Blog de Gridwise

As a rideshare driver, tracking mileage is crucial for maximizing your earnings and reducing your tax burden. The IRS can be very particular when it comes to taking a mileage deduction. At a minimum, they will require the total miles you drove, dates of each trip, locations you drove to, and the business purpose of the trip. A 2019 IRS publication explains these types of expenses in detail.To simplify the expense tracking process, many rideshare drivers utilize a mileage tracking app. These apps eliminate the old school practice of carefully logging odometer readings with pen and paper. Mileage tracking apps are convenient and helpful in maintaining an accurate record, which is imperative in case the IRS ever decides to audit you.Since there are so many mileage tracking apps out there, rideshare drivers are often uncertain which one to choose. At Gridwise, our goal is to help increase drivers’ performance on the road, and one way we accomplish that is by providing answers to common questions, like, “Which mileage tracking app is best for me?”We prepared this blog post to help drivers answer that question. We’ve compared popular mileage tracking apps based on the most important aspects: availability, cost, and features specific to rideshare drivers. Keep reading to see what we found out.

Gridwise Shift Tracker

Availability: iOS and AndroidCost: FreeFeatures:By starting a shift on Gridwise you will automatically track all the miles that you drive during your shift.As a driver, you now have a button at the very top of your screen in the Gridwise app that says “Go Online.” Pressing that button starts your driving session.Now you’ll see a “Shift Active” bar.Here you’ll get a real-time look at how far you’ve driven and how long you’ve driven for the current day, the previous day, and the entire week.Turn your shift status to “On” every time you start driving so your miles and time are automatically tracked.After you’ve finished a shift, you’ll be prompted to input your driving statistics for that session.And you’ll be able view your weekly and daily results on the Earnings tab. This will include your total earnings and total number of trips given.You’ll then receive a shift summary email with more detailed stats.Best of all, Gridwise isn't just for Rideshare (Uber and Lyft) drivers. Gridwise is also one of the best mileage tracfkers for:

• DoorDash drivers
• Instacart shoppers
• Postmates drivers
• Grubhub drivers
• Shipt shoppers

MileIQ

Availability: iOS and Android. Also, the MileIQ Dashboard is available on your laptop, desktop, or tablet.Cost: Free if you take fewer than 40 drives per month. If you want unlimited drives per month, you’ll need to pay a monthly fee of $5.99 ($4.99 per month if billed annually).Features:MileIQ automatically logs your miles and works in the background without the need to press “start” or “stop” during your trips. It also integrates with Freshbooks and Excel. However, you’ll need to categorize each trip as either personal, charity, or professional by swiping left or right. Based on your miles recorded, MileIQ can create a complete record of all your tax deductible and reimbursable mileage—but doesn’t include accounting tools like expense calculation.Although MileIQ is reliable, it’s more suitable for business drivers who drive the same route every day rather than rideshare drivers with varying routes. Most rideshare drivers complete more than 40 drives per month, so you’ll likely have to pay the fee.

Hurdlr

Availability: iOS and AndroidCost: Basic version is free; full version $7.99/month or $58.99/yearFeatures:Hurdlr actively tracks your business mileage with an automatic start and stop. The free version includes expense and semi-automatic mileage tracking. Premium users get all features tracked automatically, plus real-time quarterly and year-end tax estimates.This app can generate graphs to show your net earnings and expenses over time. It also integrates with your Uber, Lyft, Airbnb, Square, and bank account. Another unique feature of Hurdlr is the in-app customer support, which provides you with help from a real human. However, some drivers find this app to be a bit of a battery hog, according to Harry Campbell, aka The Rideshare Guy, and others have reported it to be slow starting and not entirely accurate.

SherpaShare

Availability: iOS and AndroidCost: $5.99/month or $59.88/year (Super Premium starts at $10/month)Features:SherpaShare offers unlimited, automatic mileage tracking via GPS. It also allows you to track hourly revenue, chat with other drivers, see where other drivers are, and get driving recommendations.The drawback with SherpaShare is that there is no free version available, so you might want to try other apps first.

TripLog

Availability: iOS and Android; also, TripLog has a web platform with additional features.Cost: Free for up to five vehicles; there’s also a basic plan for $2/month or premium for $4/monthFeatures:TripLog’s free version includes standard features like GPS mileage tracking and Google Maps driving route.If you upgrade to a paid version of TripLog, you’ll have access to features like automatic mileage tracking, daily cloud backup, the ability to upload receipt photos for other driving expenses, and unlimited IRS-ready reports. Additionally, TripLog enables you to estimate your gas mileage and find the best gas prices. If you have multiple employees, the ability to install it on five different vehicles could come in handy.Unfortunately, the free version doesn’t include automatic tracking, so you’ll have to enter miles manually. You also won’t be able to test out the app’s mileage tracking features before you pay for the service.

Stride

Availability: iOS and AndroidCost: FreeFeatures:Stride enables drivers to track their mileage as well as other driving-related expenses. It uses smartphone GPS passive mileage tracking, which means you turn it on when you start the day’s driving, then turn it off when you’re done. All the mileage tracking will be done automatically in the background. Stride also tracks expenses like parking fees, car washes, and tolls.Aside from tracking mileage, you can also use Stride to file your receipts and expense records. This feature can be beneficial at tax time, since all your business deductions will be in one place.

Everlance Mileage Tracker

Availability: iOS and AndroidCost: Free up to 30 rides a month, then $8/month or $60/yearFeatures:The Everlance mileage tracker features clean design and intuitive interface, so it’s easy to use. It automatically generates IRS forms for mileage deductions, as well as tracks expenses through photo receipts (helpful for car details, gas purchases, and more). Although there is technically a free version, 30 rides a month doesn’t get you very far. Odds are you’ll end up with the paid version. Users have reported some faulty automatic tracking, so make sure you test a few times before committing to pay.

So what’s the best mileage tracking app?

Gridwise stands out as the only tracker created specifically for rideshare drivers and with enough features on the free version to benefit you in numerous ways. Gridwise offers free mileage tracking, driving stats, and analytics, in addition to airport and event insights. If you’re a rideshare driver tracking mileage and driving analytics for your taxes across multiple rideshare apps, then Gridwise is a great option.If you have more advanced needs and want to track more driver-related expenses, then you may want to consider something like Hurdlr, Stride, or Everlance.What do you think the best mileage tracking app is and why? Leave us your thoughts in the comments below!

So many things have changed in 2020, courtesy of COVID-19 and humanity’s desire to avoid getting it and spreading it. 

Many people’s lives have been affected by the changes that have taken place, and rideshare and delivery drivers have especially felt the impact. Who would have dreamt, just 12 months ago, that delivery driving would not only become as popular and lucrative as rideshare work, but maybe even more so?

How has this happened? 

Due to the coronavirus outbreak, and then the widespread stay-at-home orders and quarantines, the public became more accustomed to ordering goods online and having the orders delivered to their doors. 

It’s now obvious that the trend toward delivery has taken hold, and will persist well beyond the dissipation of COVID-19. 

How do we know this? Companies… BIG companies… are going out of their way to build armies of delivery drivers to get orders to online customers within the shortest time possible. At least three major companies, Walmart, Amazon, and 7-Eleven, are expanding their delivery services and issuing the call for delivery drivers.

