Gridwise blog

The gig economy is here, and it’s taking over urban mobility in the form of ride-hailing and on-demand delivery. 

Ride-hailing has become the new favorite transportation method for people of all ages. As evidence, we need look no further than the financial results of the two industry leaders.

Uber has grown from $5.4 billion in gross bookings during Q3 of 2016 to 18.1 billion in gross bookings during Q4 of 2019.

During the same period of time, Lyft also experienced astronomical growth. In Q1 of 2016 Lyft says it had 3.5 million active riders, and by Q4 of 2019 that number had grown to 22.9 million.

The explosive growth of ride-hail was not realized by other forms of traditional transportation. According to the 2020 Public Transportation Fact Book, while ride-hail has been on the rise, public transportation has been consistently decreasing since its peak in 2014.

Source: American Public Transportation Association, 2020 Public Transportation Fact Book, March 2020.

The 2020 COVID-19 pandemic has exacerbated the migration from public transportation to ride-hail.

Using Gridwise’s network of over 200,000 ride-hail and delivery drivers, we analyzed ridership trends during the 2020 COVID-19 pandemic. We could see that ride-hail usage had significantly declined, but riders have been quick to come back.

The same is not true of public transportation, however. Based on data from Apple’s Mobility index, public transportation has bounced back more slowly, and is once again on the decline.

But it isn’t just ride-hail that’s taking over urban mobility; the demand for food and grocery delivery has soared during 2020. According to DoorDash’s recently filed S-1, their business has more than doubled since Q1 of this year.

The emergence of gig mobility will bring new opportunities for firms across dozens of industries that understand the gig economy and the immense impact it will have on mobility. Those that don’t may miss out on staying relevant as mobility continues to change. 

Let’s take a look at this emerging market and examine how gig mobility data can be used. We’ll cover:

• What gig mobility data is
• Who would find gig mobility data useful
• The challenges involved in using gig mobility data
• Why it’s critical that companies begin to understand gig mobility data

What is gig mobility data?

Understanding gig mobility data starts with understanding the meaning of mobility, which refers to the movement of people and goods.

Gig mobility services refers to ride-hail and on-demand delivery, such as food, grocery, and parcel services. Examples of these services include Uber, Lyft, DoorDash, Amazon Flex, and Instacart, among others. 

Gig mobility data is a specialized form of mobility data; specifically, it’s data that is generated by ride-hail and delivery services. Gig mobility data helps us understand how people and goods move across on-demand delivery and ride-hailing services.

Gig mobility data makes it easy to understand supply patterns, demand patterns, gig driver wages, and gig service fleet efficiency. It helps us answer questions like:

• From where are people or goods originating?
• Where are people or goods going? 
• What are the most common routes for traveling by gig-service vehicles?
• What is the density of delivery orders or passenger trips within a given city?
• How efficiently are gig mobility services utilizing their fleets, and what is their throughput?
• How much do gig-drivers earn, and on what platforms?

Who would find gig mobility data useful?

Gig mobility data is invaluable for businesses, researchers, regulators, and government entities of every conceivable type. They can use the data to analyze the exact ways mobility impacts their operations, and how they can adapt their goods and services to better cater to populations that rely on ride-hailing and delivery services.

Here are some of these entities, and how gig mobility data can benefit them:

Gig mobility service providers can see how services other than their own are routing trips and allocating resources.

Cities can leverage a multitude of gig mobility data to be positioned to build the smart cities of the future by informing themselves on how to better manage the curb, improve the flow of traffic, introduce new monetization models, and more. 

Transportation organizations can better understand traffic patterns, get genuine wage information, and identify geographic areas where people might benefit from targeted economic development activity. 

Financial service providers can view service-specific economics in addition to supply and demand patterns to make more informed investment decisions.

Real estate firms can leverage origin and destination patterns to better inform site selection, accomodate more innovative parking infrastructure, and figure out the right residential areas for their clients. 

Autonomous vehicle operators can use utilization patterns, per trip/order economics, routing and traffic patterns, and more to determine areas of operation and program their vehicles for commercial purposes.

Labor organizations can leverage gig worker wage data to better inform wage standards and worker classification for gig economy workers. 

Logistics and last-mile providers can use density of delivery routes and utilization data to optimize their last-mile efficiencies..

Electric vehicle-charging platform providers can discern where vehicles go most frequently and where they dwell to determine optimal site selection for charging stations.

Retail establishments can leverage origin and destination patterns to better inform site selection of new establishments.

Airports can plan more efficient traffic management systems, properly allocate curb space, and become capable of planning for realistic needs for parking and other services.

The challenges involved in leveraging gig mobility data

The biggest challenge businesses and other entities face when trying to leverage gig mobility data is accessibility.

At best, information about ride-hail and delivery has been scattered in several different places and almost impossible to access. Why? Because ride-hail and delivery companies don’t share this data.

Some general mobility data that details the general movement of vehicles in cities is available, but cannot provide additional context into the what or the why for how those vehicles are moving. 

Current general mobility data can tell you that a vehicle is driving down the road. Gig mobility data can tell you where that vehicle is going, where it is coming from, the purpose of the trip, and the economics behind the trip.

In short, accessing gig mobility data that companies need for better decision making hasn’t been easy.

Until now that is.

How can I access gig mobility data?

Today, organizations can turn to Gridwise Analytics to understand supply patterns, demand patterns, and gig wages and efficiency in gig-mobility.

How?

We have built a network of over 200,000 rideshare and delivery drivers across the U.S., who leverage every major platform to provide analytics on how people and goods are moving across ride-hailing and delivery services.

Organizations can use data from Gridwise Analytics to gain a rich understanding of driver behavior available nowhere else.

If you’re interested in understanding gig mobility, don’t hesitate to reach out to data@gridwise.io to learn more.

Gig drivers can make an extra $500 cash in May! It’s called the Gridwise Mileage Tracking Challenge. Simplysign up on this Google formto participate and start tracking your miles with the Gridwise app. For every five shifts you complete and track your miles during the month of May, you receive one entry in the Gridwise Mileage Tracking Challenge. There are no limits to the amount of entries you can receive so make sure to track your miles every time you start a shift to maximize your odds!At the end of the Mileage Tracking challenge, Gridwise will randomly draw one lucky winner for a cash prize of $500! Don’t have the Gridwise app? Download it hereto join the challenge!Smart gig drivers know that tracking their earnings, expenses, and mileage is the best way to analyze their activity, maximize their income, and verify tax deductions—but doing so can be difficult and time-consuming.Not with Gridwise! Synchronize all your gig driving apps with Gridwise just once. The Gridwise app works in the background of your other apps, capturing earnings and expenses from each gig you work. The Gridwise app saves this data into organized formats so you can identify high-earning times and locations. Armed with this information, you can adjust your strategy accordingly and be more profitable.

