Rideshare and food delivery are popular ways to on their terms.
However, each app differs in how well it pays its contractors.
Keep reading to learn which rideshare service pays the most.
Table Of Contents
The term “rideshare” describes drivers who pick up people to drive to a specific location.
Ridesharing is similar to taxi driving.
With food delivery services, people request something from a restaurant or store.
The restaurant will prepare the order, and a delivery driver will pick up the meal to take to the customer.
Before you can consider how much you make from rideshare or delivery services, you need to consider some of the expenses.
For example, you will end up spending a lot of money on gas when driving from place to place.
Also, you might want to get rideshare insurance to protect you in an accident.
Your insurance coverage will probably need to include car insurance as well.
Lastly, you will need to perform more regular maintenance on your car to comply with company standards.
Your location also impacts your earnings from rideshare or delivery services.
Uber and Lyft pay their independent contractors for each pick-up.
The payment considers the time and distance that you have to drive.
Ridesharing during heavy traffic periods can get you Prime or Surge pricing, where you earn more with each ride.
Generally, you can more readily predict when you would receive raised wages.
If you drive a luxury vehicle, you might qualify for something higher-paying like Uber Black.
Even if you work as a standard Lyft or UberX driver, you can make more money from tips.
Delivery companies usually pay you with a flat rate and added cost per mile.
Most apps do not pay extra during heavy traffic.
However, food delivery drivers tend to earn more from tips than rideshares.
About ⅔ of people fail to tip their Uber driver.
People usually tip a certain percentage of their order, and you are more likely to pick up $50 of food than get a ride opportunity worth $50.
Furthermore, you will get paid the same if you drive a Lamborghini or a Honda Civic.
This might seem like a downfall for luxury car owners, but it does mean that you have lower car maintenance requirements.
Some apps even let you deliver with a bicycle or by foot, reducing yet another business expense.
The time of day also affects your earnings.
People might not need rides or food delivery early in the morning.
If you can work during mealtimes and later at night, you might have more opportunities to find work.
The economy can impact how much you make as well.
For example, people used Uber Eats far more than Uber during the 2020 COVID-19 lockdown.
Nevertheless, rideshare drivers generally earn more than delivery drivers.
According to Gridwise’s 2021 3rd quarter report, rideshare drivers made $14.37/trip on average while food delivery drivers earned $8.24/trip.
At the end of the day, where you live and where you work make all the difference.
You will probably make more working a night shift in New York City, New York than a morning shift in Chattanooga, Tennessee.
The two biggest rideshare platforms are Uber and Lyft.
While they offer similar services, an independent contractor will get paid differently from each app.
How Much Do Uber Drivers Make?
The amount that Uber drivers make depends largely on their city.
For instance, a driver in San Francisco Bay Area or New York City will earn approximately $45,000/year.
However, an Uber driver in Kentucky will make only about $33,000/year.
On average, Uber drivers can expect to earn about $15-$20/hour.
Also, the amount you make depends on the car you drive, tips earned, and hours worked.
Generally, you cannot count on any estimates as a consistent pay rate due to the highly variable nature of the job.
Perhaps no one in your area will need a ride while you are available, or those who do only take short trips and don’t tip.
When you see a passenger ride request, you can see the base fare.
The base fare is how much you’ll earn to drive them.
The time and distance of the trip will raise the price.
Surge pricing can also help you make more per trip.
This increase typically corresponds with rush hour, inclement weather, and popular entertainment events.
Uber Pro can help you stay on track to meeting your goal income.
Any tip the passenger pays goes directly into your pockets: Uber doesn’t take a cut.
Uber also started offering more bonuses in 2020 to aid its drivers.
However, the company takes about 25% of the driver’s earnings through fees and surcharges.
Read More: How much do Uber drivers make?
How Much Do Lyft Drivers Make?
A Lyft driver can make $15-$17/hour on average.
Also, Lyft takes a 20% commission from the driver’s fare.
While your actual earnings can vary drastically from the average, you might make more money working from Lyft.
Lyft offers Prime Time pricing, which is an increase to the base fare during peak demand.
The increase is slight compared to Uber’s surge pricing, but passengers might be more likely to opt for a cheaper Lyft ride.
The company offers bonuses and promotions periodically to improve its driver’s income.
Dedicated drivers will notice a random period where they make more per trip or earn bonuses for each completed ride.
Lyft gives 100% of the bonus money to the driver.
Read More: How much do Lyft drivers make?
Which Pays More: Uber or Lyft?
It’s no surprise that the parent company takes a cut when someone pays for a ride.
However, studies have found that Uber and Lyft often take half of the fare, and sometimes almost 75%.
Lyft drivers report earning more per trip, but Uber drivers have a higher pay due to the greater user base.
If you can’t decide on a platform, consider driving for Uber and Lyft at the same time.
It requires a lot of focus and some juggling, but you’ll stay busy if you’re searching for rides on each app.
Is It Worth Being a Rideshare Driver?
If you like driving around and meeting new people, you’d love working as a rideshare driver.
