Pizza Delivery Hypermiler

[MetroMPG]

I find the economics of delivery driving interesting too.

When you say "after expenses" do you mean after all vehicle expenses (wear & tear, maintenance, depreciation) or just fuel?

[WilliamYH09]

MetroMPG,

Yes, after all vehicle expenses. This is how I calculate my net earnings per hour:

(Hourly pay + average tip + deliveries per hour + mileage reimbursement per hour) - vehicles expenses per hour = net earnings per hour

Basically, vehicle expenses and reimbursement are calculated per mile. Most drivers are reimbursed a set amount per delivery, and at my store, it fluctuates based on the price of gasoline. To calculate per mile reimbursement, you multiple your mileage reimbursement per delivery times your average deliveries per hour. Then divide that number by average number of miles driven per hour.

Most drivers foolishly don't keep up with their actual vehicle expenses, so they don't know what their actual expense per mile is. Based on what most drivers are reimbursed, many are probably losing somewhere between $0.10-$0.25 per mile by driving gas guzzlers or expensive new cars that depreciate a lot and having to pay a much higher insurance premium. If drivers choose the right vehicle for the job, they can have their full vehicle expenses be covered by the per delivery mileage reimbursement.

In my Yaris, I have calculated that my full vehicle expenses (fuel, depreciation, commercial insurance, tag/taxes, and maintenance) is around $0.27 per mile based on the amount of miles I drive in a year. Though I do estimate maintenance into that, I don't know the exact cost of maintenance, because I haven't had the vehicle long enough. I do thoroughly keep up with all my expenses.

Even though the $0.27 per mile is my full vehicles expenses, for my personal use, I usually don't factor in what my insurance premium, normal depreciation, and tag/taxes would be if I didn't use it for delivering, because I will have those costs no matter what. For that reason, I actually make money off my mileage reimbursement. However, most drivers lose money off mileage reimbursement. It all depends on what vehicle you drive for the job and how much a particular store is reimbursing you.

If you're curious what you could reasonably make delivering pizza, here are some numbers that average drivers produce:

Average hourly pay: $5 (many chain pizza restaurants pay their drivers a split rate of minimum wage while inside and a lower rate while on the road because of tip credit laws)

Average tip: $3.50

Average deliveries per hour: 2.5

If using the right vehicle and having your expenses be fully reimbursed, based on these very reasonable numbers that can be much better if you're really good at the job, you can make $13.75/hr. after expenses. Not bad for driving around listening to music, eh?

The downside is that your hours can change every week based on business unless you have a lot of opening or closing shifts. That's partly why it's mostly a part-time job for people. Only a couple of drivers per restaurant get close to full-time hours.

[Jyden]

No doubt your Yaris will serve you well, as these cars are well made and very reliable, thus cheap to keep running.
Pump up tires, do a grillblock, but not more that cooling is OK for your urban driving. Also go to low rolling restistance tires when it time to change.
The Yaris will respond well to at bellypan.
Move antenna inside.
Take out back seat and clear car for stuff that is not needed everyday, as for instance spare tire (Depends on the roads good/bad). Lower weight will help MPG in urban driving.
Seal up, or tape areound hood and headlight / bumper/fenders for better areo.
Get a set of smoot hubcaps (Pizza pans) and make covers for rear wheel wells.

Good luck. Gotta love them Yarises...

[Xist]

When I joined the Army, I had a roommate who delivered pizza. Since he always pulled tons of cash from his pocket at the end of every day, he seemed to be doing pretty well. When I looked at the jobs that I could get with the Army, nothing interested me, so I said that I would find a job delivering pizza, and then the head recruiter showed me a job with a $30,000 bonus, which paid off my credit cards and much of my student loans.

That roommate recently joined the Army. One of my current roommates delivers pizza and says that he makes $12.50 an hour after gas and he drives an Impala. I honestly think that I might do that once I graduate until I can finish my certification although I hate to think of the wear an tear on my car.

I am pretty sure that I ruined a clutch in my first car delivering newspapers, but that was way more stop-and-go.

Also, I am a terrible paperboy!

[JeffD]

I appreciate people that are experts in their field.
WilliamYH09, you sure sound like an expert in the Pizza biz.
An interesting read, thanks!

[sheepdog 44]

Thanks! Oh, maybe an engine block heater. If you're losing heat in between deliveries, your car will be enriching the fuel mixture every time your starting from cold.

[vskid3]

I've always questioned the logic of using a gas guzzler to deliver pizza. Might as well tell the customer to keep the tip.

Thanks for the information about delivering pizza. I've considered doing it while going to school after I get out of the Army. How big is the difference between normal insurance and the commercial insurance?

[WilliamYH09]

Jyden,

Thanks for all the suggestions. So far I'm loving the Yaris.
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Xist,

Delivering definitely increases wear and tear, but that's what mileage reimbursement is for. If you drive a fuel efficient vehicle that isn't brand new, mileage reimbursement will cover most of your vehicle expenses, not just gas. That is why I wanted a used Yaris. The less I spend per mile on vehicle expenses, the more money I make.

$12.50/hr. is probably close to average in most delivery areas. Making much more is very possible.
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JeffD,

Thanks for the compliment. I strive to learn and keep improving with anything I do. It's part of the fun. Stagnation is boring.
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Sheepdog,

An engine block heater may be a good idea in winter. I wonder if that in addition to a grill block would be likely to overheat things? Also, I'm located in Alabama, and it doesn't get really cold here too often.
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vskid3,

The drivers using gas guzzlers need bigger tips to make up for the gas expense! I understand your point, though. Based on my average numbers at my job, if I drove a vehicle that gets 15 mpg, my pay would be reduced by $2.50 per hour compared to using my Yaris. I'd still make decent money, but not as much as I make in my Yaris.

In my case, commercial coverage is about 37% higher than normal insurance, all other things being equal. For example, if you currently pay $75 per month for normal insurance, switching to commercial would probably bump it up to $100 per month.

Most drivers aren't even aware that it's insurance fraud to use your vehicle for commercial purposes with only normal insurance. If they get into a wreck, the insurance company is likely to not cover any damages and then drop them. Better to use a vehicle that is inexpensive to own and operate and have commercial insurance. With the right vehicle, mileage reimbursement can cover full expenses, even commercial insurance. Either way, I don't think it's worth the risk to deliver while having normal insurance. I've personally seen drivers get screwed because of this. If you choose to deliver, upgrade your insurance. If you are good at the job, the money will more than make up for it.

[Xist]

I had not heard about commercial insurance for pizza delivery. It makes sense and hopefully it is better known among people who actually deliver pizza.

I wonder what the math is on driving your car hard so that you can make more deliveries versus babying it to keep more of the money that you do earn.

[PressEnter[]]

It's not pizza delivery, but I work for a local bank and do courier runs between all our branches and various businesses. My trips vary a lot, some in town, some longer runs. Anything in town makes driving economically harder, but I definitely learned a lot from the 101+ hypermiling tips on this site...especially leave room in traffic, learn light patterns on familiar routes to avoid stopping unnecessarily, and turn the engine off at long lights.