What’s more, these companies are offering options for drivers to work as employees, both full- and part-time. This is interesting for two reasons: one, because it will supply more security to drivers who work for the companies; and two, it will be secure for the companies.

By not exclusively using independent contractors to make deliveries, these companies  can avoid the wave of regulation that’s been chasing down the gig companies that supply rideshare and delivery services. If they already have their fleet of drivers designated as employees, government regulation is less likely to significantly change their business models.

What are these three companies doing, and what opportunities will they create for drivers like us? We hope to answer those questions in this blog post by covering:

• Delivering for Amazon 
• Delivering for Walmart
• Delivering for 7-Eleven 
• Weighing your options and maximizing your earnings

Delivering for Amazon

The 800-pound gorilla of retail is also the biggest monster in the delivery game. 

As such, the company has built in a lot of flexibility with its business model. There are two ways you can drive for Amazon: as an Amazon Flex driver, or as a full-time employee of an Amazon Delivery Service Partner (DSP). Here are the details:

As an Amazon Flex driver, you:

• Use your own vehicle
• Choose blocks of time when you want to work
• Pick up packages at an Amazon distribution center
• Deliver packages to customers’ homes
• Earn an estimated $18 to $25 per hour (including tips)
• Remain an independent contractor (no company benefits)

Although Amazon isn’t yet offering opportunities to be employed by the company as a driver, they do use DSPs that hire drivers as employees. You can find out about these opportunities through Amazon Flex Driver Job postings or through websites such as indeed.com.

As a driver for an Amazon DSP, you:

• Drive an Amazon delivery van within your community
• Work 4 to 5 days per week (shifts are typically 10 hours long)
• Follow strict safety standards
• Receive competitive compensation (most drivers start at $15 per hour)
• Have employee benefits available

With Amazon, there’s a choice between being a freelance/independent contractor driver (Amazon Flex), or being employed by an Amazon DSP, and it’s up to you to decide what works best. As a Flex driver, obviously, you have no company benefits, but you’re also not locked into a 40- or 50-hour-per-week schedule.

Delivering for Walmart+

This retail behemoth is going toe-to-toe with Amazon in as many ways as possible. One way is through its new Amazon Prime-like service called Walmart+. For a monthly fee, customers receive free, same-day delivery on their orders from Walmart, plus discounts, a scan-and-go service through the app, and early access to new items.

Walmart continues to use DoorDash and Spark to supply drivers who keep their promises about those same-day deliveries, but lately they are taking a new approach. Walmart is now offering delivery drivers jobs as employees of the company.

As an employee driver for Walmart+, you:

• Drive a company vehicle
• Pick up and deliver merchandise from Walmart to the customer
• Have the option to be a personal shopper as well as a delivery driver
• Interact extensively with customers to make sure they are satisfied
• Work with the fulfillment team at the store
• Receive employee benefits (based on the number of hours you work)

As a driver for DoorDash or Spark in support of Walmart, you:

• Drive your own vehicle
• Work flexible hours
• Wait for the Walmart fulfillment staff to prepare your orders
• Receive a payment of about $9 per order, plus tips
• Remain an independent contractor (no benefits)

Because Walmart+ just had its inauguration on September 15 of this year, the waters around the employee/contractor issue are someone murky. However, Walmart is very serious about aggressively building its delivery capabilities, as we’ll see in the next section. First, let’s look at 7-Eleven.

Delivering for 7-Eleven

It’s not just the corner store anymore. Brand-new to the idea of rolling out a large delivery fleet, 7-Eleven is in the process of hiring 20,000 new workers, in addition to the 50,000 it has added since March of this year. 

Also, the company has rolled out a delivery app called "7NOW." Its vast network of stores and the large array of goods offered put them in a position to slip right into the niche of delivering items to customers who’ve become accustomed to the convenience as well as the safety of this kind of service.

As a delivery associate for 7-Eleven, you:

• Drive a company vehicle
• Work a schedule set by the company
• Perform duties inside the store, as well as deliver
• Possibly also deliver for Jimmy John’s
• Make about $17 per hour
• Get employee benefits, based on whether you’re full- or part-time.

This is a brand-new announcement, so some of these items could be fluid. It will be interesting to watch how this develops, and at this point it sounds like a great possibility for drivers who are looking for a steady gig with benefits.

Weighing your options and maximizing your earnings

So, what do you think? Would you like to deliver for any of these companies? It looks like they all have options for you to work part-time as an employee, or as an independent contractor. Much depends on your needs, and of course, theirs. Check your local job listings to see what’s available. Just in case you’re not clear, we’ll recap your options:

• Work as an employee for one of the companies
• Work as an employee for a partnered delivery company
• Work for another company as a gig worker
• Work for one of the companies as an independent contractor

Before you decide, take a look at what you’re currently earning, and spending, as a driver for your favorite rideshare or delivery company. How can you do that? Just download Gridwise!

The Gridwise app lets you track earnings and mileage for multiple companies, and then it combines the data so you can see which one is making you the most money. You also get traffic, airport, and event information; easy access to our blog; and the informative and fun Gridwise YouTube Channel.

Don’t miss deals for drivers in the Perks tab, and join us on Facebook to get in on Gridwise gas giveaways and chat with an incredible community of drivers just like you.

And, as always, leave your comments below and tell us what you think of these big three companies going deep into delivery, and anything else you want us to know.

Can you feel it?

As more states start to open, and people regain their courage to emerge from their homes, rideshare drivers have begun to notice a definite uptick in business. 

Restaurants and bars, albeit with limited capacity, are greeting customers once more. Many schools and universities are in session, with students and faculty looking for rides to and from their activities. 

Even some workers are returning to the office.

There’s no doubt we all took a hit during the COVID-19 peak period, and we’re not back to normal yet. But many drivers are noticing a greater demand for rideshare, and improving earnings.

Lyft has recently confirmed our suspicions that rideshare is rebounding, and we’re using our data to track what’s happening with driver earnings.

In this blog post, we’ll cover:

• What Lyft is saying about rebounding passenger demand
• How much earnings have bounced back
• How rideshare driving has changed, and where are the rides?
• Why more drivers are getting back on the road
• What will happen next?

What Lyft is saying about rebounding passenger demand

In a September 8, 2020 financial report, Lyft provided the US Securities and Exchange Commission with an in-depth update on its business activities. 

Lyft reported that during the first two months of the third quarter, rides on its rideshare platform were down more than 53 percent compared with the same period in 2019. In April, Lyft reported rides were down more than 80 percent when compared to the same period in 2019.

Lyft also reported that during the week ending September 6, 2020, rideshare rides reached a new high since April.

Also in the Lyft report: While recovery trends vary based on a number of factors, the company’s rideshare operations in Canada have been recovering more quickly than in the United States. For example, during the week ending September 6, 2020, rideshare rides were only down 20% year-over-year in Toronto, while weekly rides in Vancouver reached a record all-time high.

Based on what Lyft included in the report, it appears that trends are moving in the right direction.

That is progress … but is it for real? 

How much earnings have bounced back

According to our Gridwise data, the story is encouraging. For instance, looking at the median income per hour for rideshare drivers, we can see an upward trend setting in over the summer months and into September:

It’s interesting to note that in our sample, the earnings per hour for rideshare drivers are higher now than before the pandemic started. 

