Gridwise blog

Tips, insights, and advice to help you earn more and work smarter, whether you do gig work, hourly, or shift work.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

How Much Do DoorDash Drivers Make Before Tips?

Food delivery is a service business, and in the US, it’s often customary to tip service workers, especially when there’s food involved. Food delivery drivers will tell you tips are a big part of their income. Are you wondering, How much do DoorDash drivers make before tips? 

With inflation up as much as it has been, customers are paying more for food and are thus more apt to skimp when tipping their DoorDash driver. You have to earn those tips. 

You can rely on Gridwise to give you real-world numbers. More than 500,000 gig drivers have downloaded the Gridwise app to track their earnings. Gridwise has aggregated these earnings from various gig platforms—including income from bonuses, incentives, and tips—to provide an accurate picture of DoorDash pay. You can view all the numbers in this recent Gridwise blog post, 2023 Doordash Earnings Report.

[elementor-template id="20891"]

For another perspective on DoorDash aenings, you can also read another Gridwise blog post, DoorDash Driver Pay: What Do Dashers Earn in 2023?

Breakdown of DoorDash driver pay before tips

How much do DoorDash drivers earn? It all starts with base pay. That’s what you see on your app when you get the order. The time, the distance you need to travel, and the desirability of the order all go into computing base pay. 

Top Dashers look for at least a dollar a mile in base pay. Some DoorDash drivers will only accept orders that are closer to two dollars. But other factors can increase this dollar amount. 

How to enhance DoorDash pay

DoorDash pays beyond the base compensation through a couple of other ways.  

Peak Pay.

Peak Pay is the equivalent of surge pay for rideshare drivers. When things get busy, the app will institute Peak Pay for DoorDash drivers. This is an add-on to the payment you see on the app when the order appears. Peak Pay differs depending on what region you drive in. Go to the Promotions tab on your app to see what your region pays. You can find out more about Peak Pay on the DoorDash website

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. For instance, complete 15 deliveries in one night and receive a $20 incentive payment. You might also receive Challenge offers through SMS or email. To find out more about DoorDash Challenges, see the DoorDash website. 

Average daily DoorDash driver earnings before tips

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

Between Q1 2022 and Q3 2023, DoorDash driver gross daily earnings before tips ranged from about $30.50 to more than $32.00. 

Tips are an important component of a food delivery driver earnings, but Gridwise realizes that the best drivers want to see the entire income picture, so we’ve collected and analyzed that data. See it all in this Gridwise blog post, 2023 Doordash Earnings Report

The most common food delivery complaints from end consumers

A quick Google search can give you the most common complaints from end consumers about their food delivery experience. If you’re committing any of the following errors, as listed in this BusinessofApps.com article, it will affect your tips. 

  • Late deliveries (50%). Communication between the DoorDash driver and the end customer is critical. If the restaurant doesn’t have the order ready, or you encounter any other delay, text the customer and let them know. 
  • Wrong order (37%). Did you check the order to make sure it’s correct? You don’t have to open every dish or unwrap every sandwich, but at least ensure the number of items is right and the labels correspond with the order. 
  • Cold food or food that isn’t fresh (36%). This is usually the restaurant’s fault, but you can prevent cold food by making the delivery promptly and having enough thermal bags to hold everything. 
  • Driver needing directions (33%). Your GPS is usually correct, but some neighborhoods fall into a black hole with sketchy internet service. If you get a chance, check Google GPS against Waze.  
  • Food not arriving (26%). Restaurants drop the ball, or drivers who are multi-apping get distracted by a better opportunity to make money. 
  • Bad attitude of the driver (14%). Food delivery is a customer service job. This means a good mood all the time. Your parents paid a lot of money to straighten your teeth, so you should always show them off by smiling. Make sure you have a spring in your step. Porch cameras are ubiquitous these days, so even if you don’t have to contact the customer, act like you’re on top of the world. It’s contagious. 

Another complaint that pops up regularly is drivers eating customer food. According to RestaurantBusinessOnline.com, 54% of customers have suspected a delivery driver of sampling their food. This is not an outlier report. Earlier this year, RetailBrew.com reported that 79% of food delivery drivers admitted to filching a few fries or other food from an order. Other accounts have that number a bit lower, but any percentage above zero is unacceptable. Don’t be surprised if restaurants start coming out with tamper-proof containers for food delivery. 

Gridwise also provides you precise numbers on DoorDash earnings. We break it down to show you not only how tips matter, but how much drivers average per hour, per delivery, and per day. 

See all the information in this Gridwise blog post, 2023 Doordash Earnings Report.

How to earn better tips while driving for DoorDash

With tips comprising as much as 50% of DoorDash pay, doing whatever you can to increase them is imperative. With that in mind, what can you do to earn more?

