The Hard Truth About Starting a Cargo Van Business

What You Should Know Before Hitting the Road

On the surface, starting a cargo van business seems like a smart move. You get a van, line up some deliveries, and work your own hours — right? Not quite. While there’s definitely money to be made in last-mile delivery, furniture transport, mobile services, and independent courier work, the path to profit isn’t as smooth as it looks on TikTok.

According to IBISWorld, the U.S. courier and local delivery services industry was valued at $151 billion in 2023, and it continues to grow as e-commerce drives demand for fast, local delivery (source). But growth in the market doesn’t guarantee success for every new van owner.

If you’re planning to start a cargo van business, here’s what you really need to know before jumping in.

The Startup Costs Are Higher Than You Think

A lot of new business owners underestimate how much they’ll need to get started. Buying the van is just the beginning. If you’re financing a newer model, expect to shell out $25,000–$40,000 upfront or in payments. But beyond that, there’s insurance, registration, maintenance, fuel, and business licensing.

Here’s a breakdown of common startup expenses:

• Van purchase or lease – New or used, you’ll need something reliable

• Commercial insurance – Often more expensive than personal policies

• LLC or business registration fees – Varies by state

• Fuel and maintenance budget – Tires, oil changes, repairs

• Phone, GPS, apps – You’ll need to track deliveries and stay reachable

• Branding or website – If you want to look legit to clients

In short, don’t plan to get rich quick. Plan to get organized and build smart.

Finding Steady Work Takes Hustle

One of the biggest surprises for new operators? The lack of consistent work in the early days. Unless you’re contracted with a company like Amazon or FedEx (which has its own strict requirements), you’ll need to hustle to land gigs.

Sources of cargo van work include:

• Independent courier apps like GoShare, Roadie, or Dispatch

• Furniture and appliance stores needing local deliveries

• Partnerships with moving companies or real estate agents

• Cold outreach to local businesses or wholesalers

• Creating your own mobile service — like junk removal, catering, or repairs

Until you build regular clients or contracts, expect income to fluctuate. You’ll need a sales mindset and serious persistence to fill your calendar week to week.

The Job Can Be Physically and Mentally Demanding

Driving all day may sound relaxing — until you’re dealing with traffic, heavy lifting, awkward staircases, and impatient customers. Many cargo van jobs involve more than just transport. You may be expected to load, unload, install, or navigate tight city spaces with expensive merchandise in your backseat.

The grind includes:

• Long hours with tight delivery windows

• Minimal time for breaks between stops

• Physical labor that adds up quickly

• Keeping track of invoices, receipts, and miles

• Being your own customer service department

It’s rewarding work — but only if you’re ready for the mental and physical load.

Success Comes With Systems, Not Just Hustle

Yes, grit matters. But so do systems. If you want to grow past just breaking even, you need to treat your cargo van business like a business — with scheduling tools, reliable accounting, a marketing plan, and maybe even subcontractors down the line.

To level up:

• Use apps to track mileage and expenses

• Set pricing that covers costs and includes profit

• Get insured and bonded for higher-value jobs

• Build a reputation with consistent communication and service

• Plan for downtime (vehicle maintenance, off-seasons, etc.)

Most people fail because they wing it. The pros treat every delivery like a contract and every mile like money.

Final Thought

Starting a cargo van business can absolutely lead to freedom and solid income — but it’s not a guaranteed paycheck or an overnight win. The people who thrive in this space are the ones who do the research, invest in the right tools, and show up like professionals from day one.

If you’re serious about launching, take the time to learn how to start a cargo van business the right way. It’s not easy, but with planning and hustle, it can be one of the most flexible and rewarding self-owned ventures on the road.