There is no single correct courier rate per mile. A rate that works for one operator can lose money for another because vehicle cost, labor, traffic, insurance, service level, and local operating conditions are different.
The better question is: what pricing formula covers your real costs and still makes sense to the customers you want?
Why mileage alone is not enough
A two-mile delivery can take 35 minutes. A 20-mile highway run can sometimes take less time. If you charge only by mileage, short urban jobs can be underpriced.
A simple pricing structure
A practical starting structure is minimum or mileage charge + service-level adjustments + handling/add-on charges.
The numbers in this example are illustrations, not market averages. Suppose a courier uses a $35 minimum, $2.25 per billable mile, and a $15 rush surcharge. A 20-mile rush job would be $45 in mileage plus $15 rush, or $60 total. A five-mile standard job would fall below the minimum, so the $35 minimum would apply.
Use a minimum charge
The minimum protects the business from short jobs that still require order handling, pickup time, loading, parking, customer communication, and delivery time.
Separate service levels
A scheduled route and an immediate rush job should not automatically cost the same. Define the premium or flat adjustment for each service level instead of hiding urgency inside the mileage rate.
Account for vehicles and handling
A small envelope and a load that requires a cargo van do not create the same operating cost. Weight, item count, stairs, inside delivery, after-hours work, and additional stops can also be priced separately when they materially change the job.
Avoid undercharging
- Measure total driver time, not just driving time.
- Review fuel, maintenance, insurance, labor, and administrative costs.
- Track jobs that consistently take longer than the price assumes.
- Adjust the minimum or a specific fee before increasing everything.
Put the formula on your website
Once the formula is stable, quote software can apply it consistently. Qalt supports configured mileage rules, minimum charges, service options, additional-stop fees, weight/item fees, after-hours charges, and other supported add-ons.
Learn more about courier quote software, review Qalt pricing, or test the live quote experience.