Learn the restaurants in your area that are good for Dashers

We know that one of the chief complaints of customers is late orders or cold food. Some restaurants are poorly managed. Orders are never ready for the Dasher, and you’re left to cool your heels and surf TikTok. Other restaurants don’t package their food well. It’s either cold or smashed (that’s another customer complaint). When you see an order from a restaurant where you have had this experience, pass on it. Look for orders from restaurants that appreciate you and make the Dasher life easy. 

Dress for success 

You don’t have to wear a button-down and tie, but look nice. Too many food delivery drivers wear sleeveless T-shirts, cutoff sweats, and grungy sandals. Look like someone you would want handling your food. 

Dress for specific events

Another version of this considers football, baseball, and basketball seasons. Wear the home team jersey. You can take a page from Robert Woldhuis. USA Today reported that he made $100,000 in one year delivering groceries for Shipt. Part of his schtick was wearing colorful wigs and outlandish costumes. Hey, it worked for Robert!

You’re judged by your attitude

Yes, maybe you had to shell out $300 for new front tires, or you just paid top dollar for gas. Maybe your significant other just moved out and took everything but one place setting so you can eat a meal. No one wants to know your problems, and they sure don’t want to see them reflected on your face. What they want to know is why that DoorDash driver is in such a good mood. It might motivate them to toss you a tip. 

Surprise your customers

Take another lesson from top-earning grocery delivery people and give your clients something they didn’t expect. A pack of seeds for the lady of the house or small boxes of crayons for the kids goes a long way (you can get 250 packs of four crayons, each wrapped in cellophane, very inexpensively on Amazon). Make sure they’re visible by stapling them to the outside of the bag containing the food. You want to blow away customers with your service. 

Deliver in the rain

No one wants to go out in the rain or snow, including customers and other DoorDash drivers. But you do, and you’re smiling the whole time. People will appreciate you—and usually tip you accordingly. 

Watch YouTube videos, read the blogs

Other DoorDash drivers are hustling as hard as you, and sometimes they come up with good tip-earning ideas. Be the first to discover them. If you haven’t read the Gridwise blog post How to Make $1000 a Week with DoorDash, read it now. 

Have a couple of electronic cash-handling accounts for tips off the app

Sometimes you get a group of people ordering off one person’s credit card, but another agrees to handle the tip. You want to make it easy for them. Print some cards with your PayPal handle, or Venmo, Cash App, or Zelle. You should have multiple ways that people can give you money. 

What can be measured can be improved

Sign up for the Gridwise app, link to DoorDash, and monitor your earnings. Track your tip activity and see what works. Then do more of it. And while you’re at it, use the Gridwise app to track your mileage and expenses, and save at tax time. You can also check out When to Drive and Where to Drive, valuable features on the Gridwise app. 

[elementor-template id="20936"]

Take advantage of your free access to the Gridwise blog, a source for the most current information on gig driving, including DoorDash. Click over now to see a full review of DoorDash earnings in the 2023 Doordash Earnings Report, and also read this Gridwise blogpost, DoorDash Driver Pay: What Do Dashers Earn in 2023?

Get more earnings insights for DoorDash

Check out these Gridwise articles to learn more about DoorDash earnings:

February 19, 2024

How Much Do DoorDash Drivers Make?

Do you include DoorDash as one of the platforms for your gig driving activities? If so, then congratulations. DoorDash commands a 65% market share of the food delivery industry, more than two-and-a-half times larger than second-place Uber Eats (24%). 

Even though you’re working for the top app on the food delivery platform, there is room to earn more. At Gridwise, we believe that what can be measured can be improved. That’s why we have broken down DoorDash earnings so that you can understand the numbers from every perspective. So when someone asks you “How much do DoorDash drivers make?,” you have the answer. 

You can rely on the accuracy of Gridwise numbers. More than 500,000 gig drivers have downloaded the Gridwise app. They pair Gridwise to all their gig apps to monitor their earnings, spot trends, and see where they can improve. Gridwise aggregates these collective numbers into an industry-wide picture of earnings that’s not available anywhere else. This knowledge will improve your earnings. 

[elementor-template id="20891"]

How much do DoorDashers make per delivery?

Want to know more about how much DoodDash drivers make per delivery? Some drivers prefer to look at earnings on a per-delivery basis. Check out this article that gives you detailed information about per-delivery earnings and how to make more in this Gridwise post, How Much Do DoorDash Drivers Make Per Delivery?

How much do DoorDash drivers make per hour?

Many DoorDash drivers work full-time, and others work part-time, making it difficult to find common ground for comparing earnings. How much DoorDash drivers make per hour is the great equalizer. If you’re doing it all right, implementing the best tactics and strategies, you can tell by per-hour earnings. For a closer look, check out the Gridwise blog post How Much Do DoorDash Drivers Make Per Hour?

