Food delivery and gig driving are side hustles for thousands of Australians. The car you use determines whether you make decent money or barely break even after expenses. Every dollar per kilometre matters when you're doing 200-500km a week.
The Maths: Cost Per Kilometre
This is the only number that matters for delivery driving. Lower cost per km = more profit.
| Car | Fuel/km | Wear/km* | Total/km | Cost per 100km |
|---|---|---|---|---|
| BYD Dolphin (EV) | $0.04 | $0.05 | $0.09 | $9.00 |
| Toyota Yaris Hybrid | $0.07 | $0.04 | $0.11 | $11.00 |
| Toyota Corolla Hybrid | $0.07 | $0.05 | $0.12 | $12.00 |
| Suzuki Swift | $0.10 | $0.03 | $0.13 | $13.00 |
| Hyundai i20 | $0.11 | $0.04 | $0.15 | $15.00 |
| Kia Cerato (petrol) | $0.13 | $0.05 | $0.18 | $18.00 |
*Wear cost includes estimated tyre wear, brake wear, and accelerated depreciation from high-km driving. These are approximations and actual costs vary by driving style and conditions.
On a 300km delivery week, the difference between a Yaris Hybrid ($33) and a Cerato ($54) is $21 per week. That's $1,092 per year. Over 3 years of delivery driving, you'd save $3,276 just by choosing the right car.
Best Overall: Toyota Yaris Hybrid
The Yaris Hybrid is the delivery driver's weapon. 3.6L/100km in city traffic (where you spend most of your time). Tiny turning circle for tight suburban streets. Cheap insurance because it's low-powered. Toyota reliability means it won't let you down on a Saturday night dinner rush.
You can buy a good used one (2020-2022) for $18-22k. New from $26,250.
Best Budget Pick: Suzuki Swift
If your budget is tight, a used Swift is hard to beat. Under $15k for a 2019-2021 model. Fuel economy is good at 4.6L/100km, tyres are cheap ($80-100 each), servicing is around $280/year, and insurance for a Swift is among the lowest of any car. The car practically costs nothing to keep on the road.
Best if You Can Charge at Home: BYD Dolphin
$0.04 per km in fuel is unbeatable. On home electricity (charging overnight at off-peak rates), a 300km delivery week costs about $12 in electricity. A petrol car doing the same costs $30-50. The catch: the Dolphin costs $38,890 new. If you're doing delivery full-time and drive 30,000+ km per year, the fuel savings justify it within 3-4 years.
Insurance: The Hidden Cost
Standard car insurance usually does NOT cover commercial delivery use. If you have an accident while delivering and your insurer finds out, they can deny your claim. Options:
- Rideshare add-on: Some insurers (NRMA, Budget Direct) offer a rideshare/delivery extension for $200-400/year extra
- Commercial motor vehicle insurance: More expensive but covers delivery driving explicitly
- Platform insurance: Uber and DoorDash provide some coverage while on a delivery, but it's limited and doesn't cover your car fully
Check with your insurer before starting delivery work. Don't assume you're covered.
Tax Deductions for Delivery Drivers
As a gig worker, you can claim car expenses against your delivery income:
- ATO cents-per-km method: 85 cents per business km (2025-26 rate). Simple, no receipts needed for fuel.
- Logbook method: Keep a logbook for 12 weeks. Claim the business-use percentage of all car expenses (fuel, insurance, servicing, rego, depreciation). Usually gives a bigger deduction if your business use is over 50%.
- Phone and data: Your phone plan is partially deductible since you use it for the delivery app
- Thermal bags and equipment: Fully deductible
This is general information only, not tax advice. Consult a tax professional for your specific situation.
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Disclaimer: All information in this article was believed to be correct at the time of publishing (4 April 2026). Prices are manufacturer recommended retail prices (RRP) and may vary by state, dealer, and options. Specifications, government incentives, and rebates can change without notice. Always verify details with the manufacturer or relevant authority before making a purchase decision. Running cost estimates are based on average Australian driving conditions at 15,000 km/year. All opinions are editorial and independent. CarSorted does not accept payment for recommendations or rankings.
Published by CarSorted Editorial Team · 4 April 2026
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