How Parcel Delivery and Mini-Truck Fares Are Calculated in India
By the Parcilo Team••5 min read
Most of the stress in booking a tempo or courier comes from not knowing the price. App-based delivery fixes that by calculating the fare from a published formula before you book. Here is what is in that formula, using Parcilo’s fare as the example.
The parts of the fare
- Base fare: a fixed amount that covers the first few kilometres. It is different for each vehicle.
- Distance charge: a per-kilometre rate for every kilometre after the base distance, measured on the road route, not in a straight line.
- Platform fee: a small fixed fee per booking.
- GST: 5% on the transport charges.
- Peak-hour charge: during morning and evening rush hours the fare can be higher; it is shown as its own line, never hidden.
- Night charge: a small flat amount for late-night trips.
- Discounts: coupons such as a first-trip offer are taken off the total.
A worked example
Say a 2-wheeler has a base fare of ₹35 for the first 1.5 km and ₹10 per km after that, with a ₹5 platform fee. For a 15.6 km route outside peak hours:
- Base fare: ₹35
- Distance: 14.1 km × ₹10 = ₹141
- Platform fee: ₹5
- GST at 5% on ₹181: ₹9
- Total: ₹190
Why bigger vehicles cost more
A Tata Ace or an 8ft pickup has a higher base fare and per-km rate than a bike because it carries far more weight, uses more fuel and needs a commercial driver. For heavy loads it is still the cheapest option, because one truck replaces several small trips.
How to keep your fare low
- Book the smallest vehicle that safely fits your load.
- Avoid rush hours when the trip is not urgent.
- Combine pickups into one trip where possible.
- Pin the exact pickup and drop points so the route is accurate.
- Use the welcome coupon on your first trip.
See the real numbers
The rates in this example are for illustration. Parcilo’s live rate card is shown on every service and city page, and the fare estimator calculates the exact total for your route, with the full breakdown, before you book.