Your income as a Lyft driver depends on a sound strategy, and knowing when to drive is a key part of any effective plan. You can use your common sense to guess at the most profitable hours for rideshare work; you could also consult with any number of sources that have their best estimates laid out for you.

Here we will cover these ways of choosing the best times to drive, and introduce you to the most powerful tool for knowing when the most profitable driving shifts are for you, right where you live.

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Best times to drive for Lyft: Opinions and speculations

Ask any driver and you’ll hear a different theory about the best times to drive. Lyft suggests that you check your app for their ride demand graph. This might clue you in on where there are a lot of riders, but does it give you all the information you need?

There are the usual peak times: rush hour(s), weekend evenings, brunch times, event start and let out times, late nights on weekends, and those hours when certain demographic groups, such as students or hospital workers might be moving around. It’s certainly possible to experiment with these driving times and discover how well they work for you, but who has time for that?

Are the best times to drive for Lyft always the same?

While all the ideas you hear might make a lot of sense, there are other things to consider. The peaks and valleys in customer demand are not the same in every locality. Plus, what good does it do you to focus on the usual peak times if your schedule doesn’t allow you to drive during those hours? 

People who live in highly concentrated urban areas are likely to have more variations in their busiest driving times than people who stay in the suburbs. Rush hour in an office-oriented city might differ from peak times where there are more stay-at-home workers. 

When it comes to events, suburban drivers may find more riders an hour or more before the rush begins because they’ll have to leave early to get to the big game or concert on time. Once back in the “burbs,” drivers may also experience earlier closing times for restaurants and bars than their urban counterparts. Working with a focus on rides to and from airports will also create different demand patterns. 

Even with Lyft’s ride demand graph, you may not come out ahead of the game. It’s possible that the place(s) they send you will be so crowded, you have to inch your way along and waste a huge chunk of your shift. And since you’re likely not the only one who will see the ride demand graph, you can bet a flood of other drivers will flock to the busy areas, and possibly gobble up all those passengers first.

As you’re starting to realize, it’s not always helpful to rely on what we might think are “normal patterns” in order to predict the best times to drive. You need real data based on the experience of actual drivers. Don’t worry. There’s help you can count on, and you can have it with you on every shift.

When to Drive from Gridwise: Accurate data that boosts your earnings

Gridwise is the tool you need to push your pay up to the levels you desire and deserve. The Gridwise When to Drive feature is specifically designed for drivers, by people who used to be drivers! They know exactly what you need, and deliver it in a form that’s easy to understand and put to good use.

Take the “maybe” factor out of rider demand patterns with actual data from real drivers who work in your area. With When to Drive, you’ll know right away what the best times to drive for Lyft are and get insight into how much you can make with other apps, too.

How to use Gridwise When to Drive features

Tap on the When to Drive card to discover the optimal times for driving and maximizing your earnings. At the bottom, you'll find different data types to filter.

Gridwise has different statistics you can look at:

Earnings Per Hour - Shows you the median earnings drivers make per hour for each day of the week. This helps you identify the most profitable days.

Trips Per Hour* - Shows you can see the median number of trips drivers make per hour each day. This helps you understand the busiest days for drivers.

Earnings Per Trip* - This shows you the median earnings drivers make per trip per day. This helps you understand which days are best to earn more per trip.

*indicates a plus-only feature

Nationwide and Nearest Markets

When to Drive allows you to access both nationwide statistics and data from your preferred market.

To change the location, tap on the search icon in the upper right corner and enter a different city or select "nationwide".

Filter by Service Type

You can also filter by the following service types to view the most relevant data:

1. Rideshare
2. Food
3. Grocery
4. Package

Gridwise also offers insights and updates on Events and Airports so you can pick the best times to drive for or around those times (depending on your strategy). Gridwise also allows you to set alerts.

Gridwise is the very best source for information about the best times to drive. Don’t miss out on this valuable resource!

Download the Gridwise App and get When to Drive, along with tons of other features to boost your earnings.

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Learn more about When to Drive and the best times to drive for other services:

• Know when to drive with Gridwise
• The best times to drive for Uber
• The best times to drive for Uber Eats
• The best times to drive for DoorDash

Mileage is, by far, the largest deduction you can claim for your taxes as a gig worker or gig driver. But just as important, you need to ensure that you're recording all the miles you're entitled to claim. The question for gig drivers is, What is the best mileage tracking app?

Gridwise offers the best mileage tracking app, allowing you to track every mile you drive as a gig driver. Better yet, it’s free and is instantly available when you download the Gridwise app.

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* 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.

What miles can you track as a gig driver or gig worker, and why use a mileage tracker?

If you’ve been a gig driver long enough to get your tax information at the end of the year, you see that most gig companies provide the mileage you drove while on their app. But is that the mileage you should claim as a tax deduction? No.

The gig platforms track your mileage only from the time you receive your pickup order for your ride or food delivery order until the time you complete it. That’s your time on the clock with the app. 

The truth is every mile you drive from the time you pull out of your driveway until your return is tax deductible. That includes the miles you drive on your way to your first ride or order, the miles you drive between rideshares or orders, and the miles you go to get home at the end of your shift. These miles are all tax-deductible. 

For example, let’s say that your various gig driving apps total 55,832 miles in 2023. But those additional miles between passengers and deliveries added as much as 30,000 miles to your total (a conservative number). Deducting those miles using the standard mileage deduction of 67 cents a mile comes to a whopping $20,100 in additional write-offs on your Schedule C. Now you’re in a lower tax bracket, paying far less in taxes.*

Not long ago, tracking your mileage meant keeping a handwritten log, a cumbersome and tedious task. After a week or two of being diligent about it, you probably slacked off and forgot. Then, at tax time, you simply made up a figure or went by the report from the gig platform. That was money lost and a problem should you get audited by the IRS. 

It’s essential that you track your miles and that you use the best app for tracking mileage. 

Download the app now. You can start by going to the Gridwise home page. 

Is Gridwise really the best app for tracking mileage?

Experienced gig drivers founded Gridwise, and when they developed the Gridwise mileage tracking app, they did it with gig drivers in mind. It has all the features a gig driver wants and needs in the best mileage tracking app, with many of its functions automatic. 

• Easily paired to your existing gig apps. After downloading the Gridwise app, open it and connect it to the gig platforms you work on. It takes only minutes. 

The Gridwise app can even be programmed to remind you to turn on the mileage tracker when you start driving.

• Reminds you to turn it on. Should you forget, an easy-to-find option on the Gridwise app reminds you to turn on the mileage tracker. Switch it on, and the app senses when you’re driving and sends a message through your phone. 
• Plus subscribers have access to automated mileage tracking (no need to turn it on or off!)
• Records all your miles. The Gridwise mileage tracker taps into your phone’s GPS. You’re tracking those miles wherever you go and keeping a record. 
• Records your mileage into a downloadable file. The Gridwise mileage app records your mileage into a file you can easily download into a Microsoft Excel file for tax purposes. What used to take you an entire day to figure out with a clunky calculator is now accomplished in minutes. 

With these features, it’s no wonder the Gridwise app is popular and regarded as the best mileage tracking app.

Features of the Gridwise app

Gridwise includes features that will get you more ride requests, more food orders, and maybe even fewer miles driven for the earnings you bring in.

The following table looks at premium features available on the paid Gridwise app. 

