How to Start an Online Grocery Delivery Business in Canada

The online grocery delivery market in Canada has seen remarkable growth in recent years, driven by changing consumer habits, technological advancements, and the rising demand for convenience. With the increasing preference for shopping from home, more Canadians are choosing online grocery delivery services over traditional in-store shopping. This shift has been further accelerated by the COVID-19 pandemic, which emphasized safety and convenience, pushing businesses and consumers toward digital platforms.

In Canada, online grocery shopping is expected to continue its upward trajectory, with forecasts indicating the market will reach CAD 12.1 billion by 2026. This presents a unique opportunity for entrepreneurs to enter a growing industry, providing a seamless and efficient grocery shopping experience to Canadian consumers.

• Over 22% of Canadian households reported ordering groceries online at least once a month in 2024, showing a marked increase from previous years. (Source: StatCan)
• In 2024, usage of online grocery delivery apps in Canada increased by 56% compared to 2023, with spikes in app downloads seen in both urban and suburban areas.
• Click-and-collect and curbside pickup services have become increasingly popular, with usage nearly doubling since 2022, especially among families and working professionals.
• Canadian online grocery revenues are projected to exceed CAD 8 billion by 2025, driven by growing demand for contactless services and faster delivery. (Source: eMarketer Canada)
• A growing number of small grocery businesses in Canada are launching their own grocery e-commerce platforms to compete with large retailers like Loblaws and Walmart.

Why You Should Start An Online Grocery Business in Canada

Now is the ideal time to step into the online grocery delivery business in Canada. With consumer behavior rapidly shifting toward digital shopping experiences, demand for online grocery services is at an all-time high. Canadian shoppers are increasingly valuing convenience, safety, and time efficiency, which makes this a golden opportunity for entrepreneurs to tap into a fast-growing and evolving industry. As major urban and suburban areas continue to embrace e-commerce, new businesses that enter with the right strategy and technology can quickly gain market share and build strong customer loyalty.

• Substantial Untapped Market Potential: Despite the increasing adoption of online grocery services, the Canadian market still presents considerable growth opportunities for new entrants. Compared to some other developed nations, the penetration of online grocery shopping in Canada indicates a significant runway for expansion.
• High Demand for Convenience: In today’s fast-paced world, Canadian consumers highly value convenience. Online grocery delivery directly addresses this demand by eliminating the time and effort associated with traditional grocery shopping, offering a seamless and efficient alternative.
• Advanced Technological Infrastructure: The availability of robust and user-friendly grocery e-commerce platforms and online grocery delivery software, such as Growcer, simplifies the complexities of launching and managing an online grocery business. These platforms provide the necessary tools for inventory management, order processing, and delivery logistics.
• Enhanced Flexibility and Scalability: An online grocery business model offers greater operational flexibility in terms of service areas, operating hours, and product offerings. Furthermore, the online nature of the business allows for easier scalability as the customer base and order volume grow.
• Competitive Edge with Innovative Solutions: Offering features such as real-time tracking, subscription services, and personalized delivery options can set your business apart in a competitive market, helping you build customer loyalty.

Top Grocery Delivery Businesses in Canada

1. Instacart Canada

• Overview: Instacart, headquartered in San Francisco, has been operational in Canada since 2017. It partners with major retailers like Loblaw Companies to offer grocery delivery services across various Canadian cities.
• Revenue: As a private company, Instacart does not disclose specific revenue figures for its Canadian operations. However, its parent company, Maplebear Inc., reported a net income of $1.1 billion in 2023.
• USPs:
  
  • Wide Retail Network: Access to over 1,800 retailers and more than 100,000 grocery stores across Canada.
  • Personal Shopper Service: Orders are picked, packed, and delivered by personal shoppers, ensuring a tailored shopping experience.
  • Instacart+ Membership: Offers benefits like free delivery on orders over a certain amount and reduced service fees.
• Market Position: In 2024, Instacart was the most downloaded grocery delivery app in Canada, with over 775,000 downloads, indicating its dominant presence in the market.

2. PC Express (Loblaw Companies)

• Overview: PC Express is the online grocery service of Loblaw Companies, one of Canada’s largest food retailers. It offers both pickup and delivery options through its extensive network of stores.
• Revenue: While specific revenue figures for PC Express are not publicly available, Loblaw Companies reported a revenue of $12.9 billion in the fourth quarter of 2024, with a significant portion attributed to its grocery segment.
• USPs:
  
  • Extensive Store Network: Over 700 pickup locations across Canada, including stores like Loblaws, Real Canadian Superstore, and No Frills.
  • Flexible Pickup Options: Customers can choose from curbside pickup, self-serve kiosks, and delivery via refrigerated vans.
  • Subscription Service: PC Express Pass offers discounted service fees for frequent users.
• Market Position: PC Express serves approximately 70% of Canadian households, making it a significant player in the online grocery market.

