Everyone is looking for a great side-hustle to earn extra money. Well, I'm sure that's why you're here and found out about this blog, right? *wink

One way to do this is joining the on-demand economy, a.k.a., “the gig economy.” Ultimately, the gig economy is thriving nowadays due to consumers willing to spend money to have a product or a service delivered or done for them “on-demand.”

Usually, it is done through signing up from apps on their smartphone or through a website. For instance, ride-sharing services and food delivery, to name a few.

Let's admit it. These gigs are fun and easy money, plus it gives you the freedom to work as little or as much as you want.

However, is it really worth it to even exchange and quit for your day job?

Postmates, another on-demand delivery, allows you to make money, but at what expense?

This post will tackle what Postmates is, how the driving gig works, how much do Postmates drivers make, and more.

Without further a do, let me take you on a joyride while providing answers to questions on top of your mind. Let's do this!

What is Postmates?

Postmates is your friendly food delivery app online. The coolest thing about it is that customers or users can order almost anything.

Are you craving a midnight snack? Postmates can deliver it for you. Breakfast at midnight? Not impossible!

From foods, kitchen staples, toilet papers, beers, party needs, you name it, Postmates got it.

Today, more than 600,000 restaurants and retailers are available for delivery and pickup, many of which are exclusive to Postmates.

Since its inception in 2011, Postmates has been connecting local consumers with their Fleets (that's what they call their Postmates app) to available drivers near the restaurant's place and satisfying more than just their cravings.

Related readings: How to make the most money as an Instacart Shopper

How does driving for Postmates work?

Since the pandemic started driving for delivery apps such as Postmates, even more, surged. Indeed, it's simple to get started. Besides, you can work anytime you want without having to schedule your hours in advance.

When you're ready to take orders, go online and log in to your Fleet, in other words, the Postmates app. The delivery request will soon pop up, and you will click “Accept” to take an order.

Then, the app will display a map to give you directions to go to the store or restaurant.

Restaurants might already place the order and ready to pick up, or in other cases, you may need to place the order yourself or shop for items on the list. But, don't worry, you're getting paid for any waiting or shopping time. (A plus point for Postmates!)

Customers may already pay in-app, or you may use Postmate's prepaid card for payment. After that, you are now ready to drive to the customer's place and give the order. Follow any notes and customer requests, and don't forget to take a picture of the receipt with you for additional customer service plus points.

Note: Unfortunately, Postmates doesn't let you see even the estimated amount of your pay upon accepting an order, but if you need to cancel an order, say for personal emergencies, you are free to do so. However, keep in mind as well that withdrawing too many orders may affect your ratings.

Requirements to be eligible driving for Postmates

In delivering for Postmates, there are a few qualifications to meet.

• You must be 18 years or older
• Car, truck, van, bicycles, scooters, you can also deliver on foot (varies per cities)
• Active car insurance
• Valid driver's license
• Must pass the background check

Well, upon signing up, you will fill out some necessary information about yourself, like your name, email address, and phone number.

Postmates will also ask for your Social Security number and birth date to perform a background check. Usually, after 1-3 days your account will get verified.

After that, you will receive a welcome packet including a prepaid card and delivery bag from Postmates.

And that's it! You're good to go!

Note: Postmates will match your delivery location close to your address, but you can always change your delivery location. Say, for example, you want to explore hot spots in nearby cities or areas.

How much do Postmates drivers make?

Postmate's website claims that their drivers can make around $25 an hour, including tips. Although this may look like a good ordeal, you may overlook some things.

What I found a bit sketchy in Postmates is that it won't give you even an estimated amount of order, so basically, you'll never know whether your delivery is worth it or not. It seems absurd that you only get to know how much your pay is, including tips, right after delivering the order to the customer.

For instance, Postmates drivers reported they made about an average of $10 per hour plus tips. Sometimes even lower than that. There are also times when most of the pay they get is solely coming from the whole customer's tips.

Although you are entitled to 100% of the tips as drivers, your actual work seems unfair to be paid less than the minimum wage.

Moreover, most delivery gigs, with the likes of Postmates, depend on what day, area/city, demand, etc. Postmates pay comprises the pickup rate and dropoff rate, the per-minute or waiting time rate, and mileage pay.

The waiting time rate is usually 7 cents per minute, covering the time spent on restaurants and not the drive time or additional time spent delivering.

Therefore, if you ask, how much do Postmates drivers make? Well, it significantly varies.

Are there any Postmates tips and tricks to help increase my pay?

Now you know that Postmates income may become higher or lower depending on several factors, there's gotta be a way to increase your take-home pay. Take note of these tips and tricks you can apply not just for Postmates delivery but also to any delivery or ride-share gig you may have in the future.

Know your area.

To save time and energy, you must know every in and out of your local area. It would be best to learn how to efficiently drive, find your way out of busy streets, and find shortcuts or quick routes to every restaurants at sight.

Be smart in picking locations.

