Can Delivery Drivers Make a Living Driving for DeliveryBizConnect?
Delivery drivers are the backbone of this gig economy particularly in the food delivery service industry. Ironically, they are also among the most underrated, underpaid workforce in the labour market.
In this article, we’ll talk about driving for DeliveryBizConnect and how we can turn the tables on major third-party delivery apps by offering a much better pay to our delivery drivers.
How Much Delivery Drivers Make on Major Third-party Apps
There’s no definite pay scale for delivery drivers. As with any freelance work it all depends on one’s effort and ability to maximize potential earnings and opportunities. However, based on what drivers normally get on average, we can come up with a rough estimate, based upon data collected from the United States.
Let’s look at the data from major third-party delivery apps. These numbers were pulled straight out of the delivery app’s website, and the average pay from current statistical data.
|Delivery Driver App||Base Pay||Promotions||Tips||Avg. Hourly Pay (Gross in US Dollars)|
|Uber Eats||$2.50||+ Boost|
|DoorDash||$2||+ Peak Pay|
|Grubhub||$3||+ Bonus Cash (limited time offer)||100%||$12-$20/hr.|
If we look at the average hourly pay before taxes, all three of them are within Canada’s minimum rate of about C$14.25 per hour.
The base pay is what drivers actually get for the work done irrespective of promotions and tips. The amount that guarantees drivers a living wage turns out to be around $5 (C$6.30) per delivery. Restaurants and delivery apps usually implement minimum orders or small order fees, so this wouldn’t be a problem.
So far Grubhub is the fairer platform among the three based on the initial pay of $3. The average pay is also a tad higher compared to Uber Eats.
DoorDash has the highest average pay among the three. Certain factors include popularity and tipping percentage. Assuming drivers are doing 2-3 deliveries per hour, adding in tips would earn them at least $12/hr (C$15.12/hr).
Now let’s look at the drivers’ earnings when we put in miles per delivery. One rule of thumb is to calculate how much drivers get per mile per delivery (dollar per mile ratio).
Anything less than $1.20/mile ($0.75/km) is considered too small when you factor in wear and tear and tax write-offs per mile. Hence, a 4-mile drive for just $4 is too thin to be worth considering. Adding tips, say $2, yields $1.50/mile ($0.93/km) which makes the drive worth the time and effort.
Bottom line: without the TIPS, delivery drivers are earning WAY LESS than the minimum wage.
Other platforms make up for this by encouraging drivers to take part in promotions. These third-party apps “gamify” the system with things like “Quest,” “Challenges,” “Peak Pay,” etc. in an effort to get more drivers on the road and improve the overall service somewhat.
We believe there’s a much better way than trying to best each other out for the prize.
In the next section we’ll talk about some challenges delivery drivers have to contend with on a regular basis and why they should consider a fairer platform like DeliveryBizConnect driver app. Towards the end, we offer a simple strategy plus bonus tip on how drivers can maximize potential income even when they’re not driving.
Why Drivers and Restaurants Need to Rethink Deliveries
1. Low Base Pay
As mentioned earlier, setting a minimum threshold for the driver’s base pay is extremely important if we are to keep our driver friends happy.
Using the dollar per mile ratio might help you come up with a reasonable base pay. You can set this up in DeliveryBizConnect’s back office as shown in our video tutorial below:
This applies to long trips as well. You can add a first and second tier for long trips as a little bonus to your delivery drivers for taking the extra mile (pun intended). It’s also a way to attract more DeliveryBizConnect drivers in your area.
2. Fierce Competition
This somewhat goes back to drivers not getting enough on their base pay. Notice how drivers mob restaurants during peak hours to get the most out of “Peak Pay,” “Boost,” or some kind of rate multiplier.
At first glance, this might seem like helping restaurants and drivers become more efficient, particularly during busy times. Besides, who doesn’t want a bigger pay?
But here’s the catch: the more delivery drivers compete for driving opportunities in a certain area, the lesser the opportunities for each individual driver. When it comes down to earnings, it doesn’t really make that of a difference. They’re better off getting on the road for as long as they can instead of sitting idly for hours waiting for that “bigger opportunity.”
Here’s a better idea. What if, instead, we give our drivers peak pay bonuses on top of the livable minimum base pay they’re already happy with? Isn’t it a much fairer deal than having them fight their way through for that extra carrot? With DeliveryBizConnect we give you full control on how you want to incentivize your drivers during busy hours so everyone gets a fair slice of the pie.
Quite the opposite of No. 2, slowdowns usually happen when you don’t have enough users ordering through the app. Savvy delivery drivers know this all too well so they do the right thing and work with 2 or more delivery apps instead of relying on just one.
So here’s the plan. We can turn things around for our driver friends by offering them to become DeliveryBizConnect drivers in addition to their already existing driver app.
For instance, you may insert a brochure on their delivery bags each time they pick up from your restaurant with a link or QR code to download and install the Driver app. The goal is to get more and more DBC drivers in your area.
Watch our video to learn how to get more delivery drivers in your area and earn more money in the process.
They don’t have to ditch their existing driver app but can gradually put more time on DBC as it pays a lot better than major third-party apps. In the meantime, they can also earn money even when they’re not driving. Read on to learn how.
Additional Income Streams for Delivery Drivers
We value our delivery drivers as much as we value you and your food customers. So instead of just having them work day in and day out, we offer opportunities to earn passive income when they’re not out and about doing deliveries.
To give you an idea of how much they’ll get from DeliveryBizConnect’s driver referral program, the potential income can be as high as 200% the average income per month doing deliveries. It’s our way of showing our appreciation for all the work they’ve done to keep the restaurant industry alive in this new reality
Tell Us How You Want to Start Doing Deliveries
If you need any help on how to jumpstart your own food delivery service, feel free to book an appointment with us for a 30-minute Complimentary Restaurant Sales Expert Call. We’re on a mission to help restaurant owners get back on their feet and increase sales like never before.