Smart gig drivers also use the Gridwise Mileage Tracker to accurately record all their gig driving miles for the maximum tax deduction. The gig driving apps track your miles only when you are on your way to pick up a passenger or delivery or when you are actively transporting. But did you know that the miles you accrue before you get your first ride or delivery and all the miles in between are also tax deductible?The Gridwise Mileage Tracker records all miles for later download into a database program, such as Excel, for easy handling. Taxes are a cinch, and given the current standard mileage deduction of 65.5 cents, drivers can save thousands in additional tax deductions. Turn it on at the beginning of your shift when you activate your other apps.The May Gridwise Mileage Tracking Challenge is open to all Gridwise users, as well as those who download and start using the app during the challenge. Only miles recorded in May 2023 are eligible. Entry is free. All participants, including both new and current Gridwise users,must sign up for the official Mileage Tracking Challenge found here. The winner will be randomly selected on June 1, 2023, from all registered participants.Don't have the Gridwise app? Download it here to join the challenge!Sign up now and start tracking those miles!

Too many drivers don’t find out until it’s too late that the auto insurance coverage they purchased for their vehicle doesn’t always cover damages that occur when delivery or rideshare driving. As a gig driver, you need to be aware not only of what the companies you drive for require of you, but what your average auto insurance policy will or won’t do for you in the event of an accident.

In this post, we explain the role insurance plays in your driving gig, and offer options that ensure you get all the protection you need. Here’s how we’ve lined things up:

• Why do drivers need rideshare and food delivery insurance?
• Don’t rideshare and delivery companies offer insurance?
• What exactly is rideshare insurance?
• How much is rideshare insurance? 
• Where can drivers get affordable insurance?

Why do drivers need rideshare and food delivery insurance?

When you sign up with an app to drive or deliver, all you have to do is show that you carry an insurance policy on your vehicle. Theoretically, you’re good to go. But are you, really?

Start by asking, “Does being a rideshare driver affect my insurance?” In short, yes. When you put your car to work so that you can do a rideshare or delivery driving gig, the companies that insure you begin to look at the risk they’re taking in a different way. Now you’re not just driving to and from work, and here and there for social reasons. You’re going to be driving a lot, and no matter how careful you are, the extra driving time raises the probability that you will be in an accident.

Read your insurance policy carefully! If you have an average auto policy, it’s likely that there are limits to how much it will cover if you have an accident while you’re driving for rideshare or delivery. In some cases, your policy can be canceled if you have not revealed that you are using the vehicle to make money. 

Don’t rideshare and delivery companies offer insurance?

It’s true that rideshare and/or delivery companies provide coverage for drivers, as well as any passengers that might be involved if you’re in an accident while you’re on the app. There are certain conditions, though, that you should know about.

Below we outline the three tiers of coverage offered by most apps, a framework borrowed from the Uber website. You need to check the insurance stipulations of all the apps you drive for to see exactly what coverage you will have in the event of an accident.

1. When you go offline, or your driver app is off, you must rely on your individual insurance policy.

2. When you go online and are available for rides or orders, the coverage is as follows: 

• third-party liability if your personal auto insurance doesn’t apply

• $25,000 in property damage per accident
• $50,000 in bodily injury per person
• $100,000 in bodily injury per accident

3. The following coverage applies when you are en route to pick up/drop off deliveries or executing a rideshare trip:

• $1,000,000 third-party liability
• contingent comprehensive and collision (excluding accidents occurring in New York State) up to the actual cash value of the vehicle, with a $2,500 deductible

While the coverage from Uber might be adequate in most cases, you should take note of the very high deductible ($2,500) involved. This can put you in a precarious financial position should you be unfortunate enough to experience an accident. It’s certainly something to consider when you weigh the pros and cons of investing in your own insurance coverage. 

What are the advantages of rideshare insurance? There are more than a few, and once you learn about them, you’ll see why rideshare insurance is so important.

What is rideshare insurance?

Rideshare or food delivery car insurance is coverage over and above what your personal auto policy provides. It is known in the insurance business as an endorsement. It ensures that you will be covered in the event of an accident, even though you are using your car to make money. This article from Forbes.com gives a thorough overview of what rideshare insurance is, why you need it, and where you can find it. 

Not every insurance company offers rideshare or delivery endorsements. You will have to check with your insurance company and shop around with others, so you can get an endorsement without paying unaffordable premiums. 

For some gigs, especially Amazon Flex, commercial insurance is required. Most US drivers are covered by the commercial policy Amazon Flex holds. Drivers in the State of New York, however, must purchase their own commercial insurance; state law does not allow them to be covered by Amazon’s policy. Drivers overseas must also procure their own hire and reward insurance, which is the same or similar to a commercial policy. 

Don’t get complacent, though, believing that working for Flex covers all your bases. You also need to have your personal auto policy, and you must tell your insurance company that you will be using your vehicle to deliver for Amazon Flex. If you don’t, just like with other driving gigs, you can wind up being charged with insurance fraud. Honesty really is the best policy, particularly when you’re working with insurance companies.

How much is rideshare insurance?

There is no straight answer to this question. Costs vary based on the state in which you live, and the particular insurance company that offers endorsements for rideshare and delivery drivers. In general, according to Nerdwallet, Mercury offers the endorsement for an extra $27 per month, and Safeco’s cost is “likely” under $10 per month. State Farm, Nerdwallet reports, charges as much as 10–20% of the premium above the basic rate. 

If you can get an inexpensive policy, that is certainly to your advantage. However, it isn’t always possible to find a low cost auto policy whose underwriter is willing to add a rideshare endorsement. Often, drivers find that they have to take a more expensive policy, and then add on the cost of the endorsement.

Despite the possible expense, getting insurance for food delivery or rideshare is a wise investment. Relying on your rideshare or delivery company for extra coverage could mean you pay a deductible that exceeds what you would have paid for that extra insurance over the course of the entire year.

Accidents happen more frequently to rideshare and delivery drivers—the most obvious reason being that because they drive more, the probability of being involved in a traffic mishap is higher than for less mileage-intensive drivers. This article from Market Business News points out that delivery drivers who are under pressure to make the maximum number of trips within small time frames are particularly at risk. They are more likely to run red lights and ignore traffic signs, in hope of shortening their delivery times. Rideshare drivers, as well, may want to race from one ride to the next to maximize their earnings.

New business practices that companies have rolled out over the past year have put some delivery drivers under increased pressure. DoorDash, Gopuff, Gorilla, Joker, and other delivery services are competing for a market that demands delivery in 15 minutes or less. Read this Gridwise post to learn more about how this impacts driver safety, and the need for proper insurance coverage. 

