Delivery Service: A Golden Opportunity for Independent Contract Drivers

man delivering food

During the Covid-19 pandemic, as Americans stayed mostly at home, they developed the habit of ordering food and products online. All these were then delivered to their doorsteps. This resulted in a surge in the success of food delivery apps and product delivery services.

According to the Food Delivery App Report 2021 of Business of Apps, users of food delivery apps in the U.S. increased from 95 million in 2019 to 111 million in 2020. The total revenue of food delivery apps grew from $22 billion in 2019 to $26.5 billion in 2020. By the end of 2021, the expected total revenue would be $28 billion. The forecast is for total revenue to reach $30 billion by the end of 2022, $33 billion by the end of 2023, $37 billion by the end of 2024, and $42 billion by the end of 2025. Experts believe that people will continue to enjoy the convenience of food deliveries to their homes.

The most significant share of the market in 2020 was taken by DoorDash at 45 percent, followed by UberEats at 22 percent, Grubhub at 18 percent, and Postmates at eight percent. In 2021, the same hierarchy was maintained, with DoorDash at 57 percent, UberEats at 26 percent, and Grubhub at 16 percent. Postmates merged with UberEats in December 2020.

The U.S. courier, express, and parcel (CEP) market is even larger. Data from Statista shows that it processed 20 billion packages in 2020, representing an increase in the volume of 37 percent. This resulted in a 29 percent increase in revenue, totaling $171 billion. The share of the same-day delivery segment amounted to $4.8 billion. Of this, 63 percent was sent to consumers, and 23 percent was sent to other businesses.

Profiting From Delivery Services

Anyone with a vehicle and a driver’s license can profit from the lucrative delivery services for food or products as a contract delivery driver. As an independent contractor, you sign up with delivery services and determine your schedule. You can do this as a side gig after your regular work hours and on weekends if you have a current job. You can also choose to do this full-time.

First, you must ensure that you have a clean record as a driver. You must also ensure your ride is in good working condition. You cannot risk any delays from breakdowns. As a contractor, you will be shouldering the cost of repairs for your vehicle. You must, therefore, keep it well-maintained. You will also shoulder the cost of fuel. It is also best to get professional car window tinting to protect yourself from the sun since you will be driving around a lot. It will also protect your deliveries.

woman delivering food as a side hustle

Vehicle insurance is the responsibility of the independent contract delivery driver. Make sure that your insurance covers damage to the vehicle, yourself, and others from accidents and damage to the goods you are carrying. You must also have insurance from theft.

A larger vehicle like a van will enable you to deliver even large packages and expand your opportunities. A sedan can also carry a lot. Even if you only have a motorcycle, though, there are delivery options you can apply for.

Most delivery companies now use apps to engage with consumers and partners like independent drivers. Make sure that you have a mobile phone that can run these apps.

As of 2021, the median annual pay for an independent delivery driver in the U.S. is $34,340. The city that pays independent delivery drivers the highest is Minneapolis, at up to $42,683. You will be keeping all tips, and this comes at an average of $50 a day across the country or an additional monthly income of $6,000.

DollarBreak provides the pay offered by several companies as of the end of 2021. The average ranges from $82 to $114 a day plus tips. The Peach lunch delivery service pays the highest at an average of $30 to $55 an hour. By working eight hours a day, five days a week, you can earn P8,800 a month plus tips.

Among other food delivery services, DoorDash offers up to $25 for peak hours. There is a referral bonus of $150 for every driver your recruit. Grubhub offers $11 per hour on average, while UberEats offers an average of eight dollars to $12 an hour.

For the delivery of packages, FedEx offers $17.79 an hour. UPS offers $30 an hour, which increases to $37 after four years. Amazon Flex offers an average of $18 to $25 an hour.

Future-proof Work

Delivery services are here to stay and the need for them will further increase through the years. This is a type of work that has weathered the pandemic and will likely flourish through any crisis. Therefore, becoming an independent contract delivery driver is a reliable source of income that also enables you to be the boss.

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