How to Be Successful in Running a DPD Franchise Business

Alice Tuffery, writer

Published at 06/02/2023, Updated on 06/02/2023 , Reading time: 7 min

How to Be Successful in Running a DPD Franchise Business — Photo © 6238.jpg

DPD franchise jobs allow entrepreneurs to become owner-driven franchisees, delivering parcels in their local territory. But what would this involve, and how much does a DPD franchise cost? We take a look at a day in the life of a DPD franchise and what it takes to be a profitable courier.

If you’re interested in starting your own courier business, joining the DPD franchise is one of the most exciting options. Let’s take a look at its business model and what it takes to run your own franchise unit. But first, a quick snapshot of the industry:

What is the market size of courier services?

Thanks to our growing dependence on online shopping, the courier and delivery sector are expanding rapidly. In 2018, 3.65 billion parcels were delivered across the UK, an increase of 400 million packages from the year before. As a result, courier and express delivery sales rose by 12 per cent to hit £12.6 billion.

And this upwards trend seems set to continue; according to Mintel, volumes are forecast to rise by 54 per cent between 2019 and 2023. As it stands, it’s anticipated that the parcel volume for 2023 will be 4 billion, with expected earnings at £4 billion. This means it’s a fantastic time to consider running your own business in the delivery sector.

What is a DPD franchise?

A DPD franchise is an international parcel delivery service. It delivers on behalf of the biggest high-street brands, including Apple, M&S, Boots, Lush, Nike, ASOS, Next, and John Lewis. It’s always coming up with technological innovations, so it can remain the market leader.

DPD’s award-winning Predict service provides customers with a one-hour delivery timeslot and a real-time map where they can trace the whereabouts of the driver.

When you join a DPD franchise as a new entrepreneurial franchisee, you become an Owner-Driver Franchisee – or ODF – and carry out deliveries in your local territory. Franchisees typically work five days a week, but there is flexibility to fit this around your personal life. You can choose which days work best for you and, if you’re eager to maximise your DPD franchise salary, you can even work a seven-day week.

Let’s see what a day in the life of an ODF looks like.

A day in the life of a DPD franchisee

First things first, you’ll load up your van. When you join a DPD franchise in the UK, you’ll get your own liveried and insured van to make sure things always get off to the best start. It has side and rear doors, so you’ll find it easy to pack it full of parcels and retrieve them when it’s time for your deliveries.

Once you’ve loaded your van, you’ll work out your itinerary. It’s essential to make sure you’re taking the most efficient route, saving you time and petrol. Your customers will be given a one-hour delivery slot, and DPD’s easy-to-use journey-planning system follows your route, helping you stick to the deadlines.

When all your parcels have safely reached their homes, it’s time to head back to the DPD depot for a debrief with your backup team. You’ll be able to find more information here.

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Five advantages of starting a DPD franchise

1. You will have access to a comprehensive training programme – When you become a franchisee, you won’t be left in the dark. DPD ensures that its ODFs are confident with the technology and operational processes used as part of the job by providing training and ongoing support. Also, you will meet other ODFs at DPD’s social events, so you can discuss any concerns with people who are going through the same process. Therefore, you’ll spend less time worrying and more on maximising your earnings.

2. Take advantage of two revenue streams – You’ll earn money from both deliveries and collections in your DPD franchise jobs. Also, you’ll receive payment monthly, so you won’t have to wait to be paid. And what’s more, there’s room for growth if you want to expand your business, as after three months, you’ll have the chance to take on more routes.

3. You’ll get a vehicle support package – It’s likely you’ll use your own vehicle for your rounds, but a vehicle support package is provided by DPD. It includes van servicing, a fuel card and a full uniform, from shorts to fleeces.

4. Use the latest technology – DPD has invested in the latest technology to support franchisees in planning their route. Handheld technology will guide drivers to each stop, while the Predict service provides customers with a one-hour delivery slot. This is an incredibly useful service and allows customers to reschedule and change their delivery location.

5. DPD offers long-term contracts – The DPD franchise contract lasts up to five years, so DPD can retain the most talented ODFs. Also, you’ll be able to take advantage of the DPD loyalty programme that celebrates your key milestones and provides cash rewards.

The challenges of being a DPD delivery driver – and how to overcome them

No job comes without flaws, and being a delivery driver can be difficult from time to time. But what are some of the biggest challenges you might face as a DPD ODF?

Your day may be disrupted by bad weather, traffic jams, road accidents or maintenance work. This can be frustrating and have a huge impact on your schedule. In this situation, you’ll have to work out an alternative route and make a note to avoid the affected roads in the future. If your delivery destinations are within a badly affected area, you may have to reschedule the delivery for another day.
If your van breaks down, you won’t be able to stick to your schedule. A breakdown can cost you hours, so it’s vital you keep your vehicle in good condition. Make sure you use DPD’s vehicle support package and perform regular maintenance checks so that you can get small problems sorted before they become big ones.
You need to be able to drive all day. There’s no getting away from the fact that you’ll be driving for most of your day. As a result, you’ll need to find a way to keep your concentration levels up. Make sure you stay hydrated, take suitable breaks and get fresh air whenever you can.
Timings can be tight. You will probably have to deliver a certain number of parcels in a day. So, it’s important you work efficiently and stick to a route in order to reach your targets.

DPD ODF: In their own words

There are plenty of ODFs willing to sing the praises of DPD as a franchise. We've gathered just a few of their testimonials here.

A long-serving franchisee says: “The business is going from strength to strength and I love it.”

Another long server supports this with: “I’m my own boss, I love the freedom of being on the road. The company is great and the rewards are good.”

And finally, an ODF who’s been in the business for one and a half years acclaims that:

“After working in retail management for years, DPD provided me with the opportunity to take on a new challenge which I thoroughly enjoy and also find financially rewarding.”

How to Join a DPD Franchise?

There are three different options to choose from when you start a DPD franchise. As well as becoming an ODF, you can also become an ‘employed driver’ (an employee with a full package of employment benefits) or a self-employed Owner Driver Worker (ODW) (a self-employed contractor that receives paid holiday, sick pay and pension entitlement). That being said, becoming an ODF is the best way to maximise your earning potential with the company.

There are a variety of deposit plans to suit potential franchisees, so there is flexibility over the amount you pay and when you pay it. Option one involves a total payment of £1,300, with £1,000 being the deposit and £300 being the fee. Or there is a total payment of £2,300, with £2,000 being the deposit and £300 being the fee. The deposit amount depends on the franchisee’s suitability score.

Or, if you want to split the payments up a little more, in option two is a total payment of £1,300, with £300 being paid upfront. Then, you can make five £200 payments or eight £125 payments. Within just three years, you should be able to grow your DPD business to reach a £140,000 - £170,000 turnover. In the second and third year, there is room to add an additional route, which, of course, will increase your income further.

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