How to Use Package Delivery Software to Add Delivery Services to Your Taxi Business

If you manage a taxi business, you already know one hard truth, most vehicles don’t run all day. During mid-day hours or late evenings, they often wait for the next booking. On average, taxis sit idle for around 35 to 40 percent of the day. That’s nearly half your fleet earning nothing while your expenses stay the same.

What if those same cars could keep working even when passenger demand is low? Many taxi operators have started using their free hours for package and courier deliveries. It’s a smart way to keep drivers busy, earn more per shift, and serve new customers without major changes to your setup.

The idea is simple. Your drivers are already out there on the road. Local stores, pharmacies, and food outlets constantly need help sending out small packages. By linking both sides through package delivery software, you can turn your existing taxi fleet into a mini local delivery network.

Businesses that add delivery services usually notice a steady jump in their daily revenue. Some report up to 20–30 percent higher income on days when they mix rides with parcel runs. Drivers also prefer it because it gives them more chances to earn without waiting for ride requests.

In this guide, we’ll walk through everything you need to know to add delivery to your taxi operations using modern package delivery software. You’ll also see how platforms like ZervX make this shift simple, using the same dashboard you already rely on for your ride dispatching.

Before jumping in, it’s smart to check if delivery makes sense for your taxi setup. It won’t be the right move for everyone, but in most towns and cities, it fits better than people think.

Below is a quick checklist that helps you decide.

If you tick three or more of these boxes, your business is in a great spot to test package delivery.

Most taxi businesses already have the main ingredients — vehicles, trained drivers, and a dispatch setup. The only missing piece is the software that connects you to delivery requests. Once that’s in place, adding the service is easier than most people expect.

You don’t need a brand-new system or an extra app. Many modern platforms, including ZervX, let you use the same dispatch dashboard to manage both rides and deliveries. That means no double work, no confusion, and no extra management cost.

For small and mid-size fleets, this mix of rides and packages often leads to better daily earnings without extra investment. Drivers spend less time waiting, merchants get faster delivery options, and customers trust your brand for more than just rides.

If your taxis spend long stretches parked and your team is ready to try something new, delivery might be your next big win.

If you already run a taxi business, you’re halfway there. The dispatch system you use to send rides to drivers works on the same idea as delivery dispatch — matching available drivers with nearby requests. The main difference is in what gets picked up and dropped off.

Package delivery software builds on the same foundation but adds tools that help manage parcels instead of passengers. Think of it as an extra layer on your existing setup that helps handle delivery requests smoothly, track parcels, and keep everyone informed.

Here’s what it usually adds to your system:

Multi-order handling – Drivers can take more than one delivery at a time if routes are close, which helps reduce fuel costs and increase earnings.

Route optimization – The system finds the fastest route for each delivery, saving time and keeping customers happy.

Real-time tracking – You and your customers can see where the driver is and get accurate ETAs.

Proof of Delivery (ePOD) – Drivers can upload photos or get digital signatures once the parcel is delivered.

Notifications and updates – Automatic alerts keep senders and receivers informed at every step.

Billing and COD support – The system records every payment, whether digital or cash-on-delivery, to make accounts clear and simple.

All these features fit right inside your existing dispatch panel, which means no major training or new setup is needed.

With ZervX, you don’t need separate apps for rides and parcels. The same admin panel and driver app handle both. You can toggle between ride requests and delivery orders, track drivers in real time, manage billing, and even let merchants log in to place orders directly. Everything runs in one place.

When your dispatch system and delivery software work together, you save time and avoid confusion. Drivers get clear instructions, merchants get faster service, and your team keeps control over every trip and package from start to finish.

Once you’ve decided to start, the best approach is to begin small and grow steadily. Adding package delivery to your taxi operations doesn’t need a big investment or new fleet. What matters most is planning each step carefully.

Here’s a simple plan that taxi businesses use to get started.

Step 1: Begin with a small test area (h3)

Pick a small part of your service area where you already have steady ride activity. Partner with one or two local stores, such as a pharmacy, grocery, or bakery. These businesses often need quick deliveries but lack reliable options. By starting small, you can test the full process, from taking orders to completing deliveries without any major risk.

