How Much Does It Cost to Start a Food Delivery Service?
Last updated: May 2026
National Average
Low
$10,000
Medium
$52,000
High
$130,000
A business that delivers restaurant meals or meal kits directly to customers. Can partner with existing restaurants or operate a ghost kitchen model.
Time to Launch
1-3 months
Profit Margins
1-5%
Break-Even Timeline
6-18 months
Interactive Cost Calculator
Select a state below to see state-adjusted costs.
Startup Cost Calculator
Food Delivery Service in Nationally
Budget:
$15,000
$10,000
$5,000
$1,000
$8,000
$10,000
$2,000
$1,500
Options
Employees:
Startup Costs
$52,500
Monthly Costs
$10,000
First Year Total
$172,500
Startup Costs by State
| State | Low | Medium | High | LLC Fee | Sales Tax |
|---|---|---|---|---|---|
| Mississippi | $7,700 | $40,040 | $100,100 | $50 | 7.0% |
| West Virginia | $7,700 | $40,040 | $100,100 | $100 | 6.0% |
| Oklahoma | $8,000 | $41,600 | $104,000 | $100 | 4.5% |
| Alabama | $8,100 | $42,120 | $105,300 | $200 | 4.0% |
| Arkansas | $8,100 | $42,120 | $105,300 | $45 | 6.5% |
| North Dakota | $8,200 | $42,640 | $106,600 | $135 | 5.0% |
| Iowa | $8,300 | $43,160 | $107,900 | $50 | 6.0% |
| Kansas | $8,300 | $43,160 | $107,900 | $160 | 6.5% |
| Missouri | $8,300 | $43,160 | $107,900 | $50 | 4.2% |
| South Dakota | $8,300 | $43,160 | $107,900 | $150 | 4.2% |
| Kentucky | $8,400 | $43,680 | $109,200 | $40 | 6.0% |
| Louisiana | $8,400 | $43,680 | $109,200 | $100 | 5.0% |
| Wyoming | $8,400 | $43,680 | $109,200 | $100 | 4.0% |
| Nebraska | $8,500 | $44,200 | $110,500 | $105 | 5.5% |
| Indiana | $8,600 | $44,720 | $111,800 | $95 | 7.0% |
| Michigan | $8,800 | $45,760 | $114,400 | $50 | 6.0% |
| Ohio | $8,800 | $45,760 | $114,400 | $99 | 5.8% |
| New Mexico | $9,000 | $46,800 | $117,000 | $50 | 4.9% |
| South Carolina | $9,000 | $46,800 | $117,000 | $110 | 6.0% |
| Wisconsin | $9,100 | $47,320 | $118,300 | $130 | 5.0% |
| Tennessee | $9,200 | $47,840 | $119,600 | $300 | 7.0% |
| Texas | $9,200 | $47,840 | $119,600 | $300 | 6.3% |
| Georgia | $9,400 | $48,880 | $122,200 | $100 | 4.0% |
| Minnesota | $9,400 | $48,880 | $122,200 | $155 | 6.9% |
| Illinois | $9,500 | $49,400 | $123,500 | $150 | 6.3% |
| Idaho | $9,600 | $49,920 | $124,800 | $100 | 6.0% |
| North Carolina | $9,600 | $49,920 | $124,800 | $125 | 4.8% |
| Pennsylvania | $9,600 | $49,920 | $124,800 | $125 | 6.0% |
| Montana | $9,700 | $50,440 | $126,100 | $35 | 0.0% |
| Utah | $10,000 | $52,000 | $130,000 | $54 | 6.1% |
| Delaware | $10,400 | $54,080 | $135,200 | $110 | 0.0% |
| Nevada | $10,500 | $54,600 | $136,500 | $425 | 6.8% |
| Virginia | $10,700 | $55,640 | $139,100 | $100 | 5.3% |
| Vermont | $10,900 | $56,680 | $141,700 | $125 | 6.0% |
| Arizona | $11,000 | $57,200 | $143,000 | $50 | 5.6% |
| Colorado | $11,000 | $57,200 | $143,000 | $50 | 2.9% |
| Florida | $11,200 | $58,240 | $145,600 | $125 | 6.0% |
| Oregon | $11,200 | $58,240 | $145,600 | $100 | 0.0% |
| Rhode Island | $11,200 | $58,240 | $145,600 | $150 | 7.0% |
| Maine | $11,400 | $59,280 | $148,200 | $175 | 5.5% |
| New Hampshire | $11,700 | $60,840 | $152,100 | $102 | 0.0% |
| Washington | $11,800 | $61,360 | $153,400 | $200 | 6.5% |
| Connecticut | $11,900 | $61,880 | $154,700 | $120 | 6.3% |
| Maryland | $12,100 | $62,920 | $157,300 | $100 | 6.0% |
| New Jersey | $12,500 | $65,000 | $162,500 | $125 | 6.6% |
| Alaska | $12,700 | $66,040 | $165,100 | $250 | 0.0% |
| New York | $13,900 | $72,280 | $180,700 | $200 | 4.0% |
| California | $15,200 | $79,040 | $197,600 | $70 | 7.3% |
| Massachusetts | $15,400 | $80,080 | $200,200 | $500 | 6.3% |
| Hawaii | $19,300 | $100,360 | $250,900 | $50 | 4.0% |
Cheapest & Most Expensive States
5 Cheapest States
- Mississippi$40,040
- West Virginia$40,040
- Oklahoma$41,600
- Alabama$42,120
- Arkansas$42,120
5 Most Expensive States
- Hawaii$100,360
- Massachusetts$80,080
- California$79,040
- New York$72,280
- Alaska$66,040
Frequently Asked Questions
Starting a food delivery service spans a wide range. A solo courier joining platforms like DoorDash costs almost nothing. Building your own local delivery service with multiple drivers and your own app/website requires meaningfully more — well into the five figures. A ghost kitchen delivery operation requires materially more capital. Use the calculator on this page to model your specific scenario.
Food delivery has thin net margins as a percentage of revenue due to high driver costs, platform commissions, and fuel. The most profitable models build direct ordering relationships with customers, avoiding the substantial percentage that the major platforms take. Volume is key — delivery businesses need high order counts to profit.
You need a standard business license and commercial auto insurance at minimum. If you're preparing or repackaging food, you need food handler permits and a commercial kitchen license. Driver background check requirements vary by state and local jurisdiction.
Start with established platforms (DoorDash, Uber Eats, Grubhub) to test demand without technology costs. Once you have consistent order volume, invest in a direct ordering channel (app or website) to reduce the substantial commission you're paying. A custom app is a meaningful five-figure-to-low-six-figure build.
Start with 2-4 drivers covering a limited delivery zone. Most successful delivery businesses launch in a 3-5 mile radius and expand from there. One driver can typically complete several deliveries per hour during peak times.
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