drivers who can use their vehicles.

B. Global delivery service

This type of courier service works internationally and can deliver packages across continents. You can work with organizations such as FedEx, DHL, or others to deliver products ordered or sent through these companies.

If you independently wish to use long-haul trucks, you’ll need storage space for trucks, drivers with a CDL driver’s license, and truck routing software .

C. Unique delivery business examples

Here are 4 examples of unique delivery businesses that you can consider to serve your customers and address their pain points:

• Food delivery: You can tie up with local restaurants and chefs to deliver meals for their customers. Focusing on your local area is a beneficial way to enhance customer experience, rather than preferring large platforms like DoorDash. 
• Late-night delivery: When you specialize in providing after-hours orders, you only need to deliver items between 6 pm and 8 pm or afterward. This will give you proper time to focus on the extra care and attention on every order. 
• Pharmacy delivery: By offering your delivery services, you can surpass local pharmacists’ last-mile delivery challenges. This will lower their stress and boost your customer base.

2. Build a delivery business plan 

Every company that has a business plan that defines its purpose is deemed to be successful. When you come up with a plan for your business, you can track progress and make improvements to increase revenue. Here are a few things you must consider in your business structure:

• Keep a tab on your budgets
• Identify your market and competitors
• Apply marketing strategies and define your business goals
• Set a pricing structure as per your delivery service business
• Plan for challenges and daily operations in advance
• Hire employees and delivery drivers
• Provide the necessary training to your employees

3. Develop a delivery process

A delivery process is a complex process that involves creating a route plan, loading the driver’s vehicle with packages, and delivering them to the customer’s doorstep. Here’s the standard delivery process breakdown to ensure successful deliveries and customer satisfaction:

A. Optimizing routes 

New businesses tend to plan routes manually, which is time-consuming and burdensome. It also takes a toll on delivery drivers, even if the route contains only 20 stops. 

Using advanced technology for the route optimization process helps you right from the start. As you slowly increase your delivery orders, an efficient route can lower the stress on drivers and help them reach their destinations on time.

B. Monitoring routes

If you don’t have proper monitoring, it can lead to issues. For example:

• If you need to reroute due to a canceled or additional customer order, you’ll need to call your drivers and manually guess which driver will be available.
• If a customer wants to know about the estimated time of arrival (ETA) , either you or they will need to call the driver, which will again lengthen the process. 

With route monitoring , you and your customers can be sure about the delivery status as you can see your drivers within their delivery route. 

C. Accomplishing last-mile delivery

The final step of the delivery process is for your driver to complete their job by securely delivering the parcel. When you take customer orders, they expect proper delivery of products that aren’t damaged.

Plan your last-mile deliveries with a route optimization solution and ensure that your drivers complete their targets on time. This will allow you to make more parcel deliveries in a day. Additionally, start using electronic delivery proofs to record every order.

Double Your Daily Deliveries with Upper

Upper's intelligent route planning helps you increase efficiency and revenue by enabling you to perform twice as many deliveries each day.

4. Setting up a legitimate delivery business

To successfully launch a local delivery service business, register your business as a legal entity. Begin by choosing a business name and creating a logo that represents your brand.

Then, you can register your delivery business as a Limited Liability Company (LLC), corporation, or partnership as per your requirements. Contacting a legal consultant will help you set up your business entity with a proper understanding of the terms and conditions.

Additionally, you may also need specific state licenses and permits before starting your delivery services. Acquiring these can help you avoid fines or bigger consequences for your business. 

You may also need to collect sales tax on the services you provide. Ensure that you comply with certain regulatory requirements or local licensing laws. To know more about it, you can:

• Communicate with your county clerk’s office
• Get support from a local association listed in the US Small Business
• Associations (SBA) directory of local business resources

5. Managing business finances

After legally registering your company, the next step is opening a business bank account and a credit card for your delivery service. This will enable you to keep your business finances separate and protect your assets. A business credit card also helps build your company’s credit history. 

Proper financial management with separate business accounts, credit cards, and accounting software is essential for:

• Adhering to regulations
• Enabling business growth
• Maintaining organized financial records

Additionally, invest in accounting software like QuickBooks Online to streamline processes such as:

• Monitoring income and business expenses
• Simplifying tax filing

Thus, by taking these steps, you’ll create a strong financial foundation for your delivery company’s success.

6. Get business insurance policies

Operating a delivery service business involves various risks, making insurance coverage essential for compliance, protection, and smooth operations. Some of the insurance policies include: 

• General Liability Insurance is coverage that safeguards small businesses against financial losses.  
• Workers’ Compensation Insurance will cover a portion of your employee’s wages.
• Commercial auto insurance protects against accidents or other liabilities.

Furthermore, it is a good idea to get the necessary insurance for delivery packages. If you fail to do so, you may be accountable for reimbursing a customer if their package is damaged during delivery.

Additionally, you may want to check out with a professional consultant and learn more about other types of coverage you may need. Ensure that your delivery business is insured with the right policies so you can run it smoothly.

7. Equip yourself with the necessary tools and software

You need the right equipment to run your business operations smoothly and make faster deliveries. Here are a few of them you can buy based on your requirements:

• Delivery vehicles: Usually, businesses buy vans or trucks to complete their delivery operations.
• Ratchet straps : These are for your staff members so that they can tie down heavy packages during cargo transport.
• GPS systems : GPS systems help improve location tracking functions and ease up the drop-off service process. 
• Fleet management software : You can track your company’s automobiles using fleet management software . It gives insights into geolocation, vehicle diagnostics, and more.
• CRM software : CRM helps you store customer contact details, understand sales opportunities, manage marketing campaigns, and note down service issues. 

8. Hire and train drivers

Being the pillars of your business, it is crucial to hire and train delivery drivers to perform efficient deliveries. So, ensure that you choose the ones who are capable enough of meeting customer expectations. Here are some points you can focus on:

• Plan the driver’s tasks, roles, and key responsibilities
• Set their shift schedules
• Offer full-time or part-time jobs based on your policies
• Know details such as a valid driver’s license, clean driving records, and the related ones
• Ask about their driving experience for the type of vehicles you’re going to assign 
• Know their familiarity with the delivery regions
• Explain the payroll structures, incentives, and additional details

You may also need to train the existing ones about your company policies and how they can perform their jobs productively. Some areas you can train them in are handling orders, following the maps properly, delivering parcels using optimized routes, and taking delivery proofs.

9. Market your business with successful branding

Start by coming up with a solid business name, trendy color schemes, fonts, and designing an eye-popping logo. You need to be creative to stand out against your competitors and make a memorable impression on your business.

Tip: Advertise your brand through a powerful website, delivery vehicles , social media posts, and anywhere that grabs people’s attention.

Marketing your delivery service is another step to spreading awareness about your business. After all, you need people to buy your services, right?

• Through search engine optimization (SEO) on your website, you can run social media campaigns to generate leads. 
• You can collect information about customers (like their email addresses, phone numbers, etc.), and send marketing emails or message alerts about your offers or services.
• Seeking help from a marketing agency will help your business stand out from the crowd and generate more website traffic.

10. Use route planning software to optimize last-mile delivery

Effective route planning is crucial for both last-mile delivery and local businesses. Route planning software enhances the efficiency of routes by optimizing them according to delivery restrictions, such as traffic patterns. 

However, with so many alternatives available, selecting the best software may be difficult. Upper is a powerful route optimization software that simplifies the process and reduces manual effort. Its key features include:

• Importing addresses from Excel/CSV
• Creating advanced delivery schedules
• Dispatching optimized routes with a click
• Enabling e-signatures and proof of delivery
• Providing detailed reports and analytics.

Don’t only believe what we say. After using Upper, Parkwood Products Ltd., a door manufacturer in New Zealand, had amazing results. The supply manager, Jacob Steele, tells their success story:

Before Upper, the business struggled with manual route planning, had no delivery time estimates, and had unsatisfactory customer feedback because of inadequate delivery evidence. They greatly cut down on planning time after introducing Upper, improved productivity with multi-stop optimization and address import, and decreased complaints with alternatives for proof of delivery.

Because of Upper’s efficiency, Parkwood Products Ltd. can now handle a larger order volume in less time and with fewer human resources. Their success serves as an example of how route optimization technology has helped a variety of industries, including meal delivery , food delivery , essential meal delivery , furniture delivery , and residential cart solutions .

Give Your Route Planning Burden to Upper Route Planner

Start making 3x faster deliveries and build your delivery service business’s reputation from the first day! Join Upper to find and assign the most efficient delivery routes to your drivers.

Frequently Asked Questions

Start by analyzing the growth prospects of business in your region, whether targeting global or local delivery services . Jot down the issues (pain points) of customers and identify their specific needs. Also, make sure that the field you choose offers long-term growth. This strategy enables you to customize your services to meet customer demands efficiently.

Courier services can help you generate a sizable amount of profit if you follow the guidelines and trends for providing excellent customer service. A report shows that the US courier and messenger industry generated an operating revenue of $137.9 billion in 2020 .

The cost of fuel and reaching customers on time are some of the major challenges faced by businesses that provide delivery services. Lack of a route planning process and a focus on enhancing their business model can also lead to a lower graph. Finding route optimization software can help reduce fuel usage and bring you back into the market.

You might wish to select a business name that is distinct from your name if you establish a sole proprietorship. When thinking of name ideas for your delivery business , look through state and federal trademark records, social media accounts, business records, and web domain name availability.

The major startup costs of opening a delivery business include vehicle purchase, vehicle maintenance, insurance premiums, fuel costs, equipment costs, delivery driver payments, fees for business licenses, and marketing costs.

The standard delivery charges may combine mileage charges as per the delivery miles and fuel surcharges. Plus, you can also charge based on delivery hours if they take longer than normal to complete. Rush hours, waiting, after-hours, and size-based charges may additionally apply.

To start a delivery service with contract drivers , you will need a reliable car, the necessary licenses and insurance, a solid business plan, a successful marketing approach, the hardware or software to manage orders, and customer contacts.

The kind of service, delivery zones (location), number of vehicles, and staff may all have a significant impact on the startup costs of delivery businesses. Generally speaking, you should budget anything from a few thousand to more than $50,000 for initial operating costs, vehicles, equipment, insurance, and licensing.

When run well, delivery companies may make a lot of money. Delivery companies may create consistent income streams and turn a profit by utilizing technology, maintaining low operating costs, and providing convenient services, particularly in locations with high population density and demand for delivery services.

Delivery services that are frequently needed include courier services, food, grocery, and package delivery; they can also include medical delivery, flower, retail, or automotive industry-specific services. A wide range of delivery services is also available to meet consumer demands.

Starting a new business can be risky, yet it can generate great revenue when you have a structured process for making your customers happy. So, you don’t want to miss out on using your time and resources in the best way.

Businesses may rely on big delivery companies to meet their customers’ demands. However, these companies could cost much more than creating their own in-house delivery team and management system.

Lucky you! Upper lets you plan routes and assign them to your drivers with a single click. You can relax while your drivers are making lightning-fast and more deliveries than you could imagine. Upper Route Planner is your one-stop solution to create optimized routes and make cost-efficient deliveries. Take the 7 days free trial today!

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

Related Posts

How To Handle Last-Minute Delivery Changes In Your Food Delivery Business?

Engine Hours Explained: Why It Matters & Should You Also Track Them? 

Delivery Driver Training: How to Develop a Comprehensive Program?

How to Schedule Delivery Drivers: A Comprehensive Guide

Shipping vs Delivery – Revealing the Differences in Detail

5 Best Sunglasses for Delivery Drivers: Protect Your Eyes on the Road

Sign Up with Upper Route Planner and automate your daily business process route planning, scheduling, and optimizing!

