Become a DPD Owner-Driver

This side hustle at a glance

🎧 Listen Now: Sidehustles.co.uk One-Minute Podcast – Become a DPD Owner-Driver.

Transcript available below.

DPD is a household name in the UK as it’s one of the most trusted parcel delivery services in the country. Thanks to its reputation, many people see it as a lucrative option for franchising. Thankfully, DPD offers this opportunity through the DPD Owner-Driver Franchise (ODF) program.

This article is designed to serve as a comprehensive guide for individuals interested in venturing into the self-employed driving sector through a DPD Owner-Driver Franchise. Whether you're entirely new to the concept of franchising or have some experience under your belt, this guide aims to provide you with the essential information you'll need to navigate the application process, costs, and benefits of partnering with an established brand like DPD.

table of contents

• What Is DPD?
• How Can You Work With DPD?
• How Much Does a DPD Franchise Cost?
• Earnings
• Requirements for Becoming a DPD Franchisee
• How to Apply
• Start-Up Costs
• Tax Considerations
• Working as a DPD Franchisee: Pros and Cons
• Final Thoughts
• Real-World Insight
  

Dynamic Parcel Distribution (DPD) has been around since 1970. During this era, it was called Courier Express. In 2008, DPD became the new brand name. Still, the UK company endured. The name is now synonymous with efficient and quality courier services. 

DPD has expanded to various other territories worldwide. However, it still holds the most power in the UK. The company is one of the top shipping companies, taking up 14% of the market share. This popularity and established reputation make DPD a popular option for those who want to try their luck in the shipping industry, especially with the DPD Owner-Driver Franchise program.

There are actually three ways you can work with DPD.

1. First, you can work as an employed driver.
2. The second option is to become an owner-driver worker.
3. The final method is the DPD Owner-Driver Franchise program.

While being an employed driver offers stable income and benefits, and an owner-driver worker gives some level of independence, the Owner-Driver Franchise (ODF program) route offers the best of both worlds. As a franchisee, you'll have the freedom to be your own boss while leveraging DPD's robust infrastructure and trusted brand name. This means you control your schedule and operations but without the hefty responsibility of building a business reputation from scratch. The franchise model also offers significant earnings potential, especially for those committed to growing their operations over time.

ODF 7.5T and ODF Lite

The program we just discussed is the traditional ODF program. However, there are two other options available: ODF 7.5T and ODF Lite. The former is for those who want to operate a 7.5T vehicle. In this setup, you can increase your payload and by extension, your earning potential. 

On the other hand, ODF Lite is for those who want more flexible hours and delivery volumes. You’ll be assigned a branded Peugeot Partner vehicle that’s relatively easier to drive than the standard DPD van or 7.5T truck.

Like with any franchise opportunity, you will need to pay a franchise fee before opening a DPD ODF. While the franchise fee is fixed at £400 for ODF Lite and the standard option, the deposit can vary widely. This variation stems from the franchisee’s suitability score and vehicle type.

DPD hasn’t publicised how exactly they determine the value, but you can expect the deposit to range between £1,400 to £2,400 for the standard model. For ODF Lite, the deposit is usually around £1,000.

According to the official DPD site, an ODF may earn between £50K to £60K per route annually. The longer your franchise runs, the higher your annual income. In fact, DPD estimates that those who have been in the business for three years and have established themselves in their route can achieve up to £170,000 in yearly earnings. 

These values are affected by other factors. Your routes could be affected by weather, insurance premiums could be higher, and the delivery volume might be lower during certain months. Make sure to set your expectations when it comes to your annual earnings. 

✅ Check out our in-depth comparison of food delivery driver earnings in the UK across top platforms like Deliveroo, Just Eat, and Uber Eats. Find out which app offers the best hourly rates, benefits, and opportunities to maximise your income. 

