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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Why is tracking your mileage so important? In this article, you’ll find out why this simple-seeming aspect of being a gig driver can be a big factor in your profit or loss from rideshare driving or delivery work. Mileage tracking deserves your full attention because it’s a major source of tax deductions for gig workers.

You’ll see why when you discover what either a complete lack of or inadequate mileage tracking can cost you. Here are some of the most common mileage tracking mistakes drivers commit, and smart ways to avoid making them.

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#1 - Totally neglecting to track your mileage

Let’s start with the biggest mistake. You want to track your mileage because you can deduct it from your income and reduce your taxable income. If you fail to do track mileage, you could end up paying much more in taxes than necessary. 

For example, using the IRS rate of 62.5 cents per mile (in effect from July–December 2022), a part-time driver who put in around 17,000 miles over six months would be able to deduct $10,625 from their income. A full-time driver, clocking about 25,000 miles in six months, would receive a deduction of $15,625. And that’s just for half of the year.

There is no way any driver would want to miss out on such a sizable Lyft, DoorDash, or Uber tax deduction! The point is clear: you definitely want to track your mileage.

But, for the sake of argument, let’s say that you neglected or forgot to do so. It’s possible to wait until you’re preparing your taxes to start calculating your mileage, but it’s not a good idea. For one thing, it will be hard to reconstruct your entire year of driving, particularly if you work with more than one app. As we all know, dealing with gig economy taxes is painful enough, and not having solid records would make it all that much more excruciating.

The Fix: Create consistent records of your business mileage, using anything from a pen and notebook to a sophisticated app like Gridwise. Record all the miles you clock while you are on your driving app, whether it’s with a pencil and paper or a state-of-the-art mileage tracking app.

When you use Gridwise to track your gig driving mileage, every mile from every shift is recorded into an exportable file that you can use when filing your taxes. Read more about how to track your mileage with Gridwise in this post.

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#2 - Failing to keep detailed records

Keeping track of the number of miles you drive while you’re working your gig helps you know how much you can deduct from your income—but that’s not always enough. When you are dealing with the IRS, it’s always good to act as if they’ll decide to audit you.

IRS agents are notorious for questioning the deductions independent contractors take, so if yours becomes the return an agent decides to dig deeper into, those mileage numbers might not suffice. They will want the details, and they won’t stop squeezing you until they get them.

You will need to have access to the date, destination, and purpose for each trip notated. That’s not so difficult when you’re a gig driver, because the destination and purpose are pretty much the same for every shift. With that said, you still have to be very thorough about ensuring that you have an accurate account of your mileage. 

You might wonder, does Uber keep track of mileage? The answer is “yes, but…” and that goes for all the other apps you drive for as well. Keep in mind that the mileage the driving apps track are those for which they pay you. So if you go to a destination and the customer cancels the trip or delivery, that mileage won’t be included in the apps’ calculation.

The Fix: Use Gridwise to track each and every deductible mile you travel while you are on your shift. Simply log on when you begin driving and log off when you’re done for the day.

#3 - Mixing personal and professional mileage

This is a big no-no, and if you get caught doing it, you will be penalized. It’s very important to distinguish between the miles you drive for business and those you rack up for your personal needs.

This is why taking manual readings from your odometer is not a safe or adequate way to monitor mileage. Sure, you can hope that you’ll remember to record your mileage when you pause your gig driving to pick up your child from school. In reality, that’s really hard to do, and you probably won’t remember every time. This can result in inaccurate readings, and that can lead to—IRS trouble. 

The Fix: Use Gridwise to track your mileage and eliminate this kind of confusion from your life. Simply log in when you start gig driving and log out when you’re done. That way, you won’t still be logging business miles when you begin a personal trip. You won’t be racking your brain trying to calculate the mileage you incurred, particularly if that after school run involved a moment at the local snack shop or an extra stop to do a friend a favor.

#4 - Losing receipts and other documentation of expenses

How many times have you stuck your hand in the pocket of your jeans or coat and found a bunch of crumpled up receipts in there? If this is something that you experience with regularity, you may want to consider getting more serious about saving receipts for items that can be considered tax deductible.

It’s a lot to ask, in an age when we do almost everything on some kind of electronic device, to actually file away little slips of paper in any semblance of reasonable order. Still, you never know when you’re going to have to present a receipt for those candy bars you bought to hand out to your customers on Halloween, or prove that the trip you’re claiming as a deduction was really for business purposes.

The Fix: You probably have ways of tracking your spending through the debit or credit card you use. It is, after all, wise to keep a separate account for personal and business expenses, so they are easier for you to track. 

You also can use a slick tool to help you keep a running account of all those little expenses, as well as pricier items such as car maintenance and repair. Gridwise has two ways to help you.

1. Record your expenses as they arise, right in the app.
2. Use Gridwise Tax Help, powered by Keeper Tax. Gridwise Tax Help features automatic receipt tracking, so you can jettison the nightmarish image of that shoebox overflowing with wrinkled slips of paper. This feature caters directly to the specific issues that come up with taxes for gig workers.

#5 - Rounding your mileage numbers

Tax auditors look for certain “flags” that indicate a taxpayer might be exaggerating, or even pulling from thin air, the numbers on a return, especially when it comes to Lyft, Amazon Flex, or Uber mileage deduction. 

Therefore, if they see numbers that are rounded off, they’re going to begin to dig deeper, and before you know it you could hear that you’re about to be the subject of an IRS or state audit. That’s why you don’t want to guesstimate your mileage, or even innocently round the numbers off.

The Fix: Keeping honest, exact, and documentable records of your mileage is your safest best when it comes to preparing your deductions. When auditors see “real” numbers, they’re likely to assume that all your reporting is on the up and up. 

When you use Gridwise, you’ll ride with the best mileage tracker for delivery drivers and rideshare pros. Let Gridwise record all the numbers you need to keep you free from unwelcome scrutiny.

#6 - Ignoring tax laws and regulations

Many gig workers, when they begin as independent contractors, believe that filing taxes isn’t going to be any more complicated than submitting information from a 9–5 full-time corporate job. That’s a huge mistake.

The nuances of filing taxes as an independent contractor can easily get you caught up in errors that cost you money. For instance, are you aware that you can be penalized if you don’t file your taxes quarterly? And how would you answer if someone said “Quick, tell me the IRS gas mileage rate USA 2023”? Fortunately, you can read this Gridwise blog post on the topic of the 2023 gas mileage rate, but that’s not the only thing you’ll need to be aware of.

The Fix: Get professional help.

You need to know a lot of little bits of information, and be up to date with all the tax laws and regulations that affect your life as a gig driver. It’s possible to do this all on your own, but you don’t have to. Gridwise Tax Help, powered by Keeper Tax gives you

• access to a tax professional
• algorithms that scan your transactions for deductible expenses you might have missed
• automatic mileage reports from shifts tracked with Gridwise
• the ability to e-file your taxes, right from the app

You can’t afford to use anything but the best mileage tracking app out there—Gridwise!