Life's Complicated Enough. Your Routing doesn't have to be.

Plan routes, manage drivers and stops, send timely customer notifications, collect proof of delivery and much more with just a few clicks.

https://www.upperinc.com/guides/how-to-start-a-delivery-service/

Grab a FREE Trial of Upper

• Plan routes with hundreds of stops in a minute
• Schedule routes months in advance
• Collect reliable proof of delivery
• Track drivers live for real-time updates
• Experience unparalleled customer support

Grab a FREE Trial of Upper TODAY!

• Schedule routes in advance for weeks
• Collect proof of delivery to maintain accountability
• Experience 24/7 customer support
• Smart reporting to get real-time insights

Food Delivery Business Plan Template

Written by Dave Lavinsky

Food Delivery Business Plan

You’ve come to the right place to create your Food Delivery business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Food Delivery companies.

Below is a template to help you create each section of your Food Delivery business plan.

Executive Summary

Business overview.

Dig In is a newly established food delivery business located in San Diego, California. The company will have an online platform that will also be able to be downloaded to users’ phones as an app. Users will be able to create a login profile and have instant access to all the local restaurants, bakeries, grocery stores, and fast food establishments.

The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In will reward users that frequently use their app. Users will be able to earn rewards and discounts for every order they place through the website or app. This will enable users to keep ordering their food delivery through Dig In.

Dig In will be owned and operated by John Hutchinson, a local entrepreneur who has been in the tech industry for over 15 years. He has developed other apps and platforms for tech companies and has started mapping out this business’ platform for over two years. At this point, he has perfected the technology and is ready to reveal the new local food delivery service in San Diego, California.

Product Offering

Dig In will provide food delivery services for the residents of San Diego. Residents who want the convenience of food delivered to their doorstep can download our app, find the establishment of their choice, and order whatever they’re craving for. Most of our sales will come from orders to local restaurants but we will also offer delivery from grocery stores and drug stores. Customers will be charged a small delivery fee or have the option to join our membership for reduced fees and special deals.

Customer Focus

Dig In will target all residents living in and around San Diego. It will appeal to students, families, retirees, white collar, blue collar, and government employees. Because our fees are moderately priced compared to other delivery apps, all income levels will be able to enjoy our delivery services.

Management Team

With his entrepreneurial and tech knowledge, John will be able to quickly fix any issues with the platform. He has also formed relationships with the most sought after restaurants, bakeries, grocery stores in the area to sign them up to be part of the food delivery platform. He has also hired a team of independent food delivery drivers to earn extra money by completing the food delivery orders.

Success Factors

The following success factors will set Dig In apart from the competition:

• Comprehensive List of Restaurants and Food Stores: Dig In will include a more comprehensive list of restaurants, grocery stores, and drug stores for customers to choose from.
• Membership Rewards: Dig In will allow users who create a profile to earn rewards for every order they place through its online platform. The rewards can be redeemed for delivery fee and order discounts.
• Faster Delivery Times: Dig In promises to have faster delivery times than its competitors.
• Pricing: Dig In’s price point for delivery fees is on par with its customers, if not cheaper.

Financial Highlights

Dig In is seeking a total funding of $500,000 of debt capital to launch. The funding will be dedicated for the design and development of the app, marketing expenses, working capital, and three months worth of payroll expenses. The breakout of the funding is below:

• Platform Development: $150,000
• Marketing and Brand Development: $100,000
• Three Months of Overhead Expenses (Payroll, Rent, Utilities): $150,000
• Working Capital: $100,000

The following graph outlines the pro forma financial projections for Dig In:

Company Overview

Who is dig in.

  The company will outsource its delivery to local drivers that will be employed as Independent Contractors so they will be able to set their own schedule and hours. The drivers will receive orders through their app, select which user they want to deliver to, pick up the food order from the chosen establishment, and deliver to the user in a timely manner.

Dig In’s History

John Hutchinson has spent the last 2.5 years creating the food delivery online platform. As a tech entrepreneur, he knows how to map, develop, and implement an online platform. He has been instrumental in creating other apps and platforms for ecommerce companies and has created attractive and efficient apps for numerous Fortune 500 companies.

During the COVID-19 pandemic, John was on lockdown and working from his home. He used other food delivery services, but they were all slow, got his order wrong, or didn’t have a good selection of restaurants and establishments. It was then that he started developing his food delivery business and would implement and perfect all of the things that the competition suffered at.

Since incorporation, the company has achieved the following milestones:

• Mapped out the online platform for the food delivery business
• Developed the company’s name, logo, and website
• Approached multiple local restaurants, grocery stores, and bakeries to be a part of Dig In’s platform
• Determined necessary insurance and legal requirements
• Began recruiting key employees
• Written and developed the Delivery Driver processes and procedures.

Dig In’s Services

Industry analysis.

The Food Delivery industry has grown substantially in the past five years. The convenience of ordering food from home has appealed to large demographics and now nearly everyone orders through a food delivery app at some point. Food delivery apps became a necessity during the COVID pandemic and now they are a mainstay in modern society.

According to Grand View Research, the Food Delivery industry is set to grow at a CAGR of 18.7% from now until 2030. What helps this growth is the increasing popularity of smartphones and the expansion of these services overseas. Food delivery apps are becoming an essential tool in modern society, which makes this a great time to create a new food delivery service.

Customer Analysis

Demographic profile of target market.

Dig In will target millennials, young professionals, and college age students as this demographic is more comfortable with online delivery services and regularly use other similar apps such as Uber and Tasty.

However, we expect Dig In will appeal to other demographics as well as it will be a convenient and moderately priced option to get food delivered quickly. For example, we expect working parents will enjoy our app as well as elderly residents who have trouble leaving their home to go grocery shopping or go to a restaurant.

The precise demographics of the San Diego area are as follows:

Customer Segmentation

Dig In will primarily target the following customer profiles:

• Young professionals
• College students
• Working parents

Competitive Analysis

Direct and indirect competitors.

Dig In will be competing with other popular food delivery apps. A profile of each competitor is below.

Food at Your Door

Food at Your Door is an online and mobile platform for restaurant pick-up and delivery orders. The company is known for connecting over 30 million customers and processes on average about 500,000 daily orders in most cities around the United States. Customers are able to search for restaurants, order directly through the website or app, and then await their delivery from independent contractor drivers.

The company generates revenue from delivery fees paid by consumers as well as commissions paid by participating restaurants. Food at Your Door’s other offerings include a program for corporate food ordering, website design and hosting for participating restaurants, and point-of-sale integration services. The company is continuously updating its platform with innovative technological advancements to stay on top of the competition.

Fast Foodie

Fast Foodie is a technology company that connects people with the most popular food establishments in their neighborhoods. They enable local businesses to meet consumers’ needs of ease and convenience while enabling their independent contractors to generate an additional source of income. The company is passionate about transforming local businesses and dedicated to enabling new ways of working, earning, and living. They empower their local economies by ensuring that people have equal access to opportunities to reach their full potential.

Fast Foodie has expanded their database to include not only restaurants, but convenience stores, pet stores, grocery stores, and drug stores.

Ding Dong is an operator of an on-demand goods delivery platform that is intended to facilitate smooth delivery of essential goods. The company’s platform offers full-service and in-store shopper services through a network of independent shoppers with same-day delivery and pickup service of fresh groceries and everyday essentials. This enables users to select items from their favorite grocery stores and get them delivered almost instantly.

Ding Dong was the first online platform to expand their services and products by including anything that can be purchased at a local grocery store, convenience store, or drug store. The drivers/shoppers are required to ensure delivery during the selected timeframe that the user selects.

Competitive Advantage

Dig In offers several advantages over its competition. Those advantages are:

Marketing Plan

Brand & value proposition.

Dig In will offer the unique value proposition to its clientele:

• Comprehensive list of restaurants and grocery stores
• Membership rewards and specials
• Faster delivery times
• Moderately priced fee structure

Promotions Strategy

The promotions strategy for Dig In are as follows:

Social Media

Dig In will utilize the most popular social media platforms for ads since the majority of the clientele will be active on social media. The company will also have business accounts on each major platform to post regularly of food options that are available for delivery.

Collateral Material

Dig In will develop numerous collateral materials to have on hand to give out to potential customers at the local farmers markets, events, or restaurant or store events.

Website/SEO

Dig In will invest heavily in developing a professional website and app that displays all of the restaurant and store options the company will be able to deliver for. The company will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Billboards/Signage

Dig In will invest in attractive signage and billboards to increase the brand awareness of the local food delivery business.

Dig In’s fee structure will be moderate so clients feel they receive great value when placing their food delivery orders.

Operations Plan

Operation Functions: The following will be the operations plan for Dig In.

• John Hutchinson will operate as the CEO of Dig In. In addition to running the general operations, he will oversee the app development and provide app support.
• John will hire 2-3 additional web engineers to run the website and app.
• John will hire 20-30 delivery drivers to work on an independent contractor basis.
• John will also hire an administrative team for accounting/bookkeeping, sales and marketing, and customer service support.

Milestones:

Dig In will have the following milestones complete in the next six months.

• 8/202X – Finalize app development
• 9/202X – Hire and train initial staff
• 10/202X – Kickoff of promotional campaign
• 11/202X – Launch Dig In
• 12/202X – Reach break-even

Financial Plan

Key revenue & costs.

Dig In’s revenues will come primarily from the fees it receives from the food delivery orders.

The delivery driver commissions, website platform fees, supplies, marketing, and labor expenses will be the key cost drivers of Dig In.

Funding Requirements and Use of Funds

Key assumptions.

The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.

• Initial Number of Orders Per Day: 100
• Average Order per Customer: $25.00

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Food Delivery Business Plan FAQs

What is a food delivery business plan.

A food delivery business plan is a plan to start and/or grow your food delivery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Food Delivery business plan using our Food Delivery Business Plan Template here .

What are the Main Types of Food Delivery Businesses?

There are a number of different kinds of food delivery businesses , some examples include: Restaurant Delivery, Meal Kit Delivery, Grocery Delivery, and Veggie Box Delivery.

How Do You Get Funding for Your Food Delivery Business Plan?

Food Delivery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Food Delivery Business?

Starting a food delivery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Food Delivery Business Plan - The first step in starting a business is to create a detailed food delivery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your food delivery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your food delivery business is in compliance with local laws.

3. Register Your Food Delivery Business - Once you have chosen a legal structure, the next step is to register your food delivery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your food delivery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Food Delivery Equipment & Supplies - In order to start your food delivery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your food delivery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful food delivery business:

• How to Start a Food Delivery Business

Delivery Services Business Plans

Bicycle courier business plan.

The Two Wheeled Oracle is a bicycle-based courier service catering to law firms.

Concierge Service Business Plan

Godsend Concierge Service is a full-service concierge business serving the Eugene, Oregon market.

Direct Mail and Shipping Business Plan

The Shipping Centre is a start-up full-service fax transmittal, shipping, and private P.O. Box company.

Dry Cleaning Home Delivery Business Plan

Columbia Cleaners is a start-up dry cleaning, laundry and alterations service business. They are offering a new service, home pickup and delivery of garments and items, instead of the traditional drop.

E-Commerce Start-Up Business Plan

NoHassleReturn.com strives to position itself as a strategic partnership between online merchants, Web hosting companies and portals, shipping companies, and online payment agents such as credit card issuers.

Mail Order Returns Business Plan

QuickReturns is a start-up company offering e-tail returns and reverse logistics services.

Pizza Delivery Business Plan

Tsunami Pizza will offer the best pizza and the fastest delivery service in the area.

