The invention provides a real-time package tracking system for use by a package delivery service. The system includes a vehicle operable to deliver a package to a destination of a customer within a region, a positional location system (e.g. GPS) carried by the vehicle, the positional location system being operable to determine geographic positional coordinates for sequential locations of the vehicle along the route thereof toward said destination. The system also includes a wireless transmitter means (such as a cell phone link) carried by said vehicle, for transferring the aforesaid geographic positional coordinates to a central computer. The computer is operable to providing periodic updated calculations to periodically estimate corresponding estimated arrival time (ETA) data for the specific package to said destination and to supply the aforesaid estimated arrival time data to said customer. According to preferred embodiment, the customer can view a map with the ETA information and can make selections on line (e.g. new ETA, or complete cancellation of delivery). These choices are then used to recalculate the drivers route, and can be displayed for both the dispatcher and the driver as well.