How much do Grubhub delivery drivers earn


You don't have to search too far for ways to make extra cash. Research firms offer good money for the honest opinions and reactions of consumers in focus groups and product test studies.

Cash back apps like Ibotta or Rakuten pay buyers to make everyday purchases through affiliate websites. Health organizations generously compensate for fluid and tissue donors willing to part with plasma, sperm, and eggs - though the more invasive forms of medical donation come with risks.,

Car owners and renters can add another option to the list: monetization of their personal vehicles.

How To Make Money With Your Car

Vehicular side hustles come in many forms. While the most lucrative opportunities generally involve significant amounts of driving, monetizing your vehicle doesn't necessarily require you to put extra miles on your car. For example, wrapping your car in advertising is a classic passive income opportunity that usually doesn't increase your total miles driven.

Below are popular, legitimate ways to make real money on a personal vehicle. Your actual choices of options will depend on the age and condition of your car, the options available in your geographic area, and your personal preferences.

Drive for a carpooling app

Becoming a carpooler driver is a no-nonsense way to make money on your car. You give people rides from point A to point B, they pay through the app, and you get most of the proceeds. It's easy.

That doesn't mean it's without its drawbacks., Ridesharing drivers must pass driver's license and criminal background checks, meet minimum vehicle age and quality standards, and cover most vehicle costs: gas, insurance, maintenance, and repairs. Drivers pay tolls out of pocket, but they are added to driver rates and refunded after the fact.

Profitable carpooling agencies also usually do not adhere to 9 to 5 timetables. In most ridesharing markets, peak travel times fall during busy weekdays and the hours before the bar closes on weekends., If you're an early bedtime person or too exhausted from your day job to drive late at night , you are unlikely to maximize your ridesharing income.

The hourly wages of the ride sharing agencies vary greatly. Optimistic projections of drivers earning $ 25 an hour or more during peak periods may not account for all driver costs or vehicle depreciation.

Additionally, the rush of new ridesharing drivers has apparently depressed revenue., According to a study by JPMorgan Chase, the average wage for drivers who take home drops by 50% from 2013 to 2018 to $ 762 per month.

Still, driving for a ride sharing app in your spare time is a great way to push your car into money-making service. Depending on where you live, your options include:

  • Over. Uber is the most popular U.S. ridesharing app. Drivers must be 21 years of age or older and US licensed, with relatively clean driving data and at least one year of driving experience., Vehicles must be younger than 15 years old and have at least four doors; In some cities and states, the requirements are stricter. Drivers who do not own their own cars can rent vehicles hourly, weekly, or long-term through Uber's vehicle rental partners. However, rental fees can reduce your net profit.
  • Lyft. Lyft is Uber's main competitor in the US. The biggest benefit for drivers is that in-app tipping is common. Lyft car and driver requirements are similar to Uber's. Drivers must have 21 year old drivers with US licenses and relatively clean driving records, vehicles must be four doors or larger (not small cars), newer than 15 years old, and meet all applicable city and state requirements (which may be more stringent than basic requirements by Lyft). Drivers who do not own their own cars can rent vehicles through Lyft Express Drive, although rental fees can reduce their net income. Lyft Express Drive requires a rental commitment of at least seven days.
  • Wingz., Wingz is a smaller ridesharing service that primarily serves large metropolitan airports, although it has also created niches around high profile events and senior transportation in some large US cities. With longer, more predictable trips that can be planned up to two months in advance, Wingz may be a better fit for drivers who crave predictability. Wingz tariffs are comparable to Uber and Lyft tariffs, however, so it is not clear that Wingz drivers make more than their on-demand counterparts., Also, Wingz drivers are required to wait longer at pick-up locations than Uber and Lyft drivers who typically give up no-show fares after five minutes. Wingz also keeps drivers and vehicles to stricter standards. Drivers must pass face-to-face and online orientation and knowledge tests, and vehicles cannot be more than five years old.
  • Local alternatives. No other carpooling app has widespread traction in the United States, but smaller, homegrown alternatives may exist in your area. Juno, for example, is popular with drivers and drivers in the New York City area., With in-app tipping and better base pay than Uber or Lyft, Juno describes itself as a “socially responsible way of driving” - and makes no secret of its mission to poach highly rated drivers from its two main competitors.

