Transcript
1
00:00:00,000 --> 00:00:03,900
Ralph: Are you driving for door dash grub hub or Uber eats to earn some extra cash?
2
00:00:04,270 --> 00:00:05,760
There's certainly a lot of people doing it.
3
00:00:06,240 --> 00:00:08,940
You may be losing more money than you think.
4
00:00:09,240 --> 00:00:11,070
Stay tuned to find out if food delivery.
5
00:00:11,070 --> 00:00:13,830
Driving is really worth it financially.
6
00:00:13,860 --> 00:00:14,940
That's what we're going to dive in on.
7
00:00:14,940 --> 00:00:15,658
Today's show.
8
00:00:46,050 --> 00:00:48,086
Welcome to our technology Tuesday show.
9
00:00:48,086 --> 00:00:49,826
I'm so glad you chose to join us today.
10
00:00:50,126 --> 00:00:52,196
I want to thank you for listening and supporting the program.
11
00:00:52,196 --> 00:00:54,566
Now we're going to take a little departure from technology today.
12
00:00:54,866 --> 00:00:56,396
But it's sort of technology today.
13
00:00:56,396 --> 00:00:58,466
We're diving into an important question.
14
00:00:59,036 --> 00:01:03,236
And I get asked this question quite a bit in my practice, and that is, are you losing money?
15
00:01:03,656 --> 00:01:07,286
By doing food delivery services, like DoorDash, GrubHub, and Uber eats.
16
00:01:07,286 --> 00:01:10,346
There's a lot more than that to earn some extra cash.
17
00:01:10,766 --> 00:01:11,546
The truth is folks.
18
00:01:11,546 --> 00:01:14,366
A lot of people sign up to deliver food as a side hustle.
19
00:01:14,896 --> 00:01:18,056
the idea of setting your own schedule and getting paid to drive around.
20
00:01:18,056 --> 00:01:18,986
Sounds great.
21
00:01:19,436 --> 00:01:23,366
But is it actually profitable after you factor in all the costs?
22
00:01:23,786 --> 00:01:25,196
That's what we're going to explore on today's show.
23
00:01:25,226 --> 00:01:28,376
And I'll give you some tips for maximizing your earnings.
24
00:01:28,406 --> 00:01:30,416
If you do choose to deliver food.
25
00:01:31,006 --> 00:01:33,806
Well it's the day after tax day, which is a great day for me.
26
00:01:33,806 --> 00:01:39,506
It's a time to relax and get settled back into a less stressful routine here at the office and on the farm.
27
00:01:39,956 --> 00:01:44,876
I have to admit that I always look forward to the deadline being over so . We get back to some level of normalcy.
28
00:01:45,566 --> 00:01:46,376
Before we get started.
29
00:01:46,376 --> 00:01:48,266
I want to remind you to subscribe to our show.
30
00:01:48,266 --> 00:01:51,776
You can join our email list at askralphpodcast.com.
31
00:01:52,046 --> 00:01:55,436
So you don't miss tomorrow's show tomorrow's our wacky Wednesday show.
32
00:01:55,466 --> 00:02:01,646
And tomorrow we're going to do crazy online product reviews that a show you don't want to miss for a little bit of humor.
33
00:02:02,156 --> 00:02:05,936
Let's start with today's Bible verse and the Bible verse comes to us from the book of Proverbs.
34
00:02:06,306 --> 00:02:07,636
Chapter 16 verse 3.
35
00:02:07,636 --> 00:02:09,986
It reminds us, commit your work to the Lord.
36
00:02:10,466 --> 00:02:12,086
And your plans will be achieved.
37
00:02:12,116 --> 00:02:15,086
I thought that was pretty relevant to today's discussion.
38
00:02:15,570 --> 00:02:19,166
So first let's look at the basic earning model, these food delivery platforms.
39
00:02:19,676 --> 00:02:21,536
As a driver, you get paid per delivery.
40
00:02:21,536 --> 00:02:23,786
Usually somewhere between two to $10.
41
00:02:24,206 --> 00:02:26,306
Depending on factors like the distance and demand.
42
00:02:26,306 --> 00:02:30,476
You also get to keep a hundred percent of your tips that the customers give you.
43
00:02:30,986 --> 00:02:34,916
So in theory, if you do enough deliveries per hour, you could earn some decent money.
44
00:02:35,456 --> 00:02:41,156
But there are some big costs you have to account for the biggest, one of that is gas.
45
00:02:41,456 --> 00:02:42,956
Gas prices continue to go up.
46
00:02:42,986 --> 00:02:47,636
Obviously you have to pay for the gas, you use the drive to the restaurant then to the customer.
47
00:02:48,296 --> 00:02:50,666
And to your waiting points in between.
48
00:02:51,086 --> 00:02:52,166
At current gas prices.
49
00:02:52,196 --> 00:02:53,636
Gas is not cheap folks.
50
00:02:53,936 --> 00:02:55,886
That's something you got to build into the model here.
51
00:02:56,066 --> 00:02:58,676
Number two, wear and tear on your vehicle.
52
00:02:59,036 --> 00:03:01,406
All those miles put wear and tear on your car.