Ready to start a packing and shipping business? A business plan is a smart first step. For inspiration, check out these sample business plans for packaging and shipping, direct mail, mail order returns, and other related businesses.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Goods Delivery Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Courier Company

Are you about starting a delivery service company? If YES, here is a complete sample goods delivery service business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a goods delivery service business. We also took it further by analyzing and drafting a sample goods delivery service marketing plan template backed up by actionable guerrilla marketing ideas for delivery service businesses. So let’s proceed to the business planning section.

Suggested for You

• How to Start a Pick Delivery Business With Contract Drivers
• How Much Money Do Self Employed Couriers Make (Profit Margin)
• 10 Best Vehicles for Courier Business
• 10 Best Accounting Software for Courier Company
• 40 Best Slogans and Taglines for a Courier Company

The goods delivery business has existed for a long while but was mostly under the federal government till private individuals decided to revolutionize delivery. The goods delivery business actually came gained more prominence during the internet boom which saw more businesses going online in order to try and reach more of their target market.

Small and medium scale businesses also joined the internet fray and therefore the need for delivery businesses that would ensure that customers of small, medium and even large scale businesses got what they ordered for, regardless of where they lived.

Even though this business might not be capital intensive especially if you intend to exclude several kinds of deliveries or even start on a lower scale, there are still certain factors you would need to consider before starting this business.

For instance, hiring a business consultant who has the required industry knowledge to help point out obstacles you might likely face and how you can overcome them is very important. Below is a sample goods delivery business plan;

A Sample Goods Delivery Service Business Plan Template

1. industry overview.

As at 1999, homes with an internet connection were less than 50 percent, and the use of smart phones weren’t even in the picture, which made the delivery business a near impossible one to run as delivery fees most times surpassed ordering fees for customers.

However, the rise of new technology that allowed for connectivity has seen a boost in the delivery business industry. Technology helped reduce costs for end user customer by employing algorithms to ensure that not only were cists reduced but that customers could also get their goods delivered same day as when they ordered it.

During the third quarter of 2013, a lot of same day delivery businesses started up and spread like wildfire. Today, a lot of goods delivery businesses also offer same day deliveries to customers raking in more money from this niche.

The goods delivery business is an industry that has been projected to grow more than 9 percent annually and is targeted to reach $343 billion by 2022, this is as traditional postal delivery companies are facing challenges in meeting target revenue.

According to statistics, delivery companies worldwide are scrambling to meet up with consumer demands and are also striving to remain proactive so as to meet future demands that are expected to expand the present capacity of delivery businesses as more delivery companies will be forced to focus on Business to Consumer (B2C).

Business to Consumer (B2C) is expected to grow revenue for goods delivery business annually at 6 percent. The growth is due to the fact that most retailers (about 80 percent) have seen a positive impact on customer satisfaction especially when there are multiple delivery options available. This fact has seen 77 percent of retailers increase their investment in delivery services.

Consumers now have the upper hand as regards what delivery options they prefer, this is why most goods delivery businesses are now focusing more on their recipient customers than those they make deliveries for. Consumers now have the option of tracking their goods and determining when it will get to them.

In the united states of America, there has been an emergence of regional carriers who have provided customers with cheaper and faster delivery options than the national carriers. The advantage with regional carriers is that they are likely to get delivery contracts from major customers.

The industry that has really helped the delivery industry is the e-commerce industry. The e-commerce market has generated huge volumes and is expected to generate about $2.4 trillion by 2018.

There are new delivery options that have been launched by several entrants such as using different means – taxi, bicycle, motorcycle, foot messengers and even the use of an app that allows ordinary people do the delivery – to bring innovation to the delivery marketplace.

2. Executive Summary

Quick-time goods delivery Inc is a business that has been established in Louisville – Kentucky and is reputed to be amongst the top three leading delivery brands in the United States of America by the year 2030. We intend to cater to both corporate and domestic clients, and will strive to meet all the demands of our customers.

Our goods delivery business has been established not only to generate revenue and make profit but also to compete favorably with other goods delivery businesses in Louisville – Kentucky and in the United States of America. In order to compete with our competitors, we have several competitive advantage strategies at hand to ensure that we remain proactive and achieve our intended goals and objectives.

We are willing to go the extra mile in ensuring that we invest in the best and experienced hands to help bring our business to the status that is in line with our goals and objectives. We have laid down business structures that will enable us source for and get the best professionals.

Our delivery drivers and dispatchers have been trained on how to attend to customers and what to do if a client is proving difficult. We have several strategies laid down so that we are not thrown back when there is an obstacle but are prepared for it.

Our customer care executives have been trained to be highly perceptive to the wants and needs of our customers, and also remain updated as regards the delivery industry so as to make informed comments to our customers on behalf of the company.

The delivery business industry is a huge one and not one where demand is likely to die anytime soon, and so this is a business that would continue to boom for a long time, and we are well positioned to tap into this huge market.

We intend to make sure our employees work in a conducive environment and that they earn the best pay as can be gotten in similar start-ups here in Louisville – Kentucky. Also, we intend to ensure that our employees get the best welfare packages that can be obtained in the industry this is so they could remain motivated.

Quick-time Goods Delivery Inc is owned and operated by Mike pence and his immediate family members. Mike Pence is a college graduate but has several years of experience in the delivery industry, as he has worked in all kinds of position in several delivery businesses and is best suited to bring the business to the required standard.

3. Our Products and Services

Quick-time Goods Delivery Inc intends to deliver all kinds of goods to our various customers with the exception of certain goods that are not legally permissible under the laws of Kentucky and that of the United States of America.

The goods delivery business is not a capital intensive business and can be started on any budget that the entrepreneur wishes for. However, to ensure that the business grows and sustains itself, we intend to offer other services in addition to our core service – goods delivery.

These other services will boost the bottom line of the business and cause us to achieve our intended sales projections on time. Some of the services we intend to offer at Quick-time Goods Delivery Inc. are:

• Delivery of different types of goods to our various customers
• Consultancy services

4. Our Mission and Vision Statement

• Our vision at Quick-time is to be the best and only preferred goods delivery business in the Kentucky and in the amongst the top three goods delivery business in the United States of America by 2030.
• In order to achieve being the best and preferred goods delivery business, we intend to perfect our business structure and also put several modalities in place to ensure that we achieve our goals and objectives.

Our Business Structure

At Quick-time Goods Delivery Inc, we know how important starting off on the right foot is as we believe, laying the right foundation at the beginning would enable us easily achieve our set goals and target. This is why we ensured that we got the right hands that will enable us achieve our set goals.

Our employees are professionals who understand the business thoroughly and know what it takes to take us to the height we intend to achieve.

All our employees are all assigned to the right available positions and are allowed the freedom to be able to draft strategies and implements plans that would see the company achieve its vision. Our employees are well paid and have one of the best salary structures in the goods delivery business industry.

Because this is a business that deals constantly with customers, our employees are highly trained in customer care and are able to provide excellent customer care to all our customers.

Knowing our important it is for our employees to remain satisfied and productive at work, we have ensured that they work in a conducive environment and that they have good welfare packages. Below is the business structure that we intend to build at Quick-time Goods Delivery Inc;

Chief Executive Officer

Marketing Executives

Logistics Manager

Human Resources and Admin Manager

Customer Service Executives

Delivery Drivers

Storage Manager

Security Guard

5. Job Roles and Responsibilities

• Drafts the overall corporate strategy for the company
• Makes strategic decision on behalf of the company
• Drafts a workable budget for the company
• Responsible for drafting and implementing marketing strategies that would allow the industry penetrate the large market
• In charge of placing adverts in relevant places to promote the business and help attract customers
• Carries out constant reviews on policies and modifies or remove ineffective marketing strategies
• In charge of planning the best routes for which goods can be delivered to customers on time
• Drafts and implements policies that would see the delivery department improve
• In charge or recruiting and conducting orientation for new employees
• In charge of employees welfare, and constantly carries out performance appraisals on customers
• Ensures that all the administrative functions in the business are running smoothly and undergo constant review
• Responsible for attending to clients and taking orders on behalf of the company
• Responsible for answering inquiries and ensuring that all complaints are promptly resolved
• Must remain be knowledgeable and remain updated about the delivery business industry
• Responsible for preparing all the financial records and statements of the companies
• In charge of preparing tax on behalf of the company and submitting tax documents to the relevant authorities
• Ensures that balances between the bank and company are reconciled at the end of the month.
• Oversees the loading and offloading of goods and parcels and ensures they tally with what is documented
• Ensures that all goods reach its accurate destination safely and on time
• Responsible for carrying out light maintenance on the delivery van
• Responsible and accountable for all goods under care
• Ensures that store is kept clean and secured at all times
• Carries a routine check for all packages and documents all goods under care
• Responsible for ensuring that the area in and around work is kept secure at all times
• Ensures that cargoes brought into the business premises are properly screened
• Scrutinizes incoming and outgoing items and people
• Responsible for keeping the premises clean especially after work hours
• Cleans up the rest room for employees and visitors
• Stock up on cleaning supplies, and report out of stock supplies to the manager

6. SWOT Analysis

In order to know if our business would thrive, we hired a reputable business consultant here in Louisville to look through our business concept and help conduct a SWOT ( Strength, Weakness, Opportunities, and Threats ) analysis that would determine if we were in position to compete favorably against our competitors and if our business would survive the threats that are likely to crop up during the time of starting or running the goods delivery business.

The SWOT analysis was not only conducted for our location here in Louisville but also as regards the whole of the United States of America. Asides the location, the industry as a whole and several other factors were put into consideration. The of the SWOT analysis that was conducted on behalf of Quick-time Goods Delivery Inc is as follows;

Our strengths lies on the fact that we would be offering our customers a unique goods delivery service unlike that they have ever seen, as we intend to become the preferred brand in Louisville – Kentucky. We have a well designed business structure that will ensure that our vision is achieved as we have recruited the best employees in the field to help achieve this vision.

Our employees are not only competent but also have the required experience necessary to ensure that we achieve our goals and objectives.

Also, the fact that we are located in Louisville – Kentucky is another added strength as our position is convenient for many of the customers in our target market. Also, our Chief Executive Officer, Mike Pence has a vast and also the necessary expertise to see that the corporate vision and objectives of the company is achieved.

Our weakness is in the fact that we are not the only goods delivery business as there are several others in Louisville – Kentucky offering the same services that we are offering and to the same target market. However, we are positive that our strategies will afford us the ability to compete favorably with other established goods delivery businesses in Louisville – Kentucky.

• Opportunities

The opportunities this business affords us are boundless as the numbers of people that shop online or buy products via phones are increasing by the day. This therefore means that the demand for goods delivery service will continually increase.

Facing threats is not a new thing to any business, and so we know that during the course of running or starting the business, we are likely to face several threats such as having a new competitor in the same location where we intend to start our business or a downturn of the economy which will see less people demanding for our services. However, we have several laid down strategies that will ensure that we overcome any threats.

7. MARKET ANALYSIS

• Market Trends

The goods delivery business is a huge business that has seen a positive growth in the service industry, this is because more people now prefer to shop online or buy products through their phones.

Also, the goods delivery business has allowed more businesses to penetrate their target market as goods can now be delivered to these customers regardless of where they stay via the businesses such as the delivery business. Customers are willing to pay for this extra charge because it is more convenient to have the goods delivered to whatever place of their convenience.

Another trend for goods delivery business is the trend of timed delivery. Customers no longer have to wait a long time to receive their goods as they can receive it within 24 hours. Delivery businesses that offer express delivery have also cropped up therefore raising the bars in the delivery industry.

However, regardless of what mode the customer chooses, all they want is that their goods are delivered at the right time and place and in the right conditions. The reason for the spike in delivery businesses in the service industry is the internet.

