What is an owner-operator vs. a company truck driver?
December 04, 2020
If you’re currently a company driver, you’ve probably heard the term ‘owner-operator’ or ‘owner-operator truck driver’ a time or two. And, if you’re new to the industry, you probably aren’t 100% sure what this title all entails.
To answer, “What is an owner-operator?” simply:
An owner-operator truck driver is someone who owns their own truck driving business. Owning a trucking company includes owning or leasing one or more semi-trucks and finding freight to haul, as well as handling the day-to-day responsibilities that come with owning a business.
However, we can dive a lot deeper into how owner-operators and company drivers compare, including what exactly owner-operators do and what their responsibilities are.
Owner-operator truck driver vs. company truck driver
If becoming an owner-operator someday is something you’re considering, it’s important to realize how your role is going to change. Here’s a quick comparison of how owner-operators and company drivers compare:
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Owner-operator truck driver |
Drives a semi-truck provided by the company they are employed by. |
Owns and operates an independent small business, which includes one or more semi-trucks they either bought used or new or one they lease from a company. |
Picks up loads they are assigned by dispatch. |
Has the freedom to select their own freight – either from the spot market (if they have their own DOT operating authority) or by leasing on with an established company and taking advantage of freight choice load boards. |
Main responsibility is to pick up and deliver loads that are assigned to them. |
Main responsibility is owning/operating a business – including finding loads, managing business expenses, making employment decisions (example: hire other truck drivers or back-office staff), hauling freight, doing the books, maintaining the truck and making revenue and earnings decisions. |
Does not pay for fuel, truck maintenance or insurance on the truck. |
Responsible, as a business owner, for all expenses related to owning a truck and a trucking company. |
Is paid by the mile and sometimes receives loading/unloading pay, detention pay, performance pay, etc. |
Generates business revenue by selecting freight to haul and executing on the freight (payment terms often set by a written contract). The method by which they receive revenue could be through mileage pay or an all-in/flat rate from each load they haul. |
Probably became a truck driver for the stability, freedom and fulfillment that come with the job. |
Probably became an owner-operator for the opportunity to own an independent business, generate revenue and have maximum flexibility . |