Step 2: Set up the software

There are two main ways to get started. You can either enable the delivery option inside your existing taxi dispatch software or use a white-label courier app connected to the same backend. If you already use a system like ZervX , the simplest route is to turn on the delivery module and use the same driver and admin apps. This saves time and avoids confusion. Launching a separate branded delivery app is better if you plan to promote deliveries as a stand-alone service later.

Step 3: Prepare your drivers

Your drivers are the face of this new service. Take some time to explain how the delivery process works from receiving the pickup details to collecting proof of delivery. Make sure they understand how to handle fragile or perishable items and how to deal with customers politely at the door.

You don’t need heavy training sessions. A short guide or quick video demo usually works fine.

Step 4: Decide your pricing model

Think carefully about how you’ll price deliveries. The easiest way is to start with a flat fee for short distances and adjust later based on demand. Some taxi owners prefer charging by distance, while others set minimum rates to cover short trips.

The goal is to keep it fair for both drivers and merchants. Don’t go too low in the beginning; it’s better to offer reliable service than cheap rates that hurt your margins.

Step 5: Handle payments and COD

Delivery orders often involve both online and cash-on-delivery payments. Make sure your software can record both clearly so your accounts stay accurate.

Step 6: Launch, measure, and grow

Once your trial is live, keep an eye on simple performance numbers like average delivery time, completed deliveries per driver, and customer satisfaction. If you start getting repeat orders from local stores, it’s a clear sign the model works. At that point, you can expand your delivery zone and onboard more merchants.

The most successful taxi operators treat delivery as a gradual build-up, not a side project. Each phase teaches you something new how customers behave, what drivers prefer, and what software settings work best. Within a few months, this can become a solid part of your daily business income.

Choosing the right software makes all the difference between a smooth delivery experience and a messy one. The best systems help your team work faster, keep customers informed, and make every delivery easy to track from pickup to drop-off.

Here are the features that truly matter when you’re comparing options.

If your software checks most of these boxes, you’re in good shape to run delivery operations efficiently.

Many taxi companies prefer using systems that blend these tools with their existing ride management setup. That’s where ZervX stands out. The same dispatch panel that manages passenger rides also handles parcel deliveries. You can track vehicles in real time, give merchants their own portal, and send automatic updates to customers all without switching screens.

This kind of setup saves time, reduces human error, and helps your drivers focus on completing more trips each day.

If you’re planning to add delivery soon, make sure your software includes these features from day one. It will save you from many headaches later and help your business scale faster when orders start growing.

Getting your first few delivery clients doesn’t need a big budget. Start close to where you already operate. Visit nearby shops, pharmacies, bakeries, or florists and offer to handle their local deliveries. These businesses often struggle with quick, affordable delivery your service can fill that gap right away.

You can also spread the word through your existing passenger base. A short message on your passenger app, website, or social media page saying “Now offering local delivery for businesses” works well. Give early users a small promo like the first 30 deliveries free or discounted rates for the first week.

Join local WhatsApp or Facebook groups where merchants connect. A simple post there can bring in quick leads. Once you deliver reliably, word-of-mouth grows fast in local markets.

Once your delivery service finds its rhythm, the next big question is when to expand. Scaling too early can stretch your resources thin, while waiting too long may slow your growth.

Here are a few clear signs that it’s time to scale:

Consistent delivery demand: You’re getting regular delivery requests every week with no major dips in volume.

Positive ROI: Your delivery operations are covering costs and generating profit month after month.

Active driver participation: Drivers are taking more delivery trips and showing interest in additional shifts.

Repeat merchant partnerships: Local shops or restaurants are rebooking your service regularly, showing trust in your system.

If you’re getting repeat orders from 10 or more merchants, maintaining 70%+ on-time deliveries, achieving positive unit economics, and your driver network can handle a 30% surge in demand, it’s a strong sign your delivery business is ready to scale.