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Becoming a driver for a delivery app can be a legit side hustle that generates extra money in addition to your regular job. You can do grocery delivery or sign up for a food delivery app. As with all gig economy jobs, you can set your own schedule, do these gigs either full-time or part-time, and reject any deliveries that don't fit your schedule. But Uncle Sam considers you an independent contractor for tax purposes, so you'll have to pay tax if you've made $600 or more through any of these platforms.
Each delivery app has its own requirements, which are detailed below. But in general, you should be at least 18 years old with a car and a clean driving record, and have a valid driver's license and insurance.
A few also have certain weight requirements you must be able to lift, while some stipulate that you have either a truck or a big sedan car; a few will even let you make deliveries on foot. Maybe you'd rather deliver via a bike or a scooter? Or perhaps you have a truck you'd like to use to deliver large packages and make even more? In the end, it all comes down to your unique situation.
You can't just deliver food using your vehicle without contacting your insurance carrier. As a delivery driver, you'll need special coverage. Several insurance companies offer delivery driver insurance, but some may not, which may mean switching carriers. It's important that you compare rates to ensure your policy offers high policy limits and affordable premiums.
If you're using your vehicle to deliver items, insurance companies are likely to consider delivery as business use of your vehicle. As such, you may have to shell out for a commercial auto policy. Because you'll be on the road more often (and thus increasing your chances of an accident or another mishap), insurers will consider you high risk, and as such, you'll be charged higher rates. And if you use a personal vehicle for commercial purposes without telling your carrier, you risk facing denial of coverage.
important: If you earn $600 or more through any side gig, you’ll receive a 1099-NEC form and need to file federal taxes.
It's hard to imagine anyone got through the Pandemic without turning to DoorDash. Providing delivery service between thousands of restaurants, convenience stores, pet stores, and grocery stores across the U.S., Canada, Australia, Japan, and Germany, DoorDash has been around since 2013 and experienced so much growth and success it even went public at the end of 2020.
"Dashers," as its delivery drivers are called, are paid per delivery, and you set your own hours. This means you could do one delivery on your lunch break from your regular gig keep your payment and tip, and return to work with a little change in your pocket. Or, if you really commit, DoorDash claims its Doordash drivers are making about $25 per hour. The best part? You get to keep 100% of the tips. And, there are different factors for how much you'll earn. If you're willing to pick up orders for far-flung areas other Dashers aren't taking, for example, this could help you earn more cash.
You don't necessarily need a car to start earning money through this delivery company. Is it raining? Take the car. Too much traffic? Go on a bike or a scooter. Feel like taking a walk? You can deliver on foot. The food delivery app's website lists options available for your city. But if you have a DUI or any assaults on record, DoorDash won't take you on.
Uber Eats
As it's clear from the name, Uber Eats is owned by ride-hailing giant Uber and was launched first in the U.S. in 2015. Now available in more than two dozen countries, Uber Eats is as much a brand name as its people-shuttling services. If ferrying people across town isn't your thing, you can still work for Uber by delivering food.
According to Glassdoor, full-time Uber Eats drivers make more than $60,000 annually, up to $5,000 monthly. A pick-up fee, drop-off fee, and a per-mile rate all come into play to determine how much you'll ultimately make with a "Boost," helping to maximize your earnings potential. Again, any tips you're given are yours to keep, and you can receive payments in three ways: weekly deposits to your bank account, instant cashout (up to five times a day), and two-day cashout (once daily).
Just like DoorDash, you can deliver via a scooter or a bike on your own schedule, picking and choosing which orders you want to take. You must be 19 years old, have at least a year of driving experience, and have a valid U.S. driver's license if you'd like to become a food delivery driver for Uber Eats. Other requirements depend on how you're making deliveries. For example, if you deliver via a car, you should have a reliable vehicle with at least two doors. It should have a 50-CC or higher motor if you're delivering on a scooter.
GrubHub
As the first on-demand delivery service, GrubHub is also a popular choice for those seeking takeout-only deliveries. Founded in 2004, it was the largest food delivery company outside of China, operating in more than two dozen countries, including the U.S. When it merged with China's largest online food delivery company, it became the world's largest.
As a driver, GrubHub considers mileage per order, time spent on the road, tips, and special offers to determine your total pay. Any tips you make are yours. Glassdoor pegs a GrubHub driver's yearly pay at more than $54,000, or $4,500 monthly. You can get paid via direct deposit or cash out to your bank account for $0.50 each time with its instant cash-out feature available on earnings of up to $500 daily.
Starting with GrubHub is fairly easy as well. You must be at least 19 years old, have a valid driver's license and insurance, and a car.
Amazon Flex
Amazon's acquisition of Whole Foods in 2017 marked its foray into the food business, turning the online powerhouse into a local grocery delivery service. (It spent more than $13 billion to do so!) As an Amazon Flex driver, you'll deliver orders from Amazon, Amazon Prime, and Amazon Fresh, dramatically increasing your ability to make through this app. You can pick up packages, groceries, or household items from an Amazon delivery station and deliver them to customers. You can also pick up orders from local stores.
Amazon Flex says delivery drivers can earn between $18 and $25 per hour, which ultimately depends on your location, tips, and how long it takes to complete an order. Payments are processed each Tuesday and Friday via direct deposit to your bank account.
But because you'll also be delivering for Amazon and Amazon Prime, you'll need a 4-door, midsize sedan or larger vehicle, unlike a few other apps where you can do with a small car or even a bike or a scooter. In addition, you should be at least 21 years old and have a valid U.S. driver's license if you want to join this delivery gig.