FeaturesGridwiseGoogle score4.6Apple score4.9Cost$9 monthly, if paid annually, or $14.99 on monthly plan.Plan scopeOne plan includes all benefits and services. Ability to link gig accountsYesAssigns earning categoriesYesEarnings trendsYesMileage tracker (automatic, on/off and manual)YesEarnings trackerYesExpense trackerYesWhen to driveYesWhere to driveYesLive activities infoYesMessaging of special events and opportunitiesYesProvides wage earning info based on real-time analytics of more than 500K driversYesShows typical earnings in the areaYesAirport statusYesLife insuranceYesTraffic alertsYes

Watch this YouTube video to learn about the Gridwise mileage tracker. The next time you hear a gig driver ask, ”What is the best app for tracking mileage?” you can tell them it’s the Gridwise mileage tracker.

Mileage Tracking and Tax Auditing FAQs

What about all the miles I’ve driven so far this year if I’m only just starting to track miles? 

There is an option. The IRS calls it “sampling,” and they'll accept it if you have thorough records. Suppose you did not accurately track your mileage for Q1 2024. Then you realize your oversight and start using the Gridwise mileage tracking app. Now you’re keeping diligent records. At the end of the year, figure out what you drove for each quarter (it’ll be a breeze because you're using the Gridwise mileage tracker). Take the average of those three quarters, and you can safely use it for the first quarter. Review Publication 463 (2021), Travel, Gift, and Car Expenses for a full explanation of sampling. Look under Section 5, Record Keeping. 

Don’t I need an odometer reading for my taxes?

IRS guidelines do not explicitly say you need odometer readings as part of your mileage record, only that you have to keep records. However, taking a photo of your odometer with your cell phone on the first day and the last day of the year is a good idea. This provides backup proof in the event of an IRS audit. 

Will the IRS accept mileage from a mileage tracker?

The key with the IRS is that you keep consistent records. Using the Gridwise mileage tracker is about as consistent as you can get. We have heard of no cases where the IRS disallowed mileage records using a mileage tracker. 

What are my chances of being audited and having to produce a mileage record?

The gig industry is new to IRS auditors, something different and fascinating beyond the humdrum boredom of a regular audit. The IRS is also still trying to figure out all its policies pertaining to gig workers. It’s an excellent opportunity for an ambitious auditor to make a name for themselves, landing you a better-than-average chance that you’ll end up a guinea pig audit.  

Additionally, as a gig driver, you're self-employed and already using mileage as a tax deduction. Those two factors alone are sufficient audit triggers. 

Will the Gridwise mileage tracker work with my phone?

The Gridwise mileage tracker will work with any phone you use for gig driving. It’s also the best free mileage tracking app for iPhone and Android phones. 

Can you round off your mileage numbers?

This is another reason you should be using the Gridwise mileage tracker: you get exact numbers. Rounded numbers are a red flag for an auditor. It looks as if you’re making things up. The more precise you can be in your information, the better you look should you find yourself getting audited. Gridwise allows you to be exact. 

How can I get my free Gridwise mileage tracker?

The Gridwise mileage tracker is part of the Gridwise app and is available from the Play Store (Android) or the Apple Store (iPhone). You can also get more information about the Gridwise mileage tracker on the Gridwise website. 

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What are the other features of the Gridwise app?

Gridwise isn’t just a mileage tracker. It’s an entire app dedicated to helping you drive smarter and make more money as a gig driver. Here are just a few of the features.

• Expense tracker. The Gridwise expense tracker allows you to photograph receipts and enter the information in the app’s expense log. You have copies of all your receipts at your fingertips, ready to print in electronic or hard copy.
• Earning trends. Gridwise allows you to link all your gig platforms. You can convert your earnings information into easy-to-understand graphs to see which platforms earn you the most. 
• When to drive. Look on the When to Drive tab for the most profitable times to drive any platform. 
• Where to drive. You know that every neighborhood has specific rideshare and food delivery needs, but sometimes there’s more information you can keep in mind. Gridwise can always recommend Where to Drive to earn the maximum dollars. 
• Live activities. From sporting events to concerts to trade shows, you’ll find the most current information for your region on the Gridwise app. 
• Messaging. New developments and special events in your area bring a constant wave of opportunities for gig drivers. Learn about them through the Gridwise messaging function. 
• Airport status. With Gridwise you’ll know when flights are arriving with passengers needing to go somewhere. Take the guesswork out of the airport game. 
• Weather info. Know when to expect the next storm with the Gridwise app. Adverse weather is enough to make some drivers stay in, but others know to cash in on the extra demand for rideshare or food delivery in their region.
• Traffic alerts. Traffic conditions can change rapidly, even before Waze or Google Maps detects them. Rely on Gridwise traffic alerts to keep you informed. 

Rely on Gridwise for the best mileage tracking app

Gridwise is the best mileage tracking app because it was developed for gig workers, by gig workers. It incorporates all the tools you need to succeed on your chosen gig platforms. Download your free app now. Start by going to the Gridwise home page. 

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Check out these Gridwise pages to learn more about the Gridwise mileage tracker:

• Download the Gridwise app for free (includes the Gridwise mileage tracker). 
• The best mileage tracking app for DoorDash
• The best business mileage tracking app
• The best mileage tracking app for delivery drivers

* 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.

If you’re a serious gig driver, you can’t afford to play around when it comes to rideshare and delivery insurance coverage. Sometimes drivers try to skip telling their insurers that they’re using their vehicles for business, to save money on premiums.

Many auto insurance providers will drop you the moment they discover you’re using your car for gig driving. Furthermore, if you don’t disclose you’re using your car for business, and the company finds out, any claim you submit might get rejected. You don’t want to take risks like that!

Some insurers offer a rideshare endorsement, which will allow you to keep your regular insurance and be covered for your gig work as well. Others simply don’t want to take the risk and won’t issue a suitable policy to you. And, even when they do, the rideshare endorsement they offer can be very costly.

Why is getting insurance for gig driving such a problem? Simply put, most of the insurance industry hasn’t fully caught up to the needs of the gig economy. Traditional insurance companies fail to understand what drivers need, and they overcharge for the risks of covering gig drivers. They aren’t very flexible about what they offer, so often drivers find themselves with more insurance—and higher premiums—than they actually need or care to pay for.

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What gig drivers need from insurers

As you know, your driving platform(s) will cover you while you’re on the way to a ride or delivery, as well as during the time you’re transporting passengers or goods to their destinations. The rest of the time, including the periods in between rides and deliveries, you are not fully covered by the driving platform. You have to rely on your personal auto insurance, at least until a request comes in from your driving app and you accept it.

Almost every state requires drivers to have auto insurance, and all of the driving platform companies insist that you show proof of insurance before they will allow you to drive or deliver for them. That’s another reason why you can’t rely on the gig platform’s coverage alone.

Obviously, you also need to be covered when you’re not using your car for business. You won’t want to be without insurance if someone hits your car while it’s parked on the street or in a lot at the grocery store, for example.

If your car is damaged while you’re on the app and your gig company provides full coverage, another problem arises.The high deductibles they require you to pay can create real financial setbacks. 

If you’re involved in an accident, even while your gig platform’s insurance is in full effect, you could be charged as much as $2,500 before their coverage will kick in. It would certainly be helpful to have a policy that protects you from that kind of exposure.

