Uber Eats is a popular on-demand food delivery service that connects users with a wide range of restaurants, grocery stores, and convenience shops in their area. In addition to being convenient for customers, Uber Eats offers flexible earning opportunities for delivery partners, allowing individuals to work on their schedules and earn income by delivering food, groceries, and more. It plays a significant role in the rapidly growing gig economy, but is Uber Eats a good side hustle?
We live in an era where people want to earn a little extra income on the side. If you like to ride your vehicle and occasionally have extra time on your hands when you want some additional income, this could be a lucrative side hustle for you. This article breaks down the details of what it looks like to work for Uber Eats.
Understanding the Uber Eats Platform
How Uber Eats Works
Uber Eats — A service that delivers food from local restaurants in just a few taps. You play the middleman role of getting to take food orders from restaurants, and then all you need to do is deliver them right to their location as an Uber Eats driver. Using a smartphone app, the process runs from start to finish with order specifics and in-app navigation help. Payment info is still through your phone.
Most deliveries are contactless, and customers can track their orders in real time. Delivery partners earn money based on a combination of base fare, distance, and tips, with the option to cash out instantly using Instant Pay.Â
Earning Potential
How much an Uber Eats driver makes can fluctuate greatly, depending on location, the time of day when a delivery is made, and the number of orders they receive. Drivers should expect to earn an average of $8–$20 per hour before factoring in expenses. That said, earnings are not guaranteed and vary by market conditions and individual performance. Earnings are usually a base fare plus time and distance rates. Drivers also earn their tips in full.
Flexibility and Scheduling
One of the best things about driving for Uber Eats is that you are your boss and can set your schedule. Unlike traditional jobs, there are no fixed shifts or hourly commitments—you choose when and where you want to work. Whether you’re looking to earn extra cash during lunch breaks, evenings, or weekends, Uber Eats lets you set your own schedule.
This means you get to decide when and how long you work as an independent contractor. This flexibility makes it an ideal side hustle for students, parents, or anyone balancing multiple responsibilities. You can go online or offline anytime through the app, giving you complete control over your work-life balance.
Read related blog: How to Balance a Side Hustle with a Full-Time Job?
Costs Associated with Driving for Uber Eats
As much as extra income is attractive, you have to consider the cost of being an Uber Eats driver. These costs will significantly impact your ultimate profit.
Vehicle Expenses
As an Uber Eats driver, you’ll use your vehicle (or bicycle in some areas) for deliveries. This means you’ll be responsible for:
- Fuel costs
- Vehicle maintenance and repairs
- Depreciation
- Insurance
These expenses can pile up, and it is important to consider them when calculating your earnings. For Tax, you need to track miles and expenses.
App Fees and Commissions
This pricing model is influenced by how much a restaurant sells through the platform because every order nets Uber Eats’ take via service fee. The number varies from 20% to 30% of the total order amount. Although this doesn’t directly affect your earnings, it certainly does lower your total pay per delivery.
Taxes and Regulations
Independent contractors pay taxes independently, including self-employment tax. Make sure you save a portion of what you earn, specifically for taxes, and keep those records. In some places, you may also need to follow local laws and get permits or licenses related to food delivery services. Do your homework and learn the legal requirements where you are.
How to Maximize Earnings as an Uber Eats Driver
Here are some ways to maximize your Uber Eats side gig profits.
Peak Hours and High-Demand Areas
Work busier shifts, like lunch and dinner hours, where there are higher order numbers. On weekends and evenings, customer demand is usually higher, thus giving you an opportunity to explore more delivery options. The best way to earn the most bucks is by being available during holidays and in places with high order rates and the likelihood of bulk orders.
Learn about high-traffic areas in your city, such as business districts or colleges, where you can find orders regularly. Keep an eye on the Uber Eats app—you’ll see heat maps of areas where deliveries are in high demand, allowing you to plan your delivery spots.
Building a Strong Reputation
You should ensure a high customer rating, vital for staying operational in this gig economy. One aspect of a good process is delivering complete, correct, and on-time orders to each customer through excellent coordination between the delivery team. A good reputation can lead to more orders and, thus, better earning chances. Uber Eats can also favor higher-rated drivers for specific orders or promotions.