At the very least, this indicates that there’s still customer demand for rideshare. While it’s true that Uber has been laying the surges on thick to attract more drivers and lure them back to work, the earnings numbers wouldn’t be there if the passengers were not.

Probably the biggest factor boosting the earnings, even outside of surges, quests, and other premiums like those offered by Lyft, is a shortage of drivers. 

In an effort to understand these numbers better, in August 2020 Gridwise conducted a survey of more than 750 rideshare and delivery drivers. We found that 37.2 percent of drivers had stopped driving altogether, while another 12 percent had stopped driving rideshare and switched to food and grocery delivery.

Comparatively, a May 2020 survey of more than 1,200 rideshare and delivery drivers found that 57 percent had stopped driving altogether, while 14 percent had stopped driving rideshare and switched to delivery.

Driver earnings were on the rise between March and July simply because there was more passenger demand than driver supply. While passenger demand was rising, drivers were still not getting back on the road.

Now, we are seeing driver earnings stabilize because more drivers are getting back behind the wheel, but passenger demand is still steadily rising.

How rideshare driving has changed, and where are the rides?

So where are all the drivers? 

Many are still not back on the road, either due to fear of contracting the virus, or because they’re concerned about lack of business. 

After all, many restaurants and bars, staples of the night drivers’ passenger pool, are not yet open; and most that are open are only at 25 or 50 percent operation capacity. While the hourly earnings might be even better than back in January, the fact remains that the nature of rideshare driving has drastically changed.

Drivers may find they have to change their normal work hours. 

For instance, if driving at night isn’t going to work, then they’ll have to focus on the times of day that are busiest. These tend to be the mid- to late afternoon hours, when people are out shopping for food, and going to daytime appointments at the doctor, hair stylist, or physical therapist. 

Some business can be found in office and hospital areas, mostly where essential workers are coming and going. Many universities are back up and running, too, and students will often opt for rideshare over the cramped and most likely unsanitized milieu of public transportation.

The reality is, until more businesses are allowed to open, rideshare drivers will need to continue changing their routines and diversifying their operations. 

Many drivers who formerly dealt in rideshare alone have already converted to delivery, or have combined delivery with rideshare driving. While this is beneficial to the drivers, it probably cuts down on the number of drivers who are available for taking passengers from place to place.

For now, if you’re driving, you’re probably enjoying the nice, fat hourly rates we’ve shown in our data. But … what will happen when more drivers come back to work? Let’s see what’s keeping them home now, and how soon we can expect them to get back out on the streets.

Why are more drivers getting back on the road?

Why, a person might ask, would drivers go out to work if things are still shut down? 

The biggest motivation is money. While unemployment for independent contractors, plus a generous $600 per week supplement got many of us through the most dismal moments of the pandemic, that well has run dry. 

The supplemental payment is down to an additional $300 per week on top of regular state unemployment payments, and no one knows how long that will continue. It will probably be taken away entirely by the end of December 2020. There are some discussions stirring in Congress once again, but the outcome is uncertain.

On top of that, states have changed the conditions under which drivers can collect unemployment compensation. 

In many cases, you must be directly affected by COVID-19; i.e., you have it, you’ve been exposed to it, or you live with someone who is at high risk of dying from it. You can no longer get away with claiming that you can’t work at your rideshare job because there isn’t enough business.

One other likely reason drivers are cleaning up their cars and getting ready to drive again is they are running out of money. Even with the unemployment payments, full-time drivers are probably taking in far less than they’re used to. They might decide that their only option is to return to driving.

When more drivers go out, of course, there will be more competition for passengers.There may be an initial downward slide in hourly earnings, but it’s doubtful that this will last long. There are signs that people are growing weary of the lockdown situation. In Pennsylvania, for instance, a federal judge declared some aspects of the state shutdowns of non-essential businesses to be unconstitutional. 

The Big 10 college football conference has been cajoled into having a football season after all, and every day there are stories about more businesses opening, and more people coming back to their offices to work.

What will happen next is anyone’s guess. Provided there isn’t another wave of virus outbreak that’s big enough to crowd hospitals and panic the populace, our rideshare business may just be coming back.

So what’s business like for you? Are you driving yet, or not? Do your income figures come close to the earnings we shared from our data? Tell us in the comment section below; we always love to hear from you.

What’s next for drivers?

You’ll know a lot more about what you're making, and from which app, when you download Gridwise and use our slick earnings and mileage tracking features.

On the Perks tab, you’ll find deals and discounts for drivers, along with quick links to our awesome blog articles, and the Gridwise YouTube channel.

Check us out on Facebook, too, and you can take part in the great Gridwise gas card

As we’ve all seen and heard, Uber, Lyft, DoorDash, Postmates, Grubhub, and other rideshare and delivery companies have been adamant about fighting driver reclassification. As they argue through lawsuits and put forth their campaign for a voter proposition on the California ballot, they insist that drivers wouldn’t want to be classified as employees.

The main reason they give, which we rarely hear contrarian opinions about, is that drivers like flexibility. 

Many surveys, including one of our own, show that drivers want to hold on to the ability to work when they want and for as long as they are able. 

But we’re being told that drivers would have to give up flexibility should they be reclassified as employees.

It does seem plausible that, if drivers are classified as employees, companies would try to keep minimum hours, and dictate the timing drivers can work. 

But … is this really the case? We at Gridwise always want to investigate these types of situations so we can share the latest and most complete information with you. With that in mind, let’s look at what’s covered in this post:

• What do the companies say about driver classification and flexibility?
• How do drivers feel about flexibility?
• What do labor laws say about the rules for employee flexibility?
• Would drivers, if classified as employees, be limited to working for only one platform?
• How likely are the companies to allow flexibility and multiple platforms for employee drivers?

What do the companies say about driver classification and flexibility?

Companies tout working for the gig economy as a way for ordinary people to earn extra money, as well as a potential full-time opportunity to establish a driving business. 

They also imply that, if forced to make all drivers employees, drivers will lose some of the things they love most about the gig.

As stated in the intro, companies put a lot of emphasis on flexibility. In this report, which was commissioned by Uber, the company presents its case for keeping independent contractor status. The report states: “73% of driver-partners would rather have a job where you choose your own schedule and are your own boss, than a steady 9-to-5 job with some benefits and a set salary.”

This verbiage implies that if drivers become Uber employees, they will have a steady 9-to-5 job with some benefits and a set salary. 

Maybe that’s what the rest of us have been thinking too. But does that necessarily have to be the case?

How do drivers feel about flexibility?

One thing we know for sure: Our data show that drivers believe they will lose flexibility if they become employees. That could be why 64.9 percent of drivers we surveyed say they would prefer to remain as independent contractors.

Also notice that a full 9 percent of drivers we surveyed don’t know the difference between being an employee and being an independent contractor. 

What does that mean? It means we can be really sure that not everyone knows or understands that if drivers become employees, they’ll lose their flexibility.

Because companies have so widely promoted flexibility as a key advantage to being an independent contractor, it’s likely that many drivers just assumed they would lose flexibility if their employment status changed. But is this truly the case?

In order to find out, we have to investigate a little further. 

What do labor laws say about the rules for employee flexibility?

Labor laws are complicated, largely because they’re so comprehensive. 

They often make accommodations for companies and employees to create flexible relationships, rather than necessarily fitting into one of two specific categories: ironclad, 40-hour per-week arrangements; or independent contractor agreements.