Where can drivers get affordable insurance?

When it comes to procuring auto insurance plus delivery or rideshare insurance, there’s a tremendous amount to consider. It’s important to put yourself in a position where you’re fully protected. This Gridwise post provides details about auto policies and what you need to ensure that you’re covered thoroughly. 

Gridwise offers drivers the opportunity to find comprehensive and affordable auto insurance through the Gridwise Auto Insurance Marketplace, part of Gridwise Benefits.

While it’s possible to find fair deals on auto insurance with rideshare and delivery endorsements, it can still be quite costly. So now what do you do about the other kinds of insurance you might need? What if you can’t work for a while because your car is in the shop? Or what if you become disabled? Worse yet, what will your family do if you are separated from them by accidental death?

Gridwise has your back. We realize that you have to lay out a great deal of money for your gig driving business, and that as an independent contractor, you don’t receive company benefits that would cover concerns such as those just mentioned. Gridwise Benefits offers a full menu of insurance options along with medical, dental, and vision care. You can pick and choose the coverage you want, and pay very low prices for them. Gridwise has formed its own group, comprised of drivers like you, to receive maximum savings on insurance, including

• life insurance
• accidental death and disability insurance (AD&D)
• identity theft protection
• telemedicine
• dental insurance
• vision care insurance
• accident medical expense insurance
• critical illness insurance
• discounts on alternative medical treatments, chiropractic visits, and teletherapy
• a risk advisor that constantly monitors your home and personal safety

Gridwise designs programs and services specifically for gig drivers like you.

Pay less for insurance with Gridwise Benefits

As concerns about driver pay and employment status have taken center stage, many cities and states are perplexed by a simple question: “How much do ride-hail drivers earn?”

Finding an answer should be simple.

You start by understanding how much drivers earn, then estimate how much money they spend on their driving business. From there, a few math calculations should give you a straightforward answer.

Simple enough, right?

Wrong.

As the City of Seattle is learning, estimating just how much ride-hail drivers make can be a complicated matter.

Just like cities and states across the country, the City of Seattle is investigating whether Seattle ride-hail drivers need a minimum wage standard, and if so, what that standard should be.

They turned to economists James A. Parrott, from the Center for New York City Affairs at the New School; and Michael Reich, of the University of California, Berkeley, and commissioned them to conduct a study of ride-hail wages. The study took place during the entire month of October 2019, and its goal was to determine just how much ride-hail drivers in Seattle were making.

Meanwhile, Uber and Lyft decided to conduct their own study. They hired a team from Cornell University that was led by economic historian Louis Hyman. The Cornell study was conducted during one week in October 2019, and was delivered to the City of Seattle about a week before the Parrott-Reich study was published.

As it turns out, the two studies produced vastly different results.

In their report, Parrott and Reich demonstrated that drivers were making much less than the minimum hourly wage for workers in Seattle, which is $16.39 per hour. Based on data they collected, Parrott and Reich calculated that after subtracting expenses, drivers earned approximately $9.73 per hour.

In stark contrast, the Cornell University study concluded that drivers in the Seattle market were netting $23.25 per hour — significantly more than the minimum hourly wage.

So who is correct here? And how could academic studies from two reputable institutions arrive at such different conclusions?

The disparities between these two studies boil down to data, and data-backed assumptions. In this report we will review the methodologies and findings of both studies, and do the following:

1. Explain how differences in earnings data used by the two teams contributed to the vastly different results;
2. Examine the differences between the two teams’ calculations of driver expenses;
3. Provide a recalculation of driver earnings over the course of a few months, incorporating ground truth data obtained by Gridwise directly from drivers through our app.

Different earnings data leads to different results

One of the reasons Uber and Lyft claimed their study was the more fact-based of the two was the quality of their information.

The Cornell researchers who conducted the Uber/Lyft study used ground truth data obtained from 14,000 ride-hail drivers. The data wereharvested directly from the records of drivers operating on the Uber and Lyft platforms.

Unfortunately for Parrott and Reich, they did not have access to this ground truth data. According to media reports, they requested it, but were told by Uber and Lyft that due to reasons of confidentiality, the companies could not share the information.

With no access to ground truth data, Parrott and Reich had to rely on survey data from some 7,400 drivers in the Seattle market, and from that data they determined how much money drivers were making.

Although surveys can offer good insight, they are inherently less accurate than data obtained directly from the source. So, the survey data collected by Parrott and Reich provided an opening for Uber and Lyft to criticize the study. When it was released, Uber’s spokesperson was quick to offer a harsh, pointed critique. As a July 12, 2020 New York Times article states:

“Uber said the Parrott-Reich study “is based on incomplete data and flawed assumptions about drivers’ experiences that are unsupported by facts, evidence or reality.”

Different perspectives on driver expenses create wide variations

The two studies made very different assumptions about driver expenses, which led to radical differences in driver earnings calculations. We’ll explore these differences, and leverage our data to help shed light on what assumptions should be made.

Fuel

The Cornell and Parrott-Reich studies used a similar per-mile estimate for fuel expenses.

Cornell Study: Median price $0.089 per mile, based on the average price for gas in Seattle ($3.255) during one week in October 2019.

Parrott-Reich Study: $0.094 per mile, based on a variety of vehicles (including SUVs), an average MPG rate for cities over three years, and an average annual mileage of 35,000.

The two studies used different methodologies, but came to a similar result.

Maintenance

The Cornell and Parrott-Reich studies used a similar per-mile estimate for fuel expenses. In fact, unlike many other expenses, the Cornell study estimated per-mile maintenance expenses to be higher than the Parrott-Reich study did.

Cornell Study: $0.08 per mile, based on standards set by the American Automobile Association (AAA), using a car owned for five years averaging approximately 75,000 miles of use.

Parrott-Reich Study: $0.0646 per mile, based on actual driver surveys and standard numbers produced by Seattle area car dealers and service centers.

From this point forward, the two studies get further and further apart.

Insurance

While Parrott and Reich believe that insurance costs add up to $.07 per mile, the Cornell researchers did not include any per-mile expenses for insurance.

Cornell Study: Not included, because Seattle requires transportation network companies (TNCs) to provide it. This study maintains that supplemental insurance is “not a necessity.”

Parrott-Reich Study: $0.07 per mile, based on their driver survey.

Uber and Lyft assert that buying additional insurance is not necessary; however, many drivers do indeed purchase additional insurance for their ride-hailing businesses.

To be clear, drivers purchase outside insurance for good reason. If those who haven’t told their insurance companies about their ride-hail driving are involved in an accident, they can face stiff penalties. Drivers are also left uninsured in Periods 0 and 1 if they don’t buy additional insurance.