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You sign up for Lyft or Uber, go through the app so you understand it, put the decals on your car, and hook up the Uber beacon or Lyft Amp, and you’re ready to make money. 

Except that’s not happening, at least for you. 

Sure, you get some rides, but you’re not making the $250 or $300 a night you hear others talking about. It looks as if there are a lot of rideshare drivers out there, and they all have passengers. You don’t have as many. It’s no wonder that out of every 100 rideshare drivers who download the app and go out for the first time, a year later only four drivers are still at it. 

If you're stubborn enough to stick it out, after a month or so you’ll see your earnings increase. They’re not exactly where you want them to be, but the money gets better. You’ve learned a few tricks. You’ve also discovered what are general peak times for driving Uber and Lyft. 

Do you know all of them, though? Take a few minutes as Gridwise reveals the best times to drive rideshare and earn money.

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Strategies and tactics for rideshare drivers

There is more to being a successful driver than turning on the app and waiting for ride requests to appear. You can strategically position yourself at the right place and at the right time to get rides. 

Gridwise has published several blog posts on how to be more successful as a gig driver. Take a few minutes and click on these links:

• How To Be A Rideshare Driver: A Gridwise Driver Guide
• How To Earn More As a Rideshare Driver
• 12 Ways Rideshare Drivers Can Earn More Tips

You can also download the Gridwise app and start reaping the benefits of the best app on the market for rideshare drivers.

The Gridwise app includes useful features, such as When to Drive and Where to Drive. Drivers can see where the business is in real time. If you like airport rides, you can monitor arrivals and departures at local airports. Sporting events and concerts also appear on the app, telling drivers when these events conclude and where they can find spectators who need transportation to their next destination.

When to drive and Airport features on the gridwise app

The Gridwise app also has the best mileage tracker for gig drivers. This, coupled with an expense tracker, lets drivers maximize their tax deductions, keeping even more money in their pockets.

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But there is more …

What are the best times and places to drive?

As you’ve figured out, there are ideal times and places to drive. What are general peak times for driving Uber and Lyft? Time is important, but so is location. Some of those places and times show up on the rideshare and Gridwise apps. Others are well-guarded secrets. Taking full advantage of those locations requires knowledge that only a few drivers have. Here is a list, and we will start with one that few drivers are aware of.

After-hours clubs

After-hours clubs are an opportunity that won’t appear on a rideshare app. The liquor laws in every state are different. In California, bars and stores cannot sell liquor after 2:00 am, and they can start up again at 6:00 am. In the meantime, alcohol (and other substances) flows freely at after-hours clubs in many downtown areas, often located in side-street warehouses or other large spaces. If you stay out late enough, you will get ride requests to and from these locations. These rides can often go throughout the night and continue after sunrise. Take note of them. You might also ask your passengers if they know of any after-hours clubs. One nice perk: the clientele can be exclusive, such as celebrities and the well-heeled, making for a heftier tip. The downside: your passengers are often quite inebriated. Have a supply of emesis bags. 

Early morning airport runs

What are Lyft peak times in the morning, and for that matter, what are morning peak times for Uber? If you live in the suburbs of a major metro area with a large airport, such as Los Angeles, New York, or Chicago, take advantage of those early morning airport runs. One Southern California rideshare driver reports that he hits the road at 4:00 am, sets his destination on the app toward LAX, and 90% of the time, he has a ride to the airport by 4:30 am. 

“There are days I turn on my app while I’m still in the kitchen drinking my final cup of coffee,” he says, “and within minutes, I’m going 50 miles to LAX. Mondays are especially good peak times for Lyft and Uber, but this happens just about any day of the week. And after I drop off my ride, I’m in Los Angeles at the beginning of the morning rush hour. There is no end to the business.”

Gridwise offers a detailed airport feature for rideshare drivers, try it out!

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If you have access to the outer suburbs of a metro area served by a major airport, early morning airport runs are the best time to drive for Uber on weekdays. The same applies to Lyft. 

Thirsty Thursdays

With the advent of four-day workweeks, and other folks who just want to get an early jump on the weekend, Thursdays are a busy night and have been dubbed “Thirsty Thursdays.” Thirsty Thursdays are even more intense in large towns with colleges, as no self-respecting college student schedules Friday classes. 

On Thirsty Thursday, the best time for Uber drivers, as well as Lyft drivers, starts during rush hour and can last until the wee hours. In some cities, Thursday nights often rival Friday nights in the volume of rideshare business. 

Weekends

Weekend nights are the busiest, with Lyft and Uber peak hours starting early. Hit the road at 5 pm, and you often get ride requests from groups going out for drinks before dinner or those who want to beat the traffic to a concert or sporting event. You can expect business to steadily increase throughout the night, with a noticeable spike about two hours before the bars close. This is when FOMO sets in, otherwise known as fear of missing out. Young people, and older folks, too, panic, thinking they're not at the hottest bar in town, and they want to go someplace else. FOMO settles down about midnight, and the next spike hits when the bars close. The increased demand at closing hour can last as long as 60 minutes, as many make their way to nearby restaurants before going home. There are lots of rides. 

Colleges and universities

University of Southern California, near downtown Los Angeles, has an arrangement with Lyft. The university picks up the tab for all student rideshares from 7:00 pm until 1:30 am, as long as they are within a certain radius of the campus. The beginning and the end of this period are peak times for Lyft. The rides are shared, meaning each pickup counts as a ride. The students use it like water. The policy takes a lot of people off the street who might have had too much to drink and keeps concerned parents happy. In the last full year before the pandemic, USC paid for 35,000 rides, according to a father who attended freshman parent orientation. 

Some drivers don’t like shorter, shared rides, but if you're aiming for a goal for a Lyft sprint, USC is a great way to get ten rides in an hour. Check out your local colleges and see if they have similar policies, such asAssumption College in Worcester, MA; Lesley University in Cambridge, MA; and College of San Mateo, near San Diego, CA. There are many others. Do the research and make sure you know the details. 

Special events

Parades, large street fairs, celebrations, conventions, and trade shows offer opportunities for countless rideshare requests. The first weekend of June 2023 saw 100,000 participants and spectators descend on West Hollywood’s Santa Monica Blvd. to celebrate gay pride. There are trade shows, too. Because these are business-related events, attendees charge their rides, and correspondingly large tips, to their company credit cards.

If you live near a town like Palm Springs, CA, there are celebrations throughout the year, including Dinah Shore Weekend, the Coachella Music Festival, and tennis and golf tournaments. 

Some of the larger concert events are accompanied by after-parties, which draw people seeking more good times. Some are well-publicized, while others are more exclusive. Ask your passengers if they know of any. These events can extend the peak driving period that night by several hours. 

