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How Much Does It Cost to Hire a Delivery Driver

If you run a business that involves delivering products to customers, you may be considering hiring a delivery driver. Whether you operate an e-commerce store, a restaurant, or a local bakery, having a reliable delivery driver is essential for providing excellent customer service and ensuring timely deliveries. However, before you start the hiring process, it’s crucial to understand the costs involved in hiring a delivery driver. From wages and benefits to insurance and vehicle expenses, there are several factors to consider when budgeting for a delivery driver. In this article, we’ll explore the various costs associated with hiring a delivery driver, so you can make an informed decision for your business.

Wages and Benefits

When calculating the cost of hiring a delivery driver, the first thing to consider is their wages and benefits. The average hourly wage for a delivery driver varies depending on factors such as location, experience, and industry. In addition to their base pay, you’ll also need to factor in benefits such as health insurance, paid time off, and potentially retirement contributions. Keep in mind that offering competitive wages and benefits is crucial for attracting and retaining top talent in a competitive job market.

Vehicle Expenses

In addition to paying a delivery driver’s wages and benefits, you’ll also need to consider the expenses associated with providing a vehicle for them to use. If your driver will be using their own vehicle for deliveries, you may need to reimburse them for mileage or provide a stipend for vehicle maintenance and fuel costs. Alternatively, if you choose to provide a company-owned vehicle, you’ll need to budget for vehicle payments, insurance, and upkeep. It’s important to weigh the pros and cons of each option to determine which makes the most financial sense for your business.

Insurance Costs

Insurance is another significant cost to consider when hiring a delivery driver. Whether your driver is using their personal vehicle or a company-owned vehicle, you’ll need to ensure that they have the appropriate insurance coverage. This may include commercial auto insurance, liability insurance, and potentially workers’ compensation insurance, depending on the laws and regulations in your area. Understanding and budgeting for these insurance costs upfront will help you avoid any surprises down the road.

Training and Onboarding

When hiring a delivery driver, it’s essential to provide proper training and onboarding to ensure they understand your company’s policies and procedures. This may include training on safe driving practices, customer service protocols, and how to use any delivery tracking or inventory management systems you have in place. While the cost of training and onboarding will vary depending on the complexity of your operations, it’s an important investment in setting your delivery driver up for success.


Hiring a delivery driver can be a significant investment for your business, but it’s one that can pay off in the form of improved customer satisfaction and increased sales. By considering all of the costs involved, from wages and benefits to vehicle expenses and insurance, you can make an informed decision about whether hiring a delivery driver makes financial sense for your business. It’s also worth exploring alternative delivery options, such as third-party delivery services or delivery partnerships, to determine the most cost-effective solution for your specific needs. Ultimately, the key is to carefully evaluate all the costs and benefits to ensure that hiring a delivery driver aligns with your business goals and budget.