Sometimes, when you’re working on food delivery platforms it can definitely feel like certains groups of customers tip more or less, but is it true? Are certain customers more generous than others? If you're working with food delivery services in Seattle, tips make up 45% of your pay! That's why the team here at Solo decided to take a deeper look at the data.
As Postmates prepares to join UberEats and Caviar is absorbed by Doordash you might assume that food delivery is getting more and more standardized. Eaters likely just flip through all three remaining apps (UberEats, Doordash and Grubhub) and pick the cheapest, fastest option, right? Well, that may not be true based on the data we’re seeing.
Through the beginning of 2021, we consistently see that Doordash customers actually tip far less per delivery than other platforms. Specifically, 45% less on average than UberEats and Postmates and a startling 80% less than Grubhub! Now, average order size can impact this number, but even when controlling for Doordash’s smaller total order value we see that you consistently take home less in the way of tips from Doordash than the other platforms. Some speculate that UberEats’ ability for eaters to adjust their tip after they receive their order is a big driver in the dollar discrepancies above.
A lot of eaters don’t realize it, but the companies have structured and honed their pricing algorithms to incorporate the average value that they tip into what they pay you, the worker. When we took a harder look at just how much food delivery driver pay is reliant on tips, it becomes even more apparent how critical this slice of the pie is for workers.
The base rate companies pay is only about half of what you earn. This is the dynamic, but relatively consistent core rate you’re paid based off of distance, time and peak/non peak periods. Your tips from customers make up the vast majority of your remaining earnings - coming in at 45% on average through the beginning of 2021! That’s a major component of your regular earnings that you need to consider when deciding what platform to work with. To see your personalized breakdown sign up or login for Solo here.
In the coming weeks we’ll dive into other opportunities like ridesharing (Uber v. Lyft) as well as Instacart, Shipt and Amazon Flex.
At Solo, we’re here to help take the guesswork out of gig work. Sign up or login to the Solo platform to access your custom pay insights, Seattle earnings forecasts and more - all for free.