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                                                                    EXHIBIT 11.1


    DISPATCH MANAGEMENT SERVICES CORP. STATEMENT REGARDING COMPUTATION OF NET
                            INCOME (LOSS) PER SHARE
                    (In thousands, except per share amounts)




                                                      Three Months Ended          Six Months Ended
                                                           June 30,                  June 30,
                                                     --------------------       --------------------
                                                      1998         1997          1998         1997
                                                     -------      -------       -------      -------
                                                                                 
BASIC EARNINGS (LOSS) PER SHARE:

  Income (loss) before extraordinary item            $ 2,191      $    (8)      $ 2,159      $   (22)
  Extraordinary item-loss on early
    extinguishment of debt, net of income taxes                                     713
                                                     -------      -------       -------      -------
  Net income (loss)                                  $ 2,191      $    (8)      $ 1,446      $   (22)
                                                     =======      =======       =======      =======
  Weighted average shares outstanding                 11,546          847         9,176          847
                                                     =======      =======       =======      =======

Loss before extraordinary item                       $   .19      $  (.01)      $   .24      $   .03
  Extraordinary item-loss on early
    extinguishment of debt, net of income taxes                                    (.08)
                                                     -------      -------       -------      -------
  Net income (loss) per share                        $   .19      $  (.01)      $   .16      $   .03
                                                     =======      =======       =======      =======
DILUTED EARNINGS (LOSS) PER SHARE:

  Income (loss) before extraordinary item            $ 2,191      $    (8)      $ 2,159      $   (22)
  Extraordinary item-loss on early
    extinguishment of debt, net of income taxes
                                                                                    713
                                                     -------      -------       -------      -------
  Net income (loss)                                  $ 2,191      $    (8)      $ 1,446      $   (22)
                                                     =======      =======       =======      =======

  Weighted average shares outstanding                 11,546          847         9,176          847
  Potential common shares from stock options             293                        179
                                                     -------      -------       -------      -------
  Total weighted average shares outstanding           11,839          847         9,355          847
                                                     =======      =======       =======      =======

  Income (loss) before extraordinary item            $   .19      $  (.01)      $   .23      $   .03
  Extraordinary item-loss on early
    extinguishment of debt, net of income taxes                                    (.08)
                                                     -------      -------       -------      -------
  Net income (loss) per share                        $   .19      $  (.01)      $   .15      $   .03
                                                     =======      =======       =======      =======