The internet is now being used towards ensuring that innovative entrepreneurs reach out to customers – private and commercial has eased most of the stress of conventional publicity for these entrepreneurs. Websites and social media platforms are being used to lure customers and also create awareness about the business.

8. Our Target Market

The target market for the goods delivery business is very huge as there are a number of people that require the services of a delivery company.

This therefore means that the target market is huge and cannot be limited to a certain location or set of people. Also, our location in Louisville – Kentucky is very strategic and affords us the opportunity of being able to cater to a large number of customers.

Asides from being in a strategic location, our website has been Search Engine Optimized (SEO) to be able to pop out during searches for goods delivery businesses.

In conducting a thorough market research, we were able to find out what our target market would be expecting from us in terms of offering the best delivery services. The target market that Quick-time Goods Delivery Inc. would be offering goods delivery services for and to are;

• Manufacturing Companies
• Restaurants
• Printing press
• Publishing houses
• Clubs and bars
• Salons and beauty shops
• Private individuals
• Corporate Executives
• Celebrities
• Everyone in our target market who would require our services

Our Competitive Advantage

Our aim in starting Quick-time Goods Delivery Inc is to ensure that we are the preferred goods delivery in Louisville – Kentucky, and also amongst the top three brands in the United States of America. To achieve this vision, we have laid out strategies that will ensure that we have competitive advantage over those we intend to compete with in the delivery business industry.

First off, we intend to get two delivery vans that will ensure that customers get tier goods on time. Our delivery drivers will have a Point of Sale (POS) Machine for customers who do not have cash and didn’t pay in advance but intends to pay once the goods have been delivered. This service is the first of its kind here in Louisville – Kentucky.

Another competitive advantage we intend to have over our competitors is in ensuring that we hire only competent employees who not only have the experience but are also attuned to the vision of the company in becoming the best brand here in Louisville – Kentucky and amongst the top 3 in the United States of America.

We intend to train our employees in customer care service so that they effectively communicate our brand whenever they represent us to customers. We will ensure that we not only meet the expectations of our customers but also exceed it as well as we will continually review our customer service strategies to ensure that we remain on top of our game.

Finally, our employees will have the best welfare packages that can be gotten amongst similar start-ups here in Louisville – Kentucky. We intend to ensure that their skills are constantly honed through various training that will improve their careers and also their productivity for our company.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Due to the fact that the goods delivery business is a service based business, and might not seem like it has several sources of income, we have laid down strategies that would see us not only earning from delivery of goods but from other sources as well.

However at Quick-time Goods Delivery Inc business, we intend to ensure that all our sources of income are under the legal and permissible laws of the United States of America. Quick-time Goods Delivery Inc. intends to generate income from these several sources;

10. Sales Forecast

The goods delivery business is not likely to fade into oblivion anytime in the future and instead will see a likely surge in demand as more businesses spring up and more people shop online through their PCs, tablets or smart phones.

Our target is to ensure that we generate our target income within the first year of operation as our strategic location in Louisville – Kentucky is pivotal to this projection. Also, regardless of the fact that we might offer reduced fares during the first three months of running the business, we are confident of meeting our target especially as we have laid down plans that will see to this.

We have in collaboration with a reputable business consultant here in Louisville – Kentucky critically examined the goods delivery business and having analyzed our chances of survival and growth in this competitive industry has been able to come up with the following sales forecast.

The sales projection that was conducted on behalf of Quick-time Goods Delivery Inc were based on several assumptions that are peculiar to similar businesses in same location; Louisville – Kentucky. Below is the sales projection that was conducted on our behalf;

• First Fiscal Year-: $300,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $1,200,000

N.B: The above sales projection was done based on certain factors that are obtainable in the industry and on several assumptions such as the rate of people willing to shop online, the state of the economy, government policies, and the arrival of a similar competitor to same location.

This therefore means that the sales projection might be lower or higher if any of the above assumptions change either positively or negatively.

• Marketing Strategy and Sales Strategy

Before starting off our goods delivery business, we intend to ensure that our marketing and sales strategies have been thoroughly reviewed. During the course of running the business, we also intend to ensure that we carry out a continuous review of our strategies, this is because we know how important marketing is to any organization – either profit or non-profit.

Carrying out a sales forecast helped us determine who our likely target market were and therefore helped in determining the best marketing strategies to use in penetrating the market and also attracting customers to our goods delivery business in Louisville – Kentucky as well as the whole of the United States of America.

Our marketing executives have been empowered to continuously carry out research on the target market as well as tweak or remove marketing strategies that are not regarded as effective during the course of running the business.

The strategies that would be developed by our marketing executives will be one that will help us catch the attention and eventually win a larger percentage of the market not only in Louisville – Kentucky, but in the whole of the United States of America as well.

In order to ensure that customers outside Louisville – Kentucky know about Quick-time Goods Delivery Inc business, we intend to deploy several strategies on the internet to enable us achieve this.

Our website will not only be interactive and user friendly, it will also be well designed to appear on top searches for customers looking for the best delivery business. Asides, our website, we intend to use social media platforms such as Facebook and Twitter to engage and attract more customers to our business.

Finally, we at Quick-time Goods delivery Inc business intends to use the following marketing strategy in getting more customers for our goods delivery business;

• Advertise our goods delivery business in popular online forums, blogs and websites
• Place adverts in local newspapers, and on radio and television stations
• Encourage our loyal customers to refer us to others
• Engage in direct marketing
• List our business in offline directories as well as online directories
• Use the internet – website – to market our services, as well as social media platforms such as Facebook, Twitter, Google Hangout and LinkedIn.

11. Publicity and Advertising Strategy

Every business either new or old knows how wise it is to court publicity. Publicity is a two edged sword as you get to create awareness for your business while also generating revenue.

Even though we have laid down strategies that intends to make us stand out from the other goods delivery businesses we would be competing with, we know how important publicity is if we intend to achieve our goals and objectives and succeed as a business.

Louisville – Kentucky is a perfect location for our goods delivery business and the perfect launching pad for our publicity strategies, before we eventually venture out to other cities and spread throughout the United States of America.

Quick-time Goods Delivery Inc. intends to create a unique logo and also have a unique color that stands us out of the crowd. Some of the publicity and advertising strategies we at Quick-time Goods Delivery Inc intend to deploy are;

• Ensure that we create customized tee-shirts for all our workers especially our drivers
• Emblazon our delivery trucks with our unique logo and color
• Place adverts in local newspapers, magazines and on radio and television stations
• Distribute our handbills and pin our fliers in target locations
• Put up flexi banners in strategic locations so that our target customers can see and patronize our services
• Use our social media platforms – Facebook and Twitter – to promote our brand
• Send out cold e-mails to prospective customers
• Send out newsletters to customers – both potential and existing

12. Our Pricing Strategy

The success of a business can be determined by the kind of prices it sets. While a business will need to set the prices that are deemed fair by its customers, it shouldn’t set a price that will cause a price war with its competitors or one that will enable the business run at a loss.

Determining the fair price for a service oriented business can be tricky but any serious entrepreneur knows that regardless of the business being run, any set price or rate should cover overhead and operating expenses and ensures that the business makes profit as it should.

Since we are relatively new in the market, we also know that it is necessary that we set a price that will allow our customers patronize our services and for this purpose, we would offer our services at a reduced rate for the first 6 months of operation. We however would not lower the prices too much so as not to have our business crumble.

• Payment Options

Due to the fact that this is a service oriented business, we are aware that our customers would prefer several means of being able to pay for our services and it is due to this fact that we have come up with different payment options intended to suit whatever style our customers would want. Below are the payment options that we intend to make available to all our various customers;

• Cash payment
• Payment via check
• Payment via Point of Sale (POS) Machine
• Payment via credit card
• Payment via online bank transfer

The options chosen above were done with the help of a trusted and reputable bank, and will be available to all our customers without hitches.

13. Startup Expenditure (Budget)

The goods delivery business can only be capital intensive depending on the area the entrepreneur wants to focus on. However, in starting a standard goods delivery business, there are certain expenses that the entrepreneur is supposed to spend the bulk of the capital on.

The expenses include all overhead expenses and several operating expenses such as bill payments and employee salaries. Therefore the key areas where we intend to spend the bulk of our start-up capital on are;

• Business incorporation fees – $750
• Business licenses and special permits as well as certain accounting software – $1,550
• Cost of hiring a business consultant – $1,000
• Marketing expenses (promotion expenses for grand opening and regular marketing) – $5,000
• Insurance (general liability and workers’ compensation) – $2,000
• Operational expenses for the first 6 months which includes employees salaries and bill payments – $75,000
• Cost of storage facilities and hardware (racks, shelves, bin, surveillance cameras) – $4,000
• Administrative expenses (stationeries, furniture, computer, phone, printer) – $5,200
• Cost of purchasing two goods delivery van – $90,000
• Cost of launching a website – $500
• Cost of grand opening party – $3,000
• Miscellaneous – $2,000

From the above estimation, we would need a total of $200,000 in order to successfully start-up our goods delivery business in Louisville – Kentucky. The amount covers the payment of our employees’ salaries as well as other bills for a period of 6 months.

Generating Funding / Startup Capital for Quick-time Goods Delivery Business

Quick-time Goods Delivery Inc is a business owned and run by college graduate, Mike Pence and his family. This is a business that the family has decided to start and run and so we would not be generating funds from external investors such as venture capitalists, as we would not want outside interference for now.

Therefore the areas where we intend to source for start-up capitals are;

• Using our savings and sale of stocks to generate capital
• Seeking for soft loans from extended family members
• Applying for loan from the bank

N.B: We were able to generate about $50,000 from our joint savings and sale of personal stocks. We got a soft loan of $50,000 from both of our parents, and the bank which we applied for a $100,000 loan has credited our account with the sum, which means that we are ready for business.

14. Sustainability and Expansion Strategy

Every business is established to make profit and it is from this profit that a business is sustained and then expanded. However to make profit and remain sustained, there are several factors that must be put into consideration, such as the business structure , the number of loyal customers and the investment strategy.

The major reason of starting Quick-time Goods Delivery Inc is so as to build a business that can offer a unique delivery service whilst making profit and sustaining itself from the revenue generated. We do not plan on seeking for external private investors as we have laid down plans to ensure that we generate revenue and eventually make profit within a year of operation.

Having the right employees and business structure is very important to us and so our employees are not only experienced but competent as well. Our employees know what is needed to take our business to the very top.

Asides from making sure that our employees are paid right, we also intend to ensure that they are constantly trained so as to keep them updated skill-wise. Also, employees who perform their duties diligently and constantly promote the brand of the business will be motivated via incentives and fringe benefits.

Ensuring that our customers are treated right is very important to us because we know that without our customers our business would crumble. We intend to give our customers an excellent customer service and offer incentives on certain days or to loyal customers to ensure that they stick with our brand.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

Starting A Courier Services Business Plan (PDF)

Starting a courier services business in today’s fast-paced world represents a remarkable opportunity for aspiring entrepreneurs. This sector has consistently demonstrated not only profitability but also impressive margins, primarily due to the ever-increasing demand for quick, reliable, and efficient delivery services. In an era where time is a precious commodity, individuals and businesses alike are continually seeking ways to expedite their shipping needs, making courier services an indispensable part of the logistics landscape. The allure of this business lies in its scalable model and the potential for high returns. Unlike many other ventures, a courier service can be initiated with relatively low upfront costs, yet it offers considerable growth opportunities. This is especially true in the context of the digital age, where e-commerce is booming and the need for last-mile delivery solutions is more critical than ever. The symbiotic relationship between online retail and courier services has paved the way for a new wave of entrepreneurial success stories. This sector’s robust demand and healthy profit margins present a compelling case for those looking to start a business that is both financially rewarding and integral to the modern economy. This article will outline how to start a courier services business, and the courier services business plan – PDF, Word and Excel.