Holidays

The last few weeks before Christmas often see a dip in rideshare requests. People are spending time at home getting ready for the holidays. New Year's Eve, though, is often a rideshare driver’s biggest night. Super Bowl Sunday and St. Patrick’s Day prompt lots of demand for rideshare, too. 

Bad weather

Some rideshare drivers don’t like to go out in the rain. That means fewer rideshare drivers to compete against, and grateful passengers more apt to tip. Check your windshield wipers and get out there when it’s raining. 

Other tips for earning more

Being at the right place at the right time is only part of what you need to be a top rideshare earner. Here are some other tips so that you can take advantage of general peak times for driving Uber and Lyft.

Be a peripheral driver

A problem with large events is that the crowds and demand are so great that rideshare drivers report spending inordinate amounts of time in giant traffic jams. Many drivers don’t earn that much more than a regular night, even with the bonuses offered by Lyft and Uber. 

“The Coachella Music Festival is in Indio, twenty-five miles from Palm Springs,” a Lyft XL driver said. “Many large groups of kids rent Airbnb homes near the festival in gated communities, but you spend hours in the congestion, only to go a few miles. It’s often bumper to bumper for 45 minutes to pick up a ride. I found much better earnings hanging around downtown Palm Springs, picking up larger groups there, and transporting them to the festival. At the end of the night, I hang out on the periphery of the traffic jam with my app off and follow the large tour buses that are leaving. I turn on my app when the buses drop off passengers in empty parking lots. Folks still need a ride from there, and that’s when I pick them up. I don’t do the festival traffic jam. Even with bonuses, it’s a waste of time.”

Other drivers advise that they have good experiences cruising around the bars and restaurants surrounding sports stadiums, but they wait at least an hour after the game concludes. “People walk to a nearby bar after the game to wait out the traffic and have a drink,” said one driver. “After an hour or so, they're ready to go home.”

Upgrade to a larger vehicle

If you own an SUV that holds six to eight passengers, holidays and special events are the night to take it out. The higher fares you command by driving Lyft XL or UberXL more than offset the extra money for gas. If you rent a car for rideshare, investigate the possibility of getting a larger car for special events. Reserve early, though, as many drivers have the same idea. 

Carry extra supplies

A downside of working rideshare at special events and weekend nights is picking up passengers who have been drinking. You risk a passenger misbehaving or getting sick in your car. Gridwise addressed this issue in a recent blog post, How To Deal With Drunk Uber Or Lyft Passengers. Brush up on your people skills for handling these types of passengers, and also carry an extra supply of emesis bags. 

Carry extra water, too. At outdoor events, spectators often don’t drink as much water as they should. Having a second case of water in your trunk makes you popular and earns you larger tips. Your preparedness can avert a few incidents of dehydration. 

Understand surge fares

If you drive weekend evenings and during weekday rush hour, then you are familiar with surge pricing. This is indicated on your app by heat overlays, showing areas where demand for rideshare exceeds the available drivers during the busiest Uber times, and Lyft, too. Surges can boost your earnings on a ride by 50% to 100%. But if you are more than a few minutes away from a surge area, think twice before chasing it. Surges are transitory. By the time you get there, they might be gone. 

The other approach is to take note of when and where you see surges. They often recur. If you find yourself in that area again, position yourself so that when the surge hits, you are in the middle of it. 

Update your rideshare apps regularly

This is one of the things they don’t tell you when you sign up to be a rideshare driver. Lyft and Uber regularly update the app to fix bugs and add new features. If you don’t update your rideshare app regularly, it will become slow and unresponsive. It can even quit working altogether. Update your apps at least once weekly, and before large events and heavy demand periods. You don’t want to miss maximum earnings because your app isn’t running at peak performance. 

Maintain several cash apps on your phone

When you get larger groups in your car, especially young people, they often agree to split the costs. One puts the rideshare on their bank card, while the other agrees to pay the tip. You can make third-party tipping much easier with a selection of cash apps on your phone. This happens more often than you may think. PayPal, Venmo, Cash App, and Zelle are the most popular cash apps, according to The Balance, a personal finance website.  

Constantly experiment

High-earning rideshare drivers recognize that they don’t have all the answers about the best time for Uber or Lyft drivers. A Southern California rideshare driver confesses that he accidentally discovered Thirsty Thursday one evening when there was a large traffic accident on the major freeway he took home. He decided to hang around downtown Los Angeles for a few extra hours and was surprised by the volume of ride requests. 

“I added Thursday nights to my regular driving schedule,” he said, “and it has paid off.”

Gridwise can help

The best rideshare drivers with the highest earnings are always looking for an edge. That edge includes Gridwise. In addition to helping you find profitable times/places to drive, there is also the Gridwise blog, full of important information for gig drivers, including the latest strategies and tactics, how to save money on taxes and expenses, and news about the gig driving industry.

Gridwise also breaks down your earnings by time and location so you can see what strategies work the best!

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According to the numbers, the future promises big things for meal delivery. 

What’s driving this expansion? Millennials and Gen Zers mostly; 63% of meal delivery consumers fall into the 18–29 age bracket. Even better, as this group ages, they will likely bring these purchasing habits with them, passing them on to their children. 

The BusinessofApps.com reports that Uber Eats commands 26% of the food delivery market. They also claim another 8% through Postmates, which Uber purchased in 2020.

In this blog post you’ll discover why you should make Uber Eats part of your meal-delivery game. Topics include

• Why should you consider Uber Eats?
• Other reasons to become an Uber Eats driver.                                  
• Signing up as a driver for Uber Eats.
• What happens once you are approved?
• Receiving tips on the Uber Eats app.
• Incentives for Uber Eats drivers.                                                                                                                                     
• Using a bicycle for delivering Uber Eats.
• Uber Eats driver advice for earning more.
• Make Gridwise part of your Uber Eats toolbox.

Why should you consider Uber Eats?

We’ve already presented numbers showing DoorDash's substantially better market share. Bigger is not always better, though. 

According to a Gridwise blog post from July, DoorDash vs.Grubhub: Which Is Better for Drivers in 2022?, DoorDash drivers averaged $15.28 per hour; Grubhub drivers came in at $15.49 per hour ( figures collected through the Gridwise app). Earlier in the year, though, Gridwise published Q1 Uber Eats numbers in another blog post, What Does Uber Eats Driver Pay Look Like in 2022?, showing Uber Eats drivers earning $15.84 per hour. 

Other reasons to become an Uber Eats driver

There are other benefits to Uber Eats. 