How much do DoorDash drivers make per day?

What are the best days of the week for maximizing DoorDash earnings? Look at the information on the chart. There might be some surprises. For a closer look, check out the Gridwise blog post, How Much Do DoorDash Drivers Make Per Day?

How Much Do DoorDash Drivers Make Before Tips?

Inflation affects everything, including how much customers pay for the food you deliver as a DoorDash driver. Sometimes that translates into smaller tips. This is a concern because tips make up a large part of a DoorDash driver’s earnings. See what DoorDash earnings look like before tips. Then click over to a recent Gridwise post, How Much Do DoorDash Drivers Make Before Tips?, where we include pointers for increasing those tips. You can also get a perspective on DoorDash driver earnings from another Gridwise blogpost, DoorDash Driver Pay: What do Dashers earn in 2023? 

Download the Gridwise app

Gridwise is the #1 companion app for DoorDash drivers, and for all those that make their living as gig drivers. Besides monitoring your earnings from the various gig platforms you drive, the DoorDash app also has the best mileage tracker for gig drivers, as well as the best expense tracker in the industry. Gridwise also provides valuable information about where business is with their When to Drive and Where to Drive features. 

[elementor-template id="20936"]

Get more DoorDash Dasher earnings insights from Gridwise

Check out these Gridwise articles to learn more about DoorDash earnings:

February 19, 2024

How Much Do DoorDash Drivers Make Per Hour?

DoorDash hourly earnings are the great equalizer, an even playing field for comparing full-time and part-time drivers. For this reason, we are taking a close look at, how much do DoorDash drivers make per hour? 

As we look at these numbers, you should know that they come from the over 500,000 gig drivers, both full-time and part-time, who have downloaded the Gridwise app. Gridwise aggregates and anonymizes the numbers to give you the best picture of DoorDash driver earnings.

[elementor-template id="20891"]

This blog post has lots of good information, but if you want to know more, you can check out the Gridwise post 2023 Doordash Earnings Report. You can also compare your earnings to what other drivers earned in 2022 in this Gridwise blog post, DoorDash Driver Pay: What Do Dashers Earn in 2023? While this blog post focuses on how much DoorDash drivers make per hour, high-performing drivers find it important to understand all aspects of Dasher earnings. Gridwise examines these aspects in other blog posts. 

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

DoorDash driver earning numbers per hour

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

How much do DoorDash drivers make? DoorDash hourly earnings for the last seven quarters, ending in Q3 of this year, averaged $15.20 to $16.00 per hour. Notice that rates increased during the first and fourth quarters, which run concurrently with the football season and the holidays. We don’t see the same increases during March Madness or baseball season for DoorDash drivers (or Dashers, as DoorDash refers to them).

Food delivery is one of many gig driver jobs that sees a positive impact from football season. A recent Gridwise post, The Impact of Pro Football Home Kickoff Games on Gig Mobility Demand, shows a marked increase in rideshare business. 

Keep in mind that these numbers represent the average. High-performing DoorDash Dashers, those in the 90th percentile, earn as much as $20 or more per hour. Dashers in the largest metropolitan areas earn even more. Becoming a high-performing driver may answer your question, Is DoorDash worth it?

As we said in the first paragraph, hourly earnings are the great equalizer between all DoorDash drivers, full- and part-time. For a different perspective on how to look at DoorDash earnings, see the Gridwise post, 2023 Doordash Earnings Report.

DoorDash driver earnings averages across cities per hour

{insert chart}

The per-hour numbers you saw in the first chart represent a national average. Earnings at all levels for gig drivers vary geographically, and Gridwise can break it down per city. The major metropolitan cities have the highest earning rates because of their sheer density. The volume and variety of restaurants also drive this higher rate. 

Large suburbs, carpeted with homes, surround many of these cities. These smaller, densely packed communities attract many restaurants, too. 

For those drivers not based in a major metropolitan area, DoorDash launched an Earn by Time feature for drivers this past June 27. Read about it in the Gridwise blog post Gig Worker News: DoorDash Offers Hourly Pay to Dashers

Busiest times of the day for DoorDash drivers

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

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. 

The exception to this is when there are major sporting events. These are more likely to carry the food delivery demand through a Saturday or Sunday afternoon. Also, remember that football is a weekend-long pursuit. College games are on Saturdays, professional games on Sundays, and football games on Monday and Thursday nights. 

What do food delivery drivers do in the afternoon hours or after 9:00 pm? This is where multi-apping comes in. You can get in several hours of rideshare in the afternoon rush hour or late at night. Check out the Gridwise blog post on multi-apping, The Art of Multi-apping: How-Tos and Strategies for Gig Drivers

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

You can also see how hourly earnings fit into the wider perspective of DoorDash earnings in this blog post, 2023 Doordash Earnings Report.

