Hourly, daily rate or per stop: which delivery driver pay structure keeps drivers?

Simple, legal everywhere, and what new drivers understand. Downside: a slow driver costs more and a fast driver is paid the same. Best for the first 90 days and for DSPs with tightly timed routes.

Predictable for both sides and popular with FedEx Ground contractors. Watch overtime law: a daily rate still has to clear minimum wage and overtime for the hours actually worked, so track hours.

Rewards pace and attracts experienced drivers. It also rewards cutting corners, and it is where most safety complaints and claims come from. Use it only with a floor, a safety gate and route caps.

A daily rate with a per-stop kicker above a route-specific threshold, a safety bonus paid monthly, and a peak bonus paid in two parts. Drivers see a floor they can count on and upside they control.

Ads that state the real weekly take-home for a normal week outperform ads that say "competitive pay" by two to three times on applications, and the drivers who come stay longer.