Once your claim is filed, what will happen while you’re waiting for your car to be repaired? If you expect to maintain your income, you’ll have to rent a vehicle. The price of vehicle rentals is substantial, and chances are you’ll need lots of financial assistance. 

Plus, if you are injured, or if for some reason you have to wait to rent a car, you will lose income. As an independent contractor, you have to keep money coming in, and the right insurance policy should help with that, too.

To summarize the unique needs of gig drivers, here’s a list of what the right insurance policy would provide.

• a way to get personal auto insurance without being overcharged
• reasonably priced premiums, based on driving record and mileage
• some way to cushion the cost of those high deductibles
• coverage for vehicle rental
• protection from loss of income
• customer service that is helpful and professional

VOOM: Replace your traditional coverage and save up to 60% on your insurance

VOOM is an insurance company that has caught up with the gig economy. In fact, VOOM is way ahead of the game. VOOM’s policies are designed to be flexible enough to suit gig drivers, and are set up to support drivers who use their vehicles for rideshare and/or delivery most of the time. VOOM rideshare insurance gives rideshare drivers a much more affordable and customizable insurance policy to make ridesharing and delivery driving more profitable. Since rideshare drivers cover all their own expenses, having a way to cut costs on such a major expense can be life-changing.

Here are some of Voom’s unique features:

• VOOM offers insurance made for Uber and Lyft drivers. By switching their current personal auto policy, they can potentially save up to 60% and avoid insurance gaps.
• VOOM is Tailored specifically for rideshare drivers, covering unique risks with customizable policies.
• VOOM Provides essential coverage during all phases of rideshare work, including waiting for rides.
• VOOM replaces your current coverage, it doesn’t just add on top of your existing insurance.
• Forget the “One size fits all” coverage - VOOM is a hybrid rideshare insurance policy that only charges you for miles driven for personal use rather than traditional insurance companies’ one-size-fits-all approach. 
• Instead of paying for coverage you don’t need, you only pay for the miles you drive while not working for a gig app. Rideshare drivers can keep more money in their pockets by reducing costs.
• VOOM is completely customizable, allowing you to determine the coverage needed when not on the clock. This ensures you only pay for what you need, keeping more money in your pocket.

VOOM has designed insurance services for serious gig drivers who use their vehicles for business a majority of the time. Why pay for a full-blown personal use coverage when you only need it for part of the time? With VOOM, you have coverage when and where you need it, at a greatly reduced cost.

Gridwise and VOOM have something very important in common. We are focused on solving the specific problems gig drivers face. Stop letting traditional insurance overcharge and short-change you. Get serious about your insurance, and start using VOOM Insurance. 

Successful gig drivers judge their earnings, in part, based on how much they save at tax time. There are a lot of savings out there, and not all drivers take advantage of every tax write-off.

This is why expense-tracking apps for Uber and Lyft drivers and food delivery drivers are so important. They allow you to track everything and track it accurately.  

In this blog post, we look at two of the more popular: Gridwise vs. Solo expense trackers. The bottom line is that Gridwise is dedicated to helping gig drivers be successful. A key part of achieving success is providing you with vital knowledge about the best available tools.

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The section which addresses Solo’s Pay Guarantee feature is an important one. The app analyzes the rideshare, food, and package delivery apps that you drive for and produces a plan of how to work those apps for maximum return. While Solo promise an hourly wage guarantee and compensation for underperformance, Solo's Pay Guarantee feature may not deliver on its promises. We will explore this further.

Gridwise and Solo apps: What are they?

Gridwise and Solo both offer a companion app used by gig drivers. Along with a handful of other gig driver apps, these are some of the most popular on the market. They help gig drivers earn more, and they allow more of that money to stick to you. Using these apps, drivers can 

• monitor earnings across all platforms 
• see patterns that result in greater profits
• connect mileage tracking to tax software like TurboTax
• import CSV files from multiple gig platforms into Gridwise or Solo
• download expense reports in CSV format from Gridwise or Solo

Drivers are freed from the mundane, time-consuming tasks of recording expenses to do what they do best: transport passengers, food, and packages from point A to point B. 

Why are apps for gig economy independent contractors so important?

As a gig driver, you're self-employed, and that means many things—independence, control, freedom, flexibility. It also means you pay quarterly taxes. Therefore, you must track expenses so that your tax deductions at the end of the year are well-documented and as all-inclusive as possible. Every dollar you avoid paying the government because of a legitimate deduction is a dollar in your pocket. Rideshare expense tracker apps and delivery driver expense management apps are essential because they allow you to save the maximum amount of money. 

As Gridwise pointed out in a recent blogpost, What Records Do Gig Drivers Need to Keep Track of for Taxes?, tracking expenses is vital, and can save gig drivers hundreds, if not thousands, of dollars in taxes. 

Strategies and tactics. Whether they provide rideshare or deliver food, the best gig drivers rely on strategies and tactics to maximize their income. Where are the rides? When will they peak and surge? What food orders should you take, and which don’t fit your earning plan? A good companion app helps you answer these questions. 

Mileage. Many gig drivers wonder why it's crucial to track mileage. At first glance, it appears as if the gig companies do that for you. The truth is that the gig companies don’t track every mile you cover as a gig driver. The rideshare companies track your mileage only when you're en route to a pickup or have a passenger in the car. 

The mileage you incur when you're on your way to where you drive, all the miles you cover between rides, and the miles you travel when you go home at night are also deductible. This is also true for food and package delivery. Yet the gig companies don’t record these miles. 

Mileage tracker apps designed for independent gig-driving contractors log these miles. Better yet, as an app on your phone, they do it passively, using your phone’s GPS or triangulation and pinging software. When you turn on your app at the beginning of your shift, you also turn on your mileage tracking app. The best mileage trackers for gig workers allow you to download the reports into a database file so that you can present the IRS with a copy if requested. 

Expenses. At first glance, tracking expenses as a gig driver is simple. Everything you purchase for your gig driving is deductible. That part is easy. Keeping track of the soup of receipts is not, and having to make sure all those receipts get recorded is also a chore. 

The best expense tracking features allow you to photograph the receipt. Then you can enter the information manually in the app’s expense log. Again, you have copies of all your receipts ready to print out in electronic format for hard copy. For more information, refer to this explanation by the IRS. One area of expenses that gig drivers need to pay particular attention to is the depreciation of their cars. Are you depreciating yours properly? Check out the Gridwise blog post Car Depreciation Tax and Gig Driving: How Does It Work?

What is Solo?

A quick look at Solo:

App Store Rating: 4.7 

Google Play Store Rating: 4.4

A quick look at Solo:

Solo is a companion app for gig drivers to use in unison with the various apps or platforms they drive, including rideshare, food and grocery delivery, and package delivery. What’s included in the app?

• Solo expense tracking features
• mileage tracking 
• ability to download reports as CSV files for tax purposes and review
• driving plans (known as Pay Guarantee) based on driver history and data points 
• income tax projection

Solo designed their app for all gig workers and freelancers, not just gig drivers. You can also add income from non-app sources, such as dog walking, website building, freelance writing, freelance caretaking, or other income streams. That’s a nice feature, given that so many gig workers engage in multiple gigs to meet their income goals. 

A post by Entrecourier.com, a blog for self-employed workers, includes a Solo mileage tracker review. According to the review, the Solo app has problems with missing trips and doesn’t provide all the trip information required by the IRS. Those are two major sticking points. In a test conducted by Entrcourier, Solo missed 51% of trips.