According to labor law experts, there is plenty of leeway for companies to allow for flexibility while also providing the benefits of being an employee.

When presented with the companies’ position that making drivers employees would remove flexibility from their arrangement, Benjamin Sachs, a Harvard professor of labor law, doesn’t hold back. “That is just untrue,” he says. “You can be an employee and have an entirely flexible work arrangement.”

One needn’t look very far to see how this model is in play already, in the form of the COVID-induced shift in office hours. Arun Sundararajan, a New York University business professor, points at all the full-time employees who have reconstructed their work arrangements as they grapple with the need to work away from their offices. While they work independently, they remain tethered to their companies. “The crisis that we’re going through now has wiped the slate clean,” he says.

Obviously, there are no labor laws that prevent this sort of arrangement. In fact, Sachs expands on his view of the company-employee relationship in the rideshare world in this article in the OnLabor blog. He sees the relationship in reverse; i.e., the more control a company exerts over a worker, the more the worker fits the defining factors that would earn “employee” designation.

If a company classifies drivers as employees, it can then exert as much or as little control over their work hours (within the law) as it wishes. However, there’s no law that says a company must exert this control. It can give drivers as much or as little flexibility as company officials deem acceptable, and of course, profitable.

Now that we’ve discussed the flexibility issue, let’s take a look at another important aspect of the gig driver’s life, and how it could change (or not) with reclassification.

Would drivers, if classified as employees, be limited to working for only one platform?

Just as companies have more discretion with flexibility than they often admit to in public statements, they would be the ones to decide the driver exclusivity issue. There are many cases where a worker must sign a non-compete clause in his or her employment contract.

Consider, for example, salespeople for a software firm. Let’s say they decide the corporate grass looks greener at the outfit across the street. Would the company they’re already working for want them to take their proprietary information, not to mention their clients and leads, with them?  Obviously, the answer to that is a definite “no.” 

That’s why the salespeople have to agree, in writing, to not work for a competing company within a certain period of time; usually around a year, sometimes longer. 

In the case of rideshare and delivery companies, there might be some room for them to insert a non-compete clause into the employee agreement, meaning drivers could only work for one platform at a time. 

Yet, there’s no law that says they have to do that, nor could drivers stop them from doing that. It would be totally up to the individual company. 

Before we judge whether this might or might not be fair to drivers, let’s consider what the companies have to win and/or lose by changing their policies on flexibility and non-compete requirements.

How likely are the companies to allow flexibility and multiple platforms for employee drivers?

In a blog post from earlier this month, we covered how much it might cost for companies to classify their drivers as employees. If Uber, Lyft, et al. have to pay a lot of money for insurance, time off, and other benefits, they’ll want to see a return on their investment.

 A law professor at Duquesne University, Seth Oranburg, has a very straightforward way of expressing how the companies might view part-time or flexible employee drivers. In an August 2020 article on Minnesota Public Radio’s Marketplace blog, Oranburg says: “An employee that brings in $500 a month and costs $1,500 a month just for health care doesn’t add up economically.”

Well. Since it’s hard to argue against that point, it’s easy to see why the companies aren’t going to be quick to allow drivers to pick and choose the work hours that would be convenient for them. Still, it’s possible they could still allow at least some flexibility. 

For instance, they might let drivers select the number of hours of work, and then allow them to work the hours into their independent schedules. It would be very similar to the way many corporate employees are working from home these days. 

In terms of multiple platforms, companies may view that with an eye toward taking more control. If, for instance, the company is paying for the benefits enumerated above, what would happen if a driver became an employee of another company at the same time? 

Would it be possible, or even safe, for a driver to work a full 40 hours per week for two companies, adding up to a total of 80 hours on the road in seven days? Yeesh. 

Although the rideshare and delivery companies may not be too worried about drivers working for more than one company, they surely could become concerned about drivers doubling up on hours, and “double dipping” with benefits. This could create the need for further expenses for the companies to implement performance standards.

The same could also be true under the independent contractor arrangement. But let’s also remember that with drivers working as independent contractors, the companies have far less liability than they would if drivers were employees.

The bottom line

That’s what companies, just like drivers, are always eyeing—the bottom line. But when it comes to settling the argument about whether drivers are better off as independent drivers or employees, we don’t yet know what the bottom line is. 

What do you think? Now that we’ve delved into the story behind the flexibility argument that the companies are using to renounce reclassification, is it for real? We’ve got a long way to go before we’ll know for sure how this and other issues will affect driver reclassification.

In the meantime, remember to download the Gridwise app, so you can ride with the ultimate rideshare and delivery driver assistant. Track earnings, log mileage, and analyze your business across multiple platforms. 

Use the Perks tab to keep current with our up-to-the-minute blog and the Gridwise YouTube channel, and cash in on driver discounts and deals. And, as always, Gridwise brings you insightful information on airports, events, and even the weather.

While the companies and the legal authorities continue to wrangle over what it’s going to take to change the way rideshare and delivery drivers are treated for the better, look out for your own bottom line. Like us on Facebook, and be instantly eligible for Gridwise gas card giveaways.

And most important of all, leave us your comments below, and let’s get a hot, community-wide convo/party started!

Want to increase your salary and move from the driver’s seat to the developer’s chair? Coding bootcamps and tech academies are perfect for rideshare drivers and others looking to break out of the gig economy. These programs are often between 12 weeks to 12 months in length and can be a cost-effective way to level up your career. 

The best part? You can keep working as a rideshare driver while you earn your Software Engineering or UX Design certification. If you’re ready to make the switch from Uber or Lyft driver to tech professional, these are the 5 things rideshare drivers should know about coding bootcamps. 

1 - Coding bootcamps can get you certified to work in tech

What exactly is a coding bootcamp? And, why should you learn to code? Coding bootcamps are certification programs that train you for a career in tech. These bootcamps usually offer a variety of specializations like UX Design, Software Engineering, Data Science, Cybersecurity, and Digital Marketing. At Kenzie Academy, we offer programs in UX Design and Software Engineering and arm our students with both the technical and soft skills needed to land a high-paying job in the industry. Many of our students come from service industry jobs—they find that coding programs allow them to up their earning potential and the ability to transition into in-demand positions.

2 - Learning to code can increase your salary 

Ridesharing is a great gig but maybe you’re looking to bring in more cash and gain more mobility on the career ladder. If that’s the case, you may want to consider attending a coding bootcamp because working in tech is very likely to increase your salary. In the U.S., UX Designers have an average base pay of $85,277 per year while Software Engineers bring in an average base pay of $92,046 annually, according to Glassdoor. Kenzie Academy graduates report an average salary increase of 130%, a significant jump that can help one achieve upward economic mobility. 

Over the last few months, amidst the pandemic, we’ve seen the ways tech has not only kept our world going but is continuing to grow and change the way we live and solve problems. This demand for innovation isn’t going away anytime soon, which means the demand for tech workers isn’t either. Getting trained for a tech career is a great way to boost your salary and set yourself up for an exciting, innovative career with job security and plenty of opportunities. 

3 - You can keep working while doing a coding bootcamp

One of the biggest barriers keeping working adults from pursuing traditional degree programs is the full-time nature and cost of many of these programs. Thankfully, many coding bootcamps offer part-time options or more flexible hours that still allow you to work on your own schedule. 

