Is Gig Driving Worth it?

Gig driving has become a global phenomenon. Uber alone reports having over 7 million drivers each month driving in countries across the world. Clearly, people are making money by driving passengers and delivering food. But is driving for apps like Uber and DoorDash worth it?

Weigh your options with the pros and cons of gig driving, both as a side hustle and as a full-time business.

Benefits of being a gig driver in the US

If you’re wondering if driving for Uber or other rideshare companies is worth it, check out the advantages to see if they make sense for your financial and lifestyle goals. Some of the most common benefits cited by drivers include:

• Extra income: If you drive as a side hustle, you can add some extra money to your budget with just a few hours each week. 
• Flexible schedule: You can drive for rideshare apps at any time of the day. While demand may vary, you can work around other jobs and responsibilities. 
• Determine your hours: You control how much you work as a rideshare or delivery driver. Over a third of Uber drivers drive between 12 and 19 hours a week. That’s about 2.4 to 3.8 hours a day over five days a week. 
• No special skills required: In general, most adults with a valid driver’s license, clean driving record, and no criminal history are eligible to become gig drivers. Some areas require additional training, like getting a Taxi and Limousine Commission license in New York City.  

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Rideshare vs. delivery driving: how to choose

As you consider different apps to sign up for, you may wonder if being a delivery driver is worth it more so than a rideshare driver. While they’re similar in many ways, there are also quite a few differences that may help you choose one over the other.

What’s it like to be a rideshare driver? 

Being a rideshare driver involves picking up passengers and driving them to their destination. Here’s what is involved with being a rideshare driver.

• Socializing: You may need to be more social than if you were picking up takeout or groceries and dropping them off on a doorstep. While there’s no requirement that you have to talk with your passengers, there’s always a chance that you’ll have chatty people in your car. Depending on your personality, that could be either good or bad.
• No parking required: Unlike driving for food delivery, you don’t have to get in and out of your car to pick up and drop off food. So there’s no need to find parking if you live in a congested area. 
• Must have a car: You do need a car as a rideshare driver. You may also drive longer distances, adding more wear and tear to your vehicle. The extra expenses may be offset by potentially higher average hourly rates, but you need to figure out if driving for Lyft or other apps is worth it. 
• Different peak hours: As a rideshare driver, the busiest hours are outside of typical office hours. That makes it a good side hustle on top of another job with standard 9 to 5 hours. But if you already work nights and weekends elsewhere, you may not have a lot of requests during your rideshare hours.

What’s it like to be a delivery driver? 

Delivery drivers tend to have a different experience compared to rideshare drivers.

• Less socializing: As a delivery driver, you won’t have to be quite as social as you would ridesharing. But you’ll still need to interact with restaurant staff and customers during your drop off in order to get good ratings. 
• No vehicle or license required: You don’t necessarily need a vehicle or driver’s license – you may be able to deliver food on a scooter or by foot. 
• Shorter delivery routes: If you do have a car, delivery distances are usually shorter compared to potential rideshare routes, so there’s less wear and tear on your vehicle. 
• Passengers allowed: Another advantage is that you can bring people along with you. If you’re a parent who needs to earn some extra cash, being able to bring your kids in the car could make being a DoorDash or UberEats driver worth it. 
• Fewer late nights: Meal times are also the busiest hours, so you can deliver during peak hours without having to do any late night driving.

There are a few drawbacks as a delivery driver, though. Deliveries are time sensitive, otherwise the food can get cold (which can impact your app rating). You’ll also need to navigate parking to pick up and drop off food. 

Part-time vs. full-time gig driving

If you want to know if Uber is worth it part-time versus full-time, there are a few things to think about. 

Gig driving part-time

The first, of course, is your existing schedule of work and responsibilities. Prices are higher during peak times, so you can increase your hourly rate by focusing on those hours as a part-time driver.

Gig driving full-time

You could earn more by driving full-time hours, but there’s no income guarantee. Hours and earnings can be inconsistent, making it difficult to estimate how much you’ll earn each week. Driving full-time is also a demanding job and can quickly lead to fatigue or burnout. 

Recordkeeping for tax purposes 

No matter how long you drive, much of the business administration side is the same. You’re employed as an independent contractor regardless of how many hours you drive. And you need to track your mileage and expenses to maximize your tax deductions whether you drive as a side gig or for a full-time income.