Keep in mind that ridesharing apps are not exclusive. Drivers allowed to drive for both apps typically switch between Uber and Lyft when accepting rides, reducing downtime between trips and thereby increasing hourly wages.,

Deliver food

In college I worked 15 or 20 hours a week as a delivery driver for a local chain restaurant, topped my budget and no more problems. That was before apps like DoorDash and Uber Eats were commonplace. Today I would be just as likely to deliver for multiple restaurants through one of these popular apps:

  • DoorDash. DoorDash drivers or dashers must be 18 years old and have valid driver's licenses, active car insurance and clean driving records., Unlike ride sharing services, DoorDash does not have any vehicle requirements. When your car is moving, you can use it to deliver groceries. If you don't have a car, you can also use a scooter, motorcycle or pedal bike.
  • Uber eats. Uber Eats drivers must be of the minimum age to drive at their location (which can be up to and sometimes older than 21), have at least one year of driving experience, and have a valid driver's license, registration and insurance. Unlike most other delivery apps, Uber Eats has minimum vehicle age requirements., If your car is over 20 years old, you are unlikely to qualify. On the bright side, Uber Eats offers payouts up to five times a day, so if your primary goal is to make money, you'll be able to access it soon after you make it.
  • Postmates. Postmates isn't limited to grocery delivery. When you sign up as a Postmate, you'll have the ability to deliver groceries, retail goods, clothing, and whatever else is available through Postmates in your area. The requirements for driver qualification are comparable to those of other apps for the delivery of groceries.
  • Grubhub., Grubhub drivers must be at least 19 years old and have a valid driver's license and vehicle insurance. Grubhub does a criminal background check on all drivers, but it is unclear what information is considered disqualifying.

Being a food delivery app driver is similar to being a ridesharing driver, minus the human passengers. Peak times are a little different. Most grocery delivery drivers work lunch and dinner, the latter being better for drivers with 9 to 5 jobs.,

And since app-based grocery delivery drivers rely on human food preparation staff, the pick-up process isn't always seamless. I'm surprised these days when I walk into a busy takeout restaurant and don't see a group of abandoned drivers waiting for their orders to be filled.

Signing up for multiple grocery delivery apps to capture the highest number of orders possible is possibly a better bet than tossing all of your chips into a single restaurant like I did.,

Deliver other goods

If the thought of just delivering prepared food seems monotonous, why not branch out? Consider these non-restaurant (or not-just-restaurant) delivery options:

  • Postmates. Postmates does not formally differentiate between its restaurant delivery and non-restaurant delivery. When you sign up for Postmates, there's a good chance you're delivering more than just prepackaged meals.
  • Instacart., Instacart is a grocery delivery company that uses independent contractors to fill and deliver customers' food orders. Full-service shoppers are known to receive orders through their apps, visit the grocery store to assemble them, and deliver bags to customers' doorsteps. Buyers must be 18 years of age, have "reliable access to a vehicle" and lift up to 40 pounds without accommodation.
  • Shipt., Shipt supplies groceries, pet supplies, housewares and everything else that is offered for sale at partner retailers such as Target, CVS, Petco and a variety of regional supermarket chains. Shipt's membership model forces customers to order more frequently to ensure a steadier flow of orders for buyers. The pay isn't bad either - according to Shipt, regular shoppers can make up to $ 22 an hour, though the spending hurts net income. Buyers must have valid driver's licenses and auto insurance, reliable vehicles, and the ability to lift up to £ 40 without lodging.,
  • Amazon Flex. Until drones replace its human delivery staff, Amazon Flex is promising independent contractors drivers up to $ 25 an hour to deliver on their own time, claims the Retail Behemoth. (After expenses, actual returns should be significantly lower.) Amazon Flex drivers must have valid driver's licenses, active vehicle insurance, and medium-sized four-door or larger sedans.
  • Specialized delivery services. In large cities, local delivery is big business. For example, New York City is served by a number of local, state, and national liquor delivery companies; Time Out New York rated nine of the best in early 2019. Dropoff, a same-day delivery courier company, serves more than a dozen major US cities.

Again, it's best to put your eggs in multiple delivery baskets - for example, insert your Instacart lessons during weekend shopping hours and drive for Amazon Flex on weekday evenings.,

In practice, services that require you to interact with a wider range of retail partners like Postmates may be less predictable - and less efficient - than services that involve a relative handful of partners (like Instacart) or few stops to make new ones Pick up goods (like Amazon Flex).

Wrap your car in advertising

If you have a newer vehicle and a long drive, your car can be a good candidate for wrapping promotional removable decals.,

The main benefit of wrapping your car in advertising versus delivering goods across the city is that you may not have to drive more than normal, provided you meet the advertisers' minimum mileage requirements. Since mileage is relatively low, it's probably not worth artificially inflating your mileage by driving aimlessly around town - and unless you have an all-electric vehicle, that's not an environmentally conscious pursuit anyway.