3. Goodfood Market

• Overview: Goodfood Market is a Montreal-based online grocery and meal kit delivery service that has expanded its offerings to include a wide range of grocery items.
• Revenue: In the fiscal year 2023, Goodfood reported revenues of $300 million, with a subscriber base of over 200,000.
• USPs:
  
  • Meal Kits and Ready-to-Eat Meals: Offers a variety of meal kits, breakfast meals, snacks, and ready-to-eat products.
  • Nationwide Delivery: Delivers across most of Canada, reaching 95% of the population.
  • Sustainability Focus: Emphasizes eco-friendly packaging and sourcing practices.
• Market Position: Goodfood has carved a niche in the market by combining grocery delivery with meal kit services, appealing to consumers seeking convenience and variety.

Steps to Start an Online Grocery Delivery Business in Canada

Starting an online grocery delivery business in Canada requires strategic planning, the right technology stack, and a deep understanding of consumer behavior. Here’s a step-by-step guide to help you build a scalable, competitive, and future-ready grocery delivery venture:

1. Conduct In-Depth Market Research

Begin by analyzing the current market dynamics and identifying opportunities. Look into:

• Consumer shopping behavior and preferences
• Top-performing regions (urban vs. suburban)
• Seasonal shopping patterns and local trends
• Competitor strategies and pricing models
• Regulatory guidelines for food delivery and e-commerce operations in Canada

Understanding the landscape allows you to position your business for success and uncover potential gaps that your platform can fill.

2. Choose the Right Business Model

Your business model dictates how your platform will function, what revenue streams you’ll rely on, and how logistics will be handled. Here are the most viable models in the Canadian market:

• Multi-Vendor Marketplace Model: Allow multiple local grocery sellers to list and sell products through your platform. You earn via commissions or subscription fees from vendors. Great for regional grocery networks or aggregators.
• Inventory-Based Model: You purchase and stock inventory in your own warehouse. This provides more control over quality and availability, but requires higher upfront investment and storage management.
• Hyperlocal Model: Deliver products from nearby stores or partners within a specific geographical radius. Works best in urban hubs like Toronto, Montreal, and Vancouver.
• Click-and-Collect (BOPIS): Customers buy online and pick up groceries at a store location. Minimizes delivery logistics and appeals to shoppers seeking flexibility.
• Scheduled Delivery Model: Let customers choose preferred delivery time slots for better convenience and route planning.

Choose a model that aligns with your budget, target audience, and operational capacity.

3. Define Your Product Offerings and Partnerships

Decide on the range of items you’ll offer, from fresh produce and pantry staples to household essentials and niche organic products. Partner with local farms, wholesale suppliers, or national brands to ensure product variety and availability. Establish strong supply chain processes to maintain stock levels and product freshness.

4. Build Your Online Grocery Delivery Platform

Your e-commerce platform is the backbone of your business — it should be user-friendly, scalable, and optimized for both mobile and desktop users. You have two primary options for building your grocery delivery platform:

A. Custom Development

This approach involves hiring developers or a tech agency to build your platform from scratch. You get full control over:

• User interface and experience (UI/UX)
• Features and integrations
• Scalability and data privacy

However, it requires significant time, technical expertise, and a higher upfront cost. Launching can take several months, making this option suitable only for businesses with larger budgets and longer timelines.

B. Ready-Made Grocery E-commerce Solution (Recommended)

Ready-made solutions offer a quicker, cost-effective, and highly functional path to market. These platforms come with essential features already built-in and are tailored specifically for the grocery delivery space.

Benefits of a ready-made solution:

• Rapid time-to-market (launch within weeks, not months)
• Cost-effective with no need to build from scratch
• Pre-integrated features like inventory management, order tracking, and payment gateways
• Mobile apps included for both buyers and delivery personnel
• Scalable as your business grows
• Easy to manage without deep technical expertise

5. Launch & Market Your Grocery Delivery Business

With your platform ready, focus on creating visibility and customer engagement through strategic marketing efforts:

• Local SEO & Google My Business: Rank for local grocery-related searches in your city or region.
• Social Media Ads & Influencer Collaborations: Build awareness and trust on platforms like Instagram and TikTok.
• Referral Programs & Loyalty Rewards: Encourage repeat orders and customer advocacy.
• Introductory Discounts: Attract first-time users with attractive launch offers.

