Few crucial delivery questions I need help with.

I will be starting delivery very soon. I really need help with a couple things.

We will be charging a $2 delivery fee. My POS allows me to pay by the mile if I want to. We were thinking of just paying the driver a dollar a run. Does “by the mile” make more sense? If you do “by the mile” what is a fair pay per mile?

Here is a post with some information you might find useful: http://thinktank.pmq.com/threads/delivery-mileage-comp.17601/#post-107077

We do a dollar a delivery to cover the gas. Most the times drivers take 2 or 3 deliveries on a run because the deliveries are so close each other. We already pay the drivers minimum wage and if they take 3 deliveries, they could potentially make $5 per delivery in tips (depends on order and customers of course) so I think $1 is fair per delivery.