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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.
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