Utilizing Uber Eats’ Additional Features
Use the Uber Eats benefits and offers to your earnings:
Dynamic pricing: Like Uber, you pay more for your delivery during peak times.
Quests: Return a set number of deliveries within the time limit to earn more money.
Boost: Increases to a guaranteed multiplier on your base fares in certain areas at specified times.
Stay informed about earning opportunities through the app and Uber Eats’ communications to make the most of them.
Read related blog: Extra Income for Food Service Workers: Creative Side Hustle Ideas
Challenges of Driving for Uber Eats
Uber Eats offers potential for a good side hustle, but has downsides. Knowing these pitfalls can help determine if it is right for you.
Extended Hours and Physical Demands
This can be tiring since, on the one hand, you drive for hours and, on the other, you get orders from stores. Sitting for long periods is encouraged throughout the series, as well as walking up flights of stairs or going through apartment complexes. Think about the job’s physical demands and ensure you are ready to do those things with your body. Taking breaks, staying hydrated, and having good posture can help with physical struggles.
Traffic and Weather Conditions
Bad traffic and weather will be everyday struggles when you drive for Uber Eats. Heavy traffic will make you late and possibly reduce your earnings, while rain or snow makes it difficult to drive around. However, poor weather can also increase demand and boost profits, as shoppers stay in more often to get food delivered. Make sure you weigh up the options and put your safety first.
Competition from Other Delivery Apps
The food delivery market is overcrowded, with many apps fighting for the same customers and drivers. This competition occasionally results in oversaturation in some markets, and it can be hard to fulfill repeat orders and reinvest profits. One way to combat this is to diversify. Sign up for multiple delivery platforms so that you can get orders at any slow time.
Uber Eats vs Other Gig Economy Jobs
Uber Eats vs Other Delivery Apps
If you are considering Uber Eats as a possible side job, be sure to compare other meal delivery services, such as DoorDash or Grubhub, too! Each has its own pay model, pricing structure, and set of functionalities. You need to carefully weigh the trade-offs for your situation before selecting.
Uber Eats has the benefit of associating with a massive brand like Uber, so it will have an established customer base in many places. But different apps give various motivations or have better possibilities in specific business sectors.
Factors to Consider When Choosing a Gig Economy Job
When deciding between Uber Eats and other gig economy jobs, consider the following factors:
- Market demand in your area
- Pay structure and earning potential
- Flexibility and scheduling options
- Vehicle requirements
- Customer base and types of orders
- App usability and support
Ultimately, the best choice depends on your preferences, schedule, and financial goals.
Conclusion
Uber Eats is a great side hustle for someone looking to work on their schedule and earn money. It is perfect for those who want a quick job and are flexible in timing, but not everyone can do it. Yet, you need to balance those potential earnings with the costs and challenges of publication.
Do your research before you take on this side hustle. Know your financial goals, time management, and how dedicated you are to work when physical demand is a concern. If you are in urgent financial need, use Everdraft™ by Beem. The AI-powered smart wallet app helps you get $10-$1,000 for all your financial emergencies. No credit checks, no interest, no income restrictions and no due dates required! Download the app for more details!
Read related blog: How to make $1000 a Week with Uber Eats
FAQs on Is Uber Eats a Good Side Hustle?
How much can I make driving for Uber Eats?
Your real-world earnings will vary based on where you live, when and how often you work, and whether it’s a surge hour with a powerful incentive to move some burritos in less than 12 minutes.
What are the requirements for becoming an Uber Eats driver?
To become an Uber Eats driver, you typically need to:
1. Be at least 19 years old (21 in some markets)
2. Have a valid driver’s license and have at least one year of licensed driving experience
3. Have a clean driving record
4. Have a smartphone capable of running the Uber Driver app
5. Pass a background check
Requirements may vary by location and delivery method (car, bike, scooter), so it’s best to check the official Uber Eats website for the most up-to-date information
Is driving for Uber Eats a good way to make extra money?
Uber Eats is generally worth the extra money, particularly if you want a side and a flexible job that can be worked on your schedule. However, think about the costs and difficulties associated with this. Some will be a supplemental long-term income source, while for some, they may become one, but it may take longer, or the money may seem too low and not worth their time if any. How well you do depends heavily on your area, time availability, and how efficient and customer-oriented you are.
