ADVERTISEMENT

Here's exactly how much you should be tipping your driver when you order food

In a survey done by US Foods , delivery drivers and customers agree that $4 is a reasonable tip for those delivering food through apps like Uber Eats, Postmates, and other food delivery services.

Delivery driver
  • However, 60% of drivers surveyed say they're either not being tipped or not tipped enough.
  • Tips are more essential than they've ever been, as rideshare delivery drivers get fewer protections and perks than delivery drivers traditionally employed by restaurants.
  • Visit Business Insider's homepage for more stories.
ADVERTISEMENT

Ordering from a delivery app is becoming a bigger part of everyday life, with apps like Postmates, UberEats, Grubhub, and more offering service in cities across the US. And with lots depending on services like these for income, tips aren't just for dining out anymore.

A new study by restaurant supplier US Foods show some trends in tipping for rideshare delivery drivers, from the average amount customers are willing to spend on delivery to the tip amount drivers feel is fair.

ADVERTISEMENT

There's one thing that both the average customer and driver agree on: A $4 tip is fair.

But, customers consider a few factors when it comes to tipping. US Foods' data shows that customers, on average, are willing to pay $8.50 total for extra delivery charges, including tips, delivery fees, and service fees. Thirty-five percent of those surveyed wanted to spend $5 or less on delivery in total, and 37% were willing to pay $6 to $10. But, on Uber Eats, a delivery fee can easily eat up more than half of those ranges before a tip is even considered, reaching $3.99 in New York City, according to The Verge's Shannon Liao .

And it seems like many aren't actually tipping as much as they say. The survey also shows that 60% of drivers are consistently irritated that their tips are weak, or they are not tipped at all. And in the gig economy, tips have never been so critical for success.

Rideshare delivery drivers aren't employees of the company they're driving for. Rather, they're independent contractors. While delivery drivers employed by a specific restaurant may have access to benefits, health insurance, and even help with costs like gas, rideshare delivery drivers don't have access to these things.

ADVERTISEMENT

And delivery fees aren't a big help to drivers, either. While drivers will often get a set dollar amount to pick up, drop off, and are paid per mile, they will likely have to share a cut of this with the platform they're driving for. Uber's cut can be as high as 25%, depending on the city, for example. However, 66% of customers in US Foods' survey reported that fees affected how much they tipped.

And then, there's the mystery of guaranteed minimums. This principal essentially guarantees that a driver will make a certain amount, regardless of how much a customer tips. Employee delivery drivers see this in the form of a tip credit , or the amount that an employer would have to pay to reach minimum wage if an employee didn't receive any tips.

But for delivery apps like Doordash , that's not the case a tip in the app might go directly to the company to fulfill a driver's guaranteed minimum. As The New York Times' Andy Newman reports, a tip can often factor into that guaranteed minimum to save the company from paying drivers more. US Foods' survey shows that only 27% of people tipped with cash, but cash might be the ideal way to tip.

While half of all customers surveyed said they tip on a case-by-case basis, tips are a critical part of every rideshare delivery driver's income. As these workers lack the conventional protections of employment, often share the fees with the company they work for, and may not get tips on top of their guaranteed minimums, rideshare delivery drivers are more dependent on tips than ever.

ADVERTISEMENT

See Also:

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

The CBN justifies $2b billion loss in forex, dispelling Naira defense claims

The CBN justifies $2b billion loss in forex, dispelling Naira defense claims

10 best airports in Africa in 2024

10 best airports in Africa in 2024

10 most expensive cities in Africa in 2024

10 most expensive cities in Africa in 2024

Illegal money changers adapt to Zimbabwe's ZiG currency rollout

Illegal money changers adapt to Zimbabwe's ZiG currency rollout

Zimbabwe's ZiG currency printing contingent on reserve sufficiency

Zimbabwe's ZiG currency printing contingent on reserve sufficiency

The global workforce is set to collapse without Africa

The global workforce is set to collapse without Africa

500 millionaires fall off in Kenya - here’s why

500 millionaires fall off in Kenya - here’s why

Top 10 African countries with the most centi-millionaires in 2024

Top 10 African countries with the most centi-millionaires in 2024

7 most influential Africans in the world 2024 -TIME

7 most influential Africans in the world 2024 -TIME

ADVERTISEMENT