As flawed as survey data may be, we at Gridwise think understanding how many drivers purchase ride-hail insurance via a survey can be helpful.

We interviewed 734 ride-hail drivers and found that 40% do indeed purchase outside insurance.

This is to ensure they are protected during the periods of time when they don’t have passengers in the vehicle with them, as well as when they are driving outside the platform. Almost all insurance companies charge additional premium amounts for ride-hail drivers.

Here, it seems that having some per-mile expense for additional car insurance would be called for.

Vehicle Acquisition/Depreciation

The biggest single per-mile expense difference between the Cornell and Parrott-Reich studies is the cost of vehicle acquisition/depreciation.

While the Cornell study used a figure of just $0.02 per mile, the Parrott-Reich study used $0.23 per mile.

Cornell Study: $0.02 per mile. The researchers maintain that the ride-hail fleet does not reflect the same types of vehicles normally taken into consideration by the IRS when estimating depreciation. The vehicles most commonly used for ride-hail in Seattle tend to be less expensive, and thus, carry a lower loan or lease payment, and depreciate less. It is also assumed that the driver would have the car even if s/he were not driving for a TNC, so the expense is not due directly to driving for a TNC.

Parrott-Reich Study: $0.23 per mile. These economists used the price of acquisition rather than the price of depreciation. They acknowledge that drivers normally use up the value of a four-year car loan by driving more than they would without working for a TNC.

The key difference here is that the Cornell study assumes that drivers are likely to have their cars already, and spend most of their time driving recreationally, while the Parrott-Reich study assumes many drivers truly invest in their ride-hailing vehicle.

To get a better idea of how ride-hail drivers actually think about their vehicles, we can look to our latest Gridwise study.

We found that 47% of drivers purchased their vehicle strictly for their gig work, meaning most, if not all expenses for their vehicle should be allocated to business use, not personal use.

Our survey also found that of the time drivers are on the road, 71% of that time is spent driving for gig work. This again shows that much of the expense for their vehicle should be allocated to their business.

Cell Phone

The Cornell study does not take cell phone usage into account.

Cornell Study: This study does not take cell phone expenses into consideration when calculating driver expenses.

Parrott-Reich Study: $0.045 per mile, included because drivers require a recent vintage, large-format cell phone with an unlimited plan in order to efficiently perform their duties.

The Cornell study assumes that drivers will have the same cell phones and cell phone plans whether they were driving or not. Understanding how drivers adjust their cell phone expenses because they’re driving is difficult, but should be considered in future studies.

Vehicle Cleaning

The Cornell study does not take vehicle cleaning into account.

Cornell Study: This study does not take cleaning the driver’s car into consideration when calculating driver expenses.

Parrott-Reich Study: $0.04 per mile, included because drivers must keep their vehicles clean in order to ensure high ratings from riders.

While vehicle cleaning isn’t a huge expense, it is a real one for drivers.

While Gridwise is unable to leverage actual vehicle cleaning data for the purposes of this article, we can leverage data from a recent study. Of the 734 drivers we interviewed, more than 53% said they clean their cars every day, and another 27% clean their cars every few days.

Drivers clean their vehicles often because they understand how important having a clean vehicle is to keeping their ratings and tips high. As Ray, a driver in Boston, told Business Insider during an interview: “I want to make passengers feel good, because when they’re feeling good, I get more tips.”

Another driver, Al Castillo from New York City, is also serious about keeping his car clean. “When [passengers] see that your car is clean,” says Castillo, “they know that you know what you’re doing. When they see that, they just relax.”

Licensing Fees

The Cornell study does not take licensing fees into account..

Cornell Study: This study does not take licensing fees into consideration when calculating driver expenses.

Parrott-Reich Study: $0.16 per mile, included because of the regular and extra fees drivers must pay in Seattle.

The Parrott-Reich study lays out various vehicle expenses that only drivers would incur, including:

• A business license that is required by the City of Seattle ($110 per year)
• Washington State vehicle registration fees (estimated cost $148.25)
• TNC vehicle inspection fees ($55 per year)

The Parrott-Reich study also includes driver’s license and vehicle registration fees that drivers may incur whether they were ride-hail drivers or not.

Given that many of these fees are exclusive to ride-hail drivers, and many drivers would not have their vehicles if they were not ride-hail drivers, it seems appropriate to have some licensing fees accounted for in the per-mile expense calculation.

Health Insurance

The Cornell study does not take into account health insurance costs.

Cornell Study: This study does not take health insurance costs into consideration when calculating driver expenses.

Parrott-Reich Study: $0.1076 per mile, included because many drivers (27 percent) do not have health insurance, and an additional 37 percent have incomes low enough to qualify for Medicaid coverage. In the final report of the study, Parrott and Reich assert that drivers should be able to purchase life insurance, and the cost must be included as a driver expense.

In the City of Seattle, wages are calculated as follows:

Wages include salary, hourly pay, piece rate pay, commissions, and non-discretionary performance bonuses. Tips and employer payments toward medical benefits plans are not wages.

This definition makes it clear that Seattle’s $16.39 per hour minimum wage is to be calculated without medical benefits plans. Given this definition, it does appear that health insurance costs should be deducted as an expense as Parrott-Reich do in their study.

Independent Contractor Taxes

The Cornell study does not take into account independent contractor taxes.

Cornell Study: This study does not take independent contractor taxes into consideration when calculating driver expenses.

Parrott-Reich Study: $0.0835 per mile for payroll taxes, and $0.0112 per mile for the state business tax, included because TNCs view their drivers as independent contractors. Under this arrangement, taxes are a driver expense and must be paid, ultimately, out of driver gross earnings.

Ride-hail drivers would certainly not face independent contractor taxes if they were not drivers, so it does seem appropriate for these taxes to be included in driver expenses.

Recalculating the Parrott-Reich study using ground truth data

To address Uber’s and Lyft’s issue that the Parrott-Reich study does not use ground truth data, we’ve recalculated driver earnings using their formula and Gridwise’s ground truth data.

Additionally, we’ve calculated per-hour earnings not just for October 2019, but October 2019 through June 2020. This will better show the true earnings per hour, and frequent fluctuations of earnings per hour that drivers face.

See a Seattle week-by-week breakdown of ride-hail driver earnings below.

Please note that driver earnings plummeted in March 2020 because of COVID-19 — and then quickly rebounded to be even higher than pre-COVID-19 as the vast majority of drivers stopped driving even as demand somewhat rebounded.

How can cities and states gain a better understanding of ride-hail driver earnings?

