How Do Driving Apps Work?
The actual process depends on the app you choose, but here’s generally how it works when you get accepted.
- You open the app and wait for a ride or delivery request.
- You accept the request.
- You go to the pickup point indicated in the in-app map, whether it’s to pick up a customer, a package, or food.
- You go to the destination to drop off the customer or the delivery.
- The customer leaves a review and tip (or not).
- The fare goes to your account, minus the app’s fees and charges.
Pros and Cons of Using Driving Apps to Make Money
Read the pros and cons of driving apps that pay you to drive to learn if this part-time gig is for you.
No Fixed Income
Additional Commercial Insurance
Instant Access to Earnings
Working as an Independent Contractor
High Costs of Gas and Maintenance
Bonuses and Benefits
Subject to Company’s Terms of Service
These platforms allow you to set your own schedule. This flexibility works to your advantage if you are a student or have a full-time job.
You can maximize your earning potential during peak demand hours. For instance, Uber has a feature called dynamic pricing, which uses a color-coded heat map to determine the highest fares in your area.
2- Sign-Up Process
It’s often simple to sign up on most of these services. In most cases, you only need to apply online.
The apps pay you instantly for the work you do. Many ridesharing and delivery service apps allow drivers to access their money right away.
You don’t need a car to turn driving apps into a part-time gig. In some cities, you can deliver food using bicycles and scooters or even on foot.
4- Easy Navigation
The platforms have in-app navigation to help you reach the rider’s location or deliver food or grocery to a shopper.
Some driving services like Uber and Lyft help drivers get their own vehicle and pay off what they owe based on their earnings.
Some drivers qualify for initial sign-up bonuses and performance-based incentives.
1- Independent Contractor
As an independent contractor, you don’t have the same benefits as employed individuals. Most of these services don’t provide health insurance, for example.
In many cases, you must conform to the apps’ pricing schedules since the fares are quite cheap outside of the high-cost windows. Consequently, your driving schedule is often closer to 7-11 am and 3-8 pm every day.
2- Additional Insurance Coverage
You must carry commercial rideshare insurance on your vehicle as part of the company safety guidelines.
3- No Fixed Income
Your income highly relies on the amount of work available on the app. Similarly, the earnings per gig wildly vary.
Your wage does not always reflect the amount of effort and time you put into your side gig.
4- Company Policies
The terms of service frequently change with driving apps. When you don’t like the change, you can’t do anything about it but leave for another app.
5- High Costs
You’re responsible for all the costs of this service, including maintenance, car insurance, and fuel.
The rising fuel costs and upkeep can eat up a huge chunk of your earnings.
How Much Money Can You Make Driving?
There are so many variables affecting your average pay, including the driving app you’re using, the area where you drive, the type of vehicle you have, the tips you receive, and the amount of work you’re putting into your side gig.
Driving apps pay its drivers different rates, so you must also consider which can give the best value for your time.
Nevertheless, the average earning potential with Uber Eats and other food delivery apps is $15-$25. This amount also applies to many popular ridesharing services.
Sometimes, using food delivery platforms that work with higher-end local restaurants can lead to better earning potential.
Which Driving App Is the Best?
There is no definitive way to answer which driving app is the best. You must consider factors like,
-Your Available Time
When are you available to drive? Your driving habits affect your decision because some apps may not provide enough requests at certain times.
For example, not many people may request delivery for groceries in the wee hours of the morning.
– Type of Work
Simply put, what type of company do you prefer while driving around?
Do you want to drive around people, or do you prefer delivering to their homes instead? You may also consider shopping for groceries instead of driving the whole time.
Review how much you can potentially make with each app, then decide which one is worth your time and effort.
Some apps are only available in certain locations. See which ones are available in your area.
If you have an issue, you only have the app to rely on. You won’t be working as an employee, so you must have confidence in the company you’re contracting for.
Other Ways To Make Money Driving
Apart from rideshare apps and delivery service platforms, you can earn money with your car with these ideas.
- Become an in-store shopper for groceries. Shipt and Instacart allow you to shop and deliver orders to enjoy a higher potential earning.
- Consider car wrapped advertising. Your earning potential depends on the size of your car and daily commute, although you can expect $180-$450 monthly earnings. Not bad considering it’s a passive income source.
- Rent your vehicle out through platforms like Getaround and Turo.
- If you have a pickup truck or SUV, you can use TaskRabbit and other similar platforms to transport large items that don’t fit in smaller vehicles.
- You can provide shuttle services for children.
Frequently Asked Questions (FAQs)
What App Pays You for Every Mile You Drive?
Food delivery and ridesharing apps pay you for every mile you drive, sometimes even enough to pay your bills throughout the month. As long as you know your market, they are lucrative side hustles.
Which Driving App Makes the Most Money?
Lyft is one of the higher-paying driving apps. However, if driving people around town is not your cup of tea, Amazon Flex and Doordash are worth considering.
How To Maximize Your Earning Potential with Uber or Lyft?
Follow these tips to maximize your earning potential with these popular driving apps.
- Pick high-earning locations and high foot-traffic areas like shopping malls, central business districts, bus/train stations, and airports.
- Keep an eye on local events, which cause a surge in ride demand.
- Drive near bars and other similar venues where people are looking for a safe side home after drinking.
- Pick the busiest time for ride requests.
- Maximize your tips by being friendly and polite to your riders. Also, keep your car clean and presentable.
How To Make Money Driving Without a Car?
Yes. Uber and Lyft have programs that help drivers rent or own a car, which they can pay off based on what they earn.
Meanwhile, Uber’s food delivery service UberEats lets you deliver food using a bike or scooter.
Which Is Better, Food Delivery, or Ridesharing App?
It depends. If you’re driving a new or nicer car, ridesharing apps let you earn more money. On the other hand, the vehicle requirements for delivering food are more relaxed. In some cities, you can also use scooters or bikes or make deliveries on foot.
How Do Uber Drivers Get Paid?
The ridesharing app pays drivers weekly. The company deposits payments automatically via direct deposit.
Is Signing Up for Uber Easy?
Yes. It’s easy to sign up for Uber if you meet the minimum age requirement (at least 18 years old). You also need to pass a multi agency background check and have a good driving record and a valid driver’s license.
Vehicle requirements vary by city, but in general, it should not be older than 16 years. In addition, it must pass a vehicle inspection and carry insurance.
The Bottom Line
Ridesharing and food delivery platforms provide opportunities to earn money and set your own hours. But as an independent contractor, you need to pay for gas, car maintenance, and insurance.
In addition, you have to give up your time to deliver food or drive people around town. If you already have a nine-to-five job, a time-consuming side gig may eventually lead to burnout.
If you think driving is not for you but you need a side hustle, consider some ecommerce business ideas you can do at home.