What is Gridwise?

A quick look at Gridwise:

App Store Rating: 4.9 

Google Play Store Rating: 4.6

Gridwise is a gig driver app, designed by gig drivers for gig drivers. Gig drivers are getting an app designed exclusively by people who understand their challenges. Highlights include

• Gridwise expense tracking features
• Gridwise mileage tracking 
• Where to Drive 
• When to Drive
• Airport information
• Gridwise My Trends
• Gridwise messaging
• Gridwise benefits

Gridwise mileage tracker. Any Gridwise mileage tracker review includes high praise for this feature. You simply turn on the tracker when you turn on your rideshare app. You can also use the tracker to record mileage for other business-related driving that’s not gig-related.

Many drivers consider it the best mileage tracker for gig workers.  

Gridwise messaging. Gridwise communicates to drivers in real-time about local events, concerts, sporting events, and other factors. If a baseball game goes into extra innings, you know that you don’t need to head to the rideshare area just yet. If a musician makes multiple encores, Gridwise can give you that information.  

My Trends. Gridwise’s My Trends feature lets you link all your gig activities—rideshare, food delivery, grocery delivery, and package delivery. Drivers can view their earnings in their entirety or compare activities and see which ones are more profitable. As a gig driver, the Gridwise app lets you know what is working best for you, allowing you to assemble a custom work schedule based on what you know works for your market.   

Taxes made easy for Gridwise. Gridwise expense tracking features and the Gridwise mileage tracker make paying the government easier because you can maximize your deductions. You also rest more easily knowing your records are complete and that you have taken advantage of every deduction. Gridwise has a relationship with KeeperTax, allowing you to get income tax projections throughout the year and helping you forecast quarterly payments so you don’t encounter a huge surprise on April 15. 

Gridwise benefits. Gridwise’s goal is to provide gig workers with benefits that are difficult to come by when they’re self-employed as gig workers. A quick review of the Gridwise benefits page reveals a host of services that are either free or low cost. These include

• health insurance
• dental insurance
• vision insurance
• life insurance
• disability insurance
• disability coverage
• accident coverage
• tax help 
• auto insurance marketplace 
• no-cost and low-cost life coverage
• accidental death coverage 
• identity theft protection
• chiropractic and alternative medicine benefits
• telemedicine and teletherapy
• credit and debt counseling services

Gig workers of all types can use The Gridwise mileage trackers

Gridwise is genuinely committed to gig drivers and gig workers of all types. You can see it in the benefits we offer, and we are developing new ones daily. 

Many gig drivers, motivated by the success and freedom they found as rideshare drivers or in food delivery, have also developed other streams of income. They have found their voice and passion in producing YouTube videos, guest blog posts, and scores of other entrepreneurial pursuits.

The Gridwise mileage tracker, and the other expense tracking features of the Gridwise app, have allowed them to better track their finances without making these tasks complicated. For an in-depth look at how Gridwise compares to other industry tools, read our analysis of the top gig worker apps.

We compare Gridwise vs. Solo apps side by side

The following table looks at premium features available on paid Gridwise vs. Solo apps. 

Why don't more drivers use Solo’s Pay Guarantee feature exclusively?

One of the significant features of Solo is their Pay Guarantee. Solo collects data points from your gig driving history, including the times you drive and the platforms you use, and develops a schedule, indicating which apps and times are optimum for you. Drivers who adhere to that schedule receive a pay guarantee or hourly rate they should make (visit the Solo website for specific details). If you stick to the plan and come up short, Solo will make up the rest. 

There are several challenges when drivers adhere to a predetermined regimen from Solo:

• Different platforms offer incentives, bonuses, and surges, depending on demand and other factors. Solo’s Pay Guarantee doesn’t always consider these factors when developing a driving plan. Drivers may want to choose one platform over another based on these variables and their potential earnings. 
• Some events generate an inordinate number of rides, but they fly under the radar. Downtown Los Angeles, for example, often surges because of unpredictable events at after-hours establishments. Knowledgeable drivers see the heat overlays on the app and recognize the opportunity, but the Solo app may not pick up on this chance for greater earnings. 
• An oversaturation of drivers, often unpredictable, leads to increased competition for rides and orders, potentially lowering earnings.
• Drivers may choose to work for platforms that offer better benefits or are driver-friendly, even if it means potentially lower earnings.
• The Solo app does not always understand the strategy a rideshare or food delivery driver uses. On a Reddit post, one food delivery driver explained it this way: “You end up being forced to take all the dozens of low offers [for] every hour you scheduled [on Solo], at which point you will easily make more than the measly $15 or so per hour they ‘guarantee.’”
• New drivers can become over-reliant on Solo and fail to develop the knowledge and instincts experienced drivers use to earn substantial money. 

These are examples of why a pay guarantee feature might work against drivers. There are undoubtedly others. While Solo’s pay guarantee feature is available in most major metro areas, it is not available everywhere.

Why Gridwise comes out on top

The big difference between  Gridwise and Solo is that Gridwise is an app developed by gig drivers for gig drivers. Gridwise recognizes that there is a learning curve involved in becoming a high-performing gig driver.  Many new drivers never get past this learning curve, quitting before they learn the lessons, or continuing to drive and earn substandard wages. With the support they find in the the Gridwise app, they quickly start earning more, and keeping more of it in their pocket. 

Gridwise features such as Where to Drive, When to Drive, airport reporting, special event notifications, messaging, and other perks of the Gridwise app help rideshare and food delivery drivers find areas where demand is the greatest. They also prevent aimless driving, limiting unneeded miles on your car and saving on gas. In addition, regular visitors can access the Gridwise blog,  featuring some of the best tips for profitable gig driving.

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Check out these Gridwise articles to learn more about the Gridwise mileage tracker:

• Discover how Gridwise ranks among the top gig worker apps by exploring our detailed comparison
• 8 Strategies for Maximizing Rideshare and Delivery Tax Deductions
• 9 Must Have Apps for Gig Drivers
• Gig Car Rental: A Guide to Car Rentals for Gig Workers 
• Download the Gridwise app for free!

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While some food delivery drivers prefer to look at hourly earnings as their primary gauge of performance, others prefer to look at how much DoorDash drivers make per delivery. They figure, rightfully so, that if they can squeeze in extra deliveries, they earn more money. This is especially true with DoorDash drivers, which we will discuss later in this blog post. 

To provide you with an answer to how much does DoorDash pay per delivery, we consulted Gridwise Analytics. Gridwise Analytics takes its numbers from the more than 500,000 gig drivers who have downloaded the free Gridwise app to improve their gig driver earnings. Using drivers’ feedback, Gridwise has aggregated and anonymized the numbers. The result is the best picture of how much you can make doing DoorDash and other gig driving jobs. 

You can also get a good sense of all the essential DoorDash earnings numbers by looking at another Gridwise blog post, 2023 Doordash Earnings Report. Glean another perspective on DoorDash earnings from DoorDash Driver Pay: What Did Drivers Earn in 2022. For now, though, let’s look at how much DoorDash drivers make per delivery. 

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A breakdown of DoorDash driver base pay

Top Dashers (that’s what DoorDash calls their drivers) look for at least a dollar a mile in base pay. Some will only accept orders that are closer to two dollars. When an order appears on your app, you see the base pay, which is computed by time, the distance you need to travel, and the desirability of the order. 