The two best-known car wrapping companies in the United States are:

  • Carvertise., Carvertise customizes branded drivers who want to advertise in areas where they regularly drive. To qualify, drivers must drive vehicles that are no more than 10 years old and factory painted, have clean driving records, and drive at least 30 miles per day. Drivers typically make $ 100 a month, with the potential for up to $ 200 a month for high-paying campaigns and the occasional $ 30 an hour opportunity to park in certain locations. Drivers generally cannot choose the brand they match.
  • Wrapify., Wrapify works with blue-chip brands like Microsoft, Zillow, and Alaska Airlines. As with Carvertise, drivers are matched with brands who want to advertise where they typically drive. Fully packaged cars - where the packaging completely covers the factory paint job - can make up to $ 450 a month, according to Wrapify, but $ 200 to $ 300 is more typical.

Carvertise and Wrapify are legitimate companies, but not all auto promotional offers are overboard., The Federal Trade Commission warns drivers to be on the lookout for check deposit scams which are too good-looking auto wrap requests. Avoid these scams by ignoring car wrap offers on social media and fraud-prone digital classified sites like Craigslist. And don't accept a car wrap offer that requires you to prepay for your wrap.,

Rent your car when you are not using it

If you own a car that you don't have to use every day, you can make it available for short-term use for locals who don't own cars and travelers who don't want to deal with traditional rentals while in town . "Carsharing" is the official term, but feel free to refer to it as "Airbnb for Cars."

As with wrapping your car in advertising, one benefit of renting your car when you're not in use is that you don't have to drive more than usual., The downside is that short-term rental cars, unlike car packs, inevitably add extra miles to your car Car lay, which means additional wear and tear.

And of course, you can't use your vehicle while it's rented - no last minute trips to the store to pick up that one missing ingredient for dinner.

Still, making your vehicle available for short-term rentals when you know you won't need it is a potentially lucrative move. Maybe it's a second car that your household doesn't use that much, or you live in a city with great public transportation or bike-commuting infrastructure., If you have a newer car that you can rent regularly, you could see hundreds of dollars in extra income Earn enough per month to subsidize your insurance premium and loan payments and maybe have some money left.

Consider these legitimate short term rental car options:

  • Turo. Turo is a car sharing marketplace for drivers with registered, insured vehicles ages 12 and up., Turo uses dynamic pricing by default, which means that your car's list price is automatically set based on its intrinsic value and local demand, but you can, too manually set at the price you think is worth it. Use Turos Carculator to get a feel for what you are likely to deserve. Cars based in or near major metropolitan airports may earn more than cars in private homes far away. Under normal circumstances, drivers earn 65% to 85% of the total tour price, depending on their choice of vehicle protection package., More generous protection packages mean lower out-of-pocket costs should something go wrong with a rental. Drivers who purchase their own commercial rental insurance and are willing to forego vehicle protection altogether can earn up to 90% of the total travel price.
  • Workaround. Like Turo, Getaround connects owners of newer vehicles with drivers who need vehicles for a few hours or days at a time. Its main disadvantage is its high cut.Getaround owners receive only 60% of their rental income under normal circumstances, 5% less than the Turo minimum., This is partially offset by free $ 50 monthly travel credit. Getaround owners who travel frequently can apply this to their own Getaround rentals in their destination cities. Plus, owners can top up what they think their cars are worth.
  • HyreCar. HyreCar specializes in short-term rentals for ridesharing drivers - in other words, Uber and Lyft drivers who do not own their own vehicles can pick up rates in rented HyreCar rides. If you're not comfortable with this type of arrangement, think carefully before signing up for HyreCar., The platform's selection process works like a lottery, so you may not have control over who ends up in your vehicle. Also, be careful with Hyrecar's rosy income pledges. Owners are said to make an average of $ 14,000 a year per car, but the basis for that claim is unclear. To make that type of money, you would have to consistently provide your car.

Help people move

You don't need a box truck or full-size van to help others move around. All that is needed is a decent trunk and back seat - and maybe a pickup bed if you're lucky enough to have one - and the willingness to do physical labor. Consider these options:

  • TaskRabbit. Relocation assistance is one of the many odd jobs TaskRabbit Army of part-time "Taskers" offers. “Deliver a large piece of furniture” is a particularly popular task. If your vehicle is big enough to fit a couch or bed frame in the trunk, bed or on the roof, for example, you will find plenty of buyers., As a Tasker you can set your own tariffs - make sure TaskRabbit 15% cut and yours Input costs such as fuel are taken into account - and define what types of jobs you want to accept
  • DIY moving aid. If you'd prefer not to get tied to TaskRabbit, consider becoming a DIY mover. Use social media and reputable community sites like Nextdoor to promote your services, or keep things a little more low-key by limiting your reach to word of mouth between first- and second-degree connections. When a pickup in a few years ago fell into our laps, my wife and I took the latter course. We have helped a handful of friends and buddies get around over the years, and we occasionally let friends use the truck themselves in exchange for a full tank of gas.