Tips for maximizing hourly DoorDash driver earnings

As a DoorDash Dasher, there are some things you can do to increase your profits. 

 Take advantage of DoorDash double orders

There are scattered reports that the DoorDash app is good at doubling up on orders, meaning that you can, on your way to pick up an order, get a second order going in the same general direction. According to this Quora page on DoorDash double orders, drivers have mixed reviews of this. You can also read more about DoorDash double orders on the DoorDash website

Communicate with the customer

It’s better to let the customer know in advance that there’s a hold-up at the restaurant or you’re stuck in traffic. Alternatively, they get upset, look for someone to blame, and the delivery driver becomes the likely target. 

Double-check those orders

Make sure the restaurant gets the complete order. You don’t have to open dishes or unwrap sandwiches to verify what they are, but at least count the components and ensure nothing is missing. Someone might be counting on those onion rings. 

Remember all the condiments

Some restaurants could be better regarding including extra ketchup or mustard. Make sure you include some. 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?

Work those tips

Tips are a significant source of income for DoorDash Dashers. If you do a lot of dashing, consider getting cards printed that thank people for allowing you to bring them their delivery. Include your information for PayPal, Zelle, or any of the other electronic cash-handling services. Some people would rather tip you directly. Drop one in every bag.

Check out Gridwise for more information on DoorDash

Visit the Gridwise blog and type “DoorDash” into the search bar. You’ll get a host of excellent blog posts about DoorDash. Recent ones include A Guide to Dashing: DoorDash for New Drivers vs. Experienced Drivers

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 When to Drive and Where to Drive on the Gridwise app. You can also save money at tax time using the Gridwise mileage tracker, the best mileage tracker app for gig drivers, and the Gridwise expense tracker

[elementor-template id="20936"]

Gridwise also maintains one of the most authoritative blogs in the gig industry. Check out our recent blog post, 2023 Doordash Earnings Report, for a more encompassing look at DoorDash earnings, and once again, also read DoorDash Driver Pay: What Do Dashers Earn in 2023?

Get more DoorDash Dasher earnings insights from Gridwise

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

How much do DoorDash drivers earn before tips?

February 19, 2024

How Much Do Lyft Drivers Make Per Ride?

Are you making as much money as other Lyft drivers? Is it worth it for you to work for Lyft? Working alone as a Lyft driver sure does beat having a micromanaging supervisor breathing down your back, but there are some things you have to sacrifice. 

One is the camaraderie that comes with working around your peers. From time to time, you may bump into other Lyft drivers and ask them things like how much they’re making per day. Sadly, you’ll rarely get any realistic intel, outside of their opinions about what Lyft driver earnings are like. But are they telling the truth?

Gridwise has data that reflects actual figures from other drivers, without the need to fact-check your airport cell phone lot buddies’ boasts, or to guess whether they drive the same way you do. On top of data, this article gives you tips for out-earning all your peers. Here are some questions we’ll shed light on:

[elementor-template id="20891"]

What is Lyft driver base pay like?

Lyft calculates base pay by adding together the base fare plus the time and distance you will clock during the ride. Besides these variables, you’ll have to take into consideration bonus and tip pay, and your expenses, including gas, car maintenance, and job-related equipment. The wide range of base pay numbers account for differences in location, as well. A ride that takes place in New York or San Francisco, for instance, will be more profitable than a short ride in the suburbs of Butte, Montana.

Gridwise data illustrates base pay ranges across the country:

How much do Lyft drivers make per ride?

When you ask this question, you’re likely to get a whole lot of different answers. Business Insider asked a number of drivers, who reported figures ranging from $22 to $40 per hour. It’s hard to know how many rides a driver makes in an hour, and it can definitely vary. Other sources estimate that median per trip earnings hover around $10.

It’s important to look more closely at how much you’re making with every ride, and then you can begin to estimate how much you can make in a day. This data from Gridwise gives you actual numbers that reflect the nationwide experience of per trip earnings of Lyft drivers.

What cities offer the biggest per ride earnings?

Cities such as New York and Seattle have laws that set minimum wages for drivers, so on the whole, their per trip earnings will be high. Other cities, where demand is less and cost of living lower, will show per trip earnings for Lyft drivers that match that situation. 

This data shows how much Gridwise drivers make per ride in key cities.

In all cities and in less populated areas as well, trips involving big events, rush hours, and bad weather will yield more profitable rides. Download Gridwise to get information about events, traffic, and weather when you need it most.

How can Lyft drivers make more with every ride?

