On Demand Delivery Business

Marketing Ideas

How Much Does It Cost To Start An On Demand Delivery Business? (In 2024)

Pat Walls

•

Updated: January 18th, 2023

Looking to start an on demand delivery business?

But curious about:

how much it costs to start an on demand delivery business?
what are the typical on demand delivery business startup costs?
or the actual cost of starting on demand delivery businesses?

Well, we have the data to prove it, supported by real on demand delivery businesses and how much they actually cost to start.

Let's go over it.

Learn more about starting an on demand delivery business:

Where to start?

-> Pros and cons of an on demand delivery business

Need inspiration?

-> Marketing ideas for an on demand delivery business

Other resources

Equipment & Supply Expenses

Starting an on demand delivery business may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Cost	Required?	Min Cost	Max Cost
Cleaning Supplies ➜	Optional	$63	$200
Uniforms	Optional	$0	$500

Retail Business Expenses

If you plan to have a brick & mortar location for your on demand delivery business, you must weigh the costs of your rent, as it may be the most expensive part of running your business.

Rent costs for your on demand delivery business very much depends on your location. This cost will vary by both region and specific areas of town: a lease in the heart of Manhattan could cost over $80,000/month in rent. Meanwhile, a storefront lease in Florida or Tennessee could cost less than $1,000/month.

Cost	Required?	Min Cost	Max Cost
Utilities (storefront business)	Optional	$0	$1,000
Building improvements and remodeling	Optional	$0	$950
POS System	Optional	$0	$1,200

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost	Required?	Min Cost	Max Cost
Set up business: LLC & Corporations	Required	$50	$500
Small Business Insurance	Recommended	$500	$2,000
Permit and License Fees	Optional	$50	$700
Trademark	Optional	$0	$700
Lawyer Fees	Optional	$0	$1,500

Software Expenses

Your on demand delivery business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost	Required?	Min Cost	Max Cost
Project Management Software	Recommended	$0	$25
Payroll Software	Optional	$0	$200

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your on demand delivery business grows.

Cost	Required?	Min Cost	Max Cost
Rent ➜	Optional	$0	$5,750
Utility Costs For Office Space ➜	Optional	$0	$1,150
WiFi & Internet ➜	Optional	$0	$100

Employee & Freelancer Expenses

Cost	Required?	Min Cost	Max Cost
Payroll Costs & Fees ➜	Optional	$150	$250
Employee Hiring Expenses	Optional	$1	$2

Vehicle Expenses

Cost	Required?	Min Cost	Max Cost
Mode of Transporation	Optional	$0	$10,000
Commute cost	Optional	$2	$4

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost	Required?	Min Cost	Max Cost
Inventory Storage	Optional	$0	$5,000

Training & Education Expenses

Cost	Required?	Min Cost	Max Cost
Online Learning Sites	Optional	$0	$1,000
Consulting fees	Optional	$0	$1,000

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost	Required?	Min Cost	Max Cost
Domain Name ➜	Required	$12	$200
Business Email Hosting Service ➜	Recommended	$1	$15

Advertising & Marketing Costs

Cost	Required?	Min Cost	Max Cost
Business Signage ➜	Optional	$75	$2,486

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