The Last Mile, First Opportunity: How to Build a Profitable Courier Business in the U.S.

Courier / Last-Mile Delivery Business in the U.S.

A Logistics-Driven Venture for Speed-Oriented Operators

About the Writer

Dickson Wasake, CPA has more than 20 years of experience, including with global accounting firms PwC, Baker Tilly, and Deloitte, and various roles such as a fractional CFO and advisor for clients. He is an ex-audit partner (Baker Tilly CI). Dickson is both a UK CPA (FCCA) and a US CPA (IL), with experience working with clients of various sizes, ranging from start-ups to a $1.3 trillion listed company. He has travelled to 30+ countries, including Sub-Saharan Africa, the Bahamas, the UK, and Canada. He lives in IL, USA. Connect with him on LinkedIn or view his detailed resume/CV.

🔍 Introduction: The Last Mile Is the Gold Mile

Imagine this.

You’re delivering packages in a 10-mile radius in your local town. With optimized routes and a recurring contract from a local pharmacy, you complete 12+ deliveries in a day, earning $140+

This, in summary, is the courier and last-mile delivery business, where speed, reliability, and local reputation determine success. Yes, yes, I know that Amazon, Uber Eats, Door Dash, etc are in this sector, but competition and many players should give you a hint – it is a growing sector!

• The U.S. last‑mile delivery market generated approximately $37.7 billion in revenue in 2023 and is projected to reach around $62.4 billion by 2030 (CAGR ~7.5%).

• This growth is driven by e-commerce, healthcare, legal, and food logistics.

• Independent courier services in the U.S. often earn $40–$60 per hour, according to job platforms like ZipRecruiter and Indeed—specialized routes (e.g., medical deliveries) can reach $80–$100+/hour.

One of my in-laws told me that there was a time he was down on his luck. A relationship had ended, and he was left in heavy credit debt after the ex wiped out their joint bank account! He thus went to the office by day, and during his free time, he did Uber Eats. The gig lasted for a few months until he had paid off all his debt. Granted I am speaking of a more full time solo operator in this article, but you get the picture.

💡 What We Think About This Business

Excellent for efficiency-minded operators or drivers who want a locally-based business with recurring contracts. It scales through routes and subcontractors.

“Last-mile delivery isn't just about logistics — it's a primary driver of consumer trust and brand loyalty.” Ryder Last Mile Blog.

Stand Out by Specializing. Courier success is often tied to focus. Instead of trying to serve everyone, niche down: deliver only medical lab samples, prescription refills for seniors, confidential legal documents, or farm-to-door produce. Specialization increases your pricing power, makes sales conversations clearer, and builds referral momentum faster. A courier who solves one specific problem deeply is more valuable than one who delivers everything.

⚖ SWOT Analysis (Big Things to Know in the Courier Sector)

Category	What It Means	Examples
Strengths	Low capital, local demand, recurring clients	Pharmacy, food delivery
Weaknesses	High fuel, wear & tear, long hours	Time-intensive early on
Opportunities	E-commerce boom, B2B contracts	Small medical labs, florists
Threats	Big platforms (Amazon Flex, DoorDash)	Driver churn, low margins

 Managing Drivers and Avoiding Churn One of the biggest challenges in scaling a courier business is retaining reliable drivers. Gig platforms offer flexibility, but they also lead to high churn. To build a stable operation, consider offering consistent route schedules, bonuses for on-time delivery, or mileage reimbursements. Whether using subcontractors (1099) or employees (W-2), a clear driver agreement, onboarding process, and performance tracking will reduce turnover and protect client relationships.

🧠 Key Things to Know Before You Start

✅ Requirements:

• Reliable vehicle + insurance

• Courier business registration, route planning tools

• Partnership contracts (B2B or apps)

• Mobile printer + delivery tracking

• Check Local Regulations and Licensing. Some cities and states require special courier licenses, commercial driver registrations, or DOT compliance for certain vehicle types. Also, EV incentives or bike courier permits may be available in urban areas. Before launching, consult with a local business advisor or city clerk’s office to avoid costly surprises or fines down the road.