When you work with Lyft, there’s a big difference between simply taking the rides as they come, and strategic driving. Here are some action items that are sure to help you make the most out of every ride you take.

  • Download Gridwise and use When to Drive. Each ride you make will be more profitable once you know the best times to drive. When to Drive gives you intel that is sure to boost your earnings. It shows you the days and times when rides are really paying off.
  • Use multi-apping to make the most of your time. When Lyft rides don’t come one after the other, you can jump on another app to keep your cash flow going.
  • Track your mileage and expenses. Your Lyft app only tracks the miles you travel while you’re on a ride. Download Gridwise to keep an account of the miles you drive in between. This lets you take full advantage of your deductible mileage allowance. Gridwise also tracks your other expenses, putting you in the perfect position for tax time.

[elementor-template id="20936"]

More earnings insights for Lyft drivers

February 16, 2024

Mobility Data: What Gig Driver Loyalty Reveals to Investors

Uber Technologies, the parent company of Uber and Uber Eats, set the tone for gig platforms in early February when it posted a $1.87 billion profit for 2023

That number comes on the heels of two years of solid growth figures. According to mobility data from Gridwise, Uber's trips increased 66.3% from Q1 2022 to the end of 2023. While not as high, Lyft's numbers rose 52.1%. DoorDash, the giant of the food delivery companies, saw trips soar 34% in almost the same period. 

But investors and hedge fund managers know Uber’s profit comes at a cost. Uber’s annual numbers also revealed that the rideshare leader spent a whopping $529 million on driver incentives, which they label contra revenue. That’s more money that could have gone back to the bottom line.

How can investors tell if the gig platforms are wisely investing in boosting driver loyalty? How can Uber and the other gig platforms get ground truth data on what works? The answer lies in transportation analytics from the Gridwise Annual Gig Mobility Report

[elementor-template id="20891"]

Mobility data is a gateway to understanding gig driver loyalty

When evaluating a gig platform, investors should ask, “Do their programs attract and keep drivers?” Gig companies can quickly expand their apps to handle the added demand. It's more challenging, however, to scale the number of drivers needed to meet the demand. A shortage of available drivers leads to long waits for the customer. It can diminish the gig platform’s reputation and compel end users to seek other options, either driving themselves or using public transportation, and in the case of food delivery, picking it up themselves.

The various incentive programs gig platforms use to get and retain drivers include

  • Driver referral bonuses—Many gig companies, especially rideshare, offer current drivers bonuses for referring new drivers. The amount of these bonuses and other requirements vary by region and the need for new drivers. In the past, they’ve been as high as $500, according to a post by SmartWallet.  
  • Guaranteed incomes—A gig company will guarantee a certain level of earnings for new drivers in a specified period. The gig company will make up the difference if the driver fulfills the requirements but does not reach the amount. 
  • Returning-driver incentives—Many drivers quit driving during the pandemic or for other reasons. The gig companies often email these drivers with a bonus offer for returning and meeting specific goals.
  • Driver retention programs—The gig companies regularly offer bonuses to drivers for completing a specific amount of rides during a specified period or in a defined region. Examples of these include the Uber Quest bonus and Lyft Sprints. 

These are the most common programs, but there are others. They all cost the gig platforms money (more than half a billion in Uber’s case), with some being more effective than others. Ground truth information in the form of mobility insights and delivery data paves the way for smarter, more equitable decisions by all stakeholders.

Why should investors be concerned about driver loyalty?

Driver loyalty translates into benefits for a gig platform, all of which can affect the bottom line. These benefits include

  • a fleet of loyal drivers, which means the gig company can meet growing demand.
  • increased driver loyalty, which means less money spent on driver incentives. 
  • drivers who are more likely to recommend the platform to others, resulting in lower acquisition costs. 
  • happy drivers, who are more likely to deliver better service, which reflects positively on the company and its brand. 

Data analysis of driver earnings across all platforms

How much are drivers making across the various gig platforms? This chart, part of the Gridwise Annual Gig Mobility Report, provides accurate insight into that question. 

Gross monthly earnings for gig drivers (rideshare and food delivery, 2022–2023)

ServiceGross Earnings (Avg, 2022)Gross Earnings (Avg, 2023)YoY Change (%, Gross Earnings)Work Hours (Avg, 2022)Work Hours (Avg, 2023)YoY Change (%, Work Hours)Uber$1,699.58$1,409.71−17.1%5856−2.9%Lyft$1,032.23$1,058.320.0255144-12.90%DoorDash$704.04$703.17-0.10%49500.032Instacart$661.60$606.50-8.30%3836-4.50%Uber Eats$558.49$472.72-15.40%2827-3.80%Grubhub$445.07$471.770.0625280.136

Source: Gridwise Analytics

It’s not all about compensation

The report also reveals what attracts drivers to gig work. Compensation actually comes in second place. What attracts drivers the most is the ability to have flexible hours. 

