The on-demand delivery economy reinvented how goods and services reach consumers. With platforms like DoorDash, Instacart, and Amazon Fresh acing their domains, this niche has set their cash registers jingling.
From food and groceries to prescriptions and packages, instant delivery has become a basic necessity for urbanities. This trend piggy-backs on technology, logistics, and consumer convenience.
Our blog dissects tactical strategies and reviews leaders of the on-demand space. If you’re a startup founder, product head, or business leader exploring this sector, you’ll discover key business models, top-performing apps by category, and actionable insights to help identify the best opportunities and approaches for your own venture.
TL;DR
- On-demand delivery is booming due to rising consumer demand for instant, convenient services.
- Key Sectors:
- Food delivery (e.g., Uber Eats, DoorDash)
- Grocery (e.g., Instacart, BigBasket)
- Pharmacy & healthcare (e.g., Capsule, PharmEasy)
- Logistics & parcel delivery (e.g., Postmates, Dunzo)
- Must-Have Features for Success:
- Real-time tracking
- Secure payments (digital wallets, UPI)
- AI-driven route optimization
- Customer/Driver apps with ratings & reviews
- Tech Stack:
- GPS, cloud computing, AI/ML for demand forecasting
- Blockchain for secure transactions
- Future Trends:
- Drone/robot deliveries
- Hyperlocal & 15-minute delivery models
- Sustainability (EV fleets, carbon-neutral options)
- Why Invest? High ROI potential with scalable, asset-light models.
What is On-Demand Delivery?
Definition and Market Overview
On-demand delivery is the near-instant or real-time delivery of goods or services made possible by mobile apps or digital platforms. Users place orders and receive stuff—be it a meal, grocery basket, or prescription—within the hour.
These apps typically rely on gig-economy workers or third-party logistics (3PLs) to deliver orders quickly. Common categories include:
- Food delivery (e.g., Uber Eats, DoorDash)
- Grocery delivery (e.g., Instacart, Amazon Fresh)
- Package & courier delivery (e.g., Roadie, GoShare)
- Alcohol delivery (e.g., Drizly, Saucey)
- Pharmacy & healthcare delivery (e.g., Capsule, Amazon Pharmacy)
In 2023 the global on-demand delivery market size was $15.19 billion. It is predicted to grow to $83.82 billion by 2032 at a CAGR 20.90%.
Why the Model is Booming
Several key drivers are reasons for rise of on-demand delivery in the US:
- Consumer Demand for Convenience: Customers expect speed, flexibility, and real-time tracking.
- Urbanization & Digitization: Dense city living, mobile-first behavior, and widespread smartphone adoption have accelerated growth.
- Pandemic-Driven Behavior: COVID-19 drastically shifted consumer habits, normalizing app-based ordering for essentials and luxuries alike.
For entrepreneurs and startups, these conditions brought upon an ideal situation to build, innovate, and scale in the convenience economy.
On demand delivery market share by region
Business Models of On-Demand Delivery Apps
The success of on-demand delivery apps hinges not only in its speed or user experience—but also the business model they take on. Whether you’re looking to launch a new platform or integrate delivery into your existing business, understanding various models is key for scalability, monetization, and customer retention.
Platform to Consumer (P2C)
The Platform to Consumer model is basically an aggregator model wherein a third-party platform connects end-users with multiple vendors (restaurants, stores, pharmacies, etc.). These platforms are intermediaries that are responsible for delivery logistics and customer relationship, while vendors focus on order fulfilment.
Examples:
- DoorDash – Offers a broad network of restaurants and merchants.
- Uber Eats – Leverages Uber’s logistics infrastructure for food delivery.
- Grubhub – One of the earliest players with strong local partnerships.
Revenue Model:
- Commission Fees (15%–30%) from vendors on each order.
- Delivery Fees charged to customers.
- Promotional Fees or boosted listings paid by vendors to gain visibility.
- Subscription Services like DashPass (DoorDash) for fee waivers.
Advantages for Entrepreneurs:
- Rapid scalability via third-party merchants.
- Access to a multi-vendor ecosystem without inventory management.
- Recurring revenue through multiple streams.
