How to Start and Grow a Courier or Delivery Business in the UK
Starting a courier business in the UK requires a van, courier insurance, and either self-employed contracts with established networks (DPD, Amazon Logistics, Evri) or direct contracts with local businesses. The fastest route to income is joining a courier network as a self-employed driver. Building your own client base takes longer but delivers much higher margin per delivery.
- The two main courier business models
- Van choice and running costs
- Insurance: the essential coverage for courier work
- Pricing your deliveries correctly
- Getting your first courier contracts
The two main courier business models#
Model 1: Network subcontracting. Join an established courier network (DPD, Yodel, Evri/Hermes, Amazon Logistics, UPS) as a self-employed delivery driver. You are allocated a round, paid per stop or per parcel delivered, and use either your own van or the network's vehicles. This route provides immediate income with no sales effort, but payment rates are set by the network (typically £0.50–£1.80 per delivery depending on parcel type and network), and you are dependent on the network's continued allocation of work to you. Model 2: Direct business clients. Source your own delivery contracts with local businesses — retailers, restaurants, wholesalers, medical providers — who need regular or same-day delivery. Direct contracts pay significantly more per delivery (£4–£15 depending on distance and urgency) but require active sales effort to win and maintain.
Van choice and running costs#
Your van is your most important business asset. For most courier work, a medium-sized panel van (Ford Transit Custom, Mercedes Sprinter, or equivalent) is the most versatile choice. New lease costs run £300–£600/month. Second-hand purchase costs £8,000–£20,000 for a van in good condition with documented service history. Running costs per mile: fuel (approximately 25–35p/mile for a diesel van), tyres (approximately 5–8p/mile), insurance (approximately 3–6p/mile), maintenance (approximately 4–8p/mile), and depreciation (approximately 8–15p/mile). Total running cost per mile: typically £0.45–£0.70/mile. At 300 miles per day, 5 days per week, your van costs approximately £600–£1,000 per week before wages.
Insurance: the essential coverage for courier work#
Standard private or commercial van insurance does not cover courier work. You need hire-and-reward courier insurance specifically for carrying goods belonging to others for payment. Policies include goods-in-transit cover (insurance for the items you are carrying, typically £10,000–£25,000 per consignment) and public liability cover. Annual premium for a courier van with goods-in-transit cover: £1,200–£2,500 depending on van value, goods type, and claims history. If you employ drivers, you also need employers' liability cover. Do not be tempted to underinsure — a claim for goods damaged in transit without adequate goods-in-transit cover can be catastrophic.
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Pricing your deliveries correctly#
Pricing starts with your cost per mile. At £0.55/mile total van running cost and 25p/mile driver cost (if self-employed, your own time at a target effective hourly rate), your total cost per mile is approximately £0.80/mile. A 10-mile delivery takes approximately 30 minutes including loading and unloading — cost: £8.00. Your minimum price for a 10-mile delivery must cover this cost; your target price should deliver a 25–40% margin above it — so £11–£13 minimum for a standard 10-mile parcel delivery. Adjust for urgency (same-day deliveries command 50–100% premium), parcel size and weight, and whether you are providing a specific timed delivery window.
Getting your first courier contracts#
Local business direct contracts are the most valuable courier relationships. Target: restaurants and dark kitchens needing delivery support (particularly for catering orders and events); pharmacies and medical practices requiring same-day prescription and specimen delivery; local retailers needing same-day local delivery for online orders; and small manufacturers or wholesalers needing regular local distribution runs. The sales approach: visit in person, leave a simple one-page rate card, and follow up by phone within 3 days. Relationships in courier work are built on reliability — deliver on time, communicate proactively when there is a delay, and invoice accurately. Most courier businesses built on direct contracts grow almost entirely through referrals from satisfied business clients.
People also ask
Do I need a special licence to be a courier?
For vans under 3.5 tonnes GVW, a standard Category B driving licence is all you need. For vehicles over 3.5 tonnes, you need a Category C or C+E licence. You do not need an Operator's Licence for vehicles under 3.5 tonnes. You do need courier insurance (hire-and-reward) and goods-in-transit cover regardless of vehicle type.
How much can a courier earn in the UK?
Self-employed couriers working for networks (DPD, Amazon, Evri) typically gross £600–£1,200/week before van costs. Direct-contract couriers running their own client base can earn £800–£1,800/week gross. After van costs of £600–£1,000/week, net income is £200–£800/week for most operators. Those with multiple vans and employed drivers can scale significantly higher.
What courier network pays the most?
Payment rates vary by network, route, and parcel volume. Amazon Logistics and DPD generally pay higher per-stop rates than budget networks. Rates are not publicly listed and depend on negotiation and route allocation. Most experienced drivers report Amazon Logistics as the highest-paying for consistent volume, though their service standards are also the most demanding.
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