Last-mile delivery (taking packages from a warehouse to a customer's door) is where margins are thinnest but volume is highest. The market is saturated, but niche opportunities exist (next-day JNB-CPT runs, perishable cold chain, B2B industrial).
Minimum setup: 1 vehicle
| Item | Cost |
|---|---|
| Vehicle (van, new or used) | R60k–200k |
| License to operate (Department of Transport) | R500–2k |
| Insurance (liability + comprehensive) | R1,200/month |
| Fuel & maintenance | R3,000–4,000/month |
| Salary (1 driver + helper) | R8,000–12,000/month |
| Tracking software/TMS | R500–1,500/month |
| Monthly operating cost | R12,700–20,000 |
Revenue model: Typical delivery fee: R30–50/delivery in metro areas, R100–200 regional. At 50 deliveries/day (max capacity), that's R1,500–2,500/day = R37.5k–62.5k/month. Minus operating costs = R17.5k–50k/month gross, minus own salary.
Regulatory requirements
Operating a delivery vehicle is regulated. You need:
- Operator license: Apply to Department of Transport. Proof of vehicle ownership, valid ID, clean criminal record. Cost: R500–2,000. Processing: 4–8 weeks.
- Vehicle roadworthy: Annual inspection. Cost: R200–500.
- Professional Driving Permit (PrDP, for drivers): Requires a valid driver's licence, a medical certificate, and police clearance. Cost: R1,000–2,000 per driver.
Frequently asked questions
How much does it cost to start a delivery company in South Africa?
A minimum one-vehicle setup: R60,000–200,000 for the van, R500–2,000 for the operator licence, then monthly operating costs of roughly R12,700–20,000 covering insurance (about R1,200), fuel and maintenance (R3,000–4,000), driver and helper salaries (R8,000–12,000) and tracking software (R500–1,500).
What licences do I need to run delivery vehicles?
An operator licence from the Department of Transport (R500–2,000, processed in 4–8 weeks, requiring proof of vehicle ownership, valid ID and a clean criminal record), an annual roadworthy inspection per vehicle, and a Professional Driving Permit (PrDP) for each driver — which needs a valid licence, medical certificate and police clearance, at R1,000–2,000 per driver.
How much can a small delivery business earn?
Typical delivery fees are R30–50 in metro areas and R100–200 regional. At a maximum of about 50 deliveries a day one vehicle grosses R37,500–62,500 a month; after operating costs that leaves roughly R17,500–50,000 before your own salary.
Is the delivery market too saturated to enter?
The big operators are entrenched, so new entrants compete on service rather than price. The realistic openings are niches — express or next-day corridor runs, CBD-only routes, B2B industrial contracts, perishable cold chain — or geographic exclusivity.