At Kenzie, we know you’re busy and rideshare driving is a full-time gig for loads of folks. That’s why we offer a 6-month, part-time UX Design program. It was created with working adults in mind so you can commit to fulfilling your future career goals and keep making money moves as a rideshare driver in the process. It’s a win-win in our book! 

4 - Coding bootcamps are more affordable than traditional higher education 

These programs are perfect for rideshare drivers because they allow you to keep making money while their cheaper price tag also means you’re saving it. Cost shouldn’t be a barrier to pursuing higher education and, thanks to the plethora of coding bootcamps out there nowadays, it no longer is. This is great news for those who are ready to go back to school as working adults but feel intimidated by the cost.

No matter what your educational background or tech experience is, a coding bootcamp could help you level up at a fraction of the cost. At Kenzie, our 12-month Software Engineering program is $24,000 while our 6-month UX Design program is $10,900. This is cheaper than associate’s, bachelor’s, and master’s degree programs.

5 - Coding bootcamps vary in length and quality 

Not all coding bootcamps are created equal. For example, a 6-week program likely won’t be as in-depth as a 12-month program, so each serves a different audience and results in a different type of tech professional. Choosing the right coding bootcamp for you is important to ensure you receive a quality tech education catered to your specific lifestyle needs and career goals. 

Before you choose a program, it’s essential to do your research to decide what program will work best for you and your current commitments as a rideshare driver. We encourage you to read reviews from current and former students. You’ll also want to speak to a representative from the school and ask about how graduates are performing in the job market after finishing the program. And finally, be sure to look into the bootcamp’s reputation in the news and on social media. These things can help make your decision-making process a little easier.  

What are you waiting for? Drive into your new career by considering a coding bootcamp or tech academy today. Learn more about Kenzie Academy’s Software Engineering and UX Design programs here.

Rideshare as a mode of transportation has revolutionized the art of getting around for most of the world, and its impact is huge. There are fewer impaired drivers on the road, families can travel to events without stressing over scarce parking spots, and grocery shopping is less cumbersome for people who don’t own a car.

Yes, for all these reasons and more, rideshare is wonderful… but it also means more cars are out there spewing emissions into the air.

So, when we consider the health of our environment, the introduction of rideshare as a common mode of transportation has had a devastating effect. According to a September 8, 2020 press release by the Sierra Club, rideshare has led to as much as a 70 percent increase in emissions over levels that were present before Uber, Lyft, and other companies began operations.

This is certainly not something the companies, or we drivers, would feel comfortable congratulating ourselves about. 

To help alleviate this growing problem, both Uber and Lyft have committed to reaching zero emissions by 2030, through transitioning their respective fleets over to electric vehicles (EVs). Lyft made its pledge on June 17, and Uber seconded the commitment on September 8.

The goal of reaching zero emissions by 2030 is a formidable one. It inspires us to ask many questions, some of which we will consider in this article:

• What are the new Uber and Lyft programs?
• Why are the companies doing this?
• How do these programs benefit drivers and passengers?
• What cars are eligible for the green initiatives?
• What about the vehicles drivers have now?

What are the new Uber and Lyft programs?

Both Uber and Lyft have stated that the decision to “go green” emerged from the COVID-19 crisis. Lyft says it sees the move as a way to do something proactive, rather than remain stalled in hand-wringing mode during the shutdowns. Uber’s announcement paints the picture of how much cleaner the air became while people’s movement was restricted, and professes its desire to help keep it that way.

Whatever the motivations, both companies have made this pledge to achieve zero emissions by 2030. Here is what each proposes to do.

Lyft 

Climate change seems to be the primary motivation behind this program, but the company sees other benefits arising from it as well. 

Lyft’s partnership with the Environmental Defense Fund involves investing in clean energy, not only to reduce pollution, but also create new jobs. The hope was, and is, that Lyft’s initiative would set a standard for other tech and transportation leaders. 

The transition Lyft has in mind is to shift to 100 percent all-electric or other zero-emission engines. 

Not only will this involve rideshare drivers’ cars (and possibly, by then, autonomous vehicles), rental cars for drivers and riders will also be zero emission. Already, Lyft has instituted “Green Mode” in certain cities, which allows customers to request rides from drivers whose cars have a smaller carbon footprint.

For drivers, benefits are primarily the lower fuel and maintenance costs of EVs. Lyft admits that the cost of EVs is high, but expresses hope that the cost of batteries, and vehicles, will come down over time, as has been the case over the last ten years. 

Lyft doesn’t totally put the onus on drivers for completing this goal. The company hopes to work with policymakers and business partners to drive down the cost of EVs, lobby for more incentives and EV infrastructure (namely, charging stations), and make it easy and economical for drivers to make the shift. The Environmental Defense Fund will be instrumental in assisting Lyft in this effort. The group already partners with businesses to help them embrace climate-friendly technologies that not only benefit the planet, but also add to their bottom lines.

In cities where the Express Drive car rental service is in operation, Lyft notes that drivers with EVs save an average of $50 to $70 per week in fuel costs. In Colorado, for example, the company lobbied for, and acquired, state tax incentives, and it seems their plan envisions further accommodations and subsidies along these lines.

Uber

Uber’s program, known as “Uber Green,” represents its commitment to a fully zero-carbon fleet by 2030 in the US and Canada, and worldwide by 2040. The company has committed to invest $800 million over the next five years to help drivers transition to electric vehicles by 2025. Uber will offer vehicle purchase assistance, discount rates to EV drivers through deals with charging networks, and higher per-trip premiums for drivers who operate green and electric vehicles.

In a September 7, 2020 conference call with a Forbes reporter, Uber CEO Dara Khosrowshahi said: “As our communities recover from COVID-19, we can rebuild them for people, not cars, we can add more green spaces and fewer parking spaces.” 

Through its partnership with the World Resources Institute, Uber hopes to facilitate programs that are friendlier to the urban environment. This endeavor could also lead to public-private partnerships that benefit Uber and the cities in which it operates. Scooters and bicycles might play more major roles than they currently do in high-density areas.

General Motors is also working with Uber, and will extend employee discount pricing to Uber drivers on a popular EV, the 2020 Chevrolet Bolt. GM does this frequently as an incentive for people to buy their vehicles, but the relationship with Uber could become quite valuable to drivers in the future. Already, in Los Angeles and Denver, Uber Diamond Drivers can get discounted financing through GM Financial to go along with the corporate pricing offer.

To incentivize drivers to make the transition to a smaller carbon footprint, Uber will offer an additional 50 cents per ride for a “green car” (which includes hybrids), and an additional one dollar per ride for drivers with EVs.

Customers will be enticed to request Uber Green rides with triple the number of award points for each ride they request. Obviously, the success of the program will rest with how many green and/or electric cars are available. But customers do seem to be more conscious of the need for rideshare to reduce its carbon footprint. Even passengers who haven’t thought about that are likely to hear more about it soon. 

Why are the companies doing this?

In their announcements about the new initiatives, Uber and Lyft have cited the COVID-19 crisis along with their growing environmental concerns. Yet it is also likely that other motivations come into play. Increasingly, both companies have come under scrutiny for their respective roles in the growing emissions problem.

The statistic cited by the Sierra Club (mentioned earlier) is indeed sobering, as the group says in its September 8 press release: “Right now, ride-hailing generates 70 percent more pollution than the trips it displaces in the United States.” Also, thanks to the pandemic, consider how many people have stopped using public transportation and are now rideshare passengers. 