Market Research

Market research plays a pivotal role in laying the groundwork for a successful courier services business. It is essential to commence with a comprehensive understanding of the industry landscape. Begin by delving into an industry overview, grasping the market’s size, growth potential, and evolving trends. Concurrently, analyzing your competitors within the local and regional courier market is paramount. Scrutinize their strengths, weaknesses, pricing strategies, service offerings, and customer base, thereby identifying opportunities for differentiation and enhancement. Additionally, pinpointing your target market and customer segments is crucial, considering demographics, delivery preferences, and specific needs to tailor services effectively.

Navigating the regulatory landscape is equally important, ensuring you acquire all necessary permits and licenses to operate legally. Furthermore, staying abreast of technological advancements within the courier industry is imperative. Innovations like GPS tracking, mobile apps, and automated routing can significantly boost operational efficiency. Your pricing strategy should reflect a deep understanding of your costs, market demand, and competitive pricing structures. Customer feedback holds substantial value in shaping your service offerings and enhancing the overall customer experience. A SWOT analysis will help assess both internal and external factors, identifying areas for potential success and challenges to overcome.

Armed with these insights, you can craft a compelling marketing plan, establish your unique selling proposition (USP), and create a brand identity that resonates with your target audience. Also employ your market research to make informed financial projections, estimating startup costs, revenue potential, and profitability, which will form the foundation of a robust business plan. Remember that market research is an ongoing process, crucial for staying attuned to industry shifts and evolving customer preferences, thereby ensuring your courier services business’s long-term growth and sustainability.

Location & Premises

The location you select for your courier services business plays a pivotal role in its overall success. Accessibility is a fundamental consideration, as opting for a location with easy access to major roads, highways, and transportation hubs can streamline operations and reduce delivery times. Moreover, proximity to your target customer base is crucial; being situated near commercial centers, industrial areas, or business districts ensures a steady flow of clients and minimizes courier travel times. It’s equally important to research the competitive landscape in the area, as an oversaturated market may pose challenges to establishing a foothold. Evaluating market demand and the existing number of courier services nearby is essential for informed decision-making.

Furthermore, the practical aspects of your premises matter significantly. Carefully assess the size and layout of the premises to ensure it accommodates your administrative staff, courier teams, and any necessary storage or sorting areas. Ensure it offers ample parking and loading/unloading facilities for your courier vehicles, as this can greatly enhance operational efficiency. Safety and security are paramount, both for your couriers and assets; consider the crime rate in the area, especially if your business operates during late hours. Visibility and proper signage are essential for attracting walk-in customers and reinforcing your brand presence. Scalability is another critical factor; the premises should allow for future expansion as your business grows, providing flexibility in terms of space to accommodate additional staff, vehicles, or storage needs. Carefully review the lease terms, including rent, duration, and potential rent increases, negotiating favorable terms that align with your budget and long-term plans.

Courier Vehicles

You will need transportation vehicles for your courier services business. These can constitute any one or more of the following: bicycles, motorbikes, light motor vehicles, vans, trucks, lorries, and even drones and planes. Your specific needs will be guided by the average package or parcel sizes you will be dealing with. The average distances and the terrains you will cover also guide on that. Where applicable you might need loading equipment such as forklifts. The courier services business plan should include the costs of purchasing the transportation vehicles.

Equipment For A Courier Services Business

The type of equipment you need for your courier business will be informed by the products and services you offer. Office equipment and supplies will be essential for setting up your courier office and command centre. You must also get communication equipment for your courier services business such as walkie-talkies and mobile smartphones. Vehicle tracking can be necessary and that would necessitate getting a GPS tracking system and equipment. Packaging material will be needed for packaging or repackaging parcels. You will need a variety of ancillary equipment e.g. pallets, trolleys, protective clothing, and so on. Basically anything that optimizes operations at the office or depot. Branded wear for staff is usually a no-brainer when providing courier services. The costs of the equipment should be included in the courier services business plan.

Products & Services

The products or services that your courier services business can offer depend on your niching choice. There are basically 4 broad courier services that you can offer namely:

Global Services

This entails delivering parcels or packages across countries. This usually spans across all forms of terrains e.g. land, sea, and even air. For someone starting out in the courier services business this might be a stretch. Over time, as the business grows global courier services become imminent. That is why most major established courier services companies can offer them.

On-Demand Service (Also Known As Express Service)

This is designed to often be the most expensive but fastest courier service. It entails serving clients whose packages or parcels must be delivered immediately. This means the packages here are not subjected to other service types that may take some time. There is no waiting period or any delays. Once a client indicates a package has to be delivered it is done immediately even if it just the only one going to that destination.

Same Day Express Service

Here the core focus is to deliver parcels or packages within 24 hours. This means courier packages being delivered the very same day. This implies such a service that can apply for intercity deliveries. It also applies to intracity deliveries as well. Overall, this courier service focuses on doing deliveries within a country’s borders.

Overnight Express Service

There might be intersections with the same day express service. However, the major distinction here is that for overnight express, packages are transported overnight. The idea is to ensure they arrive to intended recipients starting the following morning. That is why in some way this is a service for delivering within 24 hours (just not on the same day).

Vast Room To Tweak

Those are standard courier products or services. However, you can tweak them as informed by your market research and competitive analysis. For instance, some can diversify into renting out warehouse space or storage space. The courier business plan should outline all the products and services that you intend to offer.

Staff & Management

You need to have administrative, depot and transport and logistics personnel. The number of specific designations will depend on the size of your courier service operations. It is possible for staff to double up as management as well. At the very least, you can have an operations manager, driver(s), general hands (packaging and loading), and an office administrator. The salaries for all your staff should be accounted for in your courier business plan.

Budgeting and Financial Planning

Budgeting and financial planning form the bedrock of a thriving courier services business. It all begins with a comprehensive evaluation of startup costs, encompassing everything from permits and vehicle acquisition to website development, marketing efforts, insurance, and initial working capital. With a clear understanding of these upfront expenses, you can strategically allocate your resources. Moving forward, the creation of a meticulous operational budget is paramount. This detailed roadmap should outline recurring expenses, such as vehicle maintenance, driver salaries, fuel, insurance premiums, office rent, and utilities. Equally important is estimating your revenue, factoring in variables like pricing strategies, market demand, and anticipated delivery volumes. Maintaining conservative revenue estimates helps safeguard against unforeseen challenges and fluctuations.

Effective cash flow management is another key facet. Monitoring your incoming and outgoing funds ensures you maintain the liquidity necessary to meet your financial obligations and handle unexpected costs. Establishing an emergency fund safeguards against unforeseen crises, such as vehicle breakdowns or legal matters. Additionally, you should meticulously manage any debts, ensuring repayment plans align with your budget. Continuously analyze profit margins to identify areas for improvement, and stay vigilant about tax planning to minimize liabilities. Periodic financial reviews and forecasts provide the ongoing guidance needed to make informed financial decisions and maintain the long-term viability of your courier services business.

Marketing Strategies

When it comes to your courier services business, crafting effective marketing strategies is paramount. While delivering reliable and efficient services is a foundation, reaching your target audience and conveying the value you bring is equally vital. Firstly, establishing a robust online presence is non-negotiable. A professionally designed website showcasing your services, pricing, and contact information, optimized for search engines, ensures your business is easily discoverable online. Harness the power of social media platforms like Facebook, Instagram, Twitter, and LinkedIn to engage with your audience. Share compelling content, such as delivery tips, industry updates, and customer testimonials, while exploring paid advertising options to target specific demographics. Leverage email marketing as a tool for customer retention and repeat business. Build a subscriber list of potential clients and existing customers, regularly sending them newsletters and exclusive offers. Content marketing is another key strategy – create informative and valuable content related to the courier industry, from blog posts to videos, positioning yourself as an industry authority. Enhance your local visibility with local SEO tactics, claiming your business on Google My Business and encouraging customer reviews to appear prominently in local search results.

In addition to your digital marketing efforts, don’t underestimate the impact of traditional advertising methods. Consider creating eye-catching flyers and strategically placing them in high-traffic areas, such as local businesses or community bulletin boards. Billboards along major roadways can also be effective in raising awareness about your courier services. Furthermore, don’t shy away from physically approaching potential customers. Direct interactions, such as attending local business events, cold-calling, or door-to-door visits, can help you establish a personal connection and build trust with your target audience. A well-balanced approach that combines both digital and traditional marketing strategies can enhance your courier services business’s visibility and reach.

Consider the power of networking and partnerships. Forge relationships with local businesses, e-commerce stores, and other potential clients through networking events, industry associations, and community engagement. Partnerships with complementary businesses, like packing and shipping stores or e-commerce platforms, can open doors to a broader customer base. Don’t forget promotional incentives; introductory discounts, loyalty programs, and referral rewards can attract and retain customers. Displaying authentic customer testimonials on your website and marketing materials can significantly build trust and credibility. Regularly monitor and adjust your strategies based on analytics data to ensure ongoing success and adaptability in the competitive courier industry.

In the competitive landscape of the courier services industry, recognizing and engaging potential customers is paramount for sustainable growth and profitability. To effectively achieve this, market segmentation serves as the initial step. Local businesses, spanning retail outlets, restaurants, medical facilities, and offices, represent a rich source of potential customers. Building strong relationships with these establishments by offering customized courier solutions aligned with their unique needs can establish your business as a reliable partner. Similarly, e-commerce stores seek efficient courier services for the timely delivery of products, making them prime candidates for partnerships. By providing competitive rates and dependable delivery services, you can cater to the burgeoning e-commerce market. Moreover, healthcare facilities, legal firms, and government offices have distinct courier needs, often revolving around sensitive or confidential materials. Positioning your business as a trustworthy and secure courier service provider can help you gain their trust.

Don’t overlook residential customers who require personal courier services for gifts or important documents; offering residential delivery options can tap into this market. Leveraging online marketing channels, attending networking events, implementing referral programs, conducting customer surveys, and analyzing competitors all play integral roles in identifying and engaging potential customers, providing a multifaceted approach to securing and maintaining a robust customer base. For your courier services business to stand out you must strive to have several differentiators. A proper marketing strategy should be included in your courier services business plan. The most important this is being a reliable business, guaranteeing security (and safety) of parcels, and offering a broad range of services. You must also incorporate a sustainability focus in your operations. Customers must be able to fully access and pay for your services online. These are the things that can set you apart from your competitors.

Keys To Profitability

Profitability lies at the heart of a successful courier services business, and understanding the essential factors contributing to it is paramount. Efficient operations play a pivotal role; optimizing routes, managing fuel consumption, and ensuring operational efficiency are crucial to minimizing costs without compromising service quality. Concurrently, competitive pricing strategies that align with your service’s value and market demand should be regularly reviewed and adjusted. Moreover, customer retention is key to profitability. Building strong customer relationships and delivering exceptional service can lead to repeat business, reducing marketing expenditures and bolstering overall profitability. Robust marketing and promotion efforts across various channels help attract new customers and expand your client base.

Furthermore, embracing technology through GPS tracking, route optimization software, and mobile apps can streamline operations, enhance efficiency, and provide an improved customer experience. Cost control measures, diligent budget reviews, and favorable negotiations with suppliers and service providers are essential for maintaining financial stability. Strategic scaling and diversification, when aligned with market demand, can also boost profitability. Exploring complementary services such as same-day delivery, warehousing, or logistics solutions can create additional revenue streams. Effective inventory management practices can minimize holding costs and maximize turnover. Continuously analyze financial performance through regular review of statements, cash flow, and profitability reports, and adapt services based on customer feedback. Keeping a watchful eye on competitors’ strategies, maintaining legal and regulatory compliance, and adapting to changing market conditions ensure that your courier services business can achieve and sustain profitability in the dynamic industry landscape.

