Working as a food delivery person is one of the best ways to make some extra cash in your free time. There are many food delivery companies to choose from, and it doesn’t take long to get started. Postmates is one of the largest food delivery apps in the US and is also one of the best-paying companies.
The demand for Postmates workers increases daily making the need for delivery drivers high. You likely won’t be lacking for work if you sign on with this company. Throughout this article, you will learn how to get hired by Postmates, the pros and cons of working there, and how much you can make on Postmates.
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What Is Postmates?
Postmates is an American takeout and food delivery service owned by Uber and founded in 2011. It currently operates in 2,940 cities, using “Postmates” to deliver food and goods from nearby restaurants and grocery stores. The company prides itself on delivering “anything, anywhere, any time” from over 500,000 restaurants across the US and Mexico.
Postmates was founded by Bastian Lehmann, Sean Plaice, and Sam Street and was acquired by Uber for $2.65 billion in December 2020. Bastian Lehmann still remains the CEO of the company, which has nine investors and over 5,000 employees. Its major competitors include Grubhub, DoorDash, and UberEats.
How Does Postmates Work?
Postmates is a delivery service. Both drivers and customers need to have the mobile application downloaded to their devices in order to place an order or receive orders to deliver. There are two apps for each party: the Postmates app for customers and the Postmates Fleet app for the drivers.
As a driver, you open the app when you’re ready to receive orders and accept any delivery requests that come up within your area. The app provides you with the fastest route to get to your pickup location. Sometimes the order will be waiting for you when you arrive and other times you actually have to order or purchase the items yourself with a Postmates prepaid card. You get paid for any time period spent waiting.
How Much Can You Actually Make on Postmates?
According to ZipRecruiter, the annual average salary of Postmates drivers is $38,089 which equates to about $18 in hourly earnings. However, the rate differs depending on the city where you are employed. For instance, San Francisco Postmates drivers earn an annual average of $47,516 while Norwalk drivers earn an annual average