Invest in consistent branding, content marketing, and customer service to build long-term credibility.

6. Focus on Logistics and Delivery Operations

Reliable logistics can make or break your business. Key considerations include:

• Partner with local delivery fleets or use third-party services like Skip or Uber for fulfillment
• Use route optimization software to streamline multi-drop delivery
• Offer flexible time slots and real-time delivery tracking
• Monitor delivery efficiency through analytics

How Growcer Can Help You Start an Online Grocery Delivery Business

Growcer is a powerful, ready-made grocery e-commerce solution built specifically to support entrepreneurs and businesses looking to enter the booming online grocery delivery market. Designed for flexibility, scalability, and user-friendliness, Growcer offers all the essential tools and features you need to launch, manage, and scale your grocery delivery platform with confidence.

Here’s how Growcer sets you up for success:

All-in-One Grocery E-commerce Solution

Growcer comes pre-equipped with everything you need to run a full-scale grocery delivery business. From real-time inventory management to customer order tracking and vendor management, it eliminates the need for multiple systems — streamlining operations under one robust platform.

Ready-Made Mobile Apps for Buyers & Delivery Agents

Growcer includes fully functional, white-labeled mobile applications for both customers and delivery personnel — available for iOS and Android. These apps are optimized for performance and user experience, allowing customers to shop on-the-go and delivery agents to manage their routes and orders with ease.

Multi-Vendor Marketplace Support

Whether you’re connecting local grocery stores or managing your own inventory, Growcer’s multi-vendor system enables multiple sellers to list and sell through a unified platform. Each vendor gets a dedicated dashboard to manage products, orders, and earnings independently.

Advanced Admin Dashboard & Analytics

Monitor every aspect of your business with an intuitive admin panel. View real-time data on orders, traffic, sales, and vendor performance. Use insights to make informed decisions, optimize marketing strategies, and improve operational efficiency.

Highly Customizable & Scalable

Growcer can be tailored to your specific business model — be it hyperlocal, inventory-based, BOPIS (Buy Online, Pick Up In-Store), or multi-zone delivery. As your business grows, Growcer scales with you, allowing you to expand your service areas, vendor network, and product offerings without switching platforms.

Cost-Effective & Fast Time-to-Market

Unlike custom-built platforms that require months of development and high costs, Growcer allows you to go live in just a few weeks. With flexible pricing options, it’s ideal for startups, small grocery chains, and enterprise businesses alike.

Conclusion

Starting an online grocery delivery business in Canada is a promising venture, given the growing demand for convenience and digital solutions. By leveraging grocery e-commerce software like Growcer, entrepreneurs can overcome challenges and tap into the potential of this dynamic market. With the right strategy, features, and tools, your grocery delivery business can become a trusted name in the Canadian market. Take the first step today and turn your vision into reality!

FAQs

Q 1. Is Growcer suitable for small and local grocery businesses in Canada?

Yes, Growcer is designed to be fully scalable and supports businesses of all sizes. Whether you’re a local grocery store in Toronto, a regional organic brand in British Columbia, or looking to build a multi-vendor grocery marketplace across Canada, Growcer can be tailored to your business model and budget. You can start small and gradually expand your platform as your customer base grows.

Q 2. Does Growcer support different business models that are popular in Canada?

Absolutely. Growcer supports various business models relevant to the Canadian market, including:

• Multi-vendor marketplaces for local grocery sellers
• Hyperlocal delivery models for fast, neighborhood-based fulfillment
• Inventory-based models for businesses managing their own stock
• Click & Collect (BOPIS) models popular in suburban and rural regions

This flexibility allows you to serve customers efficiently based on location and buying habits.

Q 3. Can Growcer help me compete with big players like Instacart or Walmart Grocery?

Yes. While large platforms have scale, Growcer enables you to focus on localization, community engagement, and personalized services — key areas where smaller businesses often outperform big-box retailers. With features like loyalty programs, personalized delivery slots, and real-time inventory, you can build a loyal customer base and carve your niche in the Canadian market.

Q 4. What kind of post-launch support does Growcer offer?

Growcer provides 1 year of free technical support after launch. This includes bug fixes, performance monitoring, and assistance with any integration or feature-related queries. The support team ensures your platform remains stable and updated as you grow.

Q 5.What’s the future of online grocery delivery in Canada, and is it a good time to enter this market?

The Canadian online grocery market is projected to exceed CAD 12 billion by 2026, with sustained growth driven by urbanization, tech adoption, and demand for convenience. With consumer trust in online grocery shopping at an all-time high, now is the perfect time to launch. Platforms like Growcer make the entry smoother, faster, and far more affordable than building from scratch.