The leading motivators in choosing gig driving work

Source: Gridwise Driver Survey 2023

Gig driving is also increasingly seen as a permanent occupation. Almost half (45%) of drivers surveyed see it as a long-term plan. 

The draw of multi-apping

The gig driver alternative to driver loyalty is multi-apping, the driver practice of operating and responding to several apps at once. There are several methods of multi-apping, all which affect driver loyalty in different ways.

  • Multi-apping within a category—Drivers have apps open in the same category, such as rideshare, and pick and choose rides based on perceived profitability and other factors. According to a Gridwise blog post, Want to Improve Gig Driver Loyalty? Use Data to Stay Competitive, 31% of drivers multi-app. 
  • Multi-apping across categories—Drivers have apps open in rideshare and food delivery, again picking and choosing based on their preferences. According to the previously mentioned Gridwise blog post, 21% of drivers multi-app in this fashion. 
  • Switching between apps—Peak demand for food delivery is between 12:00 pm and 2:00 pm, and 5:00 pm and 9:00 pm. Some drivers work food delivery during those hours, and then switch to rideshare, which is often more profitable in the later evening hours. 

Multi-apping is a tool that drivers use to increase profitability. Gig companies, however, would rather have drivers loyal to their platform. To encourage this, they often structure retention programs to encourage drivers to remain on the app to accept rides or orders. Uber Eats Pro and the DoorDash Top Dasher programs are examples of retention programs that encourage drivers to remain on one app. 

The gig platforms also take other measures. Uber and Lyft often void Quests and Sprint promotions if a driver ignores a ride or turns off the app during a prescribed period. 

Mobility data shows delivery wins the loyalty contest

Mobility data analysis in a Gridwise Analytics blog, Want to Improve Gig Driver Loyalty? Use Data to Stay Competitive, indicates delivery platforms get the highest driver loyalty ratings.

Here are some of the findings:

  • From Q2 2022 and the beginning of Q3 2023, 60%–65% of DoorDash drivers drove strictly for that service platform.
  • Between 45% and 50% of drivers were loyal to Instacart during that period. 
  • By the beginning of Q2 2023, Amazon Flex drivers who drove solely for that platform reached about 45%. 

More broadly, data analysis shows that over 75% of drivers stick to one gig type during a working period. Only 24.3% of drivers switch between apps. Nevertheless, there remains a high level of interest in multi-apping, as data shows that 41.7% of drivers have experimented with different gigs.  

The impact of tips on driver loyalty

Tipping is a big part of the gig driver economy. A recent review of gig driver platforms reveals that all allow the customer to tip the driver through the app, and all companies pass on 100% of the tips to the drivers. 

Tipping serves two purposes:

  • Tipping augments the driver’s income, and 78.4% of drivers agree that tips matter significantly to their overall income. 
  • Tipping also reinforces that drivers are doing a good job, with 68.6% of drivers indicating that tips affect their enthusiasm and job satisfaction. 

What is interesting to note is the disparity between tips by rideshare drivers and those in food delivery. Rideshare drivers receive an average of about 10% of their income in tips, whereas food delivery drivers receive 51% of their income in tips. 

Also notable is the frequency of tipping in the different categories:

  • 28% of rideshare passengers give their drivers a tip.
  • 74.5% of grocery delivery customers give their drivers a tip. 
  • 88.5% of food-service customers give their drivers a tip. 

Investors can learn from Gridwise mobility insights

Mobility insights and transportation analytics can inform the decisions of investment researchers and hedge fund managers who are eager to provide healthy returns for their clients and investor base. 

It's interesting to note that DoorDash and Instacart have a solid lock on market share in their categories, and their drivers have the highest monthly earnings. These same companies also have the highest driver loyalty rates in those categories, indicating that driver loyalty figures into the battle for market share in the gig industry. 

Investors can also use Gridwise Analytics to determine whether the various platforms' driver incentive programs contribute to driver loyalty. Gig platforms with lower driver loyalty rates need to be using the most successful incentive programs. 

Gridwise Analytics provides mobility data and transportation analytics, affording unique insights to companies involved in the broader transportation infrastructure, and demonstrating how people and goods move from one location to another. The data shows where trips originate, where they end, and the primary travel corridors. This data also reveals the success of the gig platforms in building market share and increasing driver loyalty. 

Gridwise Analytics’ partners marvel at the data's clean nature, allowing them to integrate the findings into their existing datasets with little or no manipulation. 

For a demonstration of how Gridwise Analytics' vehicle trip data can sharpen your transportation analytics, contact Gridwise Analytics

Check out these articles to learn more about Gridwise Analytics:

February 16, 2024

How Much Do Lyft Drivers Make Before Tips?

