Delivery charges/driver reimbursement

[Mondo]

What is everybody charging for delivery these days and how much are you paying your drivers for reimbursement?

I’m increasing my delivery charge to our farther areas but not sure how much I should increase the driver compensation.

 

[tguag]

I charge 3.50 and That all goes to the driver.

 

[URNUTS]

As a Domino’s, I was $2.50 and the driver got $1.50
Every address was a $2.50 charge and the driver got $1.50 for each stop no matter how many they took.

 

[bodegahwy]

Delivery charge is $3.00. Drivers get 6% of value delivered if they drive their own car. Nothing if they drive mine.

 

[durbancic]

Drivers make tipped wage on the road ($4.15) and are paid mileage for every mile that they drive. Very similar comparison to min wage +$1/delivery. $2 del charge.

 

[pizzapirate]

Delivery charge is $3.00. Drivers get 6% of value delivered if they drive their own car. Nothing if they drive mine.

Interesting. Given the shortage of drivers with all the 3rd party delivery services, that percentage fee may be the future of things.

 

[bodegahwy]

and are paid mileage for every mile that they drive.

You get what you pay for. When you pay for miles you get… miles. There is a reason that almost nobody does it this way. Suddenly that delivery address is how far away?

Unless you are using a maps based mileage calculation rather than odometer mileage I suggest you take a good close look at how many miles are being claimed.

 

[durbancic]

You get what you pay for. When you pay for miles you get… miles. There is a reason that almost nobody does it this way. Suddenly that delivery address is how far away?

Unless you are using a maps based mileage calculation rather than odometer mileage I suggest you take a good close look at how many miles are being claimed.

I look at it every payroll. They are all within a close range. No issues so far.

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[idahopizzaman]

I charge between $2-3.50 all depending on distance from my store. The driver gets $1 out of the $2 and all but .50 on the others when they drive their own car.

 

[Mondo]

Thanks for all the insight guys. I realized I was being too stingy with my driver mileage. I never thought about giving a percentage of the order to the driver. Do the drivers seem to like that? I was actually planning on switching to reimbursement by mile. My POS system tracks mileage per run. Just sometimes, when it gets busy and the drivers are in a rush, they will forget to return themselves when dispatching their new run so it makes it look like they are on a really long run. That would mess up the mileage tracking and be a pain to correct. I decided on about half the delivery fee as being a fair rate.

 

[d9phoenix]

Percentage vs mileage tends to average out over the long run to be about the same. The only thing that really tips the scales are large orders. This is where drivers on the Percentage system get more. But you have to remind the drivers that on smaller orders they are getting more by mileage, hence the average.

I have pretty much worked/run/owned pizza places that use the Percentage. Personally i prefer it over mileage.

 

[pizzapiratespp]

Thanks for all the insight guys. I realized I was being too stingy with my driver mileage. I never thought about giving a percentage of the order to the driver. Do the drivers seem to like that? I was actually planning on switching to reimbursement by mile. My POS system tracks mileage per run. Just sometimes, when it gets busy and the drivers are in a rush, they will forget to return themselves when dispatching their new run so it makes it look like they are on a really long run. That would mess up the mileage tracking and be a pain to correct. I decided on about half the delivery fee as being a fair rate.

The Domino’s in our areas run $1.25 per delivery. I just try to keep $.25 above them.

 

[bodegahwy]

Do the drivers seem to like that?

Yes. They like it just fine. It does average out plus it automatically adjusts as prices and costs rise. The mileage model is just asking for trouble unless you are using mileage generated by a good program and not what drivers report.