How Much to Charge Per Mile for Delivery: Expert Advice on UK Rates

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Being a courier driver is challenging.

The secret to earning well as a courier driver lies in setting the right per-mile rate. Knowing this can simplify your life.

If you ever find yourself wondering what the ideal delivery charge per mile should be to ensure it's all worth it, you're not the only one.

Yet, determining this isn't always straightforward.

The appropriate per-mile rate can vary depending on whether you're driving as a subcontractor for companies like FedEx, Amazon, Hermes, or if you're conducting deliveries for your clientele.

What must you understand about calculating per-mile costs and ensuring you're charging adequately?

In this article, I'll guide you through the specifics of what you should expect to charge per mile for various courier delivery scenarios. This knowledge will streamline your delivery process. Ultimately, it will boost your earnings by helping you:

• Select the most suitable delivery service type

• Set the correct pricing

• Use tools to cut time spent on the road

Let's dive right in 👇

Delivery Cost Per Mile When Subcontracting

If you're delivering as a subcontractor, the party that assigned you the job will typically take a part of the fare.

So, if you received the job through another party, you can expect:

For your customers, it's advisable to increase these prices by at least 50 percent.

Delivery Rate per Mile as an Independent Contractor

For smaller jobs, I suggest charging £1.00 per mile – 65p to cover truck rental and 35p for yourself.

For larger trucks, the rate typically ranges from £1.50 to £2.50 per mile.

Maximizing Earnings from Your Customers

Finding your customers can be challenging but rewarding in terms of loyalty once established.

Customers vary in their willingness to pay, so it's important to set competitive rates to keep them.

Avoid undercharging; charging £1.50 per mile when they would gladly pay £2.00 is a missed opportunity.

Providing excellent service can turn customers into repeat clients.

Essential Advice: Implement a Minimum Mileage Fee

Imagine you have a small truck and a customer requests delivery three miles away.

Instead of simply charging £3.00, consider the full scope of the job. You'll need to send the truck, load the cargo, transport it, and unload it—all of which requires time.

Setting a minimum price for such jobs is prudent. This could range from £25.00 to around £65.00, depending on the size of your vehicle.

Delivery Rate per Mile: Multi-Stop Deliveries

Of course, you don't have to charge based on mileage alone; you can structure it as a multi-stop job.

There are both advantages and disadvantages to this approach.

The downside is that finding more stops can make the job more challenging.

This is why I always recommend using a reliable route optimization app. The advantage of a multi-stop job is that it reduces the total mileage required.

On average, gig work like Amazon Flex pays around £1.00 per stop.

Drivers typically make a stop approximately every three minutes, allowing for a high volume of stops per day if they are efficient.

Let's break it down:

If the most efficient drivers can achieve about 20 drops per hour, that's £20 per hour. Over a five-hour workday, that totals £100 per day or £500 per week.

Not a bad earning potential.

The benefit here is that you won't consume nearly as much diesel.

For example, if you were to take on a large truck job that requires traveling a hundred miles round trip, that's 200 miles total, which would use up about half a tank of fuel costing around £50.00.

In contrast, with properly optimized routes, you can operate around town throughout the day on just two fuel tanks per week.

Another advantage of multi-stop deliveries is that you can use smaller vehicles.

It's convenient if you have access to a family car or a similar vehicle to begin with.

Additionally, smaller vehicles are much easier to park in residential areas, offering more flexibility during deliveries.

Delivery Pricing Overview

Here's the breakdown:

• Rates typically range from 50p per mile for a small van to £1.10 or £1.20 per mile for a medium-sized truck.
• Don't overlook minimum charges, which should be between £25.00 and £65.00 based on your vehicle size.
• For multi-stop jobs, aim for approximately £1.00 per stop, aiming to complete 200 to 250 stops per day if feasible.