Pre-Written Courier Services Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the courier services business, we encourage you to purchase our well-researched and comprehensive courier services business plan. We introduced the business plans after discovering that many were venturing into the courier business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global courier business plan will make it easier for you to launch and run your courier services business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a courier business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the courier business.

Uses of the Courier Business Plan (PDF, Word And Excel)

The courier business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your courier business
• As a courier business proposal
• Assessing profitability of the courier business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Courier Services Business Plan (PDF, Word And Excel)

The business plan for courier includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the courier business fail, so that you can avoid their mistakes
• Ways to raise capital to start your courier business

The courier services business plan package consists of 4 files

• Courier Services Business Plan – PDF file (Comprehensive Version – 80 Pages)
• Courier Business Plan – Editable Word File (Comprehensive Version – 80 Pages)
• Courier Services Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 44 pages)
• Courier Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Courier Services Business Plan (PDF)

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Get the Courier Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your courier services business! Check out our collection of business plans  , and more business ideas .

Related Posts

Starting a Supermarket Business Plan (PDF)

Profitable Livestock Farming Business Ideas

Starting Solar Installation Business Plan (PDF)

Starting Hydroponics Farming Business Plan (PDF)

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!

Item added to your cart

Here is a free business plan sample for a fruit and vegetable store.

Have you ever envisioned owning a bustling fruit and vegetable market that serves as a cornerstone of health in your community? Wondering where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for a fruit and vegetable market.

Creating a solid business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your fresh produce venture into a thriving business.

To jumpstart your planning process with ease and precision, feel free to utilize our fruit and vegetable market business plan template. Our team of experts is also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your fruit and vegetable store?

A good business plan for a fruit and vegetable market must cater to the unique aspects of this type of retail business.

Initially, it's crucial to provide a comprehensive overview of the market landscape. This includes up-to-date statistics and an exploration of emerging trends within the industry, similar to what we've incorporated in our fruit and vegetable market business plan template .

Your business plan should articulate your vision clearly. Define your target demographic (such as local residents, restaurants, or health-conscious consumers) and establish your market's distinctive features (like offering organic produce, exotic fruits, or locally-sourced vegetables).

Market analysis is the next critical component. This requires a thorough examination of local competitors, market dynamics, and consumer buying patterns.

For a fruit and vegetable market, it's imperative to detail the range of products you intend to sell. Describe your selection of fruits, vegetables, herbs, and any additional items you plan to offer, and discuss how these choices align with the preferences and needs of your customer base.

The operational plan is equally important. It should outline the location of your market, the layout of the retail space, your supply chain for fresh produce, and inventory management practices.

Given the nature of a fruit and vegetable market, it is vital to highlight the freshness and quality of your produce, your relationships with growers and suppliers, and adherence to health and safety standards.

Then, delve into your marketing and sales strategies. How do you plan to attract and keep customers coming back? Consider your approach to promotions, customer loyalty programs, and potential value-added services (like home delivery or a juice bar).

Incorporating digital strategies, such as an online ordering system or a robust social media presence, is also crucial in the modern marketplace.

The financial section is another cornerstone of your business plan. It should encompass the initial investment, projected sales, operating expenses, and the point at which you expect to break even.

With a fruit and vegetable market, managing waste and understanding the shelf life of products are critical, so precise planning and knowledge of your financials are essential. For assistance, consider using our financial forecast for a fruit and vegetable market .

Compared to other business plans, a fruit and vegetable market plan must pay closer attention to the perishability of inventory, the importance of a robust supply chain, and the potential for seasonal fluctuations.

A well-crafted business plan not only helps you to define your strategies and vision but also plays a pivotal role in attracting investors or securing loans.

Lenders and investors are keen on a solid market analysis, realistic financial projections, and a comprehensive understanding of the day-to-day operations of a fruit and vegetable market.

By presenting a thorough and substantiated plan, you showcase your dedication and readiness for the success of your venture.

To achieve these goals while saving time, you are welcome to fill out our fruit and vegetable market business plan template .

A free example of business plan for a fruit and vegetable store

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a fruit and vegetable market .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The fruit and vegetable market is an essential and robust component of the global food industry.

Recent estimates value the global fruit and vegetable trade at over 1 trillion dollars, with expectations for continued growth as consumers seek healthier eating options. In the United States, the fruit and vegetable industry contributes significantly to the economy, with thousands of markets and stores providing a wide range of produce to meet consumer demand.

These statistics underscore the critical role that fruit and vegetable markets play in not only providing nutritious food options but also in supporting local agriculture and economies.

Current trends in the fruit and vegetable industry indicate a shift towards organic and locally sourced produce, as consumers become more health-conscious and environmentally aware.

There is an increasing demand for organic fruits and vegetables, driven by the perception of better quality and concerns about pesticides and other chemicals. The local food movement is also gaining momentum, with consumers showing a preference for produce that is grown locally to support community farmers and reduce carbon emissions associated with transportation.

Technological advancements are influencing the industry as well, with innovations in vertical farming and hydroponics allowing for more sustainable and space-efficient growing methods.

Online grocery shopping and delivery services are expanding, making it easier for consumers to access fresh produce directly from their homes.

Additionally, the push for transparency in food sourcing continues to grow, with consumers wanting to know more about where their food comes from and how it is grown.

These trends are shaping the future of the fruit and vegetable market, as businesses strive to meet the evolving preferences and values of modern consumers.

Success Factors

Several key factors contribute to the success of a fruit and vegetable market.

Quality and freshness of produce are paramount. Markets that offer a wide variety of fresh, high-quality fruits and vegetables are more likely to build and maintain a dedicated customer base.

Diversity in product offerings, including exotic or hard-to-find produce, can differentiate a market from its competitors.

Location is also vital, as markets that are easily accessible to consumers will naturally attract more foot traffic.

Customer service is another important aspect, with knowledgeable and friendly staff enhancing the shopping experience and encouraging repeat visits.

Effective cost management and the ability to adapt to changing consumer trends, such as the demand for organic and locally grown produce, are crucial for the long-term viability of a fruit and vegetable market.

The Project

Project presentation.

Our fruit and vegetable market project is designed to cater to the increasing consumer demand for fresh, organic, and locally-sourced produce. Situated in a community-focused neighborhood, our market will offer a diverse selection of fruits and vegetables, emphasizing seasonal and organic options. We will partner with local farmers and suppliers to ensure that our customers have access to the freshest produce available, supporting sustainable agricultural practices and reducing our carbon footprint.

We aim to provide not just produce, but a holistic healthy eating experience by offering a range of complementary products such as herbs, spices, and artisanal condiments. Our market will be a hub for health-conscious consumers and those interested in cooking with the finest ingredients.

Our fruit and vegetable market is set to become a cornerstone in the community, promoting healthier lifestyles and fostering connections between local producers and consumers.

Value Proposition

The value proposition of our fruit and vegetable market lies in our commitment to providing the community with the highest quality fresh produce. We understand the importance of nutrition and the role that fruits and vegetables play in maintaining a healthy diet.

Our market will offer a unique shopping experience where customers can enjoy a wide variety of produce, learn about the benefits of incorporating more fruits and vegetables into their diets, and discover new and exotic varieties. We are dedicated to creating a welcoming environment where everyone can find something to enrich their meals and support their well-being.

By focusing on local and organic sourcing, we also contribute to the sustainability of our food systems and the prosperity of local farmers, aligning our business with the values of environmental stewardship and community support.

Project Owner

The project owner is an individual with a profound passion for healthy living and community engagement. With a background in agricultural studies and experience in the food retail industry, they are well-equipped to establish a market that prioritizes quality and freshness.

They bring a wealth of knowledge about the seasonality and sourcing of produce, and are committed to creating a marketplace that reflects the diversity and richness of nature's offerings. Their dedication to health, nutrition, and sustainability drives them to build a market that not only sells fruits and vegetables but also educates and inspires the community to embrace a healthier, more sustainable lifestyle.

Their vision is to create a space where the joy of fresh, wholesome food is accessible to all, and where the market serves as a vibrant gathering place for people to connect with their food and each other.

The Market Study

Market segments.

The market segments for this fruit and vegetable market are diverse and cater to a wide range of consumers.

Firstly, there are health-conscious individuals who prioritize fresh, organic produce in their diets for wellness and nutritional benefits.

Secondly, the market serves customers who are looking for locally-sourced and seasonal produce to support community farmers and reduce their carbon footprint.

Additionally, the market attracts individuals with specific dietary needs, such as vegans, vegetarians, and those with food sensitivities who require a variety of fresh produce options.

Culinary professionals, including chefs and caterers, represent another segment, seeking high-quality ingredients to enhance their dishes.

SWOT Analysis

A SWOT analysis of the fruit and vegetable market project highlights several key factors.

Strengths include a strong focus on fresh, high-quality produce, relationships with local farmers, and a commitment to sustainability and eco-friendly practices.

Weaknesses might involve the perishable nature of inventory, the need for constant supply chain management, and potential seasonal fluctuations in product availability.

Opportunities exist in expanding the market's reach through online sales and delivery services, as well as in educating consumers about the benefits of eating fresh and local produce.

Threats could include competition from larger grocery chains with more buying power, adverse weather affecting crop yields, and potential economic downturns reducing consumer spending on premium produce.

Competitor Analysis

Competitor analysis in the fruit and vegetable market sector indicates a varied landscape.

Direct competitors include other local markets, organic food stores, and large supermarkets with extensive produce sections.

These competitors vie for customers who value convenience, variety, and price.

Potential competitive advantages for our market include superior product freshness, strong community ties, exceptional customer service, and a focus on sustainable and ethical sourcing.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a niche and ensuring customer loyalty.

Competitive Advantages

Our fruit and vegetable market's dedication to offering the freshest and highest quality produce sets us apart from the competition.

We provide a wide array of fruits and vegetables, including rare and exotic items, to cater to the diverse tastes and needs of our customers.

Our commitment to sustainability, through supporting local farmers and minimizing waste, resonates with environmentally conscious consumers.

We also emphasize transparency and education about the source and benefits of our produce, fostering a trusting relationship with our clientele.

You can also read our articles about: - how to open a fruit and vegetable store: a complete guide - the customer segments of a fruit and vegetable store - the competition study for a fruit and vegetable store

The Strategy

Development plan.

Our three-year development plan for the fresh fruit and vegetable market is designed to promote healthy living within the community.

In the first year, our goal is to establish a strong local presence by sourcing a wide variety of high-quality, seasonal produce and building relationships with local farmers and suppliers.

The second year will focus on expanding our reach by setting up additional market locations and possibly introducing mobile market services to access a broader customer base.

In the third year, we plan to diversify our offerings by including organic and exotic fruits and vegetables, as well as implementing educational programs on nutrition and sustainable agriculture.

Throughout this period, we will be committed to sustainability, community engagement, and providing exceptional service to ensure we become a staple in our customers' healthy lifestyles.

Business Model Canvas

The Business Model Canvas for our fruit and vegetable market targets health-conscious consumers and those looking for fresh, local produce.

Our value proposition is centered on offering the freshest, high-quality fruits and vegetables, with a focus on local and organic options, and providing exceptional customer service.

We will sell our products through our physical market locations and consider an online ordering system for customer convenience, utilizing our key resources such as our relationships with local farmers and our knowledgeable staff.