Unfortunately for cities and states across the country, one-off surveys, studies, and interviews are inherently biased and can have holes easily poked in them. Without a significant amount of ground truth data across a wide timeframe, cities and states may find it difficult to convince policymakers they have the clean and accurate data.

As concerns about securing minimum hourly rates for ride-hail drivers continue to multiply, cities and states will need to be able to leverage the same ground truth data used by TNCs. Gridwise is uniquely positioned to provide ground truth data that will allow cities and states to build objective driver earnings models that stand up to scrutiny.

Gridwise is an independent data source that can be used to support labor studies related to gig-drivers, or even those related to understanding other ride-hailing and delivery insights such as utilization, origin and destination patterns, and much more.

Not only does Gridwise have insights for Uber and Lyft, but also for DoorDash, Uber Eats, Postmates, Instacart, and most other major gig service companies.

If you or your company would benefit from gaining access to ground truth ride-hailing and delivery analytics, reach out to us at data@gridwise.io.

“It's not a faith in technology. It's faith in people.”—Steve Jobs

Uber and Lyft are technology companies, disseminating information to both passengers and drivers, bringing the two together thousands of times a day and allowing people to safely get to their destination. As with anything involving technology, though, things change and develop at audacious speed. Growth happens quickly, making it easy to overlook things. 

One of the things that was overlooked as rideshare quickly grew was the way rideshare drivers, and the companies they worked for, addressed disabled passengers. It created a lot of bad feelings in the disabled communities. 

This is where it comes back to faith in people. 

The 2020 US Census Bureau reports that almost one in five Americans has a disability. There are those that rely on a wheelchair, walker, or crutches for support, but other disabilities include the sight-impaired, hearing-impaired, epileptic, depressed, and anxious (notice that not all of these disabilities are readily apparent). 

It’s incumbent on drivers, as the front-line contact in the rideshare industry, to recognize these disabilities and create amazing experiences for these passengers, as they do for all their passengers.   

In this blog post, we cover the following:

• Just a few bad experiences are enough.
• Lyft and Uber are proactive about how disabled passengers are treated.
• What can drivers do?
• You can make a difference.
• Gridwise can help.

Just a few bad experiences are enough

There have been several instances where the interactions between drivers for Lyft or Uber and disabled passengers were inexcusable. In 2019, Joshua Foster, a 35-year-old paraplegic from Concord, CA, called for a rideshare. Foster related what happened in an article on ABCNews.com.

"He looked at me and he just literally went, 'No-o-o-o-o-o. No. No. No. No. No. I can't do this,' " Foster recalled, shaking his head vigorously as the driver did. "I was like, 'Are you sure?'''

Foster tried to explain he didn't need help, that he could get in and out of the car himself.

"I was like, 'Hey man this is how it goes. I'm gonna hop on the seat, the wheels come off, the cushion comes off, I'll fold it and it sits right behind me 'cause, I drive my own self.'" Foster recalled saying. "He goes, 'No! Shut the door.' He just backed up and I'm like-- wow."

The Uber driver took off, leaving Foster in the driveway.

It’s enough to make any conscientious rideshare driver wince in shame and disbelief.

There have been other missteps. In July 2022, as reported by the New York Times, the justice department settled a lawsuit for more than $2 million with Uber over its alleged failure to adjust wait times for disabled passengers. Uber denied the claims in the settlement agreement, pointing to their efforts in adjusting wait times for disabled passengers and developing other programs for them. 

TechCrunch reported that Lyft settled a lawsuit in 2020 involving drivers that would not accommodate passengers with folding wheelchairs. There have also been other legal actions against both companies. 

Lyft and Uber are proactive about how disabled passengers are treated

The rideshare companies understand that in many cases drivers encounter situations for which they have not been prepared. It is difficult to enforce policies for hundreds of thousands of gig workers. 

In the past few years, both companies have developed programs, including videos and other materials, for drivers who encounter disabled passengers. 

They have also established policies. A Lyft or Uber driver refusing a disabled passenger can, in some cases, be deactivated from the platform. 

Let’s take a closer look at the programs from Lyft and Uber for handicapped passengers. 

Lyft

Policies have been developed by Lyft for handicapped passengers. These include

Foldable wheelchairs. Lyft requires drivers to transport passengers who use foldable mobility devices. They also inform drivers on their website that the law requires drivers to transport these passengers. Watch Lyft’s videos for how to fold these wheelchairs. 

• foldable wheelchairs
• rigid frame wheelchairs

If you as a driver encounter a passenger in a wheelchair and you are not quite sure how to fold it, don’t hesitate to ask. This is a question a wheelchair-bound person regularly encounters. 

Service animals. Lyft also has a video on service animals.

• accommodating service animals

Wheelchair-accessible vehicles. Lyft has a wheelchair-accessible vehicle (WAV) program. Riders can register on the app. When they call for a ride, the options available (Lyft, Lyft XL, Lyft Black, etc.) to them also include Lyft ACCESS, which summons a wheelchair car. Lyft operates the program in nine US cities: Boston, Chicago, Dallas, Los Angeles, New York City, Philadelphia, Phoenix, Portland, and San Francisco. The program accepts both regular wheelchairs and motorized ones. No word if Lyft plans to roll out the program in additional cities. 

According to a Lyft spokesperson, “Lyft estimates that over 3 million riders with a disability use the Lyft platform, eighty-two percent of riders with a disability report that Lyft has increased their independence, and 94% report that Lyft has increased their access to transportation.”

The spokesperson also states that those drivers who deny or otherwise discriminate against rides can be removed from the Lyft platform.

Lyft Assisted. Last year Lyft launched Lyft Assisted, a program that helps passengers with health challenges get to routine medical appointments. Lyft Assisted rides resulted in about 20% fewer no-shows than standard concierge healthcare ride services. 

Uber

Wheelchair-accessible vehicles. Uber has a similar program to Lyft, also called WAV, which operates in eleven test cities, including Austin, Boston, Chicago, Houston, Los Angeles, New York, Philadelphia, Phoenix, Portland,San Francisco, and Washington, DC. Like Lyft, Uber’s WAV vehicles can accommodate both regular and motorized wheelchairs. Rates for the Uber WAV are similar to UberX.

Driver outreach. Uber’s website advises drivers that they must do everything possible to help transport disabled passengers, that it is both Uber policy and federal law. 

Partnerships

To ensure their efforts answer the needs of the disabled community, both Uber and Lyft have partnered with the Open Doors Organization, a nonprofit based in Chicago that addresses accessibility issues for disabled people. 

What can drivers do?

If you drive for any length of time, you'll probably get a rideshare request from a disabled passenger, specifically someone in a wheelchair. Let’s look at some guidelines to keep in mind.