Things to Consider Before Using Your Car for Extra Income

Using a personal vehicle to generate additional or full-time income carries certain risks, tradeoffs, and complications. Depending on your choice of the hustle and bustle of the vehicle, you are how to struggle with some or all of the following, think about each carefully before operating your car.

Independent contractor status

Most of these noises classify drivers as Independent Contractors (ICs), not W-2 employees. Biss Squad restaurant delivery driving is the big exception. If legal protection and the relative predictability of traditional employment are important to you, Bite Squad is your hustle and bustle.

Otherwise, understand that an independent contractor entails:

  • Responsible for collecting and paying income tax., Independent contractors are not subject to income tax withholding. As the IC, you are responsible for calculating your tax liability, making estimated quarterly state and federal income tax payments if necessary, and ensuring that you have sufficient liquidity to cover any additional taxes due on filing.
  • Payment of self-employed tax. Independent contractors who earn more than $ 400 a year in self-employment income are subject to self-employment tax - the full portion of their Social Security and Medicare taxes, or approximately 15.3% of their self-employment income., The disadvantages them compared to traditional W-2 employees, who only pay half the required Social Security and Medicare taxes because their employers pick up the other half. For more information on self-employment tax, see IRS topic number 554.
  • Cover your own expenses out of pocket. Unless otherwise noted, independent contractors are responsible for their own out-of-pocket expenses. For drivers, these expenses include fuel, vehicle repairs, and vehicle maintenance. B. Carpooling agencies can cause additional costs, e.g. B. Bottled water and snacks for passengers. The good news is that self-employed drivers can deduct a number of work-related vehicle costs; Intuit has an extensive list here.

Even if your sideline does not involve a formally registered business unit, think of it as a business with all the complexities that come with it. If you're struggling to keep your income, expenses, and obligations on your own, contact a tax professional., You can use Quickbooks to manage your bookkeeping, and then use tax software like TurboTax to end your taxes of the year to deal with.

Realistic net income

Take on any claims about the income potential of self-employed drivers with a grain of salt. Since they need to attract steady streams of new drivers to balance employee severance pay and expand into new markets, companies like Uber and Postmates have a strong incentive to make exaggerated income claims.,

Such claims cannot account for driver costs such as fuel and maintenance, or downtime due to workflow inefficiencies, e.g. B. if a restaurant order is not ready at the expected time.

Some supporting roles are also victims of their own success. Think of the JPMorgan Chase study, which found that average carpool driver earnings fell by 50% from 2013 to 2018.

Before signing up for an app that can monetize your car, find out the unvarnished opinions of passengers and car owners who have already used the app. How much do they really consistently earn ?, Is their take-home wage worth the dedication of time, effort, and spiritual energy? Do you enjoy your side of the hustle and bustle?

Accelerated wear & tear

Most of this side hustle and bustle increase miles driven. This means more wear and tear on your vehicle, which can mean higher maintenance and repair costs over time. A long-term vehicle side hustle can run your car into the ground, making a big decision set up: buy a new or used car and keep your side hustle or look for non-automotive sources of extra income.

The notable exception is promotional packaging, which probably won't require you to drive extra miles. You will also earn income to offset the cost of wear and tear. Whether this offset proves to be satisfactory is another question.

Possible decline in resale value

Every car depreciates in value over time, but the value of a vehicle used for a swipe is likely to decline faster than a poorly powered, carefully maintained car.,

While the revenue generated will help offset this inevitability, the fact remains that driving or renting your car for additional income means that the indispensable good of your Side Hustle is becoming less valuable at a comparatively rapid rate.

Opportunity costs

Finally, consider the opportunity cost of using your car to generate additional income. For example, in busy short-term rental markets, popular cars are hot commodities. If your score fits, chances are you'll be in someone else's hands most of the time.,

That doesn't seem to matter on a lazy weekend when you just want to stay home for two days, but what if you have to drive somewhere in an emergency? What happens if the renter doesn't return the car as planned?

Similar logic applies to driving for ridesharing apps, delivery services or task marketplaces like TaskRabbit. Is the time you invest in these activities worth the net income? Is there anything more constructive you can or should do with your time - including maybe other side gigs? That you can make extra income from your car doesn't mean you should necessarily find the view enticing.

Last word

As you read through these different ways to make money from your car, you may notice a common theme: old cars don't need to be used. Virtually all of the apps and service providers on this list have maximum vehicle age requirements, and some are pretty strict. For example, if your car is more than five years old, then promotional packaging is probably out of the question.,

Unfortunately, vehicle age requirements pose a chicken and egg problem for drivers looking to monetize older cars. In the short term, these drivers may need to use long-term rental assistance programs like Lyft Driver Express and deposit their Side Hustle earnings into a savings account set aside for a down payment on a new or newer used car - or they may need to explore Side Hustles for which none four wheels are required.