Are you ready to become an ODF for DPD? Here’s the application process:

1. Sign up via the DPD website and wait for the confirmation email.
2. Click the link on the email, and you’ll be directed to the application page.
3. Watch the required sign-up videos and input your details in the final section.
4. A member of the Owner-Driver team will contact you to set up a meeting. Make sure to have your DVLA share code and licence number. 
5. You will decide whether to proceed with the application or not during the meeting. If you do, DPD will ask for your Right to Work document and validate your criminal vehicle history.
6. Once you’ve been accepted, you can begin training.
   

Like with any new entrepreneurial venture, you will have upfront costs to consider. The ODF program will have expenses like:

• Franchise fee and deposit
• Insurance
• Application expenses
• Petrol 
• Taxes
  

If you become an Owner Driver Franchisee with DPD, it's important to remember that you'll be classed as self-employed and be responsible for managing your own taxes.

Unlike traditional employment where income tax is automatically deducted, as a self-employed individual, you'll need to keep detailed records of your earnings and expenses. You will need to complete an annual Self Assessment tax return with HM Revenue and Customs, and pay Income Tax and National Insurance contributions accordingly.

It's advisable to set aside a percentage of your earnings to cover these tax obligations.

Consulting a Chartered Accountant can provide you with personalised advice and help you understand the tax implications more thoroughly.

✅ Read our comprehensive guide on side hustles and your tax obligations.

Before you meet with a DPD Owner-Driver team member, remember the following advantages and disadvantages. Use this knowledge to help you with your decision-making. 

Pros

• You’ll have access to DPD’s infrastructure, technology, ongoing support, and other resources.
• DPD is an established brand, so you won’t have to think much about building a reputation through marketing efforts.
• There is a high potential for earning as a franchisee.

Cons



• There is a high initial investment.
• You may face operational challenges such as inclement weather, unexpected road accidents, and vehicle maintenance.

Embarking on a DPD Owner-Driver Franchise journey offers a unique side hustle opportunity, especially if you have a passion for driving.

Not only can you earn a substantial income, but you also get the chance to be your own boss—all while leveraging DPD's established infrastructure and resources. This reduces the typical hurdles you might face when starting a business from scratch. Over time, your earnings could potentially triple from what you initially make, making this a lucrative side hustle for those who love the freedom and flexibility of life on the road. 

Considering a DPD Owner-Driver Franchise is an excellent first step in exploring self-employment opportunities within the driving sector. However, it's worth noting that there are other avenues worth exploring too.

If you've found this guide useful, you may be interested in our upcoming article on becoming an Evri self-employed courier, another UK-based driving opportunity. Understanding all your options will give you a clearer path forward. Do take a moment to read our next article for a comprehensive look at another driving side hustle opporunity.

BECOME AN EVRI SELF-EMPLOYED COURIER

🎧 Listen Now: Sidehustles.co.uk

One-Minute Podcast – Become a DPD Owner-Driver

Welcome to the Sidehustles.co.uk One Minute Podcast. In the next 60 seconds, we're sharing a real-world insight from our network of seasoned side hustlers. This quick tip is designed to offer you practical advice that you can apply immediately in your side hustle journey.

Today, we're talking about becoming a DPD owner-driver as a side hustle in the UK. Here's a valuable tip. When considering a franchise opportunity like the DPD Owner-Driver program, don't underestimate the power of aligning yourself with an established brand name. Partnering with a well-known and respected brand like DPD can significantly reduce your marketing expenses and time spent on building consumer trust. This allows you to focus more on operational efficiency and customer service, positioning you for a potentially quicker and more substantial return on investment.

That's your one-minute real-world insight. Stay tuned for more!

https://www.dpd.co.uk/content/about_dpd/press_centre/company_profile.jsp#:~:text=DPD%20began%20life%20in%20the,invested%20substantially%20in%20DPD's%20infrastructure.

https://ukprefulfillment.com/top-7-parcel-shipping-companies-in-the-uk-2022/#:~:text=According%20to%20research%20by%20independent,Hermes%20with%20a%2014%25%20share.

https://franchisefame.com/courier-franchises/dpd-franchise/

https://drivers.dpd.co.uk/#franchise