How do I review a courier company’s driver vehicle requirements?
Ask what the company expects of a driver’s vehicle: type, age, condition, insurance, signage and equipment. Then find out how it checks those things, how often, and who pays for repairs and downtime. Compare the written policy with what drivers actually drive.
Start with the policy. Ask for the written expectations given to new drivers: vehicle type, size, cleanliness, equipment and insurance. See how the company confirms them at the start and later. Ask who keeps the records and what happens when a driver falls short.
Then compare policy and practice. Ride along on a route, look at a few vehicles in the lot and ask drivers how strict the company really is. Notice whether the expectations are the same for every driver. Ask what happens after an accident, and who carries the cost of damage or time off the road.
Finally, think about the arrangement itself. Ask whether drivers are employees, contractors or a mix, and who supplies fuel, repairs and equipment. The answer affects costs, loyalty and risk, and your lawyer and accountant should look at how the arrangement is set up. Ask drivers what they would change. If they use their own vehicles and the business depends on them, ask how many have stayed a long time and how many have left.
Key takeaways
- Get the written expectations and see how and when they are checked.
- Compare the policy with the vehicles in the lot and on the road.
- Find out who pays for repairs, fuel and time off the road.
- Ask your lawyer and accountant how the driver arrangement is set up.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
Buying
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- Expert answerHow do I check a courier company’s spare vehicles and breakdown plan?
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Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Transport CanadaGovernmentMotor carriers, commercial vehicles and drivers
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