Challenges:
- Thin profit margins due to high operational costs.
- Dependency on driver networks and vendor performance.
- Difficult to build long-term brand loyalty.
Business to Consumer (B2C)
In this model, businesses operate their own branded app and manage the end-to-end delivery process—including order acceptance, logistics, and customer experience. This gives them full control over the transaction lifecycle.
Examples:
- Domino’s – Built its proprietary tech stack and owns delivery operations.
- Papa John’s – Offers promotions and tracking through its native app.
Benefits:
- Complete Brand Control: UX, messaging, pricing, and delivery are fully owned.
- Customer Loyalty: Direct engagement leads to higher retention and repeat purchases.
- Data Ownership: Businesses gain access to critical insights like buying behavior and delivery trends.
Ideal For:
Established brands with recurring demand and logistic capability to handle in-house delivery
Challenges:
- High upfront investment in tech, logistics, and personnel.
- Demands tight operational coordination for on-time deliveries.
- User acquisition slow compared to aggregators.
Enterprise to Person (E2P)
This is more like an enterprise-focused variant of B2C. In this model large organizations deliver products directly to consumers through dedicated channels. Sometimes organisations even combine mobile apps, kiosks, and in-store pickups. The emphasis could also be on brand-owned experiences personalised for high-volume, custom transactions.
Examples:
- McDelivery (McDonald’s) – Integrated with third-party and own apps in various regions.
- Starbucks – Offers app-based ordering, loyalty rewards, and in-store pickup/delivery.
Focus Areas:
- Personalized Experience: Combines digital ordering even in physical locations.
- Recurring Customers: Strong loyalty and brand recall, especially for daily-use categories like coffee or fast food.
- Integrated Omnichannel Strategy: Supports online-to-offline (O2O) customer journeys.
Why It Matters:
E2P suit enterprises that have a large geographical spread and a strong brand image. These businesses can unify their digital and offline efforts to create seamless customer interactions and still leverage third-party delivery partners as per need.
| Model | Key Feature | Best For | Revenue Source |
| Platform to Consumer (P2C) | Aggregator with multiple vendors | Startups and marketplaces | Commissions, delivery & promo fees |
| Business to Consumer (B2C) | Brand-owned app with in-house delivery | Established brands with logistics | Direct sales, loyalty programs |
| Enterprise to Person (E2P) | Enterprise-grade direct-to-consumer | Large enterprises (QSRs, chains) | Sales, subscriptions, omnichannel upsell |
Top On-Demand Delivery Apps in the US (By Sector)
The on-demand delivery market in the US is split across several sectors—each dominated by professional players. Understanding their dynamics and their value propositions is vital for businesses planning to enter or compete in this space.
Food Delivery Apps
Uber Eats
A strong contender in most metro areas, Uber Eats offers wide restaurant coverage, real-time tracking, and seamless integration with Uber’s broader ecosystem.
Ideal for: Urbanities looking for convenience and multi-service app users.
DoorDash
The market leader, with over 60%+ share in cities like SFO and Houston, DoorDash excels with logistics efficiency, strong restaurant partnerships, and a high-performing white-label service (Drive).
Ideal for: Entrepreneurs aiming to study scalable delivery operations.
Grubhub
The original player in this niche, Grubhub focuses on hyperlocal restaurant partnerships, even going to the extent of offering lower delivery fees in dense areas.
Ideal for: Local-first strategies and niche markets.
Global on-demand delivery market size
Grocery Delivery Apps
Instacart
Instacart is the prevalent delivery juggernaut with over 900 retailers that include Costco, Kroger, and Walmart. Shoppers handpick orders in-store, ensuring same-day service.
Ideal for: Partner-focused grocery fulfilment models.
Amazon Fresh
This fast grocery delivery system is integrated with Amazon Prime. They depend on Amazon’s warehousing and logistics to deliver within 2 hours in select regions.
Ideal for: Businesses exploring warehouse-to-door models.
Shipt
Owned by Target, Shipt delivers from a wide network of stores and is known for its well-packaged customer service and same-day guarantees.
Ideal for: Retailers aiming for rapid delivery from physical locations.