You should pick up orders that are most closest to you. Remember, the delivery fee only covers the time frame between the pick-up and drop-off locations. Thus, if an order is too far away from where you are, maybe you should skip it. Again, it would be best if you knew every street and corner as mentioned above.

Stack Deliveries

Another way to maximize your Postmates' earnings is to pick up and deliver multiple orders (stacking). If you're waiting on your car for the order to get pick up, it may feel tedious at times. In the meantime, why not complete another delivery somewhere close by? That way, you won't waste too much time idle in the parking lot.

Deliver when demand for deliveries are high

Take advantage of Blitz Hour or the surge pricing of Postmates. Typically, you'll receive orders during weekends or national events, thus increasing your pay. However, there is no guarantee that all your deliveries in a particular hour will have a Blitz price since it is on an order-by-order basis.

Provide excellent customer service

There's nothing like receiving the highest tip during your delivery day. So, more than ever, try to go the extra mile and provide outstanding service to your customers. Postmates drivers claim that a large percentage of their pay comes from customers' generous tips.

Therefore, keep the food hot or bring your storage/insulator bag with you. Be polite and follow customer's notes. Always update customers on their order status and check the order before leaving the restaurant; you don't want to miss extra sauce or napkins.

Lower down your cost

To make the most out of Postmates, remember that you don't need any fancy cars. If you already have a reliable vehicle, go ahead and use it. You can also switch to different ones like a bicycle or scooter but of course, check if it is available in the city you preferred to do the work.

Moreover, keep track of all your expenses not to miss how much you earn during your working hours.

Does Postmates cover gas, tickets, tolls, and other driving fees/expenses?

No. All of your delivery expenses, such as toll fees, gas/fuel, maintenance and repair, load expenses, etc., all of these are at your cost. Being a delivery driver for Postmates and any other delivery app makes you an independent contractor. There is no employee-employer relationship between you and Postmates.

Therefore, as a freelancer, you are not entitled to any health benefits, reimbursements, or anything like that.

What about taxes?

Postmates don't withhold your taxes. Thus, at the end of the tax season, you should file it yourself.

How do Postmates drivers are paid?

Postmates drivers are paid weekly via direct deposit. Payments are transferred directly to your bank account and usually take 2–3 days to appear. But, if you want access to your earnings right away, you can always use an instant deposit with a $0.50 fee.

List of Pros and Cons

There is no perfect product or service out there. It's like the Yin and Yang. There will always be two sides to the coin. Here's the good and the bad when driving for Postmates.

PROS

• Flexible workload schedule.
• Waiting time is paid.
• You can get free food (if the customer cancels the order, you are still paid and get to keep the food to yourself or do anything you like with it.)
• Pay earnings vary per city location and time of the day you work.
• Great for college students or anyone looking for an entry-level job or side gig.

CONS

• You will not always get tips.
• Wear and tear on your vehicle.
• Postmates don't show the estimated delivery amount that you're getting paid.
• Restaurants can be slow, so that you may be waiting more than an hour then get paid for a little waiting time amount.
• You have to pay for gas and save for taxes.
• There are times when the job may be slow, so you're getting lower pay.

Alternatives to Postmates

There's a lot of delivery apps out there in a fiercely competitive market. Giants like UberEats, DoorDash, and Grubhub dominate market share, with Postmates making a name.

Overall, most of these delivery apps share the same business concept for both the customers and drivers. Customers will order food online on their respective apps, pay for it in-app, and wait until the delivery guy arrives.

Then for drivers, you accept the order, drive to the restaurant to wait for the order to get prepared or pick it right up. After that, you go to the customer's place, hand out his order, and get paid or receive some tips.

To help you find out which is the best delivery app for you, check out our review of the ff:

• How much do Grubhub drivers make? Read the full review.
• DoorDash Review 2021- Read full review here.
• Find out if it's worth it driving for UberEats. Read the full review.

Final words

There are many delivery gigs out there, and with all of these options, is delivering for Postmates worth it?

Joining is easy, and it will take less than five minutes to get started. However, Postmates is way better for college students out there seeking different ways to earn money. We recommend not to quit your full-time day job, instead, treat driving for Postmates as a lucrative side-hustle.

With base pay of $4-46, plus keeping all the customer's tips, your earnings may vary depending on which cities you are located and how many hours and miles you'll spend in your working time.

But, don't forget to factor in your expenses when joining this gig as well.

Besides, driving gigs aren't effortless at all. It requires hard work and patience. Sometimes, you have to keep fit to lift some boxes or carry bulky orders.

Above all, ensure that your earnings will not level with the expenses you incur. If it's breaking even, well, there's a lot of fish in the ocean; catch one or more of them!

Driving for Postmates is a good side-hustle or a part-time job, but if your time and effort are at the expense, learn to create smart ways in generating more potential income.

Have you tried driving for Postmates? How was it like? Could you share your experience with us below?

If you have any questions, feel free to hit the comment section down below. We'd love to hear your thoughts.