How to Start Online Food Delivery Business in Canada

The Canadian food delivery market is booming. It has seen significant growth due to increasing digital adoption, evolving consumer preferences, and a shift in dining behavior post-pandemic. For entrepreneurs planning to enter the food industry, this is the perfect opportunity to tap into a growing market.

In this article, we provide detailed information on how to start a profitable online food delivery business in Canada, including the business model, revenue channels, technology, and how to market your platform digitally for long-term success.

Why start an Online food delivery business in Canada?

Canada’s food delivery industry keeps growing every year, and it’s expected to cross CAD 8 billion by 2025. With more restaurants and customers turning to digital platforms, it’s become easier than ever to enter the market. And while big cities like Toronto and Vancouver lead the way, smaller cities such as Halifax, Saskatoon, and Regina are also seeing high demand for reliable food delivery services, creating new opportunities for local entrepreneurs.

Popular Food Delivery Players in Canada

Canada’s food delivery market is dominated by the below major players that have set the standard for convenience, speed, and variety. Over time, they’ve built strong customer trust and become the go-to choice for food delivery in both big cities and smaller towns.

Food Delivery Players	Type	Founded	USP
Uber Eats	Aggregator	2014	Wide reach, fast delivery
DoorDash	Aggregator	2013	Focus on speed and variety
SkipTheDishes	Aggregator	2012	Canadian favorite, loyalty features
Ritual	Pickup + delivery	2014	Strong urban presence

However there are still opportunities for new businesses to build and scale up their food delivery business.

Types of food delivery businesses to start in Canada!

Single Restaurant Food Delivery App

A direct-to-consumer app for individual restaurants to manage online orders and delivery.

Restaurant Chain Delivery Solution

A centralized system for chains with multiple outlets to manage menu, orders, and logistics.

Multi-Vendor Food Marketplace

A platform like Uber Eats where multiple restaurants list their offerings. Best suited for entrepreneurs aiming to run an aggregator business.

Model	Investment	Scalability	Ideal For
Single	Low	Moderate	Local businesses
Restaurant Chain	High	High	Established brands
Marketplace	Medium	Very High	Tech-savvy entrepreneurs

How to Monetize Your Online Food Delivery Marketplace

• Restaurant listing fee

You can charge restaurants a one-time or recurring fee to list their business on the platform. This gives them access to your user base and increases their online visibility. Many new or small restaurants are willing to pay this fee to reach more customers without investing in their own tech.

• Each order’s commission from restaurant

This is the most common revenue stream. You (Admin) take a small percentage in terms of commission from each order placed through the platform.

• On-site restaurant promotion (featured)

Restaurants can pay for promotion on the same platform. Mostly restaurants want to showcase their brand to appear at the top 

• Each delivery commissions

If you manage deliveries, you can charge a service fee for each completed delivery. This adds another revenue stream beyond just restaurant commissions.

• Third-Party Advertisements

You can earn through display ads from other brands or local businesses who want to feature on your platform. These can be banners, pop-ups, or promotions that generate income based on clicks or views.

• Subscription Model

Platforms offer monthly/yearly plans for customers that also provide one more way to earn money. For users, that could be free deliveries; for restaurants, it could mean lower commissions or premium features.

Key Steps to Start own Food Delivery Business in Canada

Here’s a step-by-step breakdown to help you build a reliable and scalable food delivery platform from the ground up.

Market research

Spend time understanding the market you’re entering. Look into how people prefer to order food in your target region, what types of cuisines are popular, which age groups order the most, and what local habits influence online food orders.

Also, study your competitors. See what they’re doing well and where they fall short. This will help you identify gaps in the market and areas where your platform can stand out.

Legal setup

It’s must to follow all the necessary legal requirements. Like start by registering your business, choosing the right structure — sole proprietorship, partnership, or corporation, and apply for a licence that ensures compliance with local food safety laws and digital commerce regulations. If you’re managing your own delivery fleet, make sure your drivers are properly insured and follow transportation rules.

