What is the Difference Between Owner Operator vs Company Driver?
Owner operators run their own business, while company drivers work for a trucking company. According to the American Trucking Association, about 90% of trucking companies are small businesses, many of which are owner-operated (ATA, 2021).
| Aspect | Owner Operator | Company Driver |
|---|---|---|
| Business Model | Independent | Employee |
| Income Potential | Higher potential, but variable | Steady salary |
| Expenses | Responsible for all costs | Company covers most costs |
What are the Pros and Cons of Being an Owner Operator vs Company Driver?
Owner operators enjoy independence, while company drivers benefit from stability. A 2023 survey indicated that owner operators can earn up to 30% more than company drivers, but face more financial risks (Trucking Info, 2023).
- Owner Operator Pros: Flexibility, higher earnings, tax deductions.
- Owner Operator Cons: Financial risks, maintenance responsibilities.
- Company Driver Pros: Steady paycheck, benefits, less stress.
- Company Driver Cons: Less control, limited earnings potential.
How Much Can You Earn as an Owner Operator vs Company Driver?
Owner operators can earn significantly more, with average incomes around $200,000 annually, compared to company drivers’ average of $50,000. According to the Bureau of Labor Statistics, owner operators can have variable incomes based on contracts and routes (BLS, 2022).
| Driver Type | Average Income |
|---|---|
| Owner Operator | $200,000 |
| Company Driver | $50,000 |
What Are the Responsibilities of Owner Operators vs Company Drivers?
Owner operators manage their own business and are responsible for all operational aspects, while company drivers focus on driving. According to a recent study, owner operators spend an average of 20 hours per week on administrative tasks (Forbes, 2023).
- Owner Operator Responsibilities: Business management, maintenance, route planning.
- Company Driver Responsibilities: Driving, following company protocols, reporting to management.
FAQs
What is better, owner operator vs company driver?
The best choice depends on your priorities; owner operators have higher earning potential but more responsibilities.
Can a company driver become an owner operator?
Yes, many company drivers transition to owner operators for increased independence and earnings.
What are the tax benefits of being an owner operator?
Owner operators can deduct expenses like fuel, maintenance, and truck payments from their taxable income.
How do owner operators find loads?
Owner operators often use load boards, brokers, and direct customer relationships to find freight.