53
00:03:01,796 --> 00:03:04,076
Oil changes, new tires, repairs.
54
00:03:04,076 --> 00:03:11,596
These costs really add up and you do qualify for a standard mileage rate with the IRS, but is it really enough to cover it?
55
00:03:11,626 --> 00:03:13,816
Now let's talk about number three and that's insurance.
56
00:03:14,056 --> 00:03:21,496
A lot of people don't think about this, but most insurance policies limit or prohibit you using your vehicle for commercial purposes.
57
00:03:22,186 --> 00:03:24,256
Truth is folks you really risks denying coverage.
58
00:03:24,286 --> 00:03:26,416
If you get in an accident while you're on a delivery.
59
00:03:27,166 --> 00:03:30,826
Your other option is to upgrade to commercial coverage or put a rider on your policy.
60
00:03:30,856 --> 00:03:33,406
That might be something to check with your insurance company.
61
00:03:33,406 --> 00:03:34,066
If you're doing it.
62
00:03:34,336 --> 00:03:36,286
And number four self-employment taxes.
63
00:03:36,736 --> 00:03:41,896
Since you're an independent contractor with these companies, you have to pay self-employment tax on all of your earnings.
64
00:03:42,286 --> 00:03:43,216
What does that mean, Ralph?
65
00:03:43,306 --> 00:03:47,596
That's an extra 15.3% added to your tax bill.
66
00:03:48,166 --> 00:03:49,066
So, what does all this mean?
67
00:03:49,066 --> 00:03:49,266
Ralph?
68
00:03:49,376 --> 00:03:54,376
Is that when you factor in these costs for most drivers, To net profit from delivery.
69
00:03:54,376 --> 00:03:55,816
Driving is pretty low.
70
00:03:56,116 --> 00:03:58,186
In fact, it's often below minimum wage.
71
00:03:58,666 --> 00:04:04,996
One analysis found door dash drivers earn on average, $17.50 per hour of active driving time.
72
00:04:05,566 --> 00:04:11,386
But only about $9.73 per hour after expenses that's even before taxes.
73
00:04:11,416 --> 00:04:14,176
I actually had a client in last week who is doing this.
74
00:04:14,536 --> 00:04:18,046
We figured out that on average, he's making about $4 an hour.
75
00:04:18,286 --> 00:04:19,126
Is it worth it?
76
00:04:19,726 --> 00:04:22,876
Now delivering can be worth it if you're strategic.
77
00:04:23,296 --> 00:04:25,726
So here's some tips to be more strategic in that
78
00:04:26,086 --> 00:04:26,686
number one.
79
00:04:26,956 --> 00:04:29,206
Drive at peak times that will be lunch.
80
00:04:29,506 --> 00:04:30,826
Dinner, weekends.
81
00:04:30,946 --> 00:04:34,276
The truth is folks earnings are higher when demand is higher.
82
00:04:34,846 --> 00:04:37,276
the other thing you want to do is stick to a small delivery zone.
83
00:04:37,486 --> 00:04:40,246
So you waste less time and gas driving far.
84
00:04:40,546 --> 00:04:46,096
One of the things this person mentioned is he would have to drive up to 10 miles to deliver a $2 cup of coffee.
85
00:04:46,426 --> 00:04:47,896
That makes no sense at all.
86
00:04:48,406 --> 00:04:51,136
Another thing you want to consider is running multiple apps.
87
00:04:51,406 --> 00:04:52,336
What do I mean by that?
88
00:04:52,486 --> 00:05:00,526
Maybe you could sign up with DoorDash and GrubHub or Uber eats, maybe do all three and that way you can optimize the best orders across platforms.
89
00:05:01,156 --> 00:05:02,056
Here's another thing.
90
00:05:02,386 --> 00:05:06,076
Drive a high miles per gallon vehicle to save on gas.
91
00:05:06,436 --> 00:05:09,286
Truth is hybrids are great for delivery cars.
92
00:05:09,346 --> 00:05:11,026
And here's another thing you absolutely need to do.
93
00:05:11,506 --> 00:05:14,056
You've got to track your mileage using an app like stride.
94
00:05:14,146 --> 00:05:15,226
There's a bunch of them out there.
95
00:05:15,646 --> 00:05:21,856
That way you can write off vehicle expenses on your taxes because folks that's where you're going to get your tax deduction.
96
00:05:22,366 --> 00:05:29,056
You also want to consider rental coverage options that allow commercial use spiffy and Metro mile offer affordable monthly plans.
97
00:05:29,056 --> 00:05:30,226
And that's something you want to think about.
98
00:05:30,466 --> 00:05:34,396
Talk to your insurance company and see do they allow you to do that?
99
00:05:34,396 --> 00:05:35,446
And here's a big takeaway.
100
00:05:35,446 --> 00:05:43,546
My friends set aside cash for taxes, so you don't get hit with a surprise IRS bill later, you may need to make quarterly estimated payments even.
101
00:05:43,996 --> 00:05:45,196
So in summary, yes.
102
00:05:45,496 --> 00:05:48,286
Many drivers end up losing money on food delivery.
103
00:05:48,286 --> 00:05:49,426
You heard that here first.