Key activities include sourcing and curating produce, maintaining quality control, and engaging with the community.

Our revenue streams will be generated from the sales of produce, while our costs will be associated with procurement, operations, and marketing efforts.

Access a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on community engagement and education.

We aim to highlight the health benefits of fresh produce and the environmental advantages of buying locally. Our approach includes community events, cooking demonstrations, and partnerships with local health and wellness organizations.

We will also leverage social media to showcase our daily offerings, share tips on healthy eating, and feature stories from our partner farmers.

Additionally, we plan to offer loyalty programs and seasonal promotions to encourage repeat business and attract new customers.

Risk Policy

The risk policy for our fruit and vegetable market focuses on mitigating risks associated with perishable goods, supply chain management, and market fluctuations.

We will implement strict quality control measures and develop a robust inventory management system to minimize waste and ensure product freshness.

Building strong relationships with a diverse group of suppliers will help us manage supply risks and price volatility.

We will also maintain a conservative financial strategy to manage operational costs effectively and ensure business sustainability.

Insurance coverage will be in place to protect against unforeseen events that could impact our business operations.

Why Our Project is Viable

We believe in the viability of a fruit and vegetable market that prioritizes freshness, quality, and community health.

With a growing trend towards healthy eating and local sourcing, our market is well-positioned to meet consumer demand.

We are committed to creating a shopping experience that supports local agriculture and provides educational value to our customers.

Adaptable to market trends and customer feedback, we are excited about the potential of our fruit and vegetable market to become a cornerstone of healthy living in our community.

You can also read our articles about: - the Business Model Canvas of a fruit and vegetable store - the marketing strategy for a fruit and vegetable store

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a fruit and vegetable market and our financial plan for a fruit and vegetable market .

Initial expenses for our fruit and vegetable market include costs for securing a retail space in a high-traffic area, purchasing refrigeration units and display equipment to maintain and showcase fresh produce, obtaining necessary permits and licenses, investing in a robust inventory management system, and launching marketing initiatives to attract customers to our location.

Our revenue assumptions are based on an in-depth analysis of the local market demand for fresh, high-quality fruits and vegetables, taking into account the increasing trend towards healthy eating and organic produce.

We expect sales to grow steadily as we establish our market's reputation for offering a wide variety of fresh and locally sourced produce.

The projected income statement outlines expected revenues from the sale of fruits and vegetables, cost of goods sold (including procurement, transportation, and storage), and operating expenses (rent, marketing, salaries, utilities, etc.).

This results in a forecasted net profit that is essential for assessing the long-term viability of our fruit and vegetable market.

The projected balance sheet will reflect assets such as refrigeration and display equipment, inventory of fresh produce, and liabilities including any loans and operational expenses.

It will provide a snapshot of the financial condition of our market at the end of each fiscal period.

Our projected cash flow statement will detail all cash inflows from sales and outflows for expenses, helping us to predict our financial needs and ensure we have sufficient funds to operate smoothly.

The projected financing plan will outline the sources of funding we intend to tap into to cover our initial setup costs and any additional financing needs.

The working capital requirement for our market will be carefully managed to maintain adequate liquidity for day-to-day operations, such as purchasing fresh stock, managing inventory, and covering staff wages.

The break-even analysis will determine the volume of sales we need to achieve to cover all our costs and begin generating a profit, marking the point at which our market becomes financially sustainable.

Key performance indicators we will monitor include the turnover rate of our inventory, the gross margin on produce sales, the current ratio to evaluate our ability to meet short-term obligations, and the return on investment to gauge the profitability of the capital invested in our market.

These metrics will be instrumental in assessing the financial performance and overall success of our fruit and vegetable market.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a fruit and vegetable store .

• Choosing a selection results in a full page refresh.
• Opens in a new window.

• E-Commerce ›
• B2C E-Commerce

Online food delivery services in Russia - statistics & facts

E-grocery market insights, increased appetite for online catering in russia, key insights.

Detailed statistics

Online food sales in Russia 2014-2022

Online food delivery market revenue in Russia 2019-2028, by segment

Omnichannel performance ranking of food retailers in Russia 2023

Editor’s Picks Current statistics on this topic

B2C Services

Delivery & Takeout

Most downloaded food delivery apps in Russia 2023

Delivery Club revenue in Russia quarterly 2018-2022

Further recommended statistics

• Premium Statistic Online food delivery market revenue in Russia 2019-2028, by segment
• Premium Statistic Out-of-home food market revenue in Russia 2017-2025, by segment
• Premium Statistic Online food delivery market users in Russia 2019-2028
• Premium Statistic Online food sales in Russia 2014-2022
• Premium Statistic Number of online food orders in Russia monthly 2022-2023
• Premium Statistic Russian household expenditure on eating out 2015-2022

Revenue of the online food delivery market in Russia from 2019 to 2028, by segment (in million U.S. dollars)

Out-of-home food market revenue in Russia 2017-2025, by segment

Revenue of out-of-home food market in Russia from 2017 to 2025, by segment (in million U.S. dollars)

Online food delivery market users in Russia 2019-2028

Number of online food delivery market users in Russia from 2019 to 2028, by segment (in millions)

Annual value of online food sales in Russia from 2014 to 2022 (in billion Russian rubles)

Number of online food orders in Russia monthly 2022-2023

Number of online food orders in Russia from January 2022 to December 2023 (in millions)

Russian household expenditure on eating out 2015-2022

Annual household expenditure share on eating out in Russia from 2015 to 2022

E-groceries

• Premium Statistic Online grocery sales share Russia 2021, by retailer group
• Premium Statistic Forecast online food sales turnover in Russia 2020, by city
• Basic Statistic Average receipt value for online grocery orders Russia 2019-2021
• Premium Statistic Monthly average receipt in online supermarkets in Russia 2020
• Premium Statistic Number of e-grocery orders in Russia 2019-2024
• Premium Statistic Web traffic growth on online grocery retailer websites in Russia 2021

Online grocery sales share Russia 2021, by retailer group

Distribution of online grocery sales in Russia in July 2021, by retailer group

Forecast online food sales turnover in Russia 2020, by city

Estimated online food product sales turnover in Russia in 2020, by major city (in billion Russian rubles)

Average receipt value for online grocery orders Russia 2019-2021

Average receipt value for online grocery orders over the past 12 months in Russia from December 2019 to December 2021 (in Russian rubles)

Monthly average receipt in online supermarkets in Russia 2020

Average receipt value in online supermarkets in Russia from February to August 2020 (in Russian rubles)

Number of e-grocery orders in Russia 2019-2024

Number of online grocery orders in Russia from 2019 to 2024 (in millions)

Web traffic growth on online grocery retailer websites in Russia 2021

Annual traffic growth on online grocery websites in Russia in July 2021, by retailer

• Premium Statistic Monthly online food catering market growth in Russia 2020
• Premium Statistic Average receipt value for online food catering in Russia 2020
• Premium Statistic Common channels for ordering takeaway food in Russia 2020
• Premium Statistic Meal kits market turnover in Russia 2019-2020, by provider
• Premium Statistic Meal kits sales growth in Russia H1 2020, by provider
• Basic Statistic Dark kitchen restaurants share among those with delivery Russia 2020, by location
• Premium Statistic Share of dark kitchen restaurants in Russia 2020, by type of cuisine
• Premium Statistic Number of international catering chains in Russia 2016-2021

Monthly online food catering market growth in Russia 2020

Monthly growth of online food catering* market in Russia from April to October 2020

Average receipt value for online food catering in Russia 2020

Average receipt value for online food catering* orders in Russia from March to October 2020 (in Russian rubles)

Common channels for ordering takeaway food in Russia 2020

Popular channels for ordering takeaway food from restaurants in Russia in 2020

Meal kits market turnover in Russia 2019-2020, by provider

Meal kits online sales turnover in Russia from 1st half of 2019 to 1st half of 2020, by provider (in billion Russian rubles)

Meal kits sales growth in Russia H1 2020, by provider

Meal kits online sales growth in Russia as of 1st half of 2020, by provider

Dark kitchen restaurants share among those with delivery Russia 2020, by location

Share of dark kitchen restaurants among restaurants with delivery services in Russia as of February 2020, by location

Share of dark kitchen restaurants in Russia 2020, by type of cuisine

Breakdown of dark kitchen restaurants in Russia as of February 2020, by type of cuisine

Number of international catering chains in Russia 2016-2021

Number of international public catering chains operating in Russia from 2016 to September 2021

• Premium Statistic Leading FoodTech companies in Russia 2021, by revenue
• Premium Statistic Fastest growing FoodTech companies in Russia H1 2022
• Premium Statistic Leading FoodTech segments in Russia 2020, by revenue
• Premium Statistic E-grocery penetration rate Russia 2021, by brand
• Premium Statistic Ranking of online grocery retailers Russia 2021, by number of orders
• Premium Statistic Omnichannel performance ranking of food retailers in Russia 2023
• Premium Statistic Most downloaded food delivery apps in Russia 2023
• Premium Statistic Sales distribution of Local Kitchen in Russia 2020, by meal type
• Premium Statistic Delivery Club revenue in Russia quarterly 2018-2022
• Premium Statistic Yandex O2O businesses EBITDA quarterly 2021-2023
• Premium Statistic O2O business revenue of Yandex quarterly 2021-2023
• Premium Statistic Delivery Club orders in Russia quarterly 2020-2022

Leading FoodTech companies in Russia 2021, by revenue

Leading FoodTech companies in Russia in 2021, by revenue (in billion Russian rubles)

Fastest growing FoodTech companies in Russia H1 2022

Leading FoodTech companies in Russia in 1st half 2022, by year-over-year revenue growth

Leading FoodTech segments in Russia 2020, by revenue

Leading FoodTech segments in Russia in 2020, by revenue (in million Russian rubles)

E-grocery penetration rate Russia 2021, by brand

Ranking of e-grocery retailers in Russia as of June 2021, by number of regions covered

Ranking of online grocery retailers Russia 2021, by number of orders

Leading online grocery retailers in Russia in July 2021, by number of orders

Ranking of major food retailers in Russia in 2023, by omnichannel performance (in points)

Leading food and grocery delivery apps in Russia in 2023, by downloads (in millions)

Sales distribution of Local Kitchen in Russia 2020, by meal type

Sales breakdown of ready-to-eat meals provider Local Kitchen in Russia from March to September 2020, by type of meal

Revenue of Delivery Club in Russia from 1st quarter 2018 to 1st quarter 2022 (in billion Russian rubles)

Yandex O2O businesses EBITDA quarterly 2021-2023

Adjusted EBITDA of Yandex's e-commerce, mobility, and delivery segment from 2nd quarter 2021 to 3rd quarter 2023 (in million Russian rubles)

O2O business revenue of Yandex quarterly 2021-2023

Revenue of the e-commerce, mobility, and delivery segment of Yandex in Russia from 2nd quarter 2021 to 3rd quarter 2023 (in billion Russian rubles)

Delivery Club orders in Russia quarterly 2020-2022

Number of orders at Delivery Club in Russia from 2nd quarter 2020 to 1st quarter 2022 (in millions)

• Premium Statistic Use of food delivery services in Russia 2020
• Premium Statistic Most popular food delivery services in Russia 2020-2021
• Premium Statistic Online food delivery bookings by brand in Russia 2022
• Premium Statistic Purchase criteria for food in Russia 2023
• Premium Statistic Groceries & beverages purchased online by category in Russia 2022
• Premium Statistic Changes in restaurant spending Russia 2020-2021
• Premium Statistic Russians on payment method of choice for food delivery in 2020, by type

Use of food delivery services in Russia 2020

Do you use food delivery services?

