How to get delivery and courier contracts

One of the great things about being a delivery driver or an independent courier is that there isn’t much training or capital needed to start. You may already have the necessary equipment, skills, and abilities to become one today. Here are the key elements to begin working as a delivery driver:

• Possess a valid driver’s license with a clean driving record
  A commercial driver’s license (CDL) may or may not be necessary, depending on the items you’re transporting and the type of vehicle you’ll be using.
• Own and maintain a reliable and well-maintained vehicle suitable for courier services
  Usually, this is just a personal vehicle, such as a car, pickup truck, or van. However, depending on your loads, something more substantial may be required.
• Manage time efficiently
  This ability is critical because a big part of your job will be adhering to schedules and making timely deliveries.
• Be capable of lifting and carrying packages of varying weights
  You never know what will turn up as your item to be delivered, and you don’t want to waste money or time by showing up and not being able to move it.

While you can choose to deliver anything and everything, you’ll find identifying and developing a niche will build your customer base and your small business. It’ll also allow you to bid more effectively because you’ll be very familiar with what you’re pricing.

Here are some common types of courier jobs and delivery services you could specialize in:

• Local courier services
  Couriers often transport documents and small parcels. This is normally B2B.
• Food and grocery deliveries
  Apps like Uber Eats, Grubhub, and Instacart have popularized this, but many restaurants and stores also have their own delivery systems.
• Cannabis deliveries
  It’s a violation of federal law to transport marijuana across state lines. However, in states that have legalized recreational marijuana, many dispensaries offer delivery to customers. State and local governments regulate how deliveries can be made. Often, they’re only allowed during certain hours, drivers must be over 21 years old, and many require real-time GPS tracking. You can also be a B2B delivery person, transporting cannabis between the cultivation, manufacturing, or distribution locations.
• Pharmaceutical and medical deliveries
  Depending on what you’ll be handling for the drugstore or pharmacy, you may need extra training. For instance, if you’re delivering prescriptions or medical supplies and devices like a walker to someone’s home, no training is necessary. But suppose you’re going to be picking up and dropping off things like blood and lab specimens. In that case, you may need to complete the HIPAA and/or OSHA training for regulatory compliance, along with a handling course on proper procedures for packaging, transporting, and storing specimens.
• Retail or e-commerce last-mile deliveries
  This is the part of the delivery consumers are most familiar with because it’s when the item they bought ends up at their door. Often, last-mile delivery starts at a distribution warehouse in the area, and then the delivery person takes it from there to the shipping address.
• Freight or bulk item deliveries
  This type of service is often used because a customer can’t fit the item in their car, shipping may be cost-prohibitive. Because of the larger size of these deliveries, a box truck or cargo van may be required. It could involve local delivery or something more long-distance.

As you develop your business plan as an independent contractor, identify the gaps in the market and capitalize on those opportunities. You’ll want to find something you’re not only interested in, but that works with your vehicle type and licenses. That way, you can get your delivery and courier business going quickly without a lot of startup expenses.

• Business license
  To determine whether you need a business license, you’ll first have to decide on the structure of your company. Then, you can check the requirements for your state and local government to find out if you need to apply for one.
• Commercial driver’s license (CDL)
  This is determined by what you’re driving and what you’re hauling. If your vehicle weighs over 26,000 pounds or you're carrying 16 or more passengers or hazardous materials, you’ll need a CDL.

• DOT number or MC number
  These are identifying numbers issued by the Department of Transportation (DOT) and its Federal Motor Carrier Safety Administration (FMCSA). However, the FMCSA is phasing out MC numbers and will no longer issue them starting in October 2025.
• Standard car registration
  Your car should be properly registered and titled in the state where you live.

• Commercial auto
  All states but one require commercial auto insurance coverage for business-owned vehicles. Even if you do your work in your daily driver, your personal auto insurance won’t cover your claim if you’re using it for business purposes at the time of the accident. If you’re a sole proprietor and use your vehicle for your delivery business, then you should get a commercial auto policy, because under that type of business structure, the car would be de facto owned by the business.
• Hired and non-owned auto (HNOA)
  Hired and non-owned auto (HNOA) insurance comes into play when your company uses rented or leased vehicles – ones that aren’t technically owned by the company. It also covers the use of personal vehicles, especially for rideshare and other delivery app drivers. If you’re having a hard time determining if you should sign up for commercial auto or HNOA insurance, this page helps break it down.
• General liability
  General liability insurance is usually considered when you have a place of business, because it helps protect against third-party injuries, such as if a client slips and falls in your office. But even as a delivery driver, general liability is important because it also handles third-party property damage you cause. For example, if you put a heavy box on an antique chair and the chair breaks, then your general liability policy would cover it.
• Commercial property
  As a delivery driver, it's possible that you don’t have a physical location, such as an office or warehouse. However, if you do, then you’ll want to have commercial property insurance. It would cover losses from theft, fires, vandalism, and some weather incidents, not only for the building itself, but also the contents inside.
• Business owners policy
  A business owner’s policy (BOP) combines general liability coverage and commercial property insurance in one policy. It’s usually less expensive than buying each separately.
• Inland marine
  If you specialize in a certain type of delivery, you may need inland marine insurance, which provides coverage for business property while it’s in transit. For example, if you are a medical courier and you must keep specimens at a stable temperature, you may have a refrigerator in your vehicle to store them. This type of equipment would be covered under your inland marine policy.
• Cargo
  This is a specialized type of inland marine insurance that protects the actual goods you’re transporting. It covers perils like fire, theft, collision, and natural disasters and applies during transport, loading, and unloading.
• Workers’ compensation
  Workers’ compensation insurance helps protect employees from expenses due to work-related injuries or illnesses. In most states, you’re required to get workers’ comp as soon as you hire your first employee. If you’re self-employed and have no workers, it still might be a good idea to get a policy, because your health insurance likely won’t pay for medical bills or lost wages due to on-the-job incidents.

Just like with everything else these days, it’s important to make sure your internet persona is dialed in. To get as many contracts as possible, you’ll want your potential clients to see you as competent and qualified before they even meet you. That starts with a professional online presence and marketing strategies. You’ll want to give attention to the following:

• Website: Build at least a basic website that states your services, geographic area of coverage, and contact information.
• Business Profiles: Establish your company on Google Maps, Yelp, and other local directories. This will not only allow potential customers to find you, but also let past clients leave reviews.
• Social Media: Create accounts on LinkedIn, Facebook, Instagram, or whatever platforms generate views. Use it for networking and showcasing testimonials. It’s important to post regularly to keep the content fresh.

Once your business is established, you can pursue larger, more stable delivery contracts through public procurement opportunities. There are several different websites with job postings, depending on the type of government contract you’re looking for.

• Federal government contract opportunities are at sam.gov.
• Local and state governments host their bidding portals.
• Procurement sites like BidNet Direct and GovWin have a subscription model where you pay to use their services.

The same can be done on the private side. Many corporations post requests for proposals, and you can bid on them for delivery contracts. In both cases, you’ll want to be sure your business is registered and you have the appropriate North American Industry Classification System (NAICS) code.