Many Montréal businesses begin by delivering in-house. An employee takes a car, a few documents, and an hour from the day. It works until volume grows, until a deadline lands on a day when that employee is away, or until someone asks what the arrangement actually costs. This article compares in-house delivery and a courier service honestly, shows how to work out the real cost per delivery with your own numbers, and explains where each approach fits.
Quick answer
- The cost of in-house delivery is mostly hidden: paid time that includes waiting and returning, vehicle costs, insurance, winter equipment, and the work the employee is not doing.
- A personal auto policy may not cover business use such as deliveries, so confirm coverage with your insurer or broker before staff drive for work.
- In-house tends to suit steady, predictable, clustered routes. A courier tends to suit urgent, irregular, after-hours, or specialized work.
- Many businesses do both: staff for routine runs, and a courier for peaks, urgent jobs, and regulated items.
The Real Cost of In-House Delivery
The obvious cost is the employee's hourly wage. The less obvious costs are what make the comparison fair.
- Paid time that is not driving: parking, waiting at reception, and returning to the office all count.
- Vehicle costs: fuel, maintenance, depreciation, and parking. Québec requires winter tires from December 1 to March 15 for most vehicles registered in the province, which adds seasonal costs.
- Insurance: business use often falls outside a personal auto policy, so the insurer may deny a claim if it was not disclosed.
- Lost output: the work the employee would have done while out.
- Coverage gaps: sick days, vacations, and the delivery that arrives at 4:45 pm.
- Administration: scheduling, tracking, and chasing a signature.
A Per-Delivery Formula You Can Fill In
Add up the total hours spent on deliveries in a typical month, including waiting and travel, and the total vehicle costs for the same period. Then divide by the number of deliveries.
| Line | How to calculate it |
|---|---|
| Labour | Hours per delivery × the full hourly cost of the employee, including payroll costs |
| Vehicle | Kilometres per delivery × your cost per kilometre, including fuel, maintenance, and insurance |
| Lost output | The value of what the employee did not do, which is the hardest line to measure and often the largest |
| Overhead | Time spent organizing the run, and any tracking or confirmation that you do by hand |
| Cost per delivery | The sum of the four lines above, divided by the number of deliveries in the period |
As an illustration only, using assumed round numbers and not any real price: if an employee costs 35 dollars an hour in total and a delivery takes two hours door to door, labour alone is 70 dollars before any vehicle cost. Replace these with your own numbers, then compare with a written quote for the same delivery. Our article on what affects the price of a courier delivery explains what moves a quote.
Side by Side
| Factor | In-house | Courier service |
|---|---|---|
| Steady, predictable routes | Often efficient, especially when stops are clustered | Works, and a standing route can match the volume |
| Urgent or irregular requests | Depends on who is available | Built for it, see our guide to dedicated and shared-route couriers |
| Nights, weekends, and holidays | Overtime or no coverage | Available if the courier runs after hours |
| Proof of delivery | Whatever you set up yourself | Usually built into the service |
| Regulated or sensitive items | Your own training, procedures, and liability | A provider that handles them routinely |
| Vehicles and capacity | Limited to what you own | A range, depending on the courier |
| Scaling up or down | Slow, because it means hiring or reducing hours | Fast, because you pay per delivery or per route |
When In-House Makes Sense
- The volume is steady and the routes are short and repeatable.
- Deliveries are part of the employee's role, such as a driver who also handles installation.
- Items are low-risk and no deadline is tight.
- You already own suitable, properly insured vehicles.
When a Courier Makes Sense
- Requests are urgent, irregular, or arrive late in the day.
- Items are regulated or sensitive, such as medical specimens, legal originals, or aircraft parts.
- You need proof of delivery that stands up to scrutiny.
- You want to avoid owning, insuring, and maintaining vehicles.
- Volume swings with the season or with a handful of large clients.
The Hybrid Model Most Businesses End Up With
The practical answer is usually both. Staff handle the routine runs that fit in a morning. A courier handles peaks, urgent jobs, after-hours requests, items that need documented handling, and destinations outside the usual area. A short list of which deliveries go where, agreed in advance, avoids last-minute decisions. For the difference between the courier types, see our comparison of courier and carrier services.
A Decision Test You Can Apply Today
- How many deliveries do you make a month, and is that number stable?
- What does an average delivery really cost you, using the formula above?
- What happens when the usual driver is away on a deadline day?
- Which of your deliveries would hurt most if they were late, damaged, or lost?
- Does your insurance cover the way vehicles are used today?
Frequently Asked Questions
Is in-house delivery cheaper than using a courier?
Sometimes, for steady and short routes where the same person makes many deliveries in one trip. Once you include waiting time, vehicle costs, insurance, and lost output, it is often more expensive per delivery than it appears. Calculate it with your own numbers.
Can employees use their personal vehicles for deliveries?
That depends on the insurance policy. Business use, including deliveries, may fall outside a personal auto policy, and an insurer may deny a claim if the use was not disclosed. Ask your insurer or broker before staff drive for work.
How do I calculate my cost per delivery?
Add the full labour cost for the hours spent, including waiting and travel, to the vehicle costs for the same period, then divide by the number of deliveries. Add the value of lost output and the time spent organizing the runs for a complete picture.
Can I combine in-house delivery with a courier?
Yes, and many businesses do. Staff handle the routine runs, and a courier handles urgent, after-hours, regulated, or out-of-area deliveries. Agree on the split in advance.
Which deliveries should usually not be done in-house?
Items that need documented handling or carry real liability if something goes wrong, such as medical specimens, original legal documents, and aircraft parts. Consider whether your staff have the training and the procedures for them.
Count Every Hour, Then Decide
The right answer depends on your volume, your deadlines, and what is at stake in each delivery. Count every hour honestly, put the numbers beside a written quote, and decide route by route. A courier does not have to replace your own staff, and often works best beside them.
Rush Expedited Courier can take the runs that do not fit your team's day, and dispatch is staffed around the clock. A short note through the quote form is enough to start; see also our courier services.
Sources and Further Reading
- Gouvernement du Québec: winter tire obligations (in French)
- BrokerLink: does insurance cover me if I use my personal vehicle for work?