Key Takeaways:
- Unlike Company Drivers, Owner/Operators are not employees but contract drivers.
- Owner/Operators take 75% of the profit for a run, while Company Drivers make 25%.
- Owner/Operators are responsible for all of their costs while Company Drivers have their costs covered by their employer.
Owner/Operator and Company Driver are two terms you’ll hear often when it comes to the trucking industry, but they may not mean much to you if you’re new to this world. So what exactly does it mean to be an Owner/Operator or a Company Driver? What’s the difference between the two roles? Find out in this article about the differences between these trucking professions.
#1: Being in charge
Unlike company drivers, Being an Owner/Operator is a lot like being your own boss, but with some key differences. You’re in charge of how you want to run your business, how much or little you want to work, where and when you want to deliver cargo, and which jobs you’ll accept. But when it comes to being your own boss, you also have the responsibilities of a business owner, meaning it’s your responsibility to take care of the costs of running a business on top of other responsibilities.
#2: Higher pay, more responsibilities
In a nutshell, Owner/Operators are their own business but contract out their services to trucking companies. Unlike a company driver, they supply and maintain their own trucks, insurance, and gas. They typically do not have, or have very limited benefits, from the trucking company they contract with. Company drivers, unlike Owner/Operators, are employees of a trucking company. The trucking company pays all of their costs and provides them with standard employee benefits such as PTO, health insurance, and covering maintenance costs.
One key difference between these two drivers is that Owner/Operators receive 75% of the profits for every run, whereas company drivers receive 25%. This is because Owner/Operators cover their own costs, requiring a higher income to sustain these costs while also paying themselves.
#3: Work on your own terms
Many owner-operators work on their own terms, often driving full-time with one or two weeks off every month. They can also drive part-time and take off as much time as they want. There are many advantages to being an owner-operator or a company driver depending on what a driver wants. If you’re looking for more stability and lower risk, then you might be better suited to working as a Company Driver. If you’re looking for the ability to make your own schedule and be your own boss, then becoming an Owner/Operator may be better suited for you. Whatever route you choose will come with pros and cons; it just depends on what you want in your career.
Working with company drivers and owner/operators
There are many benefits to working with Owner/Operators and Company Drivers, with both being skilled professionals dedicated to delivering your cargo safely and efficiently. When looking for an O/O or a C/D you need to consider if they work in your area, as well as their availability during seasonal rushes such as Christmas. While there are many similarities between the two types of drivers, it’s important to choose which driver is right for your needs.
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