But other factors can increase this dollar amount. 

How to maximize your DoorDash driver earnings

Additional ways exist to increase how much DoorDash drivers make within the DoorDash framework beyond the base pay.  

Peak Pay. When things get busy, DoorDash will institute Peak Pay. This is an add-on to the payment you see on the app when the order appears. 

Challenges. Challenges are a way DoorDash tries to keep its drivers loyal to the app. You will see a Challenge on your app, offering a bonus for a set number of deliveries completed in a certain amount of time. You might also receive Challenge offers through SMS or email. Challenges also appear as an add-on. 

How much do DoorDash drivers make per delivery?

Source: Gridwise Analytics. Graph also appears in 2023 Doordash Earnings Report.

Over the last seven quarters, ending in Q3 2023, DoorDash drivers earned between $8.25 and $8.50 per delivery. 

The best DoorDash drivers, however, try to look at their earnings from as many perspectives as possible. For a quick look at this multifaceted perspective on DoorDash earnings, see Gridwise’s recent blog post, 2023 Doordash Earnings Report.

While this blog post focuses on how much DoorDash drivers make per delivery, it is important to understand and appreciate all aspects of Dasher earnings.

Tips for maximizing DoorDash driver earnings per delivery

There are things drivers can do to increase earnings per delivery.

Squeezing in extra deliveries

Work those DoorDash double orders, where you get two orders from the same restaurant, going in the same general direction Double orders are key to increasing earnings. Some drivers will go so far as to take their time after receiving the first delivery, creating extra time for another delivery to get tracked onto the first. You can read more about DoorDash double orders on the DoorDash website. 

Get to know the restaurants

Take note of ordering patterns. Some restaurants might be more apt to attract DoorDash double orders. You want to become familiar with them. 

Learn about ghost kitchens

Third-party delivery services like DoorDash have revolutionized the restaurant industry. They have also given birth to ghost kitchens. These are kitchen-only operations that target the delivery market. Learn more about ghost kitchens at TheFoodCorridor.com. If there is a ghost kitchen in your area, it can make a big difference in your business.

Try to find your ideal trip distance

Veteran DoorDash drivers will tell you to shy away from the longer distance trips that are more likely to steer you away from the vicinity of restaurants and additional deliveries. You might get an order from a downtown restaurant to a home 20 minutes away. You’ll get good money for that delivery, but you might have to drive 20 minutes back to an area where you’ll pick up another delivery. Find the ideal distance for your region that provides good earnings and allows you to increase your trips per hour. 

Work those tips

DoorDash passes on 100% of driver tips through the app. This is a great way to increase your per-delivery income. Carry an extra thermal back for large orders to ensure everything is warm. You don’t have to wear a tie, but dress nicely. Don’t forget to smile. Your parents paid a lot of money for those orthodontics. Show off those pearly whites. 

Pay attention to the hours you deliver food

In a recent Gridwise blog post, How Much Do DoorDash Drivers Make per Hour, you can see that prime delivery hours revolve around lunch (11:30 am to 1:30 pm) and dinner (5:00 pm to 9:00 pm). Working outside of those times might prove unproductive and drive numbers down if you're looking at earnings from a per-delivery basis. 

Does your market lend itself to a bicycle?

DoorDash accommodates bicycle delivery in markets amenable to that mode of transportation. These are generally dense inner-city areas where bikes are more maneuverable than cars, and you don’t have to worry about parking. Check out a recent Gridwise blog post, The Ultimate Guide to Gigs You Can Do on a Bicycle or Scooter. It just might work for you. 

Look at your DoorDash earnings from different perspectives

As we said earlier, the best DoorDash drivers look for every earnings insight possible. Per-delivery earnings are significant, but so are hourly earnings, daily earnings, and seeing how tips fit into the equation. For a complete perspective on DoorDash earnings, see the recent Gridwise blog post, 2023 Doordash Earnings Report.

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Get more DoorDash Dasher earnings insights from Gridwise

Check out these Gridwise articles to learn more about Uber Eats earnings:

• Download the Gridwise app for free
• DoorDash Driver Pay: What Do Dashers Earn in 2023?
• 2023 Doordash Earnings Report 
• How much do DoorDash drivers earn per day? 
• How much do DoorDash drivers earn per hour? 
• How much do DoorDash drivers earn before tips? 

Just about everyone buys something from Walmart or Sam’s Club, whether it’s food, supplies, or novelty items, and many people like to have their goods delivered. That’s why Walmart Spark drivers are so busy, and Walmart Spark delivery driver pay is so high.

In this post, we’ll show you just how well you can be paid as a Walmart Spark delivery driver and how you can make $1000 a week with the app.

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How much does Walmart Spark delivery pay?

Spark is really coming on strong in 2023. By tripling the number of pickup areas it launched this year compared to last year, the Spark app now covers 84% of American households through 15,000 pickup points. In addition to Walmart and Sam’s Club stores, these points include Walmart GoLocal client locations, which provide delivery services for businesses of all kinds.

Obviously, there is a lot of opportunity for Spark delivery driving, and Gridwise data show that Walmart Spark delivery drivers can not only count on solid business,but also receive good pay.

Here’s the rundown:

Walmart Spark Driver Earnings Data 

December 2022–February 2023

Average hourly earnings$24.10Median hourly earnings$23.7090th percentile hourly earnings$24.50Average earnings per week$323.00 (average of 13 hours of work/week)

Source: Gridwise

Walmart Spark delivery pay is on the high side compared to most other rideshare and delivery services. Notably, earnings of $323 per week are based on just 13 hours of work. Drivers in the 90th percentile, who earned an average of $755 per week, put in about 31 work hours.

When you consider that kind of return on a driver’s investment in time and work, it becomes easy to see how a number like $1000 a week can be more than just a distant dream. Before we go into some strategies that will help you achieve super high earnings with Walmart Spark, let’s get some insight about how Walmart spark delivery driver pay works. 

How does Walmart Spark pay?

Walmart Spark pays drivers for each delivery they complete. There are a few different options with Spark, including picking up from Walmart and Sam’s Club curbside areas and GoLocal points, going inside the store to make the pickups, and shopping and delivering for certain orders. The pay for each order will be displayed on your Spark app screen when the offer for the order comes through. 

It’s important to note that when you receive a Spark app request, the deliveries may be stacked. That is to say, a single request might cover one delivery with just two items, and another delivery with eighty things to get to the customer. Even though they may go to different destinations, the pay represents what you will get for doing both deliveries in a single bundle. In most cases, the deliveries are going in the same general direction, but sometimes they don’t. You’ll have to look closely at the options before deciding to accept any offer.

While many drivers don’t mind getting stacked orders, because they may pay more, it does make each order take longer to deliver. This can become an issue when a driver is looking to complete a certain number of orders within a certain time period to qualify for the incentive programs Spark offers to drivers from time to time.

This brings us to exactly to what goes into Walmart Spark delivery driver pay. There is the per order basic pay rate, but there is more. Walmart Spark drivers can also count on

• tips: Most reviews from Walmart Spark drivers tell us that customers tip well. Data collected from Gridwise drivers corroborates this view, indicating the following tip rates:
  • median: 29% over base pay
  • average: 32% over base pay
  • 90th percentile: 34% over base pay

This is a very healthy tip rate! Spark drivers can count on earning above and beyond their base rate, thanks to their customers’ hefty tipping tendencies.

