top of page
Search

From Driver to Business Owner: Should Couriers Expand Their Operations?

  • Writer: Courier Care Australia
    Courier Care Australia
  • Sep 26
  • 4 min read
A view from the front of a courier van in city traffic.
A view from the front of a courier van in city traffic.

State of the Industry

Australia’s courier industry continues to expand, driven by strong e-commerce growth and customer demand for fast, flexible delivery. Job forecasts suggest the number of delivery drivers nationwide will approach 80,000 by 2025, a significant rise compared with just a few years ago. For independent “owner-drivers,” this growth raises a key question: should you remain a solo operator or take steps toward building a larger business?


Franchise opportunities, corporate delivery programs, and rising parcel volumes all create potential pathways for drivers to scale up. At the same time, tight margins, high costs, and intense competition highlight the risks of expansion.


Opportunities in a Growing Market

Strong demand for parcel delivery offers couriers the chance to expand beyond a single vehicle. Major companies such as CouriersPlease and Aramex operate franchise models that allow drivers to purchase territories or runs, with training and support included. CouriersPlease now operates more than 800 franchise territories nationwide, while Aramex franchises often start at relatively modest entry costs.


Global players are also opening doors for entrepreneurs. Amazon’s Delivery Service Partner (DSP) program, introduced in 2024, enables participants to run small courier businesses dedicated to Amazon parcels, sometimes managing 20–40 vehicles. For drivers with growth ambitions, this creates a structured way to expand rapidly under a major platform.


Beyond franchising, niche opportunities exist in areas such as medical deliveries, refrigerated transport, or regional runs. Successful small operators often carve out a specialised service that larger companies cannot easily replicate. Expansion can also build long-term equity: a profitable run or courier business may be sold in future as a valuable asset.


The Challenges of Expansion

Despite strong demand, the courier sector remains one of the most competitive and unforgiving industries in Australia. Fuel, insurance, maintenance, and vehicle costs are rising, yet delivery rates are often held down by competition among large carriers. Margins are slim, and over 3,500 transport businesses have become insolvent in the past decade.


A major issue is the ongoing “race to the bottom” in pricing. Large operators frequently undercut each other to win contracts, forcing rates to unsustainable levels. Smaller businesses and independent drivers often find themselves working longer hours for less return, with little margin left after expenses. This trend not only increases financial stress but can also compromise safety and service quality if operators are pressured to cut corners just to remain viable.


The work itself is physically demanding, and the risks are significant. Over the last 10 years, nearly 500 transport workers — including courier and truck drivers — have lost their lives on the job. Long hours, repetitive lifting, and constant exposure to road hazards make this a tough career to sustain without careful safety practices and support.


Scaling up also requires new skills. Moving from driver to business owner means taking on staff management, payroll, compliance with chain of responsibility laws, and financial administration. For many drivers, this transition can be more challenging than the driving itself. Without planning and adequate working capital, growth can expose operators to financial strain rather than profit.


Market Trends Shaping Decisions

Several developments in 2025 are reshaping the courier landscape. Industrial reforms are extending greater protections to gig and contract drivers, including unfair dismissal rights and the possibility of minimum pay standards. These changes could stabilise incomes and help small operators compete more fairly, although they may also increase costs for companies.


Technology is another critical factor. Route optimisation tools, dispatch software, and telematics are becoming more affordable for small businesses, allowing even one or two-vehicle operators to improve efficiency. At the same time, automation, parcel lockers, and new delivery models are steadily altering the competitive environment. While autonomous vehicles remain some years away, early adopters of technology are already finding advantages in productivity and service quality.


The market itself is also consolidating. After years of rapid driver growth during the pandemic, some operators are now joining co-operatives, forming small fleets, or aligning with larger platforms for stability. For those considering expansion, the choice of segment, whether last-mile e-commerce, specialised local deliveries, or corporate contracts, will strongly shape the path forward.


Key Considerations Before Expanding

For drivers weighing the decision to expand, several factors should be carefully assessed:

  • Financial planning: Account for both upfront and ongoing costs, from vehicles and insurance to fuel and wages. Having capital reserves or access to credit is essential.

  • Client base: Expansion should ideally be backed by firm contracts or consistent demand, not just short-term spikes.

  • Skills and preferences: Growth requires management, customer service, and administration. Consider whether you enjoy these responsibilities as much as driving.

  • Support systems: Franchise networks, industry associations, and peer groups can provide mentorship and resources to ease the transition.

  • Work-life balance: Expansion can blur boundaries between work and personal life. Carefully weigh how much time and responsibility you are willing to take on.


The Road Ahead

Courier driving can provide both a stable income and a platform for business growth, but it is not without risks. Expansion offers opportunities for greater earnings, equity, and entrepreneurial freedom, yet the challenges of slim margins, safety concerns, and administrative pressures remain significant.


The biggest long-term risk is the ongoing pricing squeeze in the sector. Unless industry standards and fair contracts become more widespread, small operators may continue to face the consequences of a “race to the bottom.” For some, the right choice will be to remain a solo operator and contract under larger companies with minimal administrative burden. For others, building a franchise, growing a fleet, or specialising in a niche can be a rewarding pathway.


With clear-eyed planning, support, and adaptability, courier drivers can chart a course that matches their goals. Whether that means keeping a steady one-van owner operator as a sole trader, or building a business with a lasting presence in Australia’s logistics industry.


A courier driving to their next stop.
A courier driving to their next stop.

References

Comments

bottom of page