Another consideration: At the end of July, the California Air Resources Board (CARB) put forth a proposal requiring that 60 percent of the miles traveled by ride-hail customers be in electric vehicles by 2030. 

Both Lyft and Uber have proposed more ambitious goals, of course, but could CARB’s recent actions be part of their motivation? Remember, Uber and Lyft are embroiled in a dispute with the State of California over employee classification. Perhaps getting on the good side of CARB could help avoid further pressure from state authorities.

After all, when an agency like CARB begins to look at the ride-hail business, they inevitably make some startling discoveries … like the fact that each rideshare trip puts off 50 percent more emissions than the average trip, because the driver must travel between drop-off and pick-up points.

It’s also worth noting that California’s regulations, once they are enacted, will also apply to autonomous vehicles. Lyft’s director of sustainability calls for government subsidies to assist the company in achieving its goals, and this could help Lyft finance the development of AVs as well as EVs. 

Our review of the programs offered by Uber and Lyft reveals their intention to become more responsible toward the environment. From subsidies for charging stations to tax credits for adding EVs to their fleets, the companies will seek to benefit from partnering with the government and public utilities. It would behoove companies and drivers to make charging their EVs less expensive, and if the government wants to reduce emissions, this would be one way for them to help accomplish it.

How do these programs benefit drivers and passengers?

The first question drivers are probably thinking is, “What’s in it for us?” Well … the most noble reason for going along with the green initiatives of both companies is, of course, the health of our planet. We suspect, however, you might still be wondering how this will make you more money. 

For Lyft, the compensation for drivers (along with a clear conscience) is a reduced fuel bill. For Uber, hybrid cars will receive 50 cents extra per ride; electric cars will receive that 50 cents plus another dollar, for a total of $1.50 per ride.

Passengers will also benefit from doing good things for the environment. Lyft doesn’t offer any particular option outside of that, but Uber is giving them reminders of why they should feel good, and then also tripling their rewards points. These factors may change as the programs mature and the passengers respond to changing conditions.

What cars are eligible for the green initiatives?

In the beginning, hybrids as well as fully electric vehicles will be eligible for both Uber’s and Lyft’s programs. No specific vehicle list is available yet, but this Forbes article about the “12 ‘Greenest’ Cars for 2020” will give you some ideas.

No one can say whether EVs will be the best, or maybe the only, alternative to the internal combustion, gasoline-fueled engine by 2030. More cars will likely be propelled by natural gas, and there may also be vehicles that run with other, yet-to-be-imagined technologies by then.

What about the vehicles drivers have now?

If you’re still driving a fully gasoline-powered vehicle, you’re still fine for now. If you don’t mind missing out on the extra 50 cents or $1.50 premium you’d get from Uber for driving a hybrid or an EV, your car will still be accepted by the rideshare platforms through 2025.

But if you’re just starting out, and you haven’t yet chosen a vehicle to use for rideshare driving, you may want to think about going green. If you hold on a little while longer, or if you’re already driving and want to make the switch to a new EV, you can wait for Uber’s program with GM to kick in. This will give you a financial break to help ease the sticker shock that comes with most EVs.

The bottom line

Knowing what we do about emissions and the effects of pollution on the environment, it’s hard to justify driving vehicles that belch out massive quantities of high-carbon exhaust for much longer. These programs may help all of us consider the plus side of owning a vehicle that is more environmentally friendly. If you can’t buy a new car right away, at least start to think about making your next vehicle more compatible with these growing trends toward zero emissions. 

If you’re still up in the air on this issue, take a serious look at how well your current vehicle performs, and then you can make a sound decision based on facts.

How can you track your earnings and keep account of your mileage? Use Gridwise on every shift. Our app will take the data from your rideshare and delivery gigs, and then create reports that you can use to evaluate your earnings and mileage information. Don’t wait—download the app now.

You won’t want to miss our other features either, including airport and weather information, events, and the Perks tab, where you’ll get access to our insight-filled blog and the slick Gridwise YouTube channel. The Perks tab also has deals and discounts drivers can really use.

Comment below to let us know what you think about the zero-emission initiatives from Uber and Lyft, and be sure to join us for gas card giveaways when you like us on Facebook.

You’ve undoubtedly heard about the brouhaha in California since the state legislature passed Assembly Bill 5, better known as AB5. It’s the legislation that would require Uber, Lyft, DoorDash, Instacart, and many other companies and operations, to make their independent contractors employees. 

If you’re not up to speed with all that, you can catch up by reading this blog post we published a few weeks ago.

After the companies refused to comply with AB5, the state sued, and the companies lost. They filed an appeal and continue to operate, at least for now, under the terms of that appeal.

The decision should come through around the time of Election Day on November 3. That’s when citizens in California will decide whether Proposition 22, the companies’ effort to exempt drivers from the terms of AB5, will get an up or down vote.

If you don’t live in California, please understand that this can still affect you. What happens in Cali on Election Day and afterwards will have a reverberating effect—and not the kind that comes wailing out of a California surf guitar. This kind of tumult, and the existential threat to the gig economy, happens to be in California now; but it could be coming to your state before too long.

If Proposition 22 gets enough “yes” votes, the companies will not have to classify their drivers as employees. There are a few different perspectives on this issue, and our goal with this post is to present them to you, examine what’s at stake, and discuss what might happen if it does or doesn’t pass. Here’s what we’ll cover:

• What is Proposition 22?
• What companies are doing to back Proposition 22
• Impact on drivers
• Impact on companies
• Impact on customers
• If Proposition 22 gets voted down ...

What is Proposition 22?

Proposition 22, officially the App-Based Drivers as Contractors and Labor Policies Initiative, is a measure developed by the companies (primarily Uber and Lyft), that’s intended to exempt rideshare and delivery drivers from AB5. 

Because Proposition 22 would classify app-based drivers as independent contractors and not employees, California employment-related labor laws would not cover them. If the legislation passes, it would lead to the enactment of certain labor and wage policies specific to app-based drivers and companies, including:

• A payment schedule that’s based on the difference between a worker's net earnings (excluding tips) and a net earnings floor (120 percent of minimum wage applied to a driver's engaged time, meaning the time between accepting a service request and completing it, plus 30 cents), adjusted for inflation after 2021, per engaged mile;
• Limiting app-based drivers from working more than 12 hours during a 24-hour period, unless the driver has been logged off for an uninterrupted six hours;
• For drivers who average at least 25 hours per week of engaged time during a calendar quarter, companies would be required to provide healthcare subsidies equal to 82 percent of the average Covered California (CC) monthly premium;
• For drivers who average between 15 and 25 hours per week of engaged time during a calendar quarter, companies would be required to provide healthcare subsidies equal to 41 percent of the average CC monthly premium;

Also under Prop 22, companies would be required to provide or make available:

• Occupational accident insurance to cover at least $1 million in medical expenses and lost income resulting from injuries suffered while a driver was online, meaning using the app and able to receive service requests but not engaged in personal activities;
• Occupational accident insurance to provide disability payments of 66 percent of a driver's average weekly earnings during the previous four weeks before the injuries were suffered (while the driver was online but not engaged in personal activities) for upwards of 104 weeks, or approximately two years;
• Accidental death insurance for the benefit of a driver's spouse, children, or other dependents when the driver dies while using the app.