• lump sum incentives: The driver earns a lump sum on top of their basic earnings for completing a certain number of deliveries. Here’s where those stacked orders can become problematic.

• tiered incentives: This rewards drivers who want to achieve by getting more trips. There might be an offer for $20 extra for 4 trips, $30 extra for 8 trips, and $40 extra for 12 trips.

• confirmed payment incentives: These are offered occasionally to get drivers to deliver more. For instance, drivers might be guaranteed to make $400 if they complete 25 or more trips over a single time period, usually a few days. If they earn less, the Spark app will cover the difference.

• per trip incentives: These might be offered as an incentive to get drivers to deliver during off-hours, such as rush hour or late at night. Drivers are given extra money for each trip they complete.

• surges: When volume is extremely high and there are not enough drivers to handle demand, the app will raise the earnings on the offers in order to incentivize drivers to take them.

Read more about Walmart Spark incentive programs on their website.

• referrals: After completing a given number of orders, drivers are eligible to refer friends to become drivers. If the referred friend meets the requirements of order volume within a given time period, both parties will be rewarded. Learn more about the Walmart Spark Driver Referral program on the Spark website.

Strategies for making $1000 a week with Walmart Spark

As you can see from the $755 per week earnings for 31 hours of work (reported from Gridwise Spark drivers who are in the 90th percentile), it is possible to earn a lot with Spark. But to hit $1000 a week, you’re going to have to push just a little bit harder. 

One woman in New Mexico earned $100,000 in one year by driving for Spark, according to Your Driver Mike’s YouTube video. She worked from 10–12 hours per day, however, and was extremely perceptive. She also learned how to work in ways that optimized her chances for making as much as $400 per day. Here are some strategies she might have employed.

1. Put in the time. If you want high earnings, you will have to work more than 10 hours per week. It might not take a lot to hit the $1000 a week mark if you were to work 40 hours per week or slightly more.
2. Create passive income. Refer friends to work for Walmart Spark, and use your referral link in as many places as possible. Your email signature, a website, or YouTube channel could all bring in people you can refer and collect on when they join and drive for Walmart Spark.
3. Position yourself right. Check out where the Walmart and Sam’s Club locations are in your area, and drive to where you could be pinged for orders by either (or both) of them. Being close to a potential pickup location will cut down on the miles you need to drive in order to complete deliveries.
4. Bank on incentives. Keep checking your Spark app for incentives, and participate in as many as possible.
5. Don’t decline too many orders. Although it might make sense to decline an order, when you do, there could be consequences. The app may not go to you right away when the next one comes in, and you could be stuck waiting a long time for the next one. 
6. Get familiar with time and location patterns. Take notice of when there seems to be the largest numbers of orders and where they tend to come from. While you can do this by trial and error, there are ways to get help, too. Gridwise, as you see below, will give you exactly what you need!
7. Consider multi-apping. Fill in the gaps between heavy delivery hours with more driving for other apps. Check out how multi-apping can earn you more in this Gridwise blog article.

Work smart and use brilliant resources

If you want to get insight into the best times to drive for Spark, and get a slew of other amazing tools, you need Gridwise!

Gridwise allows you to:

Track every mile you drive for your gig. Don’t miss out on the miles you can deduct while driving to and from each delivery. Gridwise logs your mileage from the second you sign on at the beginning of each shift.

Get information on delivery demand. When to Drive and Where to Drive from Gridwise show you data from real drivers indicating where and when you’re likely to get the most business, and the biggest earnings.

Track your earnings. Watch your progress as you work your way toward earning $1000 a week ! You can sync your Walmart Spark app to Gridwise, and let Gridwise hold on to the data. Then you’ll be able to see how much you’re making, based on a variety of factors. Gridwise shows it all to you in elegantly formatted, easy-to-read graphs.

Find out about traffic, events, and weather. Gridwise keeps you in the know with happenings in your town, so you can navigate  the lay of the land and know what to expect as you drive your delivery routes.

Get benefits, deals, and discounts for drivers. As an independent contractor, a lack of insurance coverage, and other perks you might get as an employee, becomes a concern. You’ll be glad to know that Gridwise Benefits has you covered! From no- and low-cost life insurance to telehealth, mental health, dental, and visual care, you can take care of all these needs for you and your family.

Be sure to download the app and check out the other deals and discounts Gridwise has secured for drivers.

Now that you know how to make $1000 with Walmart Spark, you won’t want to do it without Gridwise!

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Now that you know how to make $1000 with Walmart Spark, you won’t want to do it without Gridwise!

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Brush up on your Walmart Spark gig knowledge

• Rideshare vs Delivery: How Much Did Drivers Earn In 2022?
• How To Be A Delivery Driver: A Gridwise Driver Guide
• 5 Best Mileage Trackers For Gig Drivers
• Looking for a different gig, part-time or full time job? Check out the Gridwise Job board.
• How much can you make on Instacart?

Gridwise and Everlance are two popular apps designed to assist gig drivers by tracking mileage and optimizing earnings. Unsure of which one to choose? Look no further than this blog post for a detailed comparison.

The key to a great mileage app for rideshare or food delivery is its ability to alleviate the burden on gig drivers. Gone are the days of labor-intensive, easily forgotten, handwritten mileage logbooks. App-based mileage trackers are the way to go. However, with so many options available, it's natural to wonder, "Which mileage tracker is the best for gig drivers?" There are numerous possibilities, most of which can be downloaded onto your phone.

You might be wondering, "What features should I look for in a mileage tracker? Which miles incurred during my gig driving are tax deductible? What other factors should I consider? And why is one tracker superior to the others?"

This blog post provides a side-by-side comparison of Gridwise and Everlance mileage trackers. By outlining the reasons, you will discover why Gridwise stands out as the premier tool for gig drivers.

You can also jump to the Gridwise website to explore how their mileage tracker fares against other major competitors.

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Why do gig drivers need a mileage tracker? 

Rideshare, food delivery, and many parcel delivery drivers are contract workers for gig platforms. They are solely responsible for paying federal and state taxes on their income. Rideshare companies don’t withhold taxes for you. It's incumbent upon gig drivers to minimize that tax liability as much as possible. As gig drivers, your most significant tax deduction is the mileage you put on your car every time you gig drive. 

The IRS increased the standard deduction for business mileage in 2024 to 67 cents a mile. That means for every 10,000 miles of gig driving you put on your car, you can reduce your taxable income by $6,700. Gig drivers in metropolitan areas commonly put between 50,000 to 60,000 miles a year on their vehicles. Deducting accurate mileage makes a big difference in the money you’ll owe the IRS.

Why not use the mileage figure the gig company gives me?

We’re glad you asked that question. At the end of the year, you get an earnings statement from the gig platforms with a mileage figure. That figure reflects the miles you traveled from when you received your order or ride request to when you picked up the passenger or order and then concluded when you dropped off the passenger or delivered the order. 

It does not include the miles you traveled before receiving your first assignment, the miles you traveled between assignments, and the miles you traveled at the end of your shift on your way home. Those are all tax deductible because they are business-related. The Gridwise mileage tracker records these additional tax deductible miles for you. 

For a complete look at how Gridwise performs against some of the most popular mileage trackers in addition to Everlance, check out this Gridwise page. 

What if I get audited?

