The person who delivers your restaurant order might be relying on your tips to make rent.
Food delivery drivers made 53.4% of their total earnings from tips on average last year, a report from data analytics company Gridwise published on Tuesday found.
The pay that companies such as DoorDash and Uber Eats offer to deliver orders can be as low as $2 or $3, gig workers have told Business Insider. That means that many delivery workers look to customers to make the deliveries they make profitable, said Ryan Green, CEO of Gridwise.
“It’s relying on the consumer,” Green told BI.
According to the report, tips represented 45.7% of the earnings of workers who delivered groceries. Ride-hailing drivers earned just 10.4% of their money from tips.
We want to hear from you. Are you a gig worker? What are the biggest benefits or challenges of gig work that you’d be comfortable sharing with a reporter? Please fill out this quick form.
Gridwise’s report looked at several aspects of gig work, including gig workers’ pay on each of the major ride-hailing and delivery apps. The company analyzed 171 million trips and $1.9 billion worth of gig worker earnings to compile its findings for 2024.
Uber declined to comment on Gridwise’s finding. A company spokesperson told BI that Uber offers a suggested tip on food orders — most commonly 15% — though customers decide the amount. It also encourages customers to tip more during inclement weather, such as snow storms.
An Instacart spokesperson called Gridwise’s conclusion “inaccurate and misleading.” Instacart asks customers if they want to increase their tips when they give a shopper a five-star rating. Since 2022, the company has also offered to pay shoppers up to $10 when a customer takes their tip away after delivery.
DoorDash did not respond to a request for comment on the findings from BI.
Tips have long been a big focus for gig workers. Some have told BI that they decide which orders to take depending on how much the tip is. But that can be risky: Some drivers for Walmart’s Spark delivery service said last year that customers sometimes take back their tips after their order arrives — a tactic that the workers call “tip baiting.”
Other apps, including Instacart and DoorDash, have countered that practice by shortening the time that customers have to adjust their tip amount.
In late 2023, DoorDash started telling some customers that their orders might take longer to arrive if they didn’t tip. A company spokesperson told BI at the time that DoorDash’s gig workers can choose which orders they take.
Do you work for Uber, Lyft, DoorDash, Instacart, or another company as a gig worker and have a story idea to share? Reach out to this reporter via encrypted messaging app Signal at 808-854-4501.
The post Food delivery workers earned most of their money from tips last year, a new report says appeared first on Business Insider.
