The State of Delivery Driving in 2026
The demand for last-mile delivery continues to surge. However, the gap between employed roles and the gig economy has widened. In 2026, we see a distinct split in the market. On one side, traditional logistics companies and supermarkets offer employment with benefits. On the other, platforms like Amazon Flex, Uber Eats, Deliveroo, and Evri rely heavily on self-employed contractors.
Employed vs. Self-Employed: The Pay Gap
It is crucial to distinguish between "Gross Income" and "Net Profit" when comparing these roles. An employed driver earning £12.50 per hour keeps nearly all of that money (minus standard taxes), as the vehicle and fuel are provided. A self-employed courier earning £18.00 per hour must pay for their vehicle, fuel, insurance (which is significantly higher for couriers), and maintenance.
1. Employed Roles (PAYE)
Companies like Tesco, Sainsbury's, Asda, Ocado, and Royal Mail typically employ their drivers directly. Some DPD and DHL roles are also employed, though they maintain a large fleet of owner-drivers.
- Van Driver: £22,000 - £30,000 per year.
- HGV Class 2: £28,000 - £36,000 per year.
- HGV Class 1 (Long Haul): £35,000 - £45,000+ per year.
- Benefits: Holiday pay (28 days min), sick pay, pension contributions, vehicle provided.
2. Self-Employed / Gig Economy
This includes Amazon Flex, Evri (formerly Hermes), Yodel, and food delivery apps.
- Gross Earnings: £12 - £25 per hour (highly variable).
- Net Earnings (Real Pay): £8 - £14 per hour after expenses.
- Risks: No guaranteed hours, no sick pay, vehicle depreciation.
Company Specific Pay Guides
Amazon Flex Pay 2026
Amazon Flex remains a popular "side hustle" or full-time gig for many. Drivers use their own cars to deliver parcels in "blocks" ranging from 2 to 4.5 hours.
Base Rates: The base rate in most UK regions is roughly £13.00 - £15.00 per hour. However, "Surge Rates" can push this up to £20+ per hour during bad weather or high demand (e.g., Christmas or Prime Day).
The Reality: If you accept a 3-hour block for £45, and you drive 40 miles, your fuel costs might be £8-£10. Add wear and tear and insurance, and your true profit might be closer to £30 for 3 hours of work, equating to £10/hour.
Evri (The Lifestyle Courier)
Evri couriers typically have a dedicated "round" or patch. Payment is usually per parcel.
- Standard Parcel: roughly 60p - £1.00 depending on size.
- Collection: ~50p.
Efficiency is key here. An experienced courier who knows their route can deliver 20 parcels an hour, grossing £15-£20. A new starter might only manage 10, earning below minimum wage. Heavy parcels and rural routes can significantly impact earnings.
DPD Owner Drivers
DPD operates a franchise-like model for many drivers (ODMs - Owner Driver Franchisees). The earning potential is higher, often touted as £40,000 - £60,000 gross turnover. However, startup costs are high. You often need to lease a compliant van (often from DPD), pay liability insurance, and cover substantial fuel costs.
Hidden Costs of Self-Employment
If you are considering the self-employed route in 2026, you must account for these expenses:
- Hire & Reward Insurance: Standard car insurance does not cover delivering goods for money. You need "Hire and Reward" cover. Zego and other providers offer "top-up" insurance (pay-as-you-go), which costs between £0.80 and £1.50 per hour. Annual policies can cost £1,500 - £3,000 depending on age and vehicle.
- Fuel: With petrol and diesel prices fluctuating, this is your biggest variable cost. A stop-start delivery route consumes significantly more fuel than motorway driving.
- Vehicle Maintenance: Delivery driving is hard on vehicles. Tyres, brakes, and clutches wear out much faster. Budget at least £50-£100 per month for maintenance.
- Depreciation: Adding 20,000 miles a year to your personal car will drastically lower its resale value.
HMRC Mileage Allowance 2026
Self-employed drivers can use the Simplified Expenses method for vehicles. You can claim a flat rate per business mile against your income to reduce your tax bill. This is often more beneficial than claiming actual fuel and repair costs for personal cars.
- First 10,000 miles: 45p per mile.
- Over 10,000 miles: 25p per mile.
Note: This covers fuel, servicing, insurance, repairs, and depreciation. You cannot claim these separately if you use the mileage rate.
Take-Home Pay Examples (Employed)
Below are breakdowns for employed drivers under the 2025/2026 tax system (Standard Tax Code 1257L).
1. £24,000 Salary (Entry Level / Van)
| Description | Amount |
|---|---|
| Gross Annual | £24,000 |
| Taxable Income | £11,430 |
| Income Tax (20%) | £2,286 |
| National Insurance (8%) | £1,152 |
| Net Annual Pay | £20,562 |
| Monthly Take-Home | £1,713.50 |
2. £28,000 Salary (Experienced / Multi-drop)
| Description | Amount |
|---|---|
| Gross Annual | £28,000 |
| Income Tax | £3,086 |
| National Insurance | £1,234 |
| Monthly Take-Home | £1,973.17 |