You can download the electronic mileage records from the Gridewise app. They are Excel-compatible so that you can make computations in minutes. You can also have a hard copy that serves as proof of your miles. Gridwise programmers carefully researched the IRS requirements for mileage reporting, and the Gridwise mileage tracker meets them. 

What are the features you need to look for in a mileage tracker?

When evaluating mileage trackers for gig drivers, the chief thing to remember is whether the mileage tracker is designed primarily for gig driving. Gridwise was founded by gig drivers for gig drivers. The founders realized there had to be a better way to track mileage. The Gridwise mileage tracker is part of the Gridwise app, a companion app designed for gig drivers. Now let’s look at the features you need as a gig driver. 

• An accurate tracker. As a gig driver, you want to track every mile to ensure an accurate record for tax preparation. Gridwise links to your cell phone's GPS. 
• Automatic turn-on/turn-off reminder. If you forget to turn on the Gridwise mileage tracker, it senses that you’re driving and sends a message to your phone asking you if you want to activate it. The same thing happens at the end of your shift: if when you stop driving you forget to turn off the tracker, Gridwise sends you another message. 
• Syncs all your gig platforms. High-performing gig drivers work on multiple platforms. Synchronizing them on the Gridwise app is simple, and you can easily pull up a collective report, showing in real-time which apps are the most profitable for you. 
• Tracks your expenses. You might have bought a flashlight to see addresses or gum and mints for your rideshare passengers. Those are all deductible. The Gridwise mileage tracker includes a feature that allows you to quickly photograph receipts and enter a brief description. 
• Downloadable reports. You can quickly and easily download your mileage into an Excel file for easy handling. Print it out for a hard copy. Drop in an easy-to-use Excel formula to add up a year’s mileage in seconds. 
• Audit acceptable. IRS audits are always a possibility, especially for the self-employed. An orderly printout detailing your mileage will satisfy any tax examiner.  

While this blog post compares Gridwise to Everlance, you can also see how Gridwise matches up to all the best mileage tracking apps. 

A closer look at Gridwise vs. Everlance

Everlance review

Google score: 4.4

Apple score: 4.8

Versions: free, $10, and $33

An overview of Everlance reveals that it aims to attract gig drivers. However, if you dig deeper, you will find features aimed at companies with multiple employees and mileage payments. Everlance wants to be all things to all businesspeople rather than specifically focusing on the needs of gig drivers or gig workers. The result is an app cluttered with many features that can lead you down a confusing rabbit hole. 

You can manually enter your earnings into the Everlance app, but that's time-consuming when you consider that Gridwise automatically tracks income from all your platforms and then presents it in an easy-to-understand format. Gig drivers need to see all their earnings at a glance, simplifying the analysis process. 

There are paid versions of Everlance, but most drivers can get by on the free version. Even so, gig drivers will be left looking for the additional features that are so important to them. 

The Gridwise review

Google score: 4.7

Apple score: 4.9

Versions: free and paid ($9.99 a month with a 20% discount if paid annually)

The Gridwise mileage tracker was designed and intended for gig drivers as well as gig workers. Its features relieve the administration burden so gig drivers can concentrate on building their earnings. Every tab and button has a purpose for the gig driver, all based on efficiency, saving time, and increasing profits. 

The Gridwise mileage tracker features a reminder that detects when you begin to drive and sends a message asking if you want to track your miles. The only miles you track are gig-related ones. That’s a powerful point to make to an IRS auditor. 

Gridwise, like Everlance, has an expense tracking function, but Gridwise lets you take receipt photos and place them in a report and a brief description. Compute mileage and expense reports in minutes at tax time. 

Where the Gridwise mileage tracker really shines, though, is in the unique features that make you a more productive gig driver. These include:

• Trends at a glance. The Gridwise mileage tracker quickly displays earnings and history to show you where you make the most money. 
• Where to drive. The Where to Drive tab monitors all the platforms you drive, letting you know in real time where the greatest demand is for rideshare, food, and grocery delivery.  
• When to drive. The When to Drive tab on the Gridewise app provides a mix of historical and real-time data on when demand is the greatest. 
• Gridwise messaging. With Gridwise messaging, you’ll receive the latest information on when and where a concert, sporting event, or other activity is happening, ensuring you won’t miss out. 
• The Gridwise blog. The Gridwise blog, updated regularly, provides you with rideshare, food delivery, and grocery delivery information. Learn the latest strategies and secrets, helping you save time and boost earnings. 
• Airport features. Unravel the mystery of airports with Gridwise. Know when flights are arriving so you can be ready for passengers. 
• Traffic and weather reports. Weather and traffic can change in minutes. Gridwise monitors the reporting sources and lets you know when these factors affect your productivity. 

Side-by-side comparison: Everlance vs. Gridwise

There is much confusion about the best mileage app, but Gridwise cuts through the clutter. The following table looks at premium features available on paid Gridwise vs. Everlance apps. 

Benefits of Gridwise membership

Gridwise offers benefits that gig drivers find difficult to locate anywhere else. Here are just a few: 

• health insurance
• dental insurance
• vision insurance
• life insurance
• disability insurance
• disability coverage
• accident coverage
• tax help 
• auto insurance marketplace 
• no-cost and low-cost life insurance coverage
• accidental death coverage 
• identity theft protection
• chiropractic and alternative medicine benefits
• telemedicine and teletherapy
• credit and debt counseling services 

Gridwise is always adding benefits. Subscribe to Gridwise today for the deepest discounts on these services. Learn why Gridwise stands out in our comprehensive guide to the top 5 gig worker apps.

Gridwise comes out on top

Many apps claim to be for gig drivers, but they are often an afterthought. Everlance ranks well as a financial app for freelancers and self-employed professionals, but it lacks the services that top-earning gig drivers need to maintain their productivity. 

When it comes to gig drivers, Gridwise has the most complete selection of features to make your work more profitable and keep your tax liabilities at a minimum. 

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Check out these Gridwise articles to learn more about the Gridwise mileage tracker:

• Discover how Gridwise ranks among the top gig worker apps by exploring our detailed comparison
• Gridwise vs. Stride: Which works better for you?
• What’s the best rideshare assistant/mileage tracking app?
• Gridwise is the all-in-one assistant for gig workers
• Gridwise vs. Solo: A look at gig worker expense tracking apps

* 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 March. We’re about a month away from tax time. By midnight on April 15, we all need to have our annual income taxes completed and submitted (April 15 falls on a Saturday this year, which means you have until midnight April 17, ensuring many will spend that final weekend frantically doing their taxes). 

We understand. No one likes taxes, and as a self-employed gig driver, you almost invariably owe money to the government. Gridwise has joined forces with Keeper to bring you little-known facts about gig-worker taxes. Keeper helps gig workers and creator economy workers discover tax-deductible expenses. Keeper also helps gig workers file their taxes.

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Let’s dive right in and answer some of the more frequently asked questions about taxes for freelance work and gig driving.

1 - Are gig drivers considered self-employed?

Absolutely. As a gig driver, you are a self-employed business owner. 

Any time you get a paycheck that doesn’t have taxes deducted, you are in business for yourself and responsible for paying taxes on that income. You must complete a Schedule C (Profit or Loss from Business–Sole Proprietorship) as part of your taxes. According to a blog post from our partner Keeper, How to Handle Taxes on Side Hustle Income, this applies whether you are a full-time gig driver, or if your gig driving is a side hustle in addition to a regular job. 