It also helps if you are friendly, personable, calm, and know your city well.
However, you may not get tipped by passengers.
Some people who request an Uber ride may not keep your car clean, and you have to fulfill stringent car maintenance requirements.
You’ll also become best friends with insurance companies to protect your car in an accident.
If these downsides do not deter you, go ahead and try your hand as a Lyft or Uber driver.
Which Food Delivery Service Pays the Most?
The biggest contenders in the Food delivery service market are Uber Eats, Postmates, DoorDash, and Instacart.
Find out which app has greater driver earnings before signing up.
How Much Do Uber Eats Drivers Make?
On average, Uber Eats drivers make about $15/hour.
For the most part, driver pay increases on evenings, weekends, and holidays.
You will get a flat rate for pick-up and drop-off.
Some cities offer drivers a mileage rate for the most efficient distance between the restaurant and delivery address.
Read More: How much do Uber Eats drivers make?
How Much Do Postmates Drivers Make?
On average, Postmates drivers earn $11/hour plus tips.
This value can increase to $25/hour if working in a big city like San Jose.
The company pays a flat rate for pick-up and drop-off, plus a per-minute waiting at the restaurant and a per-mile traveled rate.
Postmates offers Blitz pricing around lunch and dinner, as well as a few other bonuses.
Read More: How much do Postmates drivers make?
How Much Do DoorDash Drivers Make?
The average DoorDash driver earns $15-$25/hour.
DoorDash pays its drivers a base pay that depends on distance, demand, and time.
The company is not fully transparent about the calculations that go into determining the base pay.
You can also earn promotional bonuses and tips.
Read More: How much does DoorDash pay?
How Much Do Instacart Drivers Make?
On average, Instacart drivers earn $13/hour plus tips.
This amount can increase to $25/hour during peak times.
Instacart drivers get paid a Batch Incentive based on how many items a customer orders.
They also get a distance reimbursement, demand pricing, bonuses, and tips.
Read More: How much does Instacart pay?
Who Pays More: DoorDash or Uber Eats?
In general, DoorDash pays more than Uber Eats.
DoorDash has a lower commission and guaranteed minimum in many places.
However, Uber Eats still pays decently, has an easy sign-up process, and wider availability.
Is It Worth Being a Food Delivery Driver?
Driving for a rideshare app or food delivery service gives you tons of flexibility in work hours and opportunities.
You can work almost whenever and wherever you want.
If you enjoy driving but do not want strangers in your car, you would probably prefer working for a food delivery service than a rideshare company.
However, food delivery drivers run into issues with time and parking.
You may need to drive quickly to keep the food warm.
If you pick up multiple orders at once, you might rush to drop the food off to each location before it becomes room temperature.
Also, you might not find parking near the restaurant to run in and grab the food.
The time wasted searching for parking could negatively impact your ratings.
On the other hand, a Lyft driver does not need to worry about parking or speeding to keep their passenger the right temperature.
Which Package Delivery Service Pays the Most?
Package delivery from your car is becoming an increasingly popular alternative to working for a ridesharing service.
While they lack the coverage of food delivery and rideshare driving, Amazon Flex and Uber Connect are two rising names in package delivery services.
How Much Do Amazon Flex Drivers Make?
Amazon Flex starts their pay at $18/hour.
Some locations have a higher base rate, but none dip below it.
Additionally, driver earnings can increase to $25 in times of bad weather, holidays, late trucks, and high package availability.
Furthermore, Amazon gives drivers windows of three to six hours to complete the delivery.
You do not have to rush as you do with ridesharing and food delivery.
However, Amazon Flex does not hire drivers in many cities.
Also, the job supply is limited compared to becoming a Lyft driver in the United States.
Read More: How much do Amazon Flex drivers make?
How Much Do Uber Connect Drivers Make?
Uber Connect is Uber’s package delivery service that drivers can use in addition to their ride hailing service.
As a driver, you deliver packages locally from the sender to the recipient.
Since Uber Connect isn’t available in many cities, it’s tough to determine the hourly pay.
Drivers in New York have said they make more than driving for UberX.
Overall, it does not hurt to opt in if possible.
You have the chance to earn extra income, but you shouldn’t count on it.
Is It Worth Being a Package Delivery Driver?
If you don’t mind a bit of heavy lifting, being a package delivery driver is a great choice for you.
You get the same flexibility as rideshare and food delivery services without the time crunch.
Nevertheless, these services are not nearly as popular or available as food delivery or rideshare.
You can sign up for a package delivery app in addition to your other driving work, but don’t count on it as a main source of income.
Wrapping Up
There are plenty of driving gigs available, whether you choose rideshare or delivery.
Each platform has its pros and cons when it comes to demand, tips, and how much of a cut the company takes.
Keep in mind that there are many expenses to working as an independent contractor.
For instance, you need to file for self-employment income tax on your tax return when you make more than $400.
Liability coverage, car insurance, maintenance, and more can add up over time.
By working for a few of these services at once, you can maximize your profits.
Just choose the app or apps that you feel most comfortable using.