• Uber Eats may be the more dominant meal delivery service in your area. Market share numbers on a national level don’t always translate to market share at a local level. There are some regional markets where Uber Eats plays a more dominant role. 
• If you already work as a rideshare driver for Uber and would like to work for Uber Eats, too, then signing up will be even simpler for you.
• You might be one of the many gig drivers who multi-app, running more than one app at a time. If you are multi-apping meal delivery services, then Uber Eats deserves a place in the lineup. (For extra insight into multi-apping, take a look at the Gridwise post The Art of Multi-apping: How-Tos and Strategies for Gig Drivers). 
• If you rent a car through Uber for your rideshare gig, you can use the rental car for Uber Eats without violating the rental agreement. The terms of rental agreements through Lyft or Uber typically preclude you from using that rental car for other gig services. 
• Uber Eats also allows you to deliver on a bicycle. This is highly profitable, depending on your market (we’ll talk about this later). 

Signing up as a driver for Uber Eats

Everything starts with the Uber Eats driver app. You can sign up on a laptop or desktop computer, but eventually you’ll have to download the Uber Eats delivery app anyway. From there, it involves answering a few questions and supplying the requested information. 

According to the Uber website, these are their qualifications:

Delivery by car

• be at least 19 years old
• have a two-door or a four-door car
• possess a valid driver’s license in your name
• possess a Social Security number, so Uber Eats can run a background screening

Delivery by scooter

• be at least 19 years old
• have a motorized scooter with an engine under 50cc
• possess a valid driver’s license 
• possess a Social Security number, so Uber Eats can run a background screening
• indicate that you will be delivering by scooter, under the transportation method

Delivery by bicycle or on foot

• be at least 18 years old
• possess a government-issued ID (no driver’s license is required)
• possess a Social Security number so Uber Eats can run a background screening
• choose delivery by bicycle or foot (only in certain cities), under transportation method

Upload a photo of yourself (the standard mug shot), driver’s license or government ID, and proof of vehicle insurance and registration if applicable—you might also need to submit a vehicle inspection. 

Approval takes three to ten days.  

What happens once you are approved?

There are meal delivery services that limit the number of drivers active in any given area. If you try to get on and that service has already reached driver capacity in your area, you won’t be allowed onto the app. Not so with Uber Eats. You can log on at any time. 

You then get offers for orders that need delivering. The offer on the Uber driver app includes the restaurant’s location for order pickup, the general area (cross streets) of the delivery location, the estimated time the delivery requires, and how much you will earn. This figure is a total number, including the delivery price, any incentive bonus, and the customer tip. 

Unlike rideshare, Uber Eats does not track acceptance rates. Drivers are free to choose which orders they want to pick up and deliver; a subject addressed later in this blog. 

That said, Uber Eats does tell drivers on the Uber support page that "It is important to maintain a high acceptance rate to provide a reliable service to restaurants and customers." You may want to be careful about turning down lots of orders.

Once you accept an order, you drive to the restaurant and pick it up. Once pickup is complete, you’ll swipe the app and then receive the exact address for the delivery. 

The customer can indicate if they want the order left on the doorstep or if they want you to knock on the door. Once the order is delivered, you swipe the app again and the process is completed. Off to the next order you go. 

Receiving tips on the Uber Eats App

Tipping is one of the drawbacks of Uber Eats. The Uber Eats app prompts the customer to enter a tip amount when they place the order. The amount the app shows the driver for earnings includes that tip. The Uber Eats app, however, allows the customer one hour to change it. If there is a problem with the order, the customer might reduce or eliminate the tip. 

There is also tip baiting, in which customers indicate a handsome tip to lure the driver into providing extraordinary service or accepting an order that requires a long drive. After the meal is delivered, the customer then reduces or eliminates the tip. Tip baiting is not that common, but it does happen. As an Uber Eats driver, it will make you groan. 

Incentives for Uber Eats drivers

There are three bonus structures for Uber Eats to incentivise drivers. 

Quest incentives

Uber Eats offers quest incentives for completing a specific amount of deliveries within a given period. An example of a quest incentive might be that you complete 10 meal deliveries between 5:00 pm and 9:00 pm on a Saturday and receive a $50 bonus. You are typically informed of quest incentives ahead of time. 

Surge pricing

Surge pricing for Uber Eats works the same way it does for other gig-driving jobs. When demand for meal deliveries is high, Uber Eats offers a surge bonus to attract additional drivers. Peak times for Uber Eats often are:

• Lunch: 11:00 am–1:00 pm
• Dinner: 5:30 pm–9:00 pm
• Days: Fridays, Saturdays, and Sundays, or when there is a special event, such as Thursday night football games on television 

Boost incentives

Boost incentives are like Surge pricing, except that they are based on location rather than time. The Uber Eats app will show boost incentives for specific areas, perhaps a college or university campus or a business park during the lunch hour. 

For additional tips on earning more as an Uber Eats driver, check out the Gridwise blogpost How to Make $1,000 a Week with Uber Eats. 

Using a bicycle to deliver Uber Eats

The major meal delivery services allow the use of bicycles in specific areas. Some people deliver for Uber Eats and limits their delivery to bicycle-only. One "driver" explains in a blog post on his site that using a bicycle is ideal in densely populated urban areas. He selects only those deliveries he can reach within minutes on a bike. Despite the congestion of downtown areas, bicycles allow Uber Eats delivery people to avoid a big problem: traffic. Your pay depends on how many deliveries you can make. Some claim earnings on the Uber Eats delivery app ranging between $30.00 and $40.00 an hour. 

“If you can complete 5 deliveries per hour and make $6 per delivery, you’ll make $30 per hour. Hit 6 deliveries per hour at $8 per delivery and you’ll make $48 per hour. Most likely, you’ll be somewhere in between those two numbers (assuming you’re strategic about which orders you accept and how you do your deliveries).”

According to the numbers from Gridwise, Uber Eats drivers were earning an average of $9.37 per trip. 

The biker also noted that Uber Eats does not supply delivery drivers with insulated bags. Some of the other meal delivery services do. They purchased a branded Uber Eats delivery bag. Amazon carries a wide selection of bags, including the types favored by bicycle delivery drivers. 

Other drivers include Uber Eats as part of their multi-apping strategy along with Uber. As we mentioned earlier, both activities are for Uber, so you can also take advantage of renting a car through Uber. Check out the Gridwise blog post, Gig Driver Guide: Renting a Car for Rideshare or Delivery. 

Uber Eats driver advice for earning more

As with any gig driving job, there is a success strategy for Uber Eats. Perfecting that strategy can maximize your earnings. Here are some suggestions on tactics. Always remember that an effective strategy varies depending on what type of meal delivery driver you are and your market. 