⚠ Risks to Manage (Risk Management in the courier sector):

Risk	Risk Management Tool
Missed deliveries	GPS tracking + route optimization
Fuel overspend	Use fuel card and delivery zone planning
Legal liability	Commercial vehicle insurance + terms of service
Package disputes	Barcode scan + signature capture

 🔐 Internal Controls (Systems to put in place for the courier sector)

Risk	Control
Delivery fraud or loss	Require barcode + customer signature
Missed revenue	Delivery log sheet with timestamp
Cash handling errors	Cashless payment policy preferred
Fuel inefficiency	Use GPS + route batching

Typical Founder Concern: Dealing with razor-thin margins

Many founders ask about this sector: “How do I grow when margins are razor-thin?”

Delivery is a logistics puzzle. Fuel, idle time, reroutes — these crush margins. What matters isn’t more drivers, but smarter routes. Build a "cost-per-mile" model that includes driver pay, fuel, downtime, and route density. Use software to optimize pickups and drop-offs. Thin-margin businesses don’t survive on hustle. They survive on precision.

🛠 What the First Few Months Look Like

Month 1–3:

• Register business + secure local courier contracts

• Lease or purchase delivery vehicle

• Build relationships with local pharmacies, stores, labs

• List on Thumbtack, Nextdoor, and niche logistics boards

Typical Week:

• Deliver 3–5 hours/day on weekdays

• Reconcile delivery logs + invoice weekly

• Maintain vehicle and update GPS routes

• Negotiate new clients and subcontracted routes

📈 Future Outlook (What’s ahead in the Courier Sector)

• Local deliveries are expected to grow 20%+ YoY

• Green delivery (bike, EV) gaining traction in urban zones

• Subcontracted fleets with driver apps are replacing big logistics teams

🧠 Advanced Thinking Tips

Insights:

• McKinsey: Nearly 40% of major retailers are already implementing micro-fulfillment and hyperlocal delivery models—signaling that localized logistics solutions are accelerating faster than long-haul freight systems.

• Forbes: “Today, customers expect a consistent, on‑time, hassle‑free, next‑ or same‑day delivery experience,” highlighting how fast delivery is now a baseline expectation.

• Harvard Business Review / Circuit: Up to 20% of e-commerce packages fail at first delivery attempt, making the last mile “the most expensive and failure‑prone part of logistics.”

Strategic Moves:

• Start with underserved routes (elder care, rural zones)

• Offer recurring weekly delivery plans (set day/time)

• Add software to allow customer Estimated Time of Arrival (ETA) updates

• Build Long-Term Business 2 Business (B2B) Relationships. Many thriving couriers run on the strength of a few key clients. Partner with local pharmacies, dentists, elder care homes, florists, or real estate offices. Offer reliable, recurring delivery schedules and consider volume discounts. These B2B relationships create more stability than gig apps and allow you to batch deliveries for better margins.

Bonus Insight: Buying Instead of Building:

These businesses are often sold route-ready. Look for driver retention, contract stability, and fuel cost breakdowns. Avoid owner-driven businesses with no software. Try Craigslist or local brokers. Ensure your advisor can help you review and/or model cost per mile, delivery density, and route viability.

Business Model and Revenue Streams for the Courier Sector

 

💰 Start-Up Cost Breakdown (Detailed)

Item	Est. Cost	Notes	Source
Used vehicle (down payment)	$5,000.00	Small cargo van or hatchback	Kelley Blue Book
Insurance	$1,500.00	Commercial policy	Geico, Next Insurance
Equipment (barcode scanner, tote bags, labels)	$500.00	Barcode reader, delivery totes	Amazon
Mobile phone or table	$300.00	Needed for tracking and signature apps
Website + booking tools	$500.00	Wix/square site, booking app with scheduling plugin	Wix, Squarespace
Uniforms/branding	$300.00	optional but helps build trust
Marketing starter kit	$600.00	Flyers, Google Local Ads, Nextdoor
Legal entity set up, license and registration	$750.00	Legal zoom. Local/state filing and courier permit (if applicable)
Miscellaneous	$945.00	10%
Total	$10,395.00

 Startup Estimate: ~$10,395

💸 Operating Costs & ROI (Annual Estimate)

Assumptions:

• Avg 252 deliveries/month × $12 = $3,024/month × 12 = $36,288/year

• Annual costs = ~$11,990 (see below).