Package & Courier Delivery Apps
Postmates (now part of Uber)
Has the repute of delivering nearly anything—from takeout to office supplies. Utilises Uber’s infrastructure for last-mile coverage.
Ideal for: All-purpose delivery startups and hybrid platforms.
Roadie
Swivels on a crowd-sourced driver network for same-day and oversized deliveries. Finds acceptance with retailers looking for flexible logistics.
Ideal for: Businesses with heavy, bulky or irregular item needs.
GoShare
They specialize in local moving, furniture delivery, and B2B logistics, linking users with pickup truck drivers and movers.
Ideal for: Heavy item transport and on-demand moving services.
Alcohol Delivery Apps
Drizly
Provides services in over 1,500 US cities, Drizly partners with local liquor stores for fast and legal alcohol delivery. Now under Uber’s umbrella.
Ideal for: Compliance-driven, multi-vendor delivery models.
Minibar Delivery
Offers both scheduled and on-demand services. Popular for event planning and corporate orders.
Ideal for: Planned-use cases and repeat alcohol deliveries.
Saucey
Taking convenience to the party-planners with 30-minute delivery in cities like LA, Chicago, and NYC. Targets premium customer experiences.
Ideal for: Luxury, niche, or high-speed alcohol delivery startups.
Pharmacy & Healthcare Delivery Apps
Capsule
Ensures same-day prescription delivery and provides a strong digital experience, especially in NYC and select cities. Handles refills and insurance coordination.
Ideal for: Digital health startups and telehealth add-ons.
Amazon Pharmacy
Presents a winning combination of Prime shipping with transparent drug pricing. Competitive for common prescriptions and recurring refills.
Ideal for: Mass-scale, cost-focused healthcare delivery.
PillPack (Amazon-owned)
Just perfect for repeat customers and chronic care patients by offering pre-sorted daily medication packs delivered on a monthly basis.
Ideal for: Subscription-based health delivery models.
Future Trends in On-Demand Delivery
AI and Automation
AI and automation entails capabilities to transform most industries and on-demand delivery is no different. AI / automation improves efficiency, reduces costs, and enhances customer experiences. Key developments include:
- Predictive Ordering – AI analyzes historical data to forecast demand, helping businesses optimize inventory and reduce waste.
- Intelligent Routing – Machine learning algorithms optimize delivery routes in real-time, considering traffic, weather, and delivery windows.
- Customer Behavior Insights – AI-driven analytics are useful to customise recommendations, promotions, and delivery preferences.
- Autonomous Deliveries – Drones, robots, and self-driving vehicles are on the way for last-mile delivery in the near future.
Sustainable Delivery Models
With growing environmental concerns, companies are adopting greener delivery solutions:
- Eco-Friendly Fleets – Electric vehicles (EVs), e-bikes, and cargo bikes reduce emissions in urban areas.
- Carbon-Neutral Delivery Options – Companies offset emissions through renewable energy investments or carbon credits.
- Micro-Fulfilment Centers – Decentralized warehouses cuts delivery distances and fuel usage.
- Reusable Packaging – Services are also known to collect containers that are used to minimize waste.
Vertical Specialization
Specialisation is creeping into every domain and a one-size-fits-all delivery platforms is not acceptable any more, niche markets are emerging:
- Healthcare & Pharmaceuticals – On-demand delivery of medicines, lab samples, and medical supplies.
- Luxury & High-Value Goods – Secure, white-glove delivery for premium products (e.g., jewelry, fine wine).
- B2B Logistics – Specialized apps for restaurant supplies, office equipment, and industrial parts.
- Grocery & Meal Kits – Dedicated apps with temperature-controlled logistics for perishables.
Conclusion: On-Demand Delivery Apps
The on-demand delivery space in the US is projected to reach $83.82 billion by 2032, driven by speed, convenience, and AI-powered personalization. While giants like Uber and Amazon lead multiple verticals, there’s still room for innovation—especially in underserved or niche markets.
For entrepreneurs and businesses, choosing the right model and tech foundation is key. With evolving customer expectations and sustainable practices becoming a norm, this is the ideal time to build or invest in the next generation of on-demand delivery solutions.
