A Delivery Driver Independent Contractor Agreement is a legal contract between the driver and the company that hires them. Companies typically hire drivers for short to medium-distance deliveries. More and more companies ship directly to customers, such as Amazon or at-home food services, ship directly to customers. Delivery drivers are an integral part of that business model.
Most delivery drivers are hired as independent contractors rather than employees. If so, you need a solid independent contractor agreement to protect your legal rights.
- Sets clear guidelines with the delivery company so each party understands expectations.
- Sets the hourly rate or per delivery rate for the driver.
- Creates legal protections for both parties.
- Addresses auto insurance requirements, coverage, and liability issues.
What Is an Independent Delivery Driver?
An independent delivery driver is a person who delivers products for a business. These products may include fast food, groceries, online purchases, and medications. There is almost no limit to what a delivery driver may be asked to handle.
Most work as independent contractors. Independent contractors work for themselves but under the limited direction of the delivery company. They pay their own taxes and are usually not entitled to benefits. Independent delivery drivers often work for companies such as:
- Uber Eats
Common Types and Responsibilities
Delivery drivers can exist across every industry and business sector. Some types of drivers are more common than others.
- Food Delivery Drivers: One of the most common delivery drivers are those that bring you that late-night Taco Bell run. They work for companies like Doordash or Uber Eats, bringing on-demand food from companies that do not offer their own delivery service.
- Amazon Drivers: Amazon delivers countless packages every day and often hires independent contractors to do so. Amazon drivers must follow Amazon’s delivery rules when delivering these packages.
- Medical Delivery Couriers: Medical couriers transport medical equipment, medications, and other goods. They may deliver to businesses, hospitals, or even individuals.
- Courier Drivers: A courier delivery driver usually handles papers and other items for large companies, organizations, or governmental entities. Some of these deliveries are sensitive in nature and require a high degree of confidentiality.
Salary and Hourly Rate
Pay rates for independent contractor delivery drivers vary widely. Rates depend on what drivers deliver, what the delivery company pays, and the driver’s expenses. For example, some companies pay for insurance coverage for their drivers, while others do not. Some pay hourly or mileage rates, while others pay per delivery. Tipping can also create a wide variation in delivery driver payment.
According to the US Bureau of Labor and Statistics, delivery driver independent contractors earn an average of $20.50 per hour and $42,630 per year.
Download a delivery driver independent contractor agreement in Word or PDF format below.