Expense Breakdown (Annual):

Item	Cost	Notes
Fuel + maintenance	$2,000.00	City driving but scales with delivery zones
Admin + tools	$600.00	QuickBooks, invoicing, client CRM
Marketing	$1,000.00	Google Ads, flyers, community sponsorships
Insurance + licenses	$1,200.00	Renewals
Route software/tools	$300.00	GPS routing app subscriptions like Circuit, Google Workspace
Phone+internet	$480.00	$40/month mobile plan
CPA	$1,000.00	tax prep
uniforms/repairs	$480.00	Uniforms, repairs
Vehicle loan repayments	$3,840.00	Assumed to include principal and interest to show cash impact rather than GAAP style accounting. Based on $15,000 van over 36 months at 9% APR.
Miscellaneous	$1,090.00	10%
	$11,990.00

Net Profit = ~$24,298/yearROI = $24,298 (net profit) ÷ 10,395 (start up cost) = ~234% ROI

📊 3-Year View (High Level)

In year 1 you operate as a solo driver but in year 2 you add a second route and in year 3, add 3 sub contracted drivers.

🧰 Recommended Software Stack

• Circuit or Onfleet (route optimization)

• Stripe or Square (payments)

• Trello or Notion (tracking clients/contracts)

• Google Calendar or Setmore (deliveries)

Global Outlook: Courier business beyond the US

The courier and last-mile delivery sector is expanding rapidly worldwide, driven by e-commerce growth, smartphone adoption, and rising consumer expectations for speed and reliability.

In Asia-Pacific—especially in countries like Indonesia, China, and India—scooter-based delivery and super-apps (like Grab, Gojek, and Meituan) dominate hyperlocal logistics. These platforms blend food, parcel, and service delivery into one seamless user experience, proving that low-cost vehicles and dense routing are critical for scale.

In Africa and Latin America, motorcycle courier services like Sendy, Gokada, and Rappi are growing fast, often bypassing infrastructure gaps by leaning on mobile-first dispatch systems, WhatsApp coordination, and cashless payment solutions. Trust and consistency matter more than brand recognition in many of these markets, making reputation a key driver of repeat business.

Europe’s delivery scene is shaped by environmental policies and urban density. Bike couriers and electric vans are now common in cities like Berlin, London, and Amsterdam. Strict regulations have forced operators to adopt digital route planning tools—showing that software isn’t a luxury, but a necessity to compete in mature economies.

Across the Middle East, courier startups are combining same-day delivery with grocery and e-commerce offerings, leveraging high smartphone penetration and strong consumer spending. Globally, the winning courier models are digitally enabled, vehicle-light, and customer-trust focused.

The Three Global Lessons to learn:

1. Software drives efficiency – Whether in Nairobi or New York, smart routing and tracking systems are now essential.

2. Fuel-efficient transport keeps margins alive – Low-cost scooters and bikes win over vans in dense urban zones.

3. Localized trust is your most valuable asset – Reputation and reliability matter more than platform size in many developing markets.

Conclusion: Is the Courier/Last Mile sector worth diving headlong into?

My inlaw is not the only one who has ventured into this sector, well at least the food delivery part. My daughter did Door Dash but didn't last longer than one day! I expect the same is with the courier and last mile deliver side of this sector, drivers or delivery people have a high churn rate so you must manage this risk carefully because the routes are like your assets, you must ensure you deploy fully to get a good return, plus that car you leased or got on loan, it must be paid, whether you have deliveries or not! So ensure you plan this all carefully.

So what's the verdict on this sector?

🔚 Inachee Index Score: 72/100 – Tier B (Solid)

Best for logistics-minded operators who want a scalable, asset-light local business, but be careful, the margins are pretty thin and you are competing with the big boys.

What Is the Inachee Index?

The Inachee Index scores sectors using 8 weighted dimensions: ROI potential, startup accessibility, ease of entry, scalability, compliance, market resilience, future relevance, and execution simplicity. Each sector receives a score out of 100 and is assigned a tier (A–D).

How does this sector rank against all others in the US? Check out the US ranking list. 

Want a more detailed financial model or forecast for this sector? Ask us about financial modelling.

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Disclaimer: While we have taken steps to research this information as well as based on our experience, you should not solely rely on the information given here to base your investment decisions. You should seek business advice from a professional knowledgeable of your specific circumstances. (e.g of your specific location and capital structure). The author (or Inachee) shall therefore not be held responsible for any loss you may incur when acting on this information.