Understand the food culture in your market

The restaurant scene, with all its variations, is evolving as you read this. Restaurants are not the only players in today’s prepared meal business. There are countless food trucks, pop-up stands, and other outlets. A Los Angeles Times article describes several warehouses in LA that host multiple “ghost kitchens.” These are kitchens servicing the meal delivery market only (and sometimes the pickup market). There are also numerous brands that operate from the kitchens of established restaurants. The Modern Shipper website reports that the kitchens of about 1,250 Applebee’s restaurants host Cosmic Wings, a concept with an exclusive delivery agreement with Uber Eats. There are many others, according to an article on CNBC.com. For example:

• Wingstop offers Thighstop.
• Chuck E. Cheese operates Pasqually’s Pizza & Wings.
• Hooters has three virtual brands: Hootie’s Burger Bar, Hootie’s Bait and Tackle, and Hootie’s Chicken Tenders. 

They have no bricks and mortar, no storefront. It is all delivery, backed by aggressive digital marketing to get the word out. 

The message: do a little research in your market and know what’s coming out of the back door of some of these restaurants or warehouses. Cruise by every once in a while and see if you can pick up an order.  

Make Uber Eats part of a multi-apping strategy

There are many high-earning gig drivers who believe multi-apping is key to their success. Determine which apps are dominant in your market and work with all of them. Be aware of surge bonuses and quest incentives with the Uber Eats delivery app, though. If you are working toward a quest incentive, you will likely want to stay with Uber Eats until you meet the goal. Want to learn more about multi-apping? Don’t forget! Check out the Gridwise blog post, The Art of Multi-apping: How-Tos And Strategies For Gig Drivers. 

Keep your delivery circle as small as possible

Take a lesson from the Financial Panther and realize that the more deliveries you complete, the more you earn. A larger ticket may pay more but can eat into your time because of the extra driving. Draw a tight circle around an area that you know from experience is profitable and stick with it. A small delivery circle also means you’ll save on gas. 

Be familiar with restaurants that are notorious for making you wait for the order

Time is money, and you don’t get paid to wait around for an understaffed or chaotic kitchen to get an order ready. If a restaurant has kept you waiting, remember that next time you see an order from them and pass.

Work those tips

Drivers routinely report that as much as half of their Uber Eats earnings come from tips. Make sure you deliver promptly. Smile for the Ring camera, even if you drop the food off at the doorstep, push the doorbell, and walk away. Take a cue from the grocery delivery drivers who leave a handwritten note card with each order. You can pre-write them with a generic message the night before. 

Check all orders

Getting the wrong item is a frequent complaint of meal delivery customers. Even the best restaurants make mistakes. Check the order when you pick it up, before you leave. Make sure somebody didn’t confuse chili-cheese fries with regular fries. More important, ensure you have the correct order, not someone else’s. 

PRO TIP: Once you have checked the order, message the customer that you have done so and are on your way. Communication is key. 

Don’t be afraid to experiment

Restaurants change, and markets evolve. Mix it up, try new things, and tweak successful strategies. Especially in this environment of ghost kitchens, it’s easy for something to slide by unnoticed. If you can casually ask the customer what they like, you may find a new restaurant or kitchen you didn’t know about. Again, it may be worth driving by if you can pick up an order. 

Self-education

There are blogs and YouTube videos available on improving meal delivery earnings. Follow them regularly. Check out the pages of Gridwise for updates, too. Take time to read Gridwise blog posts. 

Make Gridwise part of your Uber Eats toolbox

If you drive for Uber Eats, make sure you track your earnings, miles, and expenses. You can do all that in one place with Gridwise while getting more out of your mileage deduction with Gridwise's mileage tracker. You'll also get crucial info on peak times to do food delivery.

If gas costs are still eating into your profits, you can get up to $50/month off with Gridwise Gas!

Start saving more with Gridwise

And have fun out there!

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.

You might be a seasoned driver or completely new at the business of shuttling people and the things they love to where they belong. In any case, you need to understand the ins and outs of being a gig worker and how that affects your status as a taxpayer.

This post will tell you what you need to do to responsibly pay your taxes and get the most out of all the tax deductions you can take as a gig worker.

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What does it mean to be a gig worker?

Before we do anything else, let’s look at what it means to be a gig worker or part of the gig economy. According to this piece from Corporate Finance Institute, the gig economy is flexible and involves the exchange of labor, goods, and services through digital platforms that match buyers and sellers.Companies hire independent contractors and freelancers instead of full-time employees. Work is assigned on a temporary basis and allows gig workers to largely choose their own hours. 

That sounds about right. As a gig driver, you have flexible hours and use an app to connect with people who want to use your services. You are not an employee of any of the companies you work with.

But, because you are an independent contractor, the company or companies you do work with will not take taxes out of your pay. That sounds good at first hearing, because you get to keep all the money you earn, at least until tax time!

Being an independent contractor also means you are totally responsible for paying your own taxes and knowing when and to which government entities to pay. This Gridwise blog post offers more details about the basics of paying your taxes, and how the Uber, Lyft, and DoorDash mileage reimbursement can reduce your taxable income. This is not the only deduction to consider, however.

What you can deduct as a gig driver

When Gridwise was created, it was built specifically for gig drivers, by people who had been in the business themselves. They knew how many things a driver needs to keep track of so that they can deduct the costs of doing business from their gross income, and therefore not have to pay as much at tax time. This list from Keeper details 23 things you can write off as a Lyft and Uber driver. 

1. Vehicle expenses

No one needs to be told how much it costs to keep a vehicle running and in working order. It’s a lot. When it comes to deducting these expenses, drivers have to be careful. For the first year you operate a vehicle for business, the IRS requires you to use the standard mileage rate in order to calculate the deductions you can take for operating it. You must be able to prove that you use your vehicle for business, and document miles accrued for your gig as opposed to personal purposes.

Most vehicle expenses are covered, by and large, by the IRS mileage reimbursement rate. Once you make it through the first year using the IRS standard mileage rate, you can opt to calculate the actual costs of operating your vehicle, and see which method yields the larger deduction. These expenses would include

• fuel/charging
• vehicle maintenance (See this Gridwise maintenance checklist for all that this entails)
• insurance
• registration
• inspection
• tolls
• cleaning the car (car washes, detailing)
• vehicle depreciation
• car lease payments 
• repairs
• parking costs

The IRS provides rules and guidelines for using the actual cost method in this tax document. Be sure to read these requirements before filing your tax return, or better yet, consult with a tax professional to avoid making errors that could turn out costing you more than you’ll ever save by using the actual cost method.

Note: If you’re wondering, Can Uber drivers deduct their car payment? we have to dash your hopes on that one. You can’t list your car payments as part of your Uber expenses because you cannot deduct payments on an item that will eventually become your asset.