Most popular food delivery services in Russia 2020-2021

Share of Russians who order food via the internet in Russia from June 2020 to June 2021, by service

Online food delivery bookings by brand in Russia 2022

Online food delivery bookings by brand in Russia in 2022

Purchase criteria for food in Russia 2023

Purchase criteria for food in Russia as of March 2023

Groceries & beverages purchased online by category in Russia 2022

Groceries & beverages purchased online by category in Russia in 2022

Changes in restaurant spending Russia 2020-2021

How have your expenses in restaurants with service changed over the past year?

Russians on payment method of choice for food delivery in 2020, by type

Preferred payment methods for food delivery in Russia in 2020, by type

Further reports

Get the best reports to understand your industry.

• Online food delivery in Europe
• Grocery Shopping Online: Growth - Customer View - Usage
• Online grocery market in Italy
• Online food delivery in Brazil

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

• Integrations
• Learning Center

MoSCoW Prioritization

What is moscow prioritization.

MoSCoW prioritization, also known as the MoSCoW method or MoSCoW analysis, is a popular prioritization technique for managing requirements. 

  The acronym MoSCoW represents four categories of initiatives: must-have, should-have, could-have, and won’t-have, or will not have right now. Some companies also use the “W” in MoSCoW to mean “wish.”

What is the History of the MoSCoW Method?

Software development expert Dai Clegg created the MoSCoW method while working at Oracle. He designed the framework to help his team prioritize tasks during development work on product releases.

You can find a detailed account of using MoSCoW prioritization in the Dynamic System Development Method (DSDM) handbook . But because MoSCoW can prioritize tasks within any time-boxed project, teams have adapted the method for a broad range of uses.

How Does MoSCoW Prioritization Work?

Before running a MoSCoW analysis, a few things need to happen. First, key stakeholders and the product team need to get aligned on objectives and prioritization factors. Then, all participants must agree on which initiatives to prioritize.

At this point, your team should also discuss how they will settle any disagreements in prioritization. If you can establish how to resolve disputes before they come up, you can help prevent those disagreements from holding up progress.

Finally, you’ll also want to reach a consensus on what percentage of resources you’d like to allocate to each category.

With the groundwork complete, you may begin determining which category is most appropriate for each initiative. But, first, let’s further break down each category in the MoSCoW method.

Start prioritizing your roadmap

Moscow prioritization categories.

1. Must-have initiatives

As the name suggests, this category consists of initiatives that are “musts” for your team. They represent non-negotiable needs for the project, product, or release in question. For example, if you’re releasing a healthcare application, a must-have initiative may be security functionalities that help maintain compliance.

The “must-have” category requires the team to complete a mandatory task. If you’re unsure about whether something belongs in this category, ask yourself the following.

If the product won’t work without an initiative, or the release becomes useless without it, the initiative is most likely a “must-have.”

2. Should-have initiatives

Should-have initiatives are just a step below must-haves. They are essential to the product, project, or release, but they are not vital. If left out, the product or project still functions. However, the initiatives may add significant value.

“Should-have” initiatives are different from “must-have” initiatives in that they can get scheduled for a future release without impacting the current one. For example, performance improvements, minor bug fixes, or new functionality may be “should-have” initiatives. Without them, the product still works.

3. Could-have initiatives

Another way of describing “could-have” initiatives is nice-to-haves. “Could-have” initiatives are not necessary to the core function of the product. However, compared with “should-have” initiatives, they have a much smaller impact on the outcome if left out.

So, initiatives placed in the “could-have” category are often the first to be deprioritized if a project in the “should-have” or “must-have” category ends up larger than expected.

4. Will not have (this time)

One benefit of the MoSCoW method is that it places several initiatives in the “will-not-have” category. The category can manage expectations about what the team will not include in a specific release (or another timeframe you’re prioritizing).

Placing initiatives in the “will-not-have” category is one way to help prevent scope creep . If initiatives are in this category, the team knows they are not a priority for this specific time frame. 

Some initiatives in the “will-not-have” group will be prioritized in the future, while others are not likely to happen. Some teams decide to differentiate between those by creating a subcategory within this group.

How Can Development Teams Use MoSCoW?

  Although Dai Clegg developed the approach to help prioritize tasks around his team’s limited time, the MoSCoW method also works when a development team faces limitations other than time. For example: 

Prioritize based on budgetary constraints.

What if a development team’s limiting factor is not a deadline but a tight budget imposed by the company? Working with the product managers, the team can use MoSCoW first to decide on the initiatives that represent must-haves and the should-haves. Then, using the development department’s budget as the guide, the team can figure out which items they can complete. 

Prioritize based on the team’s skillsets.

A cross-functional product team might also find itself constrained by the experience and expertise of its developers. If the product roadmap calls for functionality the team does not have the skills to build, this limiting factor will play into scoring those items in their MoSCoW analysis.

Prioritize based on competing needs at the company.

Cross-functional teams can also find themselves constrained by other company priorities. The team wants to make progress on a new product release, but the executive staff has created tight deadlines for further releases in the same timeframe. In this case, the team can use MoSCoW to determine which aspects of their desired release represent must-haves and temporarily backlog everything else.

What Are the Drawbacks of MoSCoW Prioritization?

  Although many product and development teams have prioritized MoSCoW, the approach has potential pitfalls. Here are a few examples.

1. An inconsistent scoring process can lead to tasks placed in the wrong categories.

  One common criticism against MoSCoW is that it does not include an objective methodology for ranking initiatives against each other. Your team will need to bring this methodology to your analysis. The MoSCoW approach works only to ensure that your team applies a consistent scoring system for all initiatives.

Pro tip: One proven method is weighted scoring, where your team measures each initiative on your backlog against a standard set of cost and benefit criteria. You can use the weighted scoring approach in ProductPlan’s roadmap app .

2. Not including all relevant stakeholders can lead to items placed in the wrong categories.

To know which of your team’s initiatives represent must-haves for your product and which are merely should-haves, you will need as much context as possible.

For example, you might need someone from your sales team to let you know how important (or unimportant) prospective buyers view a proposed new feature.

One pitfall of the MoSCoW method is that you could make poor decisions about where to slot each initiative unless your team receives input from all relevant stakeholders. 

3. Team bias for (or against) initiatives can undermine MoSCoW’s effectiveness.

Because MoSCoW does not include an objective scoring method, your team members can fall victim to their own opinions about certain initiatives. 

One risk of using MoSCoW prioritization is that a team can mistakenly think MoSCoW itself represents an objective way of measuring the items on their list. They discuss an initiative, agree that it is a “should have,” and move on to the next.

But your team will also need an objective and consistent framework for ranking all initiatives. That is the only way to minimize your team’s biases in favor of items or against them.

When Do You Use the MoSCoW Method for Prioritization?

MoSCoW prioritization is effective for teams that want to include representatives from the whole organization in their process. You can capture a broader perspective by involving participants from various functional departments.

Another reason you may want to use MoSCoW prioritization is it allows your team to determine how much effort goes into each category. Therefore, you can ensure you’re delivering a good variety of initiatives in each release.

What Are Best Practices for Using MoSCoW Prioritization?

If you’re considering giving MoSCoW prioritization a try, here are a few steps to keep in mind. Incorporating these into your process will help your team gain more value from the MoSCoW method.

1. Choose an objective ranking or scoring system.

Remember, MoSCoW helps your team group items into the appropriate buckets—from must-have items down to your longer-term wish list. But MoSCoW itself doesn’t help you determine which item belongs in which category.

You will need a separate ranking methodology. You can choose from many, such as:

• Weighted scoring
• Value vs. complexity
• Buy-a-feature
• Opportunity scoring

For help finding the best scoring methodology for your team, check out ProductPlan’s article: 7 strategies to choose the best features for your product .

2. Seek input from all key stakeholders.

To make sure you’re placing each initiative into the right bucket—must-have, should-have, could-have, or won’t-have—your team needs context. 

At the beginning of your MoSCoW method, your team should consider which stakeholders can provide valuable context and insights. Sales? Customer success? The executive staff? Product managers in another area of your business? Include them in your initiative scoring process if you think they can help you see opportunities or threats your team might miss. 

3. Share your MoSCoW process across your organization.

MoSCoW gives your team a tangible way to show your organization prioritizing initiatives for your products or projects. 

The method can help you build company-wide consensus for your work, or at least help you show stakeholders why you made the decisions you did.

Communicating your team’s prioritization strategy also helps you set expectations across the business. When they see your methodology for choosing one initiative over another, stakeholders in other departments will understand that your team has thought through and weighed all decisions you’ve made. 

If any stakeholders have an issue with one of your decisions, they will understand that they can’t simply complain—they’ll need to present you with evidence to alter your course of action.  

Related Terms

2×2 prioritization matrix / Eisenhower matrix / DACI decision-making framework / ICE scoring model / RICE scoring model

Prioritizing your roadmap using our guide

Talk to an expert.

Schedule a few minutes with us to share more about your product roadmapping goals and we'll tailor a demo to show you how easy it is to build strategic roadmaps, align behind customer needs, prioritize, and measure success.

Share on Mastodon

Color Scheme

• Use system setting
• Light theme

Federal labor regulator says delivery drivers are Amazon employees

In a loss for Amazon that could force it to meet the Teamsters union at the bargaining table, a regional National Labor Relations Board director said Thursday that the company is a joint employer of some of the thousands of contractor delivery drivers who deliver its packages.

The e-commerce giant has previously argued that it should not be responsible for alleged union busting or required to bargain with driver unions, because the drivers who ferry packages to consumers’ doors in Amazon-branded vans work for third-party contractors called Delivery Service Partners, or DSPs.

Thursday’s determination suggests Amazon is wrong, finding that it failed to bargain in good faith after delivery drivers in Palmdale, California, voted to unionize in 2023, a first for the company’s delivery drivers. The regional NLRB director also found that Amazon had illegally targeted drivers in Palmdale with termination, threatened workers, and held unlawful captive audience meetings, according to labor board spokesperson Kayla Blado.

The Palmdale drivers worked for a DSP called Battle-Tested Strategies, which Amazon terminated as a contractor after its management voluntarily recognized the union. If Amazon, the DSP and the delivery drivers fail to reach a settlement agreement in California, the board said it will issue a complaint and schedule a hearing before an administrative law judge. Thursday’s determination by the NLRB only applies to the drivers in Palmdale in regard to their union campaign, and won’t have an immediate impact on the legal standing of Amazon drivers writ large.

The Teamsters union, which represents thousands of delivery drivers for companies such as UPS and DHL, has been working to unionize Amazon workers since 2021. Earlier this year, it announced a formal partnership with the Amazon Labor Union, which is organizing Amazon warehouse workers in places including New York and Kentucky.

Teamsters president Sean O’Brien called Thursday’s NLRB decision a “monumental determination that makes clear Amazon has a legal obligation to bargain with its drivers over their working conditions,” in an emailed statement.

Amazon said the union is misrepresenting the situation. Amazon spokesperson Eileen Hards in an email statement said that the NLRB had notified the company that “most of the Teamsters’ more significant claims” in Palmdale had been dismissed. “The regional office has indicated that it thinks some of the remaining allegations should be decided by an administrative law judge,” Hards said. “As we have said all along, there is no merit to the Teamsters’ claims.”

The outcome of November’s presidential election could change the implications of Thursday’s findings for Amazon if the new administration alters the NLRB’s overall strategy. Teamsters’ national leadership have met with leaders from, and made donations to, both parties, but have not endorsed a candidate.

Recent close calls make the case for supporting hydropower

Our homes are filled with easy-to-use buttons, dials, outlets, and switches that light up rooms, power devices, and regulate temperature.