1. Pull as close to the curb or the person’s location as possible

This will make things easier for both you and your passenger. Disabled people are not purposely trying to make life difficult for rideshare drivers. Barriers, such as broken pavement, cannot be crossed.

Greet them as you would any other passenger

Most disabled people, especially those in wheelchairs, prefer to be treated the same as anyone else. That’s the best way to start. 

2. Ask the passenger for guidance

No one expects you to know everything. Chances are the disabled passenger has used rideshare before. They can help you through the process. Many disabled people can transfer themselves into your car. Most of them, however, need you to collapse or break down the wheelchair and put it in your trunk. If you ask, they can talk you through the process. 

Expect that you will have to reverse the process when you arrive at their destination. 

3. Talk to the disabled person

Address the disabled person, even if they have a companion. No one wants to be ignored. Depending on the disability, communication might be difficult. Remember that a smile, a gesture, and a warm hello can go a long way. This is your opportunity to be awesome. 

4. Keep space in your trunk for a folded wheelchair

Given all the things a rideshare driver needs onboard in case of emergency (first aid kit, emergency road kit, etc.), there is often little trunk room left, but you always have space for suitcases for airport runs, so there should be enough room for a wheelchair.

5. Keep in mind that not all disabilities are visible

Many people suffer from debilitating conditions such as depression, anxiety, or epilepsy—none of which may be readily apparent. And oftentimes these individuals do not communicate their disability. Be sensitive to this. Occasionally you may get a passenger that requests no communication. For some disabled people, getting through the day is a trying experience. They might need to take advantage of any chance to sit back and relax. Look for disabled bracelets on passengers that might clue you in to their disability. 

6. If you do have a medical emergency, call 911

Because not all disabilities are visible, and because disabled people don’t always reveal their conditions, there are occasional problems. If a passenger is having a medical issue, a seizure, or is otherwise non-responsive, don’t hesitate to call 911. 

7. Rideshare drivers must accommodate seeing-eye dogs and other service animals

These are well-trained animals that will usually sit or lay quietly on your car’s floorboard. Not allowing one in your vehicle is a violation of the law as well as the terms of service for both Uber and Lyft. 

8. Carry a blanket in your car

You might want to create a place for a service animal to lie, making them more comfortable while protecting your car from fur. A blanket can also be used to drape over a wheelchair in your trunk or back seat, helping to prevent damage. Carry a lint brush for removing fur, too. 

9. Accommodate special requests

For disabled people who suffer from migraines, even the most innocuous thing in your car can pose a problem. Individuals with allergic disorders might be sensitive to your air freshener. Others cannot tolerate loud music. Be prepared, too, that a disabled person might ask that you drop them off at a special entrance at their destination.  

10. At all times be patient

You will occasionally get a disabled passenger who has never used a rideshare, or does not go out much because of their disability. The process is as foreign to them as it is to you. Be patient and accommodating, knowing this ride may take more time than normal. 

It is important to remember that a disabled passenger’s ride with you could be their first attempt at interacting with the world since becoming disabled.

You can make a difference

When it comes to Lyft and Uber handicapped transportation, one or two positive experiences can make an enormous difference. 

"We need companies to provide and require accessibility training to its drivers that includes people with disabilities,” said Carol Tyson, a government affairs liaison for the Disability Rights, Education & Defense Fund, “and for the drivers to follow all the accessibility and nondiscrimination policies. Sometimes, drivers need to pull over to the curb and be patient when people with disabilities are trying to locate the car. We need more drivers with wheelchair-accessible vehicles and drivers that do not discriminate by giving lower ratings or canceling trips for wheelchair users or people with service animals, or any other protected class."

A training video by Lyft was more to the point when it told drivers, “You’re empowering these passengers to live more independent lives in an often difficult-to-navigate, fast-paced world.”

Gridwise can help

If you purchase things like blankets or first aid kits to have for your passengers, you can write those expenses off. Gridwise will keep your gig earnings, business expenses, and miles in one place.

Whatever you do, be kind and courteous to all passengers - and have fun out there!

“Make more money” is often at the top many rideshare driver’s wish list. It’s easy to earn just enough cash to get by, but if you want to achieve maximum driver earnings, you need a game plan. It’s just as crucial to know how to conserve your earnings and protect yourself from catastrophic losses as to devise strategies that lead to better driver ratings and tips.

Gridwise created this guide so you can easily pick out the topics that call to you. Then, all you need to do is click through to our articles packed with information and insight that can help you make more money.

Insurance for gig drivers

You might wonder why we’d kick off a guide about making money with a topic that usually results in you doing the opposite. Insurance can be a big ticket item, but you’ll be stuck with bills you’ll never pay in a thousand years if you’re caught without coverage. We’d say that makes insurance pretty important.

• Looking for a “just the facts” kind of piece that covers insurance basics? Here you can learn what drivers need, beyond Lyft or Uber driver insurance and what coverages delivery companies offer their drivers. 

• Drivers make a lot of smart insurance-type moves, but they can also be led astray. This article helps you swerve away from the insurance-related mistakes gig drivers can make.

• Treat your driving gig like what it really is—your business! This basic business advice teaches you how to get your act together and eliminate losses that can hurt your bottom line.

Better Lyft driver ratings, bigger Uber driver tips, and bonuses for delivery drivers.

Here’s where things get slick and profitable! Possible add-ons to your basic Uber Eats driver pay or Amazon Flex driver pay may not be all that obvious. Once you start digging, you’ll find there are more ways to augment your earnings than you thought. From being the best driver possible to cash in on bonuses, perks, and referrals, you need to know a fair amount.

• Whether you do rideshare, delivery, or both, getting tips is no longer something “extra” that you may or may not get. You don’t have to kiss up to every customer for a few extra bucks, but you can develop a gift for making yourself irresistibly tippable with the ideas in this article.

• Every customer has a chance to rate you, so make sure they give you the stars you deserve! You’ll find insight here on how to keep your ratings high so you can benefit from top-notch treatment from future customers and get extra perks from the company you drive for.

• Amazon Flex drivers rarely see their customers, so tipping is unusual. The extra money is made with slick moves and heartfelt hustle, as you’ll see in this article. 

Lyft and Uber driver strategy, plus best delivery trips

• Every city, town, or rural area has its own flavor, culture, and distinctive “personality.” What does your location have to do with the rideshare and delivery business? A lot. You’ll see when you check out the list of top places for rideshare and delivery driving.

• The best place to drive isn’t always a city or town. Old school companies such as UPS and FedEx are updating their business models to offer gig drivers new opportunities you can discover here.

• Nothing beats data collected from real drivers when it comes to finding the best places and times to drive. And yes, it’s possible to find out where exactly, and when, drivers make the most money in your area. Gridwise shows you where the cash is lurking, with aptly named features Where to Drive and When to Drive.