2. Equipment

Your vehicle isn’t the only thing that makes your gig work possible, to be sure. There are plenty of other items you use in the course of your rideshare and delivery work, such as

• the portions of your cell phone and phone plan costs that you use for your gig
• accessories such as mounts and phone chargers that you’ve purchased for your riders’ use
• delivery gear like insulated bags, beverage carriers, dollies, pushcarts, and crates
• floor mats and seat covers

3. Extra services

If you’re a rideshare driver, there are certain things you know will make your customers happy, and you want to provide them. If you deliver, you also make purchases related to your work that you might not purchase otherwise. That means there are more tax deductions for Uber drivers and DoorDash tax write-offs to benefit from than there are for people who aren’t gig drivers. These may include

• subscriptions, including satellite radio and music streaming platforms
• bottled water and snacks provided to customers
• sanitizing equipment, from hand cleaner to sneeze guards
• enhanced car sound systems

Wondering why you can’t deduct meals while you’re out there driving? This insight from Keeper will clue you in.

4. Business tools

Your driving gig might be quite diverting, and even fun, but never forget that it’s a business. Because there is so much to managing a business, there are more expenses you might run into as you go along. Be sure to deduct the costs of running your business, such as

• Home office expenses, such as the software, supplies, and equipment used for recordkeeping. This expert advice from Keeper will help you choose the right items to deduct. As always, though, it pays to get “final answers” from a tax pro.
• Contributions to your IRA. 
• Legal, accounting, or tax advisor fees. 
• The cost of productivity apps such as navigation tools, parking assistants, GridwisePlus, and Keeper all count to your tax deductible costs.

Now that you know about the things you can deduct from your gross income, set up a system to record these expenses so you’ll be equipped to put them to work for you when tax time comes.

Documenting your deductible expenses

There are two solid reasons for keeping a full and accurate account of your Lyft, Uber, Instacart, and DoorDash expenses. First, you will want to be able to take advantage of everything you can deduct. Second, in the event your return is questioned via an audit by your “friendly” federal, state, or local tax officials, you’ll be able to produce evidence that could save you a lot of trouble.

What do you need to pay special attention to, and how can you best ensure you have accurate records? Here are a few important behaviors to institute: 

• Keep receipts and invoices organized.
• Record odometer readings and trip details, or use a mileage tracking app such as Gridwise.
• Keep a log of the hours you drove and how much you made.
• Calculate the actual expenses of using your vehicle and compare that to the deduction you would get using the IRS standard mileage rate.
• Clearly differentiate your income and expense records so they concur with your 1099 information.

Organization is a huge part of getting what’s coming to you in terms of tax deductions. And the more money you make, the more you’ll be looking for Lyft driver tax deductions and Uber tax advice to help shave down your taxable income figure.

It’s crucial to keep track of your driver tax deductible expenses. It’s not likely, unless you’ve overpaid your quarterlies, that you’ll come up with reduced rideshare tax or a Lyft refund, but maximizing deductions will keep you on the right road toward driving taxes down.

Gridwise has good news for drivers who might be struggling to understand how to calculate and use DoorDash expenses and Uber driver tax deductions. Gridwise Tax Help, powered by Keeper, isn’t designed for just anyone. It’s engineered specifically to assist gig drivers as they collect their income and expenses information, and prepare and file their tax returns. Gridwise Tax Help gives you:

• automatic mileage tracking for shifts logged with Gridwise—we do the math
• automatic receipt tracking—no more piles of paper to sort through
• extra tax deduction finder—the app scans your expenses for deductions you might miss
• access to your very own tax professional—someone is there to answer all your questions

Do yourself a favor. Download Gridwise and sign up for Gridwise Tax Help to save big on your taxes.

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Are you one of those people who believes chasing down tax deductions is more trouble than it’s worth? You might change your mind this tax season. With costs rising on just about everything—especially gas and other energy items—it has become more expensive than ever to run your gig driving business. 

One way to counteract those rising costs is to cut your taxable income figure so you can reduce the amount of tax you need to pay. Surely you’ve heard of “tax loopholes” and other ways big corporations do this. Now is a smarter time than ever for you to take advantage of tax deductions that are available to gig drivers, legally and ethically. Let’s look at 8 smart strategies that show you how.

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1. Bunch expenses and take advantage of deductions in high-income year

Drivers don’t make the same amount of money each year. You know when you’re raking it in at a nice pace, and when you wish you were doing better. As a busy driver, it’s hard to focus on your work and think about how much you’re earning—and worry about Uber and tax matters at the same time. When you’re in the middle of a high earning year, though, you’ll need to consider what Uber taxes, Lyft tax, and delivery driver taxes are going to cost you. 

Be sure to take advantage of deductions, especially retirement and health care investments. In leaner times, you’ll have less income to protect from taxation, so you can cut back on your contributions.

You can also use “bunching” to take advantage of deductions in high income years. For instance, if you plan to purchase deductible items you will need in the following year, purchasing them in a year where you’re making a lot will allow you to deduct the expense from your income. Read this article from Northwestern Mutual for more details about bunching. You can use bunching with items such as property tax and health care expenses. Paying these items in advance can substantially reduce your delivery and rideshare taxes.

In all cases, you’re going to want to see whether the amounts you can use as deductions exceed the standard deduction limits set by the IRS. That is one of the first steps you should take when you deal with your tax deduction strategy.

2. Know what deductions drivers can use

You will probably be surprised at just how many deductions are available to gig drivers, above and beyond what’s available to those with non-gig jobs. Do you know about the delivery and rideshare mileage deduction and how to take advantage of it? Check out this post to see all the tax write-offs all gig drivers can take advantage of. In the meantime, we will list a few for you:

• vehicle expenses (or use the IRS standard mileage deduction)
• subscriptions, including satellite radio and music streaming platforms
• bottled water and snacks provided for customers
• sanitizing equipment, from hand cleaner to sneeze guards
• enhanced car sound systems
• home office expenses
• productivity apps such as navigation tools, parking assistants, GridwisePlus, and Keeper

3. Make use of tax deductible investments

Because you’re an independent contractor, there is no benevolent, all-caring company to pay for your pension. You will need to set up investments such as an IRA or 401(k) for yourself if you expect to have money to live on when you retire. 

Individual Retirement Arrangements (or accounts) and 401(k) plans are ways of setting aside retirement savings or money for health care costs. The contributions you make, most of the time, are tax deductible. Beyond the convenience of reducing tax for Lyft drivers and other gig workers, setting up retirement and health care funds are wise ways of taking care of your present and future needs. Here are some options you have as a freelance worker: 

• SEP IRA: The Simplified Employee Pension Plan is an Individual Retirement Account that businesses can set up for their employees. And guess what? You can set one up too, as a self-employed individual. See more details about how this works from the IRS here. 

• Solo 401(k): With this plan, the self-employed individual acts and contributes to the fund as both employer and employee. Does a 401(k) reduce taxable income? Yes, but what we think of as the 401(k) tax deduction is not exactly that. The money you put in is subtracted from your taxable income, but it isn’t counted technically as a tax deduction. The IRS says contributions can be made in both capacities, employer and employee, as you'll see in this information page. 

