How do I judge a last-mile delivery company’s driver turnover before I buy?
Ask for a list of every driver who has worked there, with start and end dates, and read it for patterns: who leaves, when, and after how long. Then talk to current drivers. Steady turnover among new hires is common in this work. A core of long-serving drivers who know the routes is what you want to see.
Start with the payroll or contractor records. Sort drivers by how long they stayed and note whether departures cluster around a busy season, a change in pay or a particular dispatcher. A business with a stable core and a revolving edge is in a different position from one where nobody lasts. Ask the seller what the typical reasons for leaving were, then check that against what you find.
Next, ask how drivers are engaged and paid, and whether that has changed recently. Pay per stop, per route or per hour affects who stays. Ask about pay disputes, missed shifts and accidents. If drivers are contractors, ask your lawyer how that arrangement should be treated before you rely on it.
Finally, meet the drivers, ideally with the seller’s permission and in a way that respects their jobs. Ask what would make them leave under a new owner. Find out who the dispatcher is and whether the best drivers follow that person. Plan the first weeks with the drivers in mind, since their routine matters more than any sign on the door. Write down what you hear, and compare the stories from the seller, the dispatcher and the drivers themselves.
Key takeaways
- Read the driver list for patterns in who leaves, when and why.
- Ask how drivers are engaged and paid, and whether that recently changed.
- Meet current drivers and ask what would make them stay.
- Compare the seller’s explanation with the records and with what drivers say.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to reduce employee turnover
- 02Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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