Adding delivery

We are thinking of adding delivery to our operation. We are located in Maryland and are wondering what we should look out for, how much and how driver’s get paid, insurance coverage… and anything else that would be helpful.

I’m not sure what the insurance costs, as I have not seen those numbers yet. You should require that drivers have their own insurance, that they be at least 18 and that they have a good driving record with no more than 8 points depending on how the system works in your state. As far as paying drivers, most places pay drivers min wage plus a drivers compensation and of course their tips. I pay my drivers two dollars per delivery. One thing you gotta consider and keep in mind is that if you don’t have a delivery vehicle, drivers will be using their own cars and putting wear and tear and dipping into their own pockets for gas. As you are probably well aware of gas prices are high and I doubt we’ll ever see gas under 2.00 per gallon. The thing drivers complain about the most is of course people not tipping, but more than that they complain about the companies they work for not paying them adequate compensation for gas and wear and tear. Pay your drivers as much as you can.

Liability Insurance?

Here are a few links to get you going. These are from the archives and questions asked by others. Hope it helps:

• Surviving Without Delivery
• Cost of Delivery
• Delivery Charge I
• Delivery Charge II
• Delivery Charge III
• Delivery in Bad Weather
• Starting Delivery I
• Starting Delivery II
• Starting Delivery III
• Starting Delivery IV
• Starting Delivery V
• Starting Delivery VI
• Delivery Benchmarks
• Delivery Times
• Delivery Distance
• Delivery Minimums
• Delivery Hours
• Electric Delivery Vehicle
• Scooter Delivery
• Delivery Time Guarantee
• Heated Delivery Bags
• Opening Without Delivery
• Contract Drivers I
• Contract Drivers II
• Driver Pay Scale I
• Driver Pay Scale II
• Driver Compensation
• Dealing With Bad Driver
• Fixing Driver Screw-ups
• Recruiting Drivers
• Driver Minimum Age
• Keeping Good Drivers
• Delivery Insurance I
• Delivery Insurance II
• Delivery Insurance III
• Delivery Insurance IV
• Delivery Insurance V
• Delivery Insurance VI
• Liability Insurance
• Delivery Liability

wow, what a great resource… THANK YOU

Your driver’s insurance on their own car does not protect you in slightest. If there is ever a real problem you can count on being sued as a business and as an individual along with the driver. You need to have “hired and non-owned” coverage that protects the business and it is a bitch to find and expensive too. You should also insulate your private assets by incorporating your business if have not already.

We pay our drivers $6 an hour. They make very good tips on top of that. If they drive their own car, we pay them 5% of the tickets for “mileage”. Orders over $75 go in one of our cars no matter what. we charge a $1.50 delivery fee on all orders.