104
00:05:49,756 --> 00:05:57,106
If they aren't diligent in maximizing earnings and minimizing costs, if you want to make $3 or $4 an hour doing it, then I say, God, bless you.
105
00:05:57,106 --> 00:05:57,706
Go do it.
106
00:05:58,336 --> 00:06:01,936
But the truth is folks you've really got to look and see, is this really profitable?
107
00:06:02,416 --> 00:06:06,406
But with some smart strategies, you might be able to turn it into a profitable side business.
108
00:06:07,126 --> 00:06:14,956
If you want a flexible way to make extra money from home, here are some alternatives that I think you might want to consider instead of these food delivery services.
109
00:06:15,646 --> 00:06:16,516
I just did some.
110
00:06:16,516 --> 00:06:17,266
Online research.
111
00:06:17,266 --> 00:06:17,776
And I found these,
112
00:06:17,806 --> 00:06:19,276
one of the things is online tutoring.
113
00:06:19,816 --> 00:06:23,706
You could tutor students virtually on platforms like Chegg tutors or Wysant.
114
00:06:24,286 --> 00:06:25,606
You set your own rates to that.
115
00:06:26,056 --> 00:06:27,566
And you don't have to worry about driving anywhere.
116
00:06:27,566 --> 00:06:34,756
Another thing to consider is freelance work sites like Fiverr and Upwork lets you sell your skills as a freelancer options like writing.
117
00:06:35,206 --> 00:06:40,426
Graphic design data entry, or even virtual assistance could put some extra money in your pocket.
118
00:06:40,936 --> 00:06:48,586
Another thing is what they call online surveys Companies like survey junkie, will pay you to complete market research surveys in your spare time.
119
00:06:49,126 --> 00:06:56,266
The truth is this folks, the key is finding a side hustle that fits your skills and interests while generating decent side income.
120
00:06:56,806 --> 00:07:02,416
You gotta be sure to factor in all the costs and effort required to and ask God for wisdom as you make financial decisions.
121
00:07:03,046 --> 00:07:08,206
It may seem like it's real simple to go do these door dashes or GrubHub, and I'm not picking on any of, in particular.
122
00:07:08,746 --> 00:07:15,016
But when you look at the amount of time you're putting in, when you look at the cost associated with it, are you really making money?
123
00:07:15,016 --> 00:07:17,236
So before I wrap up, I want to remind all of our listeners.
124
00:07:17,776 --> 00:07:18,286
That's it.
125
00:07:18,376 --> 00:07:24,466
You, don't what I'm going to tell you to visit our podcast page at askralphpodcast.com . I'm going to encourage you to leave us review.
126
00:07:24,496 --> 00:07:25,966
I read every single one of those.
127
00:07:26,386 --> 00:07:27,496
Share your thoughts with us?
128
00:07:27,856 --> 00:07:31,336
And if you have time, click on the little microphone icon down at the bottom, right.
129
00:07:31,336 --> 00:07:34,396
And send us a message or send us questions for future episodes.
130
00:07:34,816 --> 00:07:36,856
And while you're there, make sure you join our email list.
131
00:07:36,856 --> 00:07:40,276
We send out a daily email letting you know what's going on with the show.
132
00:07:41,236 --> 00:07:45,166
You can also schedule a consultation if you want to talk about your specific circumstances.
133
00:07:45,166 --> 00:07:46,786
So here's my takeaway for today.
134
00:07:46,786 --> 00:07:47,926
I want you to share this episode.
135
00:07:47,926 --> 00:07:57,796
If you know someone who's looking to get into food delivery or some other side hustle, encouraged them to listen to this show and to listen to our show in general, we're almost at 400 episodes.
136
00:07:57,796 --> 00:08:01,696
We hit episode 100 yesterday of just this calendar year.
137
00:08:02,086 --> 00:08:10,456
That's all for this episode on whether food delivery driving is worth it financially to recap, delivering for door dash grub hub and Uber eats can be profitable.
138
00:08:10,816 --> 00:08:15,496
If you use smart strategies to maximize earnings and minimize cost, many drivers.
139
00:08:15,826 --> 00:08:16,516
And this is the truth.
140
00:08:16,546 --> 00:08:17,806
I see this everyday in my practice.
141
00:08:18,406 --> 00:08:21,316
End up losing money when you factor in all the expenses.
142
00:08:21,766 --> 00:08:26,116
So that's why I say consider alternatives like tutoring, freelancing, or paid surveys.
143
00:08:26,116 --> 00:08:32,206
If you want a more lucrative side hustle, you might've considered going and getting a traditional retail job to fill in those extra hours.
144
00:08:32,626 --> 00:08:37,036
But most importantly, seek God's guidance in your financial decisions.
145
00:08:37,366 --> 00:08:41,806
Be sure to visit our podcast page at askralphpodcast.com for more great content.
146
00:08:42,136 --> 00:08:45,046
All with the goal of mastering your finances God's way.
147
00:08:45,466 --> 00:08:46,396
Thank you for joining me today.
148
00:08:46,396 --> 00:08:49,576
Stay financially savvy and may God bless you abundantly.