• SIMPLE IRA: They call this “Saving Incentive Match Plan for Employees” or SIMPLE because it’s very easy to establish. The fact that, according to the IRS, there are no start-up or operating costs involved makes it appealing as well. The SIMPLE IRA can be an excellent addition to your freelancer tax deductions.

• IRA: The standard Individual Retirement Account is managed by investment institutions. The IRS allows you to make contributions and deduct them from your taxable income. As long as you wait until you are 59.5 years of age, you can withdraw from the account and simply pay tax on it as you go. If you take distributions early, however, there will be substantial penalties. 

While a well-endowed IRA is a nice thing to have waiting for you when retirement comes, it often has start-up costs associated with it. A few options are available that let you begin with a small or even no initial investment, but most investment institutions will want you to start your account with a contribution of $1,000 or more.

This information from the IRS provides further IRA-related details and also compares the standard IRA to the Roth IRA. Roth IRAs act as a source of retirement savings, but because Roth IRA contributions are taxed up front, they are not tax deductible.

• HSA: Contributions to a Health Savings Plan can be another way to deduct from your taxable income and protect you from excessive medical expenses. You must meet several requirements, as shown in this article from Investopedia, but if you already have a high deductible health insurance plan, you will probably benefit from an HSA, both as a savings plan and a tax deduction.

You don’t have to use your retirement plan to reduce your delivery driver or rideshare tax. What you ultimately decide to do about retirement savings will depend on factors such as your age, family situation, and whether you can afford to start an account and make contributions. The options suggested here will help you sort out what is best for you, as will the advice of a tax professional.

4. Use Gridwise features that help drivers

Gridwise knows what drivers need. Why? Because Gridwise was developed and is supported by people who were (and in some cases still are) gig drivers.

Gridwise alerts you to deals on automotive expenses and insurance, and offers tax help for DoorDash, Instacart, Lyft, Uber drivers, and more.

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Here's a quick rundown of what Gridwise offers drivers:

• mileage tracker: a hassle-free tool that counts up those miles up to help maximize your tax deduction
• earnings tracker: a seamless and smart way to track earnings, simply by syncing your gig apps with the Gridwise app
• expense tracker: an easy and paperless method of logging expenses and categorizing them 
• tax report generator: an elegant and organized resource for reports such as itemized earnings, expenses, and mileage all in one place, presented in easy-to-read graphs
• CSV interface: a tax preparer’s dream—all your tax info put into CSV format so it can be easily submitted, by you or your tax professional 

5. Get 1099 tax help with Gridwise

Every driver knows how much time it can take to get ready for tax time, and how little extra time there is to spare. Now, Gridwise offers Gridwise Tax Help, in partnership with Keeper. Like Gridwise, Keeper's tax filing app is tailored to the needs of gig drivers. 

When you get the Keeper tax app through Gridwise, you automatically receive a 30% discount. If you’re a Gridwise Plus user, you get a 50% discount on the regular price, which means you don't have to shell out $100s just to file taxes! Keeper's app helps 1099 workers by giving them:

• write-off detection: Once connected to your bank, the Keeper tax app will search for deductions you can use to reduce your taxes.
• tax bill prediction: Because Keeper has a handle on your earnings, expenses, and deductions, it can predict your tax bill throughout the year. No one needs a surprise when it comes to paying more than you thought you’d have to!
• tax filing: You can file your taxes electronically, right from the Keeper app!
• professional tax help: Chat with a real, live tax professional any time to make sure you’re doing things legally, by taking advantage of every write-off you can.

6. Consult a tax professional

A tax professional’s expertise will put you in the very best tax position possible, and better yet, if any questions from the IRS or your state department of revenue do come up, your tax accountant will help you work with them. How to avoid or deal with an audit is the kind of Lyft and Uber tax advice every rideshare and delivery driver needs.

Gridwise's partnership with Keeper means you can get in touch with tax professionals for FREE! Normally you'd be charged a fee for that kind of tax advice.

Tax professionals can literally save you from the kind of trouble that tax return errors bring. If you're in doubt, it's worth consulting an expert. And through Gridwise Tax Help, you can do it for free. Win-win!

7. Do your return in advance

The IRS sets a date each year before which they will not accept your return. However, if you file early, you can reap a few advantages:

• If you have one coming, your refund will arrive sooner.
• You’ll protect yourself from an identity thief filing your return (and getting your refund) before you do.
• You’ll have time to deal with any problems involving your return and be able to rectify them in time for the tax filing deadline.
• You’ll be able to see how much you will have to pay and save the cash you need.
• It’ll be obvious whether you’ll need professional help to file your return before the deadline.

8. Stay savvy to any changes in tax laws that apply to gig workers

While it isn’t always appealing to learn about what’s going on in the world of taxes, Gridwise makes it easy. Our blog is filled with the information you need, and news items about taxes will often be covered.

You can also keep current by using Gridwise Tax Help and Keeper. The app will be right on top of any news about deductions for gig drivers, and you can always chat with a tax professional to ask about changes in the way the government taxes freelance work.

Ready to make tax time a breeze?

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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.

One of the reasons gig driving jobs, including DoorDash food delivery, are so convenient is that you can make your own hours. The only set schedule you work is the one you’ve developed on your own, based on your market (because every market is different), your other responsibilities, your other gigs, and your nine-to-five job if you have one. Many gig drivers work multiple platforms, so working the right gigs at the right time for maximum profit is always a delicate balance. If you’re limited to only a few days to drive DoorDash, what are the best days to maximize DoorDash pay?

So when someone asks, “How much do DoorDash drivers make per day?” your response is, “It depends on what day of the week it is.” 

Gridwise, though, has looked at the numbers, and we can tell you the best days. They come from over 500,000 Gridwise drivers who have downloaded the Gridwise app and tracked their earnings, mileage, and expenses. Gridwise aggregates and anonymizes this data and then presents it to drivers so that they can see trends in their business. If you want to maximize your DoorDash pay, this is the article you need to read. 

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How much DoorDash drivers make daily is not the only barometer of DoorDash earnings, though. There are also per-hour and per-delivery earnings. To look at all facets of DoorDash earnings, see the Gridwise blog post 2023 Doordash Earnings Report. You can also see another perspective of DoorDash earnings from another Gridwise blog post, DoorDash Driver Pay: What Do Dashers Earn in 2023?

How much do DoorDash drivers make per day?

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

Between Q1 2022, DoorDash gross daily earnings, including tips and bonuses, ranged in average from slightly more than $61.00 to more than $63 per day. The numbers are average and include both full-time and part-time drivers.

What is the best day to drive for optimum DoorDash pay?

