Add up the day, then divide
Take one route for one day: driver wages, fuel, a fair share of vehicle cost, and the loading time at the depot. Divide by successful drops. That is your cost per drop, and it is usually higher than owners expect.
Failed stops are the expensive ones
A stop where nobody answers costs almost as much as one that delivers, and earns nothing. Tracking failed attempts separately from successful ones is the fastest way to find the customers quietly draining a route.
Density beats speed
Driving faster saves minutes; grouping customers saves stops. Tightening zones so a rider covers fewer kilometres between drops moves cost per delivery far more than any change in driving.
This is why zone discipline matters more as you grow - a route that made sense at 40 customers rarely still makes sense at 120.
Know which customers pay for themselves
Once you have a cost per drop, compare it to the margin on a typical order. Small, distant, infrequent customers often lose money on every visit - and the fix is usually a minimum order or a less frequent schedule, not dropping them.
FAQ
- Should I include the depot in cost per delivery?
- Include the part that scales with deliveries - loading labour and vehicle handling. Fixed rent is better handled separately so the number stays useful for route decisions.
- What is a good cost per drop?
- There is no universal figure; it depends on order size and city density. The useful comparison is your own number over time, and between your own routes.