Postmates
Postmates was founded in 2011 and acquired by Uber in 2020 for $2.65 billion as its ride-hailing business struggled during the pandemic. It still operates as Postmates, boasting 600,000 restaurants, retailers, and grocers as members of its food and grocery delivery service and alcohol delivery.
Much of Uber Eats' rules apply to Postmates because the same company owns them. According to ZipRecruiter, a Postmates delivery driver makes more than $40,000 per year or over $3,000 monthly. Postmates will take you on as a driver if you're at least 18 and have a valid driver's license and insurance. Drivers can cash out if they have $5 in their Postmates account, but a $0.50 fee will kick in. Other than that, you'll be paid weekly via direct deposit.
Shipt was created in 2014 as a same-day grocery delivery service, and while its founder didn't score a $13 billion acquisition like Whole Foods, he did sell it to Target for $550 million. But you aren't just delivering Target goods. Shipt, as it still operates, delivers groceries, alcohol, household essentials, office supplies, and more from various stores, including Petco, Cosco, and Bed Bath & Beyond.
As a Shipt Shopper, you can choose what hours you'll work. And there are several perks at your disposal, too. Shipt helps you with tax prep by giving shoppers a 50% discount from TaxSlayer. There are also perks related to auto insurance, maintenance discounts, gas-saving programs, and access to discounted prescription plans and gym memberships.
Shoppers are paid every Friday via direct deposit. You'll be paid per order and can earn tips and bonuses. According to Shipt, a shopper can make $20 to $30 per hour and keep 100% of customer tips.
Shipt allows you to deliver if you're at least 18 years old, have a valid driver's license and insurance, have knowledge of produce selection, and can lift 40 pounds. To join, first, you'll be required to answer a few simple questions. This is meant to evaluate your problem-solving, communication, and decision-making skills. Next are video responses so Shipt can get to know you and your familiarity with apps. The process can take a few weeks to complete.
Saucey
For anyone at home having a get-together and running out of enough drinks to keep the party going, Saucey comes to the rescue. Offering local alcohol delivery in 30 minutes or less, Saucey launched in 2014 and was a hit during the pandemic. It has more than tripled its delivery locations between 2020 and today. Still, Saucey doesn't have as big a footprint as other delivery apps and is only offered in about 60 cities nationwide.
Because it is booze you are delivering, you must be at least 21 years old and have a clean driving record if you'd like to deliver for Saucey. And because you're delivering alcohol, you'll have to check customer IDs before handing them their orders.
According to Indeed.com, Saucey deliverers' average hourly rate is $15 per hour. But while other apps operate round the clock, Saucey only operates between 8 a.m. and 2 a.m., lowering your earnings potential.
Instacart
There are two ways to earn through Instacart, which launched as a same-day grocery delivery service in 2012: an in-store shopper and a full-service shopper. The former entails preparing orders so you don't need a car. But as an Instacart employee, you'll have to stick to a schedule, in this case, up to 29 hours per week. The Instacart shopper role takes away the biggest perk of the gig economy: working when you want to. By comparison, a full-service shopper is in a contractual position where you'll be responsible for shopping and delivering items to a customer. It requires that you have a car, but you can work whenever you want to.
As an employee of the grocery delivery service, in-store shoppers earn a daily wage, estimated at $13 per hour. A full-service shopper can keep 100% of the tips you receive. You can also make more money through referrals if your referee completes several batches within a specific timeframe.
To become a full-service shopper, you must be at least 18 years old, have vehicle access, and be able to lift 50 pounds. You must also provide your Social Security number to run a background check, which is completed within 10 business days in most cases.
Favor Delivery was founded in 2013 and was acquired five years later by supermarket chain H-E-B in 2018. Haven't heard of it yet? That's because it operates in Texas and parts of Mexico. Favor Delivery aims to make deliveries within one hour. But Favor bills itself as a personal assistant, not just a delivery service. Favor will also take care of that if you'd like to get some dry cleaning done. To begin delivering for Favor, you must be 18 years old and have a clean driving record. You can deliver in cars, trucks, scooters, or motorcycles.
Favor Runners make 35% of the delivery fee and 100% of all tips. The company guarantees $9 to $10 per hour, but hourly pay averages close to $12 to $18 during peak times. You're also covered with third-party liability and contingent collision coverage as a Runner.
Easy to get started: Signing for these apps isn't exactly rocket science, and it requires minimal effort as long as you check all the boxes. A few do require you to be able to lift weight though.
No strings attached: This is the arguably the biggest perk! Because of roles' contractual nature, you can set your own schedule and work whenever you want to.
Legit side hustle: Many of these apps can be turned into a legit side hustle if you keep at it.
Cons
Cost: You're responsible for gas and phone bill. In addition, you will also have to stay current on auto insurance payments, and the vehicle's wear-and-tear is something you should factor in as well.
No fix income: How much you earn ultimately depends on how much you're willing to push yourself. The more you work, the more money you'll make.
Not suitable as a career: Delivery jobs are fine to reel in some extra cash, but they can't replace your primary job. They're not a long-term solution to any financial troubles you may be facing.
The bottom line
The global online food delivery sector's market size is estimated to be $130.2 billion, according to Statista, which expects that figure to grow to $223.7 billion by 2027. Entering this burgeoning industry doesn't require any special skills. The minimum age is 18; you should have a valid driver's license and insurance; in some cases, you should be able to lift the weight.
Delivery jobs often come with base pay, and you keep 100% of the tips, and some have additional incentives like mileage reimbursement or discounts on food, groceries, and products. There are also referrals for new drivers. The on-demand culture is growing, and delivery jobs from famous fast food chains to local restaurants are proving to be a legitimate side hustle.
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Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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