Most passengers think that tips are optional, but for drivers they can make or break the profitability of their gig. Lyft passengers respect the company for its reputation as a gentler, more caring corporation than its competition. But is this friendlier corporate culture enough to make Lyft passengers tip generously?

Let’s examine real data from Gridwise drivers that tells us just how much Lyft drivers make as base pay and how important tips are for drivers.

[elementor-template id="20891"]

What does Lyft pay look like? How much does base pay vary?

First of all, it’s important to note that the numbers most sources provide vary widely. Unlike the data Gridwise uses, earnings can be self-reported, yet not documented. Also, pay can differ depending on where drivers are, what hours they work, and how frequently they drive. Glassdoor, for example, says Lyft driver base pay ranges from $17–$29 per hour. Meanwhile, Solo Traveller estimates earnings before tips to be $15–25 per hour. 

Lyft says that it has taken measures to increase driver pay before tips by compensating drivers for wait time and increasing their earnings on long trips. Has this had an impact on before-tip pay? This actual data from Gridwise shows trends in Lyft driver pay before tips:

What’s an average tip, and how can drivers do better?

As you might expect, tip amounts are dependent on the price of rides.That means drivers need to work harder to get riders to feel extra generous. To make this easier for riders, Lyft offers options to add a percentage of the cost of their rides either at the end of or after their trips.

Passengers can even set a default tip percentage that is added for all of their rides. This can definitely help to improve what Lyft drivers make per hour, or the daily rate Lyft drivers can expect.

Some sources say the average tip of $5 per ride is reasonable. This represents 25%–33% of a $15–$20 ride. In addition to tips, bonus pay that includes surge pricing and other incentives plays into the total add-ons to Lyft driver income. Data from Gridwise shows us what drivers can expect to earn before tips.

You can improve your chances for getting bigger tips by going out of your way to accommodate your customers. There are lots of ways to get more tips, and one of the best is to use Gridwise. You’ll get insight about your driving habits that puts you in the perfect position to increase your earnings and hang on to them.

Hot spots for the biggest tips

Tip and bonus amounts go up and down depending on a lot of different factors. One of the most important is location. The Lyft blog provides a thorough breakdown of regional tipping patterns and identifies some of the cities where you can expect to get bigger tips.

This Gridwise data shows median tip earnings in major cities. Once you see what “average” or “median” tip amounts are like in your area, you’ll know how much harder you’ll have to hustle to make the kind of income you want to get from your Lyft driving gig.

Maximize your tip earnings with shrewd strategies

Because tip earnings vary so widely for so many different reasons, it’s important to be aware of your particular situation and how it affects your prospects for getting extra compensation from your passengers. Here are some strategies you can deploy:

  • Use When to Drive from Gridwise. Every driver needs to know at what times all the big tipping takes place. That’s why Gridwise developed this amazing resource. You’ll see what drivers are making in your area at different times of day, so you’ll be clued in on when you can get out there and make the most money—both in terms of basic pay and tips.
  • Use multi-apping. Not sure if Lyft is the right app for you? Shop around! As an independent contractor, you’re entitled to work for any app you choose. Once you master the art of multi-apping, you’ll know which app is best for you, based on your needs and your schedule.
  • Hang on to your earnings. Don’t let your cash flow get eaten up by excessive taxes. Use Gridwise to account for every deductible mile, and record every gig-related expense, to trim your tax bill. The Gridwise app keeps tabs on it all, and makes preparation for tax time a breeze.

[elementor-template id="20936"]

Get more earnings insights for Lyft drivers

February 16, 2024

What Are Lyft Driver Earnings Like?

Finding out exactly what you can make driving for Lyft can prove to be a challenge. Everybody has an opinion, and it’s nearly impossible to figure out what the real numbers might be. The problem with a lot of the opinions offered is that they’re based on casual surveys and educated guesses coming from Lyft drivers. 

The numbers you’ll see here are different. They come directly from Gridwise drivers, and are not doctored in any way. No one’s bragging or low-balling. Data doesn’t lie, and the whole truth is here in this post.

[elementor-template id="20891"]

Lyft hourly earnings

The most common way to view earnings is by hourly rates, so let’s look at that first. These figures reflect average gross pay as recorded by drivers nationwide.

https://datawrapper.dwcdn.net/odnpc/5/

Get more detail about Lyft hourly earnings.

Lyft weekly earnings

To get a full idea of how easy it might be to earn a workable income by driving for Lyft, you need to see how much you are likely to make in a week. Remember that “a week” might mean a different number of days or hours for different drivers. This data comes from drivers nationwide, and reflects average weekly gross earnings.

https://datawrapper.dwcdn.net/2pk6G/2/

Get even further insight from looking at Lyft driver daily earnings.