• When you set goals and stick to them, getting the income you want becomes much easier. Read about 3 steps to making more money as a gig driver, and see how setting your sights on what you want makes the elusive utterly achievable.

Delivery, Lyft, and Uber driver advice: Make the most of your app

You use your gig driving app every day, but do you take advantage of all its features? If you play your cards right, you can up the ante and redefine answers to questions like “How much does Uber Eats pay per delivery?” and “How much do Lyft drivers make a week?” The trick is to know every possible way you can generate multiple income streams and keep money flowing your way.

• If you think making $1000 a week with Instacart sounds impossible, you might change your mind when you see all the ways you can expand your Instacart earning power. It’s all about devising ingenious plans for your Instacart hustle.

• A simple-seeming gig like DoorDash can turn into a cash cow, if you learn how to work it right. Picking the right orders to accept is just one pro tip you’ll find in this article about maximizing DoorDash driver pay. 

• Grubhub drivers bring home more bacon than they deliver when they deploy the proper strategies. Here you’ll see how to use driver promotions, scheduling, and location to make the most out of your Grubhub gig.

• That elusive $1000 a week for rideshare driving gets much easier to achieve when you follow the right Lyft and Uber driver advice. Here’s insight into sound, professional business practices and strategies that keep costs low and earnings high. That cool grand a week can be yours in a flash!

• If you want to know how to make more money with Uber Eats, this piece dishes all the details, including how to organize your business, control expenses, get bigger tips, and generate passive income with an effective referral strategy. 

Multi-apping: Double (or triple) your chances for maximum earnings as a gig driver

Ever wonder what might happen if you were to use more than one app on a given shift? Let’s say you’re in a neighborhood where Uber Eats is slow, but Lyft driving is hot. Can you switch between apps? As long as you color within the lines, so to speak, you sure can! If you don’t violate any of the rules, or do things that lower your ratings by creating confusion or delays, working more than one app is a strategy that can definitely work in your favor.

• Food delivery drivers need to look at angles for earning more, because this gig is so dependent on making the most money in the least amount of time. There are lots of options that can be mixed into a sound food delivery strategy, as shown in this post.

• If you really want to get into multi-apping, you have to think it through and work out the kinks in the system by trial and error. In all cases, you need to know what each app can do and have an idea when and where they’re going to pay off, and what rules you need to follow. Read more about the art of multi-apping and how it adds to earnings.

Cut costs and earn more in your business

Saving on expenses is a sure way to boost the total amount of your earnings. There are plenty of costs you incur as a part of doing business, but they don’t have to take huge chunks out of your pay. Get savvy about saving money, and watch your incoming cash flow rush in.

• A big cost of doing business is your fuel bill. There are many ways to avoid wasting a bunch of money on gas. It’s good for the environment, as well as for you, to keep your fuel consumption down and your costs as low as possible. Here are 13 ways you can save on gas.

• There are a lot of costs involved in getting insurance, and the biggest one shows itself when you make mistakes when getting it or not having enough coverage. Discover the mistakes drivers make with insurance, so you can avoid them.

More ways to save money as a rideshare or delivery driver

When you’re an independent contractor, no one is going to pay you when you’re not working. You have to create your own funds for the things you’d expect to get from a lot of other jobs. How do you arrange for paid sick time, retirement savings, or vacations? We know you’re disciplined and smart enough to do these things right, but here’s some extra help.

• Start with these 4 smart ways for gig drivers to handle finances. You already know that managing your money as a gig driver is different than it would be in other job situations. Find out exactly what those distinctive factors are and how you can manage them to your best advantage.

• Vacation pay? Are you kidding? Your gig company might not have a plan to send you away for a well-deserved break, but you can create one of your own. This piece shows you how to put together a strategy for getting the vacation time you need, with no economic pain.

• Insurance is a big cost, but saving on it is easy, especially when you learn to avoid the mistakes gig drivers make with insurance. Once you discover exactly what you need and how to get it most economically, you’ll stop losing money by paying too much or taking risks that could leave you penniless.

• One way to gather up the funds to start a savings account is to stop wasting money on gas. Sure, prices are high, but there’s no need to lose your shirt every time you visit the pump. Here are some tips for saving on gas.

Vehicle-related advice for rideshare and delivery drivers

Without your vehicle, your job would be impossible. That’s why you have to pay special attention to getting the right ride for your gig, and then take care of it the same way you expect it to take care of you. Here are some suggestions for keeping you and your car rolling, so you can continue watching your earnings pile up.

• Rule #1 when you work a rideshare or delivery driving gig is never skimp on maintenance. Do it yourself or pay a professional, but do it. Check out this maintenance schedule every gig driver should follow, and decide which approach is going to work best for you.

• Buying a new car, or one that’s “new to you,” can be overwhelming. Get sound advice and suggestions about choosing the right vehicle to fit your rideshare or delivery gig.

• If you’re sick of using your own vehicle into the ground with your driving gig, you might want to rent one that’s perfect for the job. Here’s some information that tells you the dos, don’ts, and hows to secure a rental.

Tax tips for gig drivers

One of the most important and annoying, things drivers need to do is take care of their taxes. It can be challenging to do this on your own, but it gets easier when you use tax tips that apply specifically to gig drivers. From knowing what is deductible and tracking it, to finding the right kind of tax specialist to help you, there are a lot of territories to cover. 

• The trick to keeping most of your money at tax time is knowing how much you can deduct for your business expenses. This piece fills you in on the tax write-offs all gig drivers should know.

• Your tax return should always be honest, legal, and complete. This guide to current tax changes will help you prepare for compiling your return, as will this feature that contains updates on important deductions.

• Income tax paperwork can be overwhelming for anyone, so qualified people to assist you should be right at your fingertips. When you’re a driver, having a tax pro with insight into your business is priceless. Here’s how you can get someone to help you with your filing, and maximize your deductions too.

• A big part of any driver’s tax deductions comes from the mileage they rack up while they’re on the job. Here you’ll find the different ways to track mileage, and get suggestions for keeping accurate and complete mileage figures that you’ll need for tax time.

Gridwise features that help you save money and earn more

No guide to maximum driver earnings would be complete without listing the many features Gridwise has to offer. The app is designed to help you gain control of your business, optimize your time on the road, and benefit from deals and discounts geared toward drivers. Here’s a list of features and links to articles that describe the many reasons why every smart gig driver needs the Gridwise app.

