How Much Do Independent Contractor Delivery Drivers Make?

Thinking about becoming an independent contractor delivery driver? The freedom to be your own boss and set your own schedule is certainly appealing. But before you hit the road, it's important to understand the realities of how much you can potentially earn. This guide will explore the factors that affect your earning potential and offer some tips to maximize your income, all while outlining the trade-offs involved.

What's Independent Contractor Delivery Driver?

So, what exactly is an independent contractor delivery driver? Unlike a traditional delivery driver who is considered an employee of a company, you'll be operating as a 1099 contractor. This means you're essentially your own boss, building direct contracts with medical facilities, pharmacies, or other courier companies to complete deliveries. However, this article will focus on contracting with other companies as opposed to building your own courier service business.

This increased independence comes with significant responsibility. As a 1099 contractor, you're responsible for all your own expenses. Unlike traditional employees who receive benefits and have taxes withheld from their paycheck, you'll be responsible for covering your vehicle maintenance, fuel costs, insurance, and even your cell phone bill used for deliveries. Additionally, you'll be responsible for paying self-employment taxes, which can be higher than traditional payroll taxes.

So, how much can you make? There really isn’t a simple answer, unfortunately. As we’ll explain below, your earnings can depend on a variety of factors such as your work schedule, the type of cargo you haul and most importantly your vehicle type.

Choosing The Right Vehicle

The vehicle you choose can significantly impact your earning potential. SUVs, Minivans and Pick-ups trucks have slightly higher earning potential than sedans as displayed in the graph above, this is due mostly to the increased storage space that these vehicles offer.

However, as you can see Cargo-vans and Box trucks far out earn these vehicle types as these vehicle types are able to haul much larger freight and longer distances and with that comes more earning potential but also some trade-offs. 

Cargo Vans

Cargo vans offer larger cargo space which allows you to take on deliveries involving bulky items or large quantities of goods, potentially translating to higher earnings. However, purchasing a cargo van is a big commitment as the cargo vans can be expensive particularly if you intend on purchasing one new. It’s important to take that into consideration when looking at earning potentials for this vehicle type. Also, certain contracts or routes may require specific models of cargo vans. As some routes specifically require high-roof or extended cargos due to the freight size. Carefully consider this if you plan on purchasing a cargo van as smaller model cargo vans could restrict you from some opportunities. 

Box Trucks

For drivers seeking to maximize their earning potential, box trucks offer the most significant cargo capacity (besides tractor-trailers). This translates to the potential for higher-pay. However, similar to cargo vans, specific box truck dimensions can limit your contract or route options. Some routes might require at least an 18-foot box truck, while others might be accessible only to 26-foot models. 

The Right Choice Depends on Your Goals

The ideal vehicle depends on your priorities. If maximizing earnings is your primary goal, a cargo van or box truck might be the way to go, provided you can manage the increased expenses. However, if you prioritize flexibility, lower overhead costs, or you plan on doing this as a side-hustle, a smaller vehicle might be a better fit, even if it means sacrificing some earning potential on larger deliveries.

Generally, the larger the vehicle, the larger the earning potential. However, the best choice considers both your budget and your aspirations as a driver.

How You Get Paid: Miles, Deliveries, or Hourly?

The way you get paid varies by company and contract. Some companies pay per mile driven, per completed delivery or route, offer flat rates, or even a standard hourly wage. The good news? As an independent contractor, you often have the opportunity to negotiate your rates, potentially increasing your income. Also, you can always reject any contract that doesn’t meet your earnings expectations. You’re in charge! 

Multiple Contracts, Multiple Paychecks (Maybe)

Want to maximize your earnings? Consider taking on deliveries from multiple companies. However, be aware that some contracts might restrict this. Always check the fine print of every contract before signing, and be certain to specifically ask if you're unsure to prevent any violations of the contract.

But Don't Forget the Expenses

Being your own boss comes with covering your own business expenses. This includes vehicle maintenance, insurance, taxes (hello, self-employment tax!), fuel, and even your cell phone bill. Some companies might offer reimbursements for fuel costs, but that's not a guarantee.

Be Prepared to Work for It

Independent contractor delivery drivers can potentially earn more than salaried couriers. But remember, it heavily depends on the number of deliveries completed, negotiated rates, and efficient management of expenses.

Do your research, negotiate well, and manage your finances like a hawk. Becoming an independent contractor delivery driver can offer freedom and potentially high earnings, but it requires hard work and planning, not just luck