Pay Per Mile Delivery Explained

Ever seen a courier quote that says "£0.80 per mile" and wondered if it’s a good deal? You’re not alone. Pay‑per‑mile pricing is just a way to charge based on the distance the driver actually travels. It sounds simple, but there are a few tricks that can make it either a money‑saver or a surprise expense.

In the UK, most same‑day services use a mix of flat fees and mileage charges. The flat part covers the basics – picking up the parcel, handling, and any paperwork. The mileage part is what changes from city centre to countryside. Knowing how those two pieces fit together helps you compare offers without guessing.

How Pay Per Mile Rates Are Set

Couriers don’t pick a random number. They look at fuel costs, driver wages, vehicle wear‑and‑tear, and the average speed on the route. For example, a small van in London might cost £0.70 per mile, while a larger truck on a rural road could be £1.10. The rates also depend on time of day – rush‑hour traffic can push the price up because the driver spends more time on the road.

Most services give you a mileage estimate based on your postcode and the destination postcode. It’s a good idea to double‑check the distance on a map yourself. If the courier says 12 miles but Google Maps shows 15, ask why. Sometimes they include extra miles for detours or waiting times, and you should know before you sign.

When Pay Per Mile Beats Flat‑Rate

If you’re sending a tiny parcel just a few blocks away, a flat‑rate of £5‑£7 might look cheaper than a mileage charge of £0.80 × 10 miles = £8. But for longer trips, the mileage model often wins. Say you need to get a package from Manchester to Liverpool – that’s about 35 miles. At £0.80 per mile you’re looking at £28, which could be less than a flat £35 charge from a competitor.

Another win‑scenario is when you ship irregularly sized items. Some flat‑rate services add surcharges for heavy or bulky goods, while a mileage‑only quote might stay the same. In those cases, compare the total cost, not just the per‑mile number.

One practical tip: bundle multiple drop‑offs in the same area. Couriers often combine routes and the per‑mile cost drops a bit because they’re already on the road. Ask if they offer a “multiple stops” discount; many do, and it can shave off 10‑15% of the mileage charge.

Finally, keep an eye on hidden fees. Some companies add a “fuel surcharge” that looks like a percentage of the mileage cost. If you see a line item called “fuel adjustment,” ask how it’s calculated. Knowing the full picture lets you decide if pay‑per‑mile truly saves money.

Bottom line: pay‑per‑mile pricing works best for longer distances, irregular packages, or when you can combine deliveries. Always verify the distance, watch for extra surcharges, and compare against flat‑rate quotes. With a quick check, you’ll know whether you’re getting a fair deal or need to shop around.