Do any of you guys have a delivery handbook or require a driver safety program? Also what auto liability limits are your drivers required to maintain? We are in the process of retiring our fleet of company cars after 8yrs and have alot of hoops to jumo through in order to get the hired/non-owned coverage.
We switched to company owned about 10-12 years ago. We do about 75% of the deliveries in company cars and the rest in employee cars when we are really busy and need more drivers on the road. All in all is saves us quite a bit of money to have company cars, but the real benefit is that my pool of potential employees about doubles because I can hire people that do not own a car or who do not wish to use it for delivery. No way I would go back.
The hired and non-owned for the driver owned cars is part of the owned policy so I do not need to buy a separate one.
all of my cars have been beaten to hell by my drivers and I am sick of the constant upkeep & repairs and the mileage is high on all of my cars…my current auto policy runs aprox $200/month for each car and we just got notice that our current insurer dropped us for some reason. Our regular business policy includes the hired/non-owned so it’s a no brianer for us. I know I will miss them in the winter when 1/2 our guys drive cars that are useless in snow though.
I’ve had employees that couldn’t drive for whatever reason so then im delivering and this goofball is holding it down for the duration of the delivery. The more this kept happening I kept saying I should just buy a car with cash and put stickers and ads all over it and its a huge money maker, now instead of splitting the delivery fee with said goofball I just keep all the delivery fee and they get the tip. Great marketing tool as well
For us at least, the upkeep and repairs are less expensive than the mileage to drivers for using their own cares would be. I buy 10-12 year old Subarus with 150K on them for $3000-$4000 and generally get two years out of them before I sell them for $1500.
I have never heard of a regular business policy for pizza delivery including hired and non-owned for delivery. In fact, every one I have looked at in 16 years specifically EXCLUDES it. Who are you with? Hired and Non-Owned for pizza delivery costs just as much as an “Owned” auto policy.
Exactly right about employee cars… and then there are the times they can’t work because the car is in the shop.
I suggest you make double sure about the insurance thing before you make a change!
I have had to do that once in 5yrs and vowed never to do that again…I hire enough guys that I can call in for last minute no-shows/breakdowns, etc. We had all of our company cars fully wrapped and they were a HUGE reason to our delivery success and was the main reason we purchased our fleet. After about 8 yrs of having 4 cars buzzing around town all day & night, I am hoping our brand is already cemented although we plan to still use cartoppers without exception. I have been tracking costs for the last 2 yrs and I can tell you that this is a break-even scenario at best when you factor in repairs and gas even with delivery fees ranging from $1.50 to $5.00 based on distance, not a huge money maker by any means. We kept the delivery charge and paid for gas and drivers just keep tip and are paid state min for non-tipped employees at $9.15/hr (thats a whole other topic!)
Have your insurance agent find you another company. thats what your paying him for. If he can’t find you coverage, get rid of him.
I’ve thought about getting rid of my fleet as well, but i like the advertisement i get out there and less headaches of dealing with employee issues with cars.
Maybe its time to get new vehicles or what sodacreek said…
thanks for your help guys…I am going to hold onto one so when that driver has car issues there is no excuse to miss work…thinking a “rental” would be in order and I can use for RD runs also. I already have 1 driver that is giving me $500 for one of my cars for him to own and use as a delivery “beater” vehicle…thinking that one of my drivers that drives a mint late model Audi A4 all kitted out should do the same huh? can’t imagine he gets tipped very well driving that around.