Start Food Delivery Business in India Today - Dash101 Blog

How to Start a Food Delivery Business in India with Minimum Investment?

star a food delivery business in India

One of the most evergreen products to sell online is food. Food is a commodity that never goes out of trend. Because obviously people buy it from time to time to sustain themselves. When you’re selling food items, you open your business to a large number of people. Your target audience is much wider and you have potential for a lot of business profits. But, it all comes down to the question of how to start food delivery business in India?

Food delivery is one of the most lucrative business opportunities. And in a country like India, the possibilities are infinite. We’re saying this because India is known for its rich culture and distinct cuisines. No matter which part of the country you look at, there is always something new  in food that you will find. And these delicacies need to reachout to everyone.

If you look at the ecommerce trend in the past few years, you will see that there has been a sharp rise in the food delivery. Be it groceries or cooked food, a lot of sellers have jumped to start food delivery business in India. So, the question is what makes food delivery a good option in online selling? Similarly, it is worth it to start food delivery business in India.

Don’t worry if these questions are troubling you. We’ve gone ahead and done all the research to save your time. Read to find out the answers to the most popular questions on how to start food delivery business in India.

Why Do Most Sellers Start Food Delivery Business in India?

Food is a good option to sell online because of a lot of purposes. People consume them daily and the profit margins are good enough. You might have seen Swiggy and Zomato pick up the pace in the past few years. And these are only the two big names that everybody knows. In the background, there are hundreds of home food sellers that deliver to the customer’s doorstep. 

So, why are sellers selling independently and jumping to start food delivery business in India? The idea is that Swiggy and Zomato sure have a good reputation. But, selling under them can also cost you a lot of money. The profit margins are fixed and very meagre. Therefore, not everyone can sustain themselves for a long time. 

Growing Demand for Food

There is a growing demand for food in the market. Understand it from the population’s point of view as well. As the population of a country grows, the food demands will obviously rise. Moreover, ever science the fast food culture has gained pace in India, more and more orders have poured in. the western culture has also influenced several food items. 

Due to this, their needs have emerged. For example, you might not have seen someone eat a cake in ancient India. But, today, cake is a household food item. No matter what the reason for the celebration is, everyone wants to order a cake. 

People Want Delivery Options More

The food delivery industry was already growing with Zomato and Swiggy presenting amazing offers to the customers. However, this has accelerated with the advent of the pandemic. Ever since people were told not to step out of their homes and maintain social distancing, people have started ordering online. 

Customers want to avoid going to these places and rather stay at home. As a result they are pondering food items more than ever. Be it groceries, or cooked food from the restaurant- there are orders flooding everyday. In fact, people are also looking for better options and offers. If they find a better deal anywhere else, they explore the option. This is providing a boat to even the local retail owner to step out of the comfort zone and start selling online 

Less Hassle of Returns

With food, the hassles of return are fewer. In other forms of ecommerce when you’re selling apparels and other items the customer might try it out. If they don’t like the product they return it straightforwardly. And thus, you have to bear the return costs and more. As a result of this, a lot of businesses shut down because they are not able to make good profits. 

On the other hand, the scenario is different with the food industry. Whether you’re delivering cooked food or groceries, there are fewer returns. All you have to do is take care of the quality. Make sure that the customer gets all that they had asked for. Moreover, if you are selling standard items like packaged flour and other items, there is no question of liking the item. It is what the customer has asked for that has been delivered right from the brand. And until you deliver it in a tampered condition there is no going back. Most online businesses have a no return policy on food items. In cases where the condition of the food is completely spoiled, you process the refund for the entire amount. 

start food delivery business in India

Guaranteed Profits

Because you know that you will receive orders for food, there is a security in terms of profits. For example if you start food delivery business in India and deliver to a particular locality, you get the idea of the market. You know how many people are engaging with your business. This, you get an estimate of your daily orders. With this, you can partner with your local retailer and negotiate an effective price. And because food delivery happens in a smaller radius, your shipping costs won’t be that high.

How to Start Your Food Delivery Business in India?

To start food delivery business in India, you need to take a few measures in advance. This will help you get started on the right foot. Remember that even though the idea of food delivery sounds lucrative, things can go wrong due to lack of planning. Therefore, you need to take the crucial first step switch care. 

Pick Your Niche

The first and them foremost thing to do is to pick your niche when it comes to food. While you might love to eat all kinds, doesn’t mean that you will be successful in selling them. Separate your urges from selling practicalities. It is best that you understand the details involved with food and then pik what suits you best. Remember that food involves special storage and handling requirements. If you are selling cooked food, find out what your speciality is. Can you cater to the north Indian taste buds better or do your true flavours lie in south indian cuisine? Discover your options and lay out a plan according to that. 

Get Your Selling License 

Remember that you cannot sell food without obtaining the food and hygiene license from the food industry in India. This is what makes selling food a little difficult. But, it also ensures that you are following protocols related to food. FSSAI is the most common license that you receive while selling food, to start food delivery business in India some of the other irrelevant licenses are GST, trademark, Agmark, health Trade license and more. All of these are necessary. Moreover, it helps establish trust in yourbrand. When customers know that you have the license to sell food, they will start ordering from you. 

Settle on Your Target Audience

The next step to start food delivery business in India is to define your target audience. Remember that you cannot deliver food to far off places. It has to be fresh and warm when it is delivered to the customer. Therefore, define your delivery area in a better manner. Think about your logistics options and how far you can go to deliver the food. Make realistic goals instead of being too ambitious. 

If you know the locality you can ship to, you will also know the people that are living in the area. Thus, you can personalize the food experience for greater customer satisfaction. Suppose that a lot of students live in your area. Therefore, you can provide them with tiffin services. On the other hand, if there are people who belong to a particular community, you can sell them their cultural food items. 

Create a Website and Mobile App

Now that you’ve picked your niche, reach out to the customers. This you can do with the assistance of a mobile application. A mobile application and a website can go a long way in establishing your reputation. Therefore, make sure that you have the right means and tools to get started. A website and mobile app is also a good way to portray yourself as a reliable brand. 

Partner with a Reliable Logistics Provider

The last part of the process is to partner with a reliable courier company. Since they will be the ones taking your food to the customer’s doorstep, you need to make sure that they are responsible. A lot of hyperlocal delivery services have emerged that can help you ship and start food delivery business in India. Make sure you invest time exploring your options well. 


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