I've been doing a lot of research regarding the cost to operate food delivery as a 1099 worker. The consensus out there is that most drivers will accept deliveries if they are making $1-$2 per mile as a standard. Their main concern stated is that it covers gas, wear and tear as well as other miscellaneous expenses. After doing my research, I've found that the $1 -$2 price range is a bit steep (Though I will add there's nothing wrong with setting high standards for yourself).
Of course a lot depends on the type of vehicle you drive. Do you drive a gas guzzler? An economical car? How old and in what condition is your car? All these appear to be major factors when it comes to gauging money spent on deliveries versus amount paid out per delivery. So it varies.
I feel, personally (And this is strictly my opinion) that the drivers out there that go with the $1-$2 per mile standard may in fact be cutting themselves short when all is said and done. While it is market dependent, some places, just aren't busy enough to place those kinds of standards when deciding what offers to accept or decline.
My market area is pretty decent. It's certainly not a big city or a major metropolis. I like to drive in the town next to where I live. Even though the town where I live is one of the busiest area's, it's also a very poor area demographically and there's some dangerous neighborhoods (With a lot of non-tippers) so I try to avoid it as much as I can.
But in the next town over, I'm very familiar with it. I went to high school there and even lived there on/off for 10 years. It's not a tiny town, but it's not a big town either. I find myself meeting my daily goals 99% of the time I choose to work it and even on a slow day.
I would say that the majority of the offers that come in range between $3-$5. Not that anything above $5 is rare, but cherry picking per miles I feel is kind of a disadvantage. For example, if I were to take 4 $5 orders and complete them within one hour, sticking to that area only, I'd be making $20 an hour plus any tips that I might get. I'd say it's a 10 mile radius in each direction so the mileage would remain fairly low. Sure, I do get a fair share of $8-$11 orders and of course I take them, but sometimes you have to wait awhile to get them, and as a part time driver, committing to more than 2-3 hours per time out would be burnout for me since I already work a regular W-2 job. So If I'm cherry picking $1-$2 per mile orders, it's possible I might get 2 (Maybe three) within a 2 hour period. But If I take 4- $5 orders per hour and work two hours, that's a $40 payout which isn't that bad.
To me, in market areas like mine, it would seem wiser to work per hour than per mile. Of course, taking ridiculous orders like anything under $4 (And over 4 miles) is ridiculous, but if I were to take a $4 order that I can complete in 10-15 minutes then that frees me up to take multiple orders within a given hour of the same caliber. Why would anyone not doing something like that?
I keep a close eye on my driving expenses (Mileage, wear and tear etc..) and for my vehicle, it's pretty economical for an SUV. I get 25 City and 32+ for highway. My vehicle is fairly new (It's a 2018) and I purchased it only a few months ago with almost 20,000 miles on it. Plus it has a stellar reputation as far as being 'Built to last'. According to my calculations based on current gas prices, my vehicle consumes .46 of gas per mile on average. That's far below the federal standard of .58 per mile in what the average pay is for employers to reimburse their employees for. Depreciation costs are also significantly less than $2 per mile. At the end of each shift I've ever worked (Even without cherry picking for mileage sake), I have never managed to drive more miles than my total payout at the end of the day.
I think that the $1-$2 driver payout is almost like a 'Follow the herd' kind of mentality because it simply doesn't work for everyone. Yes, it's bold and there's nothing wrong with setting high standards, but I also learned that these are the same people complaining how slow things are (When they sit at a parking lot declining several orders back to back because of the low mileage:pay ratio). It doesn't make a lot of practical sense to me.
At the end of the day, I think you gotta do 'You' regardless. If $1-$2 per mile is what you think you need in order for food delivery to be worth it, then go for it. Just understand you might not get too many 'Golden Gooses' by doing it that way and end up coming up short at the end of your shift. Whereas taking smaller orders may actually make up the difference. Especially on a slow day or in the middle of a slow period (Like mid-Summer).
I think we worry too much about costs per driving versus net earnings because of the mythical standard of $1-$2 per mile payout ratio. I think it's something we need to get over.
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