In addition, says the political encyclopedia, Ballotpedia, Proposition 22 would require the companies to “develop anti-discrimination and sexual harassment policies; develop training programs for drivers related to driving, traffic, accident avoidance, and recognizing and reporting sexual assault and misconduct; have zero-tolerance policies for driving under the influence of drugs or alcohol; and require criminal background checks for drivers. The ballot initiative would criminalize false impersonation of an app-based driver as a misdemeanor.”

What companies are doing to back Proposition 22

As you might imagine, the companies are 100 percent behind this ballot proposition because, after all, it was their idea. They view it as a compromise between hiring independent contractors with absolutely no benefits, and employees with benefits but far less flexibility. 

In the measure (as previously explained) companies state they will pay drivers above minimum wage, plus an additional 30 cents per mile. They’ll also make provisions for health insurance for drivers who work more than 15 hours per week, and will pay for injuries suffered on the job.

Company efforts to persuade people to vote in favor of Prop 22 include emails to customers urging a “yes” vote, as well as prolific television and online ads. At the heart of the companies’ appeal to customers is their claim that they may not be able to operate in California anymore if they are forced to classify drivers as employees.

The most highly circulated ad for “Yes on 22” states that if and when drivers are classified as employees, many would lose their jobs. See the ad for yourself below.

The ad, funded by part of the $100 million raised by Uber, Lyft, DoorDash, and Instacart, discusses the rideshare and delivery business as a source of income for many people who really need the income they get from their driving gigs.

In the ad, the companies allude to the complications brought on by COVID-19. The video montage of drivers’ cars with masks dangling from the rearview mirror are voiced over with a somber reminder of how high the unemployment rate already is, and how much worse it would be without Proposition 22.

And there’s more persuasive rhetoric where that came from. With just two months until election day, the companies will pull out all the stops. They don’t hesitate to use scare tactics to make customers imagine what their lives would be like if Uber, Lyft, DoorDash, Instacart, and other rideshare and delivery companies would have to stop operating in California.

The recent threat by Uber and Lyft to do exactly that, when they were denied a stay on a decision unfavorable to their case, resulted in a higher court taking their appeal. The companies have a lot of money to lose if they are forced to classify drivers as employees; it would mean a total overhaul of their entire business models. If Proposition 22 gets voted down, they might believe they have no choice but to end their California operations.

Impact on drivers

Many drivers and groups have been fighting to be classified as employees for a long time. This blog post from several months ago tells you about a few of them. They believe drivers should have a guaranteed minimum wage and benefits, which would certainly be good for drivers.

Yet not all drivers are interested in being classified as employees.

Let’s take a look at some of the benefits for drivers if Proposition 22 passes:

• Companies providing additional benefits (some insurance, some additional compensation);
• Freedom to choose your work hours;
• Background checks remaining the way they are now;
• Freedom to work elsewhere and for other apps;
• Fewer limits on the number of drivers allowed to work;
• Flexibility to tend to family and social responsibilities.

If Proposition 22 doesn’t pass, and drivers must be classified as employees, they will receive a set minimum wage and benefits. But these criteria will also take effect:

• More restrictions on hours;
• Limits on the number of drivers permitted to work;
• Stricter background checks;
• Fixed work hours;
• Inability to work for a competing company;
• Possibility the companies will no longer be in operation.

Impact on Companies

It would not be an exaggeration to say that if Proposition 22 passes, the companies will most likely be ecstatic. In truth, they would probably be even happier if they didn’t have to deal with this issue at all, and simply continue operating as they have thus far. They might have also avoided paying $100 million to get Proposition 22 on the ballot and hiring companies to promote their case. 

Here are some specific aspects of the bill that they will likely consider beneficial:

• Exemption from many of AB5’s restrictions;
• Ability to continue operating without the immense financial burdens of AB5;
• Capacity to attract drivers to their platform with low compensation;
• Flexibility of having as many drivers as needed;
• Market-driven pricing can largely stay in place.

If Proposition 22 doesn’t pass, the companies will be responsible for paying a very large bill. The Center for Labor Research and Education at UC Berkeley estimates that, if Uber and Lyft had paid into the state unemployment insurance fund from 2014 to 2019, they would have owed the state $413 million. That gives us some idea, should the companies be mandated to do so, of how much they would have to pay into the unemployment insurance fund.

Also if Prop 22 doesn’t pass, the companies will need to make huge investments to restructure the way they pay drivers and run their businesses. All this will come on top of the fact that so far, they have yet to make a profit. 

Some specific problems they might face if Proposition 22 doesn’t pass include:

• Large payments for minimum wages and insurance;
• Software development costs to alter the apps;
• Expense of human resources compliance, including background checks;
• Possible liability issues;
• Disruption while companies make changes in operations;
• Risk of being fined by the government for noncompliance.

Impact on Customers

Lest anyone wonder why we should care what customers might experience, well, without customers there would be no reason for drivers or the companies to be in business. Here are some ways that customers could be affected if Proposition 22 passes:

• Rideshare and delivery services continue uninterrupted;
• Prices remain almost the same, with some slight increases;
• Continued choice and convenience of multiple companies;
• Satisfaction that companies are making some concessions to drivers.

How will customers be affected if Proposition 22 does not pass? 

• Rideshare and delivery services may be disrupted or discontinued;
• Need to find alternate means of transportation and delivery services;
• Prices likely to rise sharply, to help offset company expenses;
• Satisfaction that companies have complied with the law and made and drivers employees;
• Greater confidence in drivers who have been more thoroughly background checked;
• Companies will be liable for driver behavior and error.

If Proposition 22 gets voted down...

Of course, there’s no crystal ball to tell us whether Proposition 22 will pass or not, but there are polls. One of these, conducted on August 9 by the strategic consulting firm Redfield and Wilton, shows that support for the legislation is high. The poll found that 41 percent of voters plan to vote “yes,” and 26 percent plan to vote “no.” Yet there’s also a strong indication that the fate of Prop 22 is still very much unknown: the remaining participants in the poll who said they still don’t know how they’ll vote. 

That brings us to what might happen if Proposition 22 gets voted down. It would mean that AB5, which went into effect last January, would still apply to rideshare and delivery companies. It would mean that the drivers and groups pushing to get drivers classified as employees have won the war … and the companies will have lost.

So what about after that? Would the companies follow through on their threat to pull out of California? These companies, in many ways, are California, since they were birthed in Silicon Valley, and every cutting edge that’s emerged from the industry has been tested first in California. 

Still, would they really pull out of the state? Financially, it might make sense, and that’s sad for a lot of reasons. Most important, many drivers would no longer be able to earn a living through the gig economy. Also, it would be very hard for customers and the restaurants, stores, bars, and other establishments that depend on rideshare and delivery drivers to fill the huge gap that would be left in the heart of California’s economy, should the gig companies leave.

Then … this would probably not be the last state where companies are forced to make gig drivers into employees. This pattern would be likely to repeat itself in just about every other state, and maybe other countries too.

Yes or no? How would you vote?

Now that you know more about Proposition 22, and have had a chance to look at it from different angles, how would you vote? 

As for earnings, what are you making now? What do you need to make? Do you make more if you work for multiple companies, or do you profit more if you stay with just one app?

