Rideshare & Food Delivery Services: Which One is Right For You?

In today’s gig economy, rideshare and food delivery services have gained immense popularity, offering flexible work options and the opportunity to earn extra income. However, deciding between becoming a rideshare driver or a food delivery driver can be challenging.

Rideshare Services

Becoming a rideshare driver means using your own personal vehicle to transport people to a destination. It’s one of the most popular ways to make money using your car. Usually, these services connect drivers and passengers using an app, making it a safe and reliable way to get paid.

Uber

Uber is one of the leading rideshare services globally, operating in numerous countries and cities. As an Uber driver, you have the opportunity to earn money by providing transportation services to passengers through the Uber app. 

Depending on what type of vehicle you own, you drive as an UberX (standard rides), UberXL (larger groups), UberSELECT (premium vehicles), or other specialized options.

Expected Pay: Uber drivers generally earn a portion of the fare charged to passengers, with Uber taking a percentage as well. Earnings can vary based on factors like location, demand, time spent driving, and expenses. On average, Uber drivers in the United States can earn around $15 per hour after accounting for expenses like gas and car maintenance. To give you a better understanding of the potential earnings as an Uber driver, here’s a breakdown of average hourly earnings in some major cities across the United States:

Tips: Passengers have the option to tip their drivers through the app, providing an additional source of income, although Uber tells its customers that “tips are neither expected nor required.” Nevertheless, many customers do tip.  According to a survey conducted among Uber drivers, tips make up about 15% of their overall income.

Workload:  As a rideshare driver, you have the freedom to set your own schedule, giving you flexibility in choosing when and how much you want to work. This aspect of the job is particularly attractive to individuals looking for a part-time or side gig. However, it’s essential to note that your earnings as an Uber driver will depend on the time and effort you put into the job.

Availability:  Uber operates in various cities worldwide, including hundreds of cities and regions in the United States. This widespread presence offers drivers the potential for steady availability and a larger customer base. This extensive coverage allows drivers to access a wide range of potential passengers and increases the likelihood of finding fares in their area. By strategically positioning yourself in areas with high demand, you can increase your chances of receiving ride requests and maximizing your earning potential.

Lyft

Lyft  drivers earn a percentage of the passenger fare, with Lyft taking a portion as well. Earnings can vary based on location, demand, time spent driving, and expenses. On average, Lyft drivers in the United States earn approximately $18 per hour.

To provide a more detailed breakdown of Lyft driver earnings, the following table illustrates the average earnings per hour in different cities across the United States:

Tips: Passengers can tip their Lyft drivers through the app, providing an additional income stream. On average, passengers tip around $4 per trip. However, tipping amounts can vary, and some passengers may choose not to tip at all.

Workload: Like with Uber, Lyft drivers enjoy flexible scheduling and can decide how often they want to drive. However, busy periods and peak hours tend to offer higher earning potential. These peak periods can include rush hours, weekends, and special events when demand for rides increases. 

Availability: Lyft operates in several hundred cities across the United States and Canada, providing drivers with a wide range of opportunities for picking up passengers. While Lyft drivers generally keep a higher percentage of their fares compared to Uber drivers, it’s important to consider that there are many more Uber customers than Lyft customers. Consequently, there may be fewer rides available for Lyft drivers compared to being an Uber driver.

Food Delivery Services

Like rideshare, food delivery services involve using your car, truck, or even motorized scooter (in some cities!) to pick up and deliver food to hungry customers. You set your own hours and choose your tasks, earning money from each trip.

DoorDash

DoorDash is a popular food delivery service that connects drivers with local restaurants and customers. As a DoorDash driver, you’ll deliver food orders from restaurants to customers’ doorsteps, earning money for each completed delivery.

Expected Pay: DoorDash drivers receive a base pay per delivery of between $2 and more than $10, along with additional amounts based on factors such as distance, time, and the complexity of the order. Additional pay is available for working at peak times or successfully completing challenges (doing a certain number of deliveries in a set time period).

Moreover, DoorDash provides a pay incentive program called Guaranteed Earnings, which ensures that drivers earn a predetermined amount for a specified number of deliveries within a set time period. If a driver’s earnings fall below the guaranteed threshold, DoorDash compensates for the difference. To provide a more comprehensive understanding of DoorDash driver earnings, the table below illustrates potential pay rates in different scenarios:

Tips: Customers can tip their DoorDash drivers through the app, adding to their overall earnings. Unlike the Uber app, the DoorDash app encourages customers to tip 10-20%.

Workload: DoorDash offers flexible scheduling, allowing drivers to choose their working hours. The workload can vary depending on the demand in your area and the number of deliveries you accept. 

Availability: DoorDash operates in over 7,000 cities across the United States, Canada, Australia and Japan, making it accessible to drivers in numerous locations.

GrubHub

GrubHub is another popular company in the food delivery industry, partnering with local restaurants to deliver meals to customers. GrubHub drivers can enjoy the flexibility of choosing their own schedules and delivering food to hungry customers.

Expected Pay: GrubHub drivers have the opportunity to earn a competitive income through a combination of base pay per order and customer tips. The base pay for each delivery can vary depending on several factors, including the distance traveled, time spent on the delivery, and prevailing market conditions. Here is a table to help you better understanding the average earning potential through GrubHub:

Tips: To enhance their earnings, GrubHub drivers also have the advantage of receiving tips from customers. The GrubHub app allows customers to tip their drivers, providing an additional income stream. GrubHub encourages customers to consider tipping at least $5 or 20% of the total order amount, whichever is more. Additionally, customers are prompted to add an extra 3-5% for very large orders, an additional $3-5 for deliveries in unfavorable weather conditions, and an extra $1-2 if the driver has to navigate stairs.

Workload: One of the appealing aspects of being a GrubHub driver is the flexibility it offers in terms of determining availability and workload. As a driver, you have the freedom to choose the number of deliveries you accept, which can directly impact your earning potential. 

Availability: GrubHub has established a widespread presence across the United States, operating in more than 4,000 cities nationwide. This extensive network provides GrubHub drivers with numerous opportunities to deliver food to customers in various locations. 

Both rideshare and food delivery services offer flexible work options and the potential to earn extra income. When deciding between becoming a rideshare or food delivery driver, consider factors such as expected pay, tips, workload, availability, and personal preferences. 

Research the major players like Uber, Lyft, DoorDash, and GrubHub to determine which service aligns better with your goals and needs. Driving for one of these companies can help you earn money when you are between jobs, supplement your income as a side hustle or become a full-time job.