I still think it could work..but you would have to charge a lot more the $5+10%. I also think it would work better in a small rural town vs a big city.

Still..it’ is a logistics nightmare..oh! And let’s not forget gas prices! And vehicle maintenance and insurance..

See..I think it’s one of those seems like a nice idea but in reality it just isn’t workable over the long term ideas.
References :

From a business aspect, $5 plus 10% probably won’t really be enough to cover your operating expenses should this idea take off in your market. I would strongly recommend that you only accept online orders at least 24 hours in advance with NO ADD ON items. You would have to find some manner of "pre-purchasing" the grocery goods in order to avoid being "stuck" with hundreds of dollars worth of food should you have a non-paying customer…. Secure website?? I would also suggest leasing a small refrigerated truck and find a legitimate system to keep all of your orders separate. The logic behind the truck is to appease the Department of Health, and should you have a customer who is not home, their food can be keep refrigerated and fresh until delivered.

There are actually quite a few more logistics involved than what I’ve covered here, such as fuel taxes, delivery timing for when your customers are home, how to optimize your routes/fuel efficiency, local and state food handler laws, insurance and bonding in the worst case event that someone feels that a product had been tampered with… general liability.

Hope this helps some, I didn’t want to come off sounding like it is a bad idea, which it isn’t…. there is a LOT involved though.
References :
My credentials include: Professional commercial driver 11+ years exp. Foodservice logistics specialist 4 years, ACF certified chef and culinary degree.