Evaluate the cost

Get a clear picture of how much it will cost to launch and operate your business. Your budget should cover:

• Technology (platform/app development)
• Marketing and branding
• Restaurant onboarding and partnership incentives
• Delivery staff or third-party logistics
• Maintenance and customer support

Planning your costs in advance helps avoid surprises and keeps your operations sustainable.

Create marketplace or app

Technology is the backbone of these types of businesses. You’ll need a reliable online platform that handles everything from order management and payments to restaurant onboarding and delivery tracking.

To create a reliable marketplace or app there are there options:

• Custom development: It’s the best way to create the marketplace completely as per your own requirements but it requires a big budget and time. With this approach you can build your marketplace with highly required features which are tailored to your business model.  However, it takes time as this way requires a full fledged team of professionals including, project manager, designers, developers, tester and more.
  
• Ready-made software: A faster and more cost-effective way to build a feature-rich food delivery app or marketplace. It’s a modern approach and ideal for entrepreneurs working with a limited budget or tight timeline. It hardly takes 3-6 days to get your platform live. Modern entrepreneurs prefer pre-built solutions to launch their food delivery app or marketplace. Unlike building from scratch, these platforms come with essential features already built-in, so you can focus on branding and growth from day one.
  
• Clone scripts: It’s also a faster way to launch your business as you need, but it doesn’t provide the value. Your marketplace looks like a copy of the existing app and there is very little customization option. Over time, managing and scaling a clone-based system can become frustrating, especially if you’re aiming to build a strong, unique brand.

Best Option:

If you want to launch your food delivery business quickly without spending months on development,  YoYumm is a top choice. It’s a white-label, fully customizable food delivery software built for startups and enterprises that lets you customize the platform to fit your business needs. With pre-built modules, responsive designs, and scalable architecture, YoYumm helps you go live faster and adapt to market needs as you grow.

Start Promotion

With your app live and listings in place, it’s time to promote. Start with a local launch campaign, use social media, Google Ads, and food influencers to create buzz. Don’t forget to set up local SEO so nearby customers can find you easily. Offering free listing or discounts and free delivery in the first few weeks or first 10-20 orders can also attract early orders and word-of-mouth referrals.

Start Listing Restaurants

Once your platform is set-up you can start adding the restaurants partners along with their menus on your food delivery marketplace. Make sure to upload the high quality images, detailed item descriptions and accurate pricing. The more restaurants on your platform means the more choices customers will have which not only drives more orders but it also helps build your brand’s credibility.

Proven Tips for Making Your Food Delivery Business Profitable

Building a food delivery platform is just the start, turning it into a profitable venture takes smart decisions and long-term thinking. Here are a few tips to help you grow sustainably and stay ahead of the competition:

1. Follow the Market Demand

Keep an eye on what your customers actually want, from trending cuisines to delivery preferences. Offer combos, late-night delivery, or dietary-specific options if the demand is rising in your area.

2. Identify and Fill the Gaps

Look at what other platforms are missing — maybe they don’t serve certain neighborhoods, charge high fees, or have poor support. This is your opportunity to step in and offer a better experience.

3. Choose the Right Technology

A simple and reliable platform is essential for running a successful food delivery business. Instead of building from scratch, consider a ready-made solution that’s easy to manage and doesn’t tie you down with ongoing developer support or surprise fees. YoYumm is a great example,  it’s self-hosted, fully white-label, and doesn’t require monthly or yearly payments. Plus, with complete customization options, you can shape it to match your business needs without limitations. It lets you focus on growing your brand, not fixing tech issues.

4. Invest in Marketing

Use social media, local SEO, or paid ads to spread the word. If you don’t have marketing experience, it’s a good idea to hire a trusted marketing agency that can help boost your online reach. You can also collaborate with local influencers to create buzz and drive traffic to your platform.

Conclusion

Starting an online food delivery business in Canada connects local restaurants with a wider customer base, tapping into the growing demand for convenient, app-based meal ordering. This business model offers strong earning potential without the need to manage a kitchen or cook food yourself. However, to succeed, your platform must offer a smooth user experience, reliable delivery support, and flexible tools for restaurant partners. That’s why choosing the right tech solution is essential, and opting for a ready-made platform like YoYumm makes it easier to launch quickly and scale confidently.