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Delivery Dispatch Algorithms: How to Optimize Driver Assignment

AM
Arjun Mehta
CEO
Mar 01, 2026
11 min read

The dispatch algorithm is the secret weapon of every successful delivery platform. A well-optimized dispatch system can reduce delivery times by 30% and increase driver earnings by 20%, creating a virtuous cycle that attracts both customers and drivers.

Assignment Strategies

  • Nearest Driver: Simple but suboptimal — doesn't account for traffic or restaurant prep time.
  • ETA-Based: Calculates actual estimated arrival time using real-time traffic data.
  • Batch Optimization: Groups multiple orders for a single driver when routes overlap.
  • Predictive Dispatch: Pre-positions drivers based on demand forecasting models.

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Topics covered in this article:

delivery dispatch algorithmroute optimizationdriver assignment systemlogistics software developmentlast mile delivery technology

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