If you want to find out the answer to all these questions, download Gridwise. It can be invaluable in helping you make decisions like whether you want a fixed minimum wage, or want to keep the freedom of working over multiple platforms. The Gridwise app lets you track your earnings, and it presents you with pictorial evidence of your performance. You can also track your mileage for tax deduction purposes.

Plus, you’ll get airport and event information, and all kinds of cool stuff on our Perks Tab. Get discounts and deals for drivers, easy access to our informative blog, and links to the latest from the Gridwise YouTube channel. 

And be sure to join us on Facebook so you can connect with the rest of the community, and get in on our great gas card giveaways.

No matter how Proposition 22 and the future of the gig economy works out, count on Gridwise to be here with you to always make your rideshare and delivery driving experience as convenient and profitable as possible.

As the gig economy continues to evolve, we’re seeing a pattern emerge: Companies are starting to diversify. In the same way rideshare drivers might add delivery apps as an option to make more money, some companies are moving into new areas they haven’t tried before.

DoorDash is the latest company to do this. Founded as a prepared food delivery service, the company is starting to move into the convenience and grocery store domains. This could be a great thing for drivers if it offers opportunities for deliveries that bring us additional income.

So what are the pros and cons of the latest move by DoorDash? In this post we’ll explore that, and ...

• DoorDash’s motivations to get into delivery
• FAQs about being a DoorDash grocery delivery driver
• How to make this work for you

DoorDash’s motivations to get into delivery

On August 20, DoorDash announced that it would start offering grocery delivery to customers.

The company had recently expanded into working with convenience stores to deliver snacks and odd essentials, but with this move, DoorDash placed itself up against some major competitors, including Instacart and Amazon Fresh.

While this might seem to be a bold move, it really isn’t. DoorDash was already delivering groceries for some stores. Maybe the company figured it was time to get a take of the goods people order, along with being paid for delivering those orders to customers’ doors.

The only part that sounds far-fetched is the competition with Amazon Fresh and Instacart. Since these companies have been in the business a long time—Amazon Fresh since 2007, and Instacart since 2012—they have a head start on DoorDash. Still, there are many reasons why DoorDash views this as a logical next step.

Grocery delivery, for starters, is a natural extension of the company’s existing business. On August 20, when the new service was announced, DoorDash head of new verticals Fuad Hannon said the company will add features that others don’t offer. DoorDash, for instance, will deliver groceries within one hour of the order being placed.

“There’s no scheduling, no delivery slots, no day-long waits,” Hannon said.

This could be a big improvement for customers. If you’ve ever had to wait for your groceries to be delivered, or rushed home to make sure you’re there within the prearranged time window, you’d probably welcome DoorDash’s new set of promises.

For customers, this all sounds great. But how will it affect drivers?

What drivers need to know about being a DoorDash grocery delivery driver

The first question drivers ask would probably be: 

“Does this mean I have to do the shopping and the driving?” 

The answer is no, DoorDash drivers will remain drivers only; or rather, Dashers. The shopping part of the DoorDash’s grocery service will be performed by “embedded shoppers” supplied by the Adecco Group, a staffing company. Shoppers will work in the stores, preparing grocery orders and placing them on racks for drivers to pick up.

According to news reports, including an August 20, 2020 New York Times article, Dashers will remain independent contractors, while shoppers will be Adecco employees with benefits. So unless something changes, DoorDash drivers will be responsible only for picking up completed grocery orders and delivering them to the customers.

If this works as planned, it shouldn’t be too difficult for drivers. DoorDash has been working with some grocery delivery already, particularly for WalMart, although not all reports have been positive. Drivers are talking on social media groups about having to wait as long as 45 minutes for an order to be shopped before they can make the pick up. This could certainly put a crimp in their hourly rates.

There’s also the uncertainty about how fees will be paid to drivers. DoorDash plans to incentivize its customers with free stuff, and grocery delivery will (at least initially) be part of the $9.99 monthly DashPass subscription. That means subscribers will not have to pay any delivery fees, which makes us wonder how drivers will be compensated.

Another question is whether drivers will be able to opt out of grocery deliveries if they wish. What if you don’t want to haul a huge load of groceries to a customer’s home, especially inside an apartment building with a locked door and several flights of stairs? When a situation like that presents itself, will you be delivering or “schlepping?” Are you physically capable of doing something like that? Will the company provide special equipment for carrying multiple, or heavy, bags?

The announcement of DoorDash’s new venture is very recent, and still wrapped in that crisp, clean glow of newness and slight surprise. At this point we’re not hearing what the options are for drivers to opt in or out of grocery delivery. If you know something, or have access to inside info, please get in touch with us so we can spread the word.

How to make this work for you

For drivers, one nice aspect of DoorDash delivering groceries is that the company has ironed out some wrinkles that could develop with a venture like this. Since DoorDash has been providing delivery services for Walmart, drivers are already able to register their vehicle information. This tells them how large your car or truck is, and how many bags and boxes you’ll be able to deliver.

A great perk of having this service available is the possibilities for tipping. If a customer orders $100 worth of groceries, and pays you a 20 percent tip for delivering them, that’s a nice chunk of change. As long as the company plays the tip game straight with drivers, and also provides a decent basic delivery fee, this could be a nice way to do business.

If you don’t want to deliver groceries for your whole shift, it’s perfectly fine to do it part of the time. From what we can tell from Walmart delivery, you won’t have to schedule blocks of time for delivering groceries. Instead, they would come up for a driver just like any other delivery.

So, when you think it’s a time when people would typically buy groceries, you can switch from rideshare or another delivery service, and deliver groceries for DoorDash. 

The rollout is ambitious.  Grocery delivery will be available in the San Francisco Bay area, L.A., Sacramento, and other central coast cities from Smart & Final. Drivers in Chicago, Cincinnati, Milwaukee, Detroit, and Indianapolis will pick up groceries from Meijer and Fresh Thyme. 

After the initial part of the rollout is complete, DoorDash intends to expand further across the country, partnering with stores such Hy-Vee, and even D’Agostino, and Gristedes. Looks like that NYC six-story walk-up could definitely be part of the picture.

In addition to basic groceries, DoorDash will deliver ready-to-eat meals from grocery stores and markets such as Wegmans, Lucky, Kowalski’s, and others. That might be a good option for drivers who aren’t into carrying loads of filled bags.

Overall, we welcome DoorDash’s new effort, and here are the reasons:

• Drivers get additional opportunities to earn
• DoorDash (cleverly) takes advantage of shifting trends in the delivery economy
• Drivers may have some flexibility with their choice of what to deliver
• Tipping on large orders could be a great addition to driver earnings

Gridwise is here for you - Use us!

If you decide to go with grocery delivery as part of your driving gig, Gridwise can make juggling all the stats from your different apps much easier. You can track all your earnings and mileage, and we’ll tabulate them and put them in attractive, easy-to-read graphs that tell you everything you need to know. 

You’ll also get information about action at the airport, traffic issues, weather, and our awesome Perks tab. There you’ll find easy access to our blog and the Gridwise YouTube channel, plus deals and discounts designed just for drivers. If you haven’t yet, by all means download the app now.

We want you to stay in touch with us and connect with other drivers. Get into our gas card giveaways on a regular basis when you find us on Facebook. And please leave your comments below and let us know what you think about delivering groceries for DoorDash, as well as anything else that’s on your mind.