Lyft monthly earnings

How do Lyft earnings stack up when we look at gross monthly earnings? Again, we need to consider how many hours, days, and weeks drivers are working, but these average figures give us the idea of how much you can earn in a month.

https://datawrapper.dwcdn.net/f01Xf/2/

Lyft average nationwide bonus pay + tips per month

The figure for gross pay includes bonus pay and tips, so it’s important to be aware of the trends of this key component of Lyft driver pay. Here’s what current trends show us about what you can expect from bonuses and tips in the course of a month.

https://datawrapper.dwcdn.net/84E1o/1/

Let’s look at how tips figure into total Lyft driver earnings. 

Lyft average nationwide bonus pay + tips per hour

Lastly, this look at bonus pay and tips per hour will show you what to expect from these necessary boosts to base earnings on an hourly basis.

https://datawrapper.dwcdn.net/hz94e/1/

More insight into earnings for Lyft drivers

[elementor-template id="20936"]

February 16, 2024

How Much Do Lyft Drivers Make Per Day?

Are you making the most money you can with your Lyft driving gig? The best way to find out is to discover what Lyft earnings are like, and what you can expect to make from a day’s work. Let’s explore some numbers to provide more insight into your Lyft gig, and consider some advice for maximizing your daily earnings.

[elementor-template id="20891"]

What are Lyft earnings like per day?

Some sources state that Lyft drivers will have to work 6–8 hours to earn from $96–$136 in any given 24-hour period. The accuracy of a figure such as this depends on a lot of factors, including who is reporting the numbers, the driver’s geographic location, and how well the data is curated to ensure that it reflects a true picture of a Lyft driver’s day.

Most of the figures we see come from a general consensus derived from surveys that have been conducted by employment companies, or even the rideshare and delivery apps themselves. These don’t always tell the whole story, or provide accurate data, about driver earnings. At best they are guesstimates.

Lyft driver pay is calculated by adding tips and bonuses to base pay, which is what Lyft charges for the ride minus the “take” Lyft keeps for their part in making the rides happen. This is the gross amount of driver pay, meaning that expenses for gas, car maintenance, and the like aren’t accounted for. 

The biggest variable involved in calculating daily pay is solid information about hourly earnings, and how long drivers’ shifts actually are. How many hours would be considered “a day” for the typical Lyft driver? Some drivers work full time, at least 8 hours a day, while others have more sporadic hours, possibly varying their hours from one day to the next, or perhaps by using more than one app at a time during the day. 

These variables may or may not be taken into account when calculating daily earnings. It’s most likely that the numbers are averaged out so that “a day” consists of an average number of daily hours.

What do the numbers say about Lyft daily earnings?

Some drivers claim they make much more, while others report much lower daily earnings. Data from Gridwise reflects actual earnings information from drivers just like you, so it creates a more realistic picture of Lyft daily earnings.

This picture of Lyft daily earnings reflects the experience of drivers nationwide, but there is more to the story.

No matter where you live, it pays to know where events, traffic jams, and weather problems might be. Download Gridwise to get specific information about these items, plus airport information for your locality.

Pick your best days to drive for Lyft

Your Lyft driving day might be two hours or as many as ten, but if you want to optimize your driving time, it’s wise to choose the best days to drive. Lots of factors combine to create the best days. Most authorities will say that early mornings, along with Friday and Saturday nights, are the times when drivers can make the most money.

This might be a good general guideline, but it isn’t the whole story. What if you can’t arrange your schedule so you’re available to drive at these times? Or what if these patterns don’t hold true in your area? You need more detailed information that applies directly to you.

You get exactly that with When to Drive from Gridwise! This amazing in-app feature gives you actual data about real Lyft drivers in your area. You’ll be able to see the best times of day to drive, as well as the days when drivers are making the most money in the places where you drive. 

Maximize your daily Lyft earnings with these pointers

  • Download Gridwise and use When to Drive. Driving for Lyft isn’t complicated, but it’s far more profitable when you use this powerful tool to maximize your daily earnings.
  • Use multi-apping to increase your odds for success. If you notice Lyft business lulls on certain days, consider using different apps to fill in the gaps.
  • Track your mileage and expenses. Hang on to more of your money and be in good shape for tax time. Download Gridwise to catch those deductible in-between miles your app doesn’t count, and enter your expenses to minimize your taxable income.

[elementor-template id="20936"]

Get more earnings insights for Lyft drivers

February 16, 2024

Work smarter. Earn more.

Whether you drive, deliver, or pick up shifts — Gridwise helps you track earnings, mileage, and performance
so you stay in control of your work. Download the app and take charge today.

Scan the QR code
to download