• Earnings tracking: Sync your driving apps to Gridwise and track your earnings, compare results, and keep records of your income.
• Mileage tracking: Use the best Uber and Lyft mileage tracker there is. Gridwise gives you the exact figures for all the apps you use.
• Driving strategy: Gridwise’s features Where to Drive and When to Drive point you to the places and times you can make the most money with the least effort.
• Gridwise benefits: Insurance, affordable health care, and discounts on car maintenance, phones, phone plans, banking, legal help, and more come as part of being a member of the Gridwise community.
• Driver information: Part of achieving maximum driver earnings is knowing what’s going on around you. Gridwise lists area events and airport activity, and alerts you to traffic issues, weather, and start and end times of games and concerts.

If you want to achieve maximum driver earnings, you can’t afford to run your driving gig without this amazing app!

Download Gridwise today!

* Gridwise does not provide tax, legal, or accounting advice. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before filing your return.

It’s easy to make mistakes. And, if you’re new at rideshare or delivery driving, it’s really easy to miss out on some things all drivers need to know. As a driver, tracking mileage is super important. Why? Well, because as a gig driver, you are entitled to deduct the cost of your vehicle’s wear and tear —which is based on your mileage—from your taxable income.

This can result in huge savings on your tax bill. This Gridwise post gives you an idea of some of the numbers involved and how the IRS mileage rates compare from one year to the next. With the possibility of deducting 58.5 cents per mile for the first six months of 2022, and 62.5 cents per mile for the last six months of the year, you can see how tracking miles for taxes is a smart thing to do.

Even as a rookie driver, you have most likely racked up a whole lot of miles over the year. Obviously, from now on, you’re going to want to be meticulous about keeping a mileage log for taxes that accounts for each and every mile you drive in support of your gig. There are different ways of doing that, as this Gridwise article shows, and you’ll want to put them into practice for 2023. What can you do right now if, say, you forgot to log miles for Instacart or neglected to keep mileage records for your Shipt gig?

Recreating mileage logs the IRS will accept

If you find yourself asking “What if I didn’t keep track of my mileage?” the first thing to do is a “don’t.” Under no circumstances should you panic. While it’s true that you might have missed some of the miles you could have used to add to your deductions, you will still get a chance to create a mileage log for taxes.

You’ll have to come up with a reasonable and verifiable mileage estimate, of course. For instance, it wouldn’t be acceptable to use your total mileage for the year, because you’ve most likely used your vehicle for personal as well as business-related purposes. Mileage accrued for personal purposes is not tax deductible

Still, there are some ways to backtrack and put together mileage records that are good enough to please even the seemingly unforgiving IRS. They require you to bear the burden of proof and back up any claims you make about mileage used for business. The IRS statement on this policy can be found in this article. You will need to make a statement that is as truthful as it is accurate, so be very virtuous here!

The task of recapturing Uber, Lyft, or DoorDash mileage taxes drivers, but it can be done. You can start by going to the apps you drive for. In almost every case, they will have recorded the miles you clocked while you were rideshare driving and/or delivering. This is a good start, but it isn’t going to cover everything.

You’ll be missing the miles you drove in between your trips, as in leaving your car’s home base and making your way to where you get business, and driving home from a far flung food or passenger drop off. How can you recover your records of these miles? Here are some suggestions:

1. Start with the mileage listed on the tax statement provided by your driving or delivery app.
2. Take one month’s worth of trips, and calculate the mileage between trips (hint: access your trip logs in the apps you use). Then multiply by 12, or as many months as you drove for the year.
3. In a similar way, calculate the mileage you accumulated driving to and from the places where you began working during an average month, and multiply by the appropriate number of months.
4. Add on any trips you may have taken that were directly relevant to your rideshare or delivery work. These might include driving to the car wash or detailers, traveling to shop for equipment or supplies, or returning a cell phone or hat one of your passengers left behind.
5. Describe how you put together your calculations and how they fulfill the burden of proof.

This article from Keeper spells out how to recapture your mileage records in additional detail.

Avoid rookie mistakes: Track each and every deductible mile

So you missed some deductible miles this year, and now you have to do a whole bunch of work to figure out how to track miles for taxes. Get on top of tracking your miles ASAP with Gridwise's top rated mileage tracker.

When you download the Gridwise app, you’ll see how it

• tracks your mileage automatically. All you need to do is log in at the beginning of your shift and log off when you’re done driving and delivering for the day.Let Gridwise log miles. The app captures every mile you travel on your trips and all the mileage you rack up in between.
• takes the pressure off. You won’t even have to think about looking through all your trips, estimating the miles you drove in between, and performing annoying calculations. Gridwise takes the stress out of your mileage tracking tasks.
• lets you keep more of your money. When you are able to track each and every mile eligible for deduction, you reduce your taxable income and hold onto as much of your earnings as possible.
• provides tons of features, offers, and support. Gridwise has been designed by drivers for drivers. Take advantage of income-boosting driving aids, special deals and discounts for drivers, and important information such as airport activity, traffic alerts, and weather reports.

Maximize your mileage deduction with Gridwise

There’s more news out of California regarding the independent contractor vs. employee status of rideshare and delivery drivers, plus an expansion of a key safety feature from Uber. Read on to keep up with all the latest Uber–Lyft news, with special attention to what it means to for drivers like you.

Court rules California initiative to keep drivers as contractors 

On Monday, March 13, an appeals court overturned an earlier ruling from a lower court that declared Prop 22 was illegal. That means the rideshare and delivery companies can continue their practice of using the Lyft, DoorDash, and Uber independent contractor model for operating their businesses.

Proposition 22, voted in by California voters late 2020, exempts rideshare and delivery companies from abiding by AB 5, a state law that classified California gig workers as employees. This would have forced companies to supply insurance and other benefits to independent contractors had they not pushed to get Prop 22 passed. You’ll see a more comprehensive description of Proposition 22 and its impact on drivers in this Gridwise post.

Proposition 22 was challenged by the State, and in August 2021 the California Superior Court ruled it to be unconstitutional. This Gridwise post details that ruling. The rideshare and delivery companies appealed, and this most recent ruling went in favor of the independent driver status.

California Uber law doesn’t apply to all drivers, of course. Nonetheless, what happens with this back and forth between California State lawmakers and the companies gig workers use to earn their living can influence what happens in other states. Many gig workers believe there are positive points to being classified as employees, but just as many drivers have stated that they prefer the flexibility of working as independent contractors.

Fortunately for gig drivers, it’s possible to obtain insurance and benefits through other avenues that cater to the needs of independent contractors. Gridwise offers affordable and comprehensive options for drivers with Gridwise Benefits.

With this new decision from the appeals court, drivers will still be classified as contractors. That could change, should the State and/or the SEIU (Service Employees International Union) take the case to the California Supreme Court and win there. Stay up to date on the latest driver news by checking Gridwise's blog!