Lets assume that the Grocery delivery service serves the San Francisco area.
Lets assume that there is no one else who is currently doing grocery delivery in SFO right now and this company is going to serve the entire eligible population of grocery delivery customers.
Let us also assume that this service will only serve grocery to households and will not be for commercial purposes such as delivery for restaurants/mom and pop stores etc
The way to calculate number of trucks required for the 24 hour grocery service would be:
Number of orders for households requiring grocery delivery (demand) per day /Number of orders that can be served by 1 truck per day
San Francisco has a population of around 850K.
Lets assume that there are on an average 3 people in a household and hence the number of households in SFO are: 850/3 = 283 (approximately 300 households).
Every household requires grocery but not every household requires grocery delivery.
Lets assume that 30% of the households will actually use the grocery delivery service (rest of them will buy grocery by going to the store or eat out). So # of eligible households = 30% of 300 = 90 households
If each household on an average orders grocery once a week then number of orders per day = 90 * 1/7 = 13 orders a day
Lets assume that 50% are large orders (more than 15 items) and 50% are small – medium orders (less than 15 items) which means approximately 6 large orders and 7 small orders
Lets assume that this grocery delivery service uses standard delivery trucks + uber/lyft style cars depending on the size of groceries (large, medium orders)
A standard truck holds approximately 10 large orders of groceries per trip and a truck makes at least 3 trips a day.
There a single truck can do = 30 orders a day
A lyft/uber style mini van can do 3 small-medium orders per trip and can do at least 3 trips a day as well = 9 s/m orders per day.
Therefore # of trucks for large orders required per day = 6/30
# of cars required for small orders per day = 7/9
0.2 trucks required per day
0.8 cars required per day
Approximately 1 vehicle per day overall if we want to simplify the whole thing
There may be more trucks/cars required during the weekend if the number of orders are more so lets double that to say 2 vehicles overall required per day to serve grocery delivery for SFO.
This seems way too less What did I do wrong?
Maybe the 30% households requiring grocery was wrong? I see so many Safeway and Walmart trucks driving around. You probably need 4 trucks for every large city in the bay area per company. Do people order groceries every day?
Maybe I need to increase my % of families ordering groceries and need to increase my number of days per week that grocery is ordered. I think my formula is still correct though. I am also not accounting for restaurant and small store delivery which probably accounts for quite a large volume of grocery delivery.