BizFluent reports that Mondays and Tuesdays are the least busy days for restaurant delivery and takeout. Many independent restaurants are closed on one of these days for that reason. Conversely, you can also argue that Mondays aren’t bad because many people are in the doldrums from the weekend, and a delivered meal sounds like a heck of an idea. It depends on your market. And let’s not forget Monday Night Football and Thursday Night Football.

The weekends, starting on Friday night, are the busiest days. People like to start their weekend relaxing, and there is no better way to kick that off than with a great meal ordered in. When Saturday rolls around, it’s college games, and then Sunday is NFL day. You can learn more about the impact of football from this Gridwise blog post, The Impact of Pro Football Home Kickoff Games on Gig Mobility Demand. 

The women in the house especially appreciate home delivery of meals. USA Today reported last year that 46% of the NFL fanbase is female. That’s even more pressure to open the DoorDash app.

There is one last reveal that you should know. According to SportsBusinessJournal.com, while sporting events dominate the airwaves and attract the most viewers, the president’s State of the Union address is number one. The Academy Awards (held on a Sunday night) comes in fourteenth. Don’t forget those other special events, including the Grammys, The Golden Globes, the Country Music Awards, and others. 

Tips for maximizing DoorDash pay per day

Your earnings as a DoorDash driver are in your control. There are things you can do to make food delivery more profitable. 

Slice and dice earnings for a better perspective

Daily DoorDash earnings are important, but it is also important to understand earnings from an hourly perspective (what would happen if a special event such as the Super Bowl lengthened the dinner hour?). You also need to ask yourself what it would do to earnings if you could squeeze in another delivery per hour? To get the answer to all these questions, check out the Gridwise blog post 2023 DoorDash Earnings Report. 

Determine if DoorDash is the best choice in your city or region

It may not be. DoorDash certainly seems the best choice for a food delivery driver. DoorDash has dominated the food delivery platforms for several years, commanding 65% of the US food delivery market. That’s a far cry from second place Uber Eats, at 24% of the market. The other competitors, including Grubhub, are down in the single digits. 

But food delivery is a competitive business and can vary from city to city. DoorDash has less than a 50% market share in San Diego, Los Angeles, Chicago, and New York, according to Ordering in: The Rapid Evolution of Food Delivery, a 2021 report by McKinsey. The report goes on to say, 

Geographic competition among delivery platforms will be one of the most significant battlegrounds over the coming years. Rival platforms will continue to fight one another for customers, restaurants, and drivers in each individual market, potentially leading to further consolidation over time. This battle will extend into new verticals beyond restaurants, as platforms widen the scope of services they provide.

Look at the McKinsey report and see if your city is listed and how it looks for market share among the food delivery platforms. Depending on where you live, you might be better off delivering for another service. We should point out that the McKinsey report, dated September 2021, is more than two years old. The market for food delivery is constantly changing. 

Don’t look at your DoorDash earnings from one perspective

It is necessary to see DoorDash earnings from a 360-degree perspective to fully understand how you can make more money. An excellent place to start is the recent Gridwise blog post 2023 DoorDash Earnings Report. 

It is also important to understand and appreciate all aspects of Dasher earnings. Gridwise examines these perspectives in other blog posts: 

• How much do DoorDash drivers earn per delivery?
• How much do DoorDash drivers earn per hour?
• How much do DoorDash drivers earn before tips?

Select the best hours for DoorDash pay

Food delivery is not a 24/7 job. Yes, there are those odd orders at 4:00 in the morning or 3:00 in the afternoon, but you can generally rely on lunch and dinner as your peak times. 

DoorDash peak timesTotal hoursEarningsCommentsLunch (11:30 am–1:30 pm)2 hrs. × 5 days a week = 10 hrs. $200Weekends tend to eliminate the business lunch crowd. Dinner (5:00 pm–9:00 pm)4 hrs. × 7 days a week = 28 hrs. $560Hours may vary in your region. Late night1.5 hrs. × 7 days a week = 10.5 hrs.$210If your territory includes colleges and universities, you’ll get good results in this time block. Totals48.5 hours$970

Chart initially published in How to Make $1000 a Week with DoorDash

The afternoon gap or after 9:00 pm is where multi-apping comes in. You can take advantage of afternoon rush hours or late nights by driving rideshare. You can also run two or three platforms simultaneously. Check out the Gridwise blog post on multi-apping, The Art of Multi-apping: How-Tos and Strategies for Gig Drivers. 

You can also look at the When to Drive and Where to Drive features on the Gridwise app, which provide you with the most up-date-date information in your region. 

If you familiarize yourself with Amazon Flex, you can also squeeze in a delivery block from that company. Check out these recent Gridwise blog posts on the parcel carrier: 

• How to Make $1,000 a Week with Amazon Flex 
• Demystified: Your Guide to Amazon Flex Standings

Make it easy for customers to tip you 

Tipping waiters and waitresses is a US thing (not so much in Europe). Although many tip their food delivery driver, others don’t. You should make it easy for them. Spend a few dollars and have business cards printed, thanking them for their business, and include one with each delivery. You might even include your personal information for a few electronic cash-handling apps—PayPal, Zelle, Venmo, etc. DoorDash passes on 100% of tips to drivers, but some people don’t like to tip on the app. 

Be bright and cheerful

You don’t always see the customer, but porch cameras are ubiquitous. You should always consider yourself to be on camera. From the moment you get out of the car, all the way to the door and back, you should exude enthusiasm and good cheer. Smile a lot! Optimism is catching, and people will reward their DoorDash driver for it.  

Communicate with customers

Text customers along the way, giving them a running commentary on your progress. “Just got your order on my app, on the way to pick it up.” “Getting out at the restaurant.” “Headed for your place. Three minutes away.” People love communication, which is all the more true if something goes wrong, such as an order that needs correcting (especially if you caught the error) or problems with traffic. 

Remember all the condiments

Some restaurants could be better regarding including extra ketchup or mustard. Make sure to drop in additional packets. Drop in an extra handful of napkins and some plastic forks, knives, and spoons. If you’re picking up beef dip sandwiches, ensure someone at the restaurant remembers the au jus.

Familiarize yourself with DoorDash incentives

DoorDash offers you ways to make more money. Learn about Peak Pay promotions, DoorDash Driver Challenges, and the Dash Now program—all described in a recent Gridwise blog post, DoorDash Incentives 2023: How Do They Work?

Download the Gridwise app

Gridwise is the place to go regarding the latest information on DoorDash or other food delivery, rideshare, and parcel delivery gig jobs. Download the Gridwise app and check out the When to Drive and Where to Drive features. You can also save money at tax time using the Gridwise mileage tracker, the best mileage tracker for gig drivers, and the Gridwise expense tracker.

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Get more insights into DoorDash pay from Gridwise

Check out these Gridwise articles to learn more about DoorDash 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 hour? 
• How much do DoorDash drivers earn per delivery? 
• How much do DoorDash drivers earn before tips?