The other bad news is that you must pay Social Security and Medicare taxes on that side hustle income, which totals 15.3% of what you earned after deductions.

2 - What can I deduct related to my car

As a gig driver, your most significant delivery driver or rideshare tax deduction is your mileage. The IRS gives you a choice about how you can write off your car expenses: actual expenses or the standard mileage rate (sometimes referred to as the rideshare mileage deduction). Both approaches consider mileage and other auto expenses, including oil changes, tires, and repairs.  

If you use actual expenses, you record all car-related expenditures, saving receipts throughout the year for every purchase. If you drive an electric vehicle, you keep the receipts for EV charging. This is a paperwork nightmare. Any car-related expense, even a burned-out taillight, is deductible. If you use your car for personal use and your gig driving, you must establish what percentage of use is for gig work and apply that portion of the expenses as a delivery or rideshare tax write-off. 

Using the standard mileage rate, you record your total miles as part of your gig-driving job and write it off. This last tax year, 2022, is different than most, however. The IRS, in acknowledgement of the high gas prices, changed the rate mid-year. Write off all miles driven before July 1 at 58.5 cents per mile. After July 1, increase the rate to 62.5 cents per mile. See the Gridwise blog post, IRS 2023 Mileage Rate Increase: Good News for Gig Drivers, for a full explanation of the IRS increase in the standard mileage rate.

3 - Which method of writing off car expenses is better for Lyft and Uber driver accounting, and delivery work?

When it comes to filing taxes for Uber drivers, Lyft drivers, and delivery drivers, your best option is the standard mileage rate. For example, a driver whose gross earnings were $45,000 in 2022 easily drove 50,000 miles to earn that money. If you split that mileage evenly between the previous rate and the new rate, you come up with a tax deduction of $30,250 off your Schedule C. When you subtract that from your gross taxable income of 45,000, it drops to $14,750. That is a significantly lower tax bracket, achieved with just one deduction. 

If you were to claim actual expenses, you would likely come up with a far smaller number to write off your income. 

The actual expense method is best for a self-employed person who uses their car for business, but who drives far fewer miles than a rideshare driver.

4 - Is the mileage report I get at the end of the year from Uber, Lyft, or other delivery company adequate for my taxes?

The IRS will accept the report, however it reflects far fewer miles than you actually drove. You would be seriously shorting yourself. The report only details your mileage from the time you were assigned a passenger or delivery until you completed that task. Those numbers don’t accurately reflect the miles you covered while your apps were on but didn’t have an assignment. The miles you drive each shift before receiving your first passenger or delivery, between each passenger or delivery, and the drive home at the end of the shift are all tax-deductible. The Stride Health blog suggests that these extra miles can often double your deductible mileage. 

How can you easily record these miles? The Gridwise Mileage Tracker is the best mileage tracker for rideshare and delivery drivers.  It is a vital part of Lyft or Uber driver accounting, automatically working in the background on your cell phone and recording all your miles for tax purposes. Later, you can download the records into an Excel file (or another format) for tax preparation. For a more thorough explanation of how the mileage tracker works, check out this Gridwise video. 

5 - Are any automotive-related expenses not covered in the standard mileage rate?

According to a KeeperTax.com blog post titled Ultimate Guide to Car Tax Deductions and Mileage, there are other expenses you can write off separately if you claim the standard mileage rate. These include 

• parking fees 
• tolls 
• car washes 
• DMV registration fees 

6 - Can I claim the standard mileage rate on the car I rent for Uber or Lyft?

Nope. You can only claim the standard mileage rate for a car you own or lease. In the case of rental cars, the owner is the rental agency. Most rental agreements place the financial responsibility of maintenance and upkeep (tires, brakes, etc.) on the rental agency. In the case of a rental car, you will have to claim actual expenses, meaning you can only claim fuel purchases. 

You can, however, claim the cost of renting the car as a deduction. 

7 - Can I write off my clothes for work?

For gig drivers, clothing is a deduction you will probably have to pass on. Put simply, the IRS rule is that you can write it off if you have to wear it to get paid. The other rule is that you can only wear it for work. 

In a November 2022 Gridwise blog post, A Shopper’s Guide to Being a Shipt Shopper in 2022, Gridwise introduced readers to Robert Woldhuis, who made more than $100,000 a year as a Shipt shopper. Robert’s trademark was wacky costumes, oversized glasses, and brightly colored wigs. Can Robert write those expenses off on his taxes? That’s debatable. A clear-text reading of the IRS rule would not be in his favor. 

8 - Are meals tax-deductible when I am ridesharing?

According to the IRS, there are specific instances in which you can write off a meal. These include

• taking a client out to lunch
• wooing a prospective client
• A meal with a coworker, which includes a discussion of business
• meeting with a potential referral
• a networking opportunity with anyone

As a gig driver, whether you are ridesharing, or delivering food or groceries, the opportunity to have lunch with a passenger or recipient of delivered goods will likely not meet one of these requirements. You also can’t claim meals or snacks that you consume in the course of a shift. 

There is a Lyft Driver Advisory Council. If you are a member of the group and you meet with a fellow member to discuss council business, such a meal could be tax deductible. Aside from that, there are few opportunities to write off a meal as a gig driver. 

9 - Can I write off supplies for my car?

You can write off water, candy, and other snack purchases that you make for your passengers. This is typically done in furtherance of getting a tip or a good rating, which moves it into the area of a legitimate write-off. Do you entertain your passengers with music from Spotify or Amazon Music? That is also tax deductible. The Gridwise Expense Tracker is vital to Lyft or Uber driver accounting. This app feature keeps all your records in one place. You still need to keep your receipts in case of an audit, but Gridwise tracks the numbers and computes the totals. At tax time, all the numbers are at your fingertips. Learn more about the expense tracker function by watching this Gridwise video or checking out this article about the expense tracking features of the Gridwise app. 

10 - Can I write off car payments?

You cannot write off car payments as a tax deduction for delivery or rideshare tax earnings. But you can write off the interest payment on a car loan, even if you take the standard mileage deduction. It is one of three exceptions allowed by the IRS. 

Can you write off all the interest on that car loan? Probably not. Some of that driving will be for personal use. To determine the percentage of interest that you can write off, divide the miles reported from your Gridwise app by the total mileage on your car for that year. Let’s say it comes out to 55,743 miles and 82,805 miles, respectively. Divide 55,743 (the miles reported on your Gridwise app) by 82,805 (the total miles you drove for that tax year). Your deductible percentage is 67%.

11 - As a gig driver, can I claim a home office deduction or write off my home internet?

That’s a tough one. IRS rules allow you, as a freelancer, to take a deduction for a home office, but the rules require that the home is your principal place of business. If you are a gig driver, your principal place of business is your car. Aside from possibly sitting at a desk in your office analyzing a spreadsheet to see trends in your gig-driving activity, it will be difficult to sell office-in-the-home as a full-time expense. The same goes for home internet.  

What if you diversify and start a blog about gig driving, or film, edit, and produce videos for posting on YouTube? Let’s add that you monetize this online activity. Now you can probably claim a home office—and you might have more money to claim on your taxes. 

Gridwise can help guide you in your gig driving activities 

Whatever expenses you're tracking, keep them all in one place with Gridwise. At tax time, you'll be able to export your income and expenses from last year into a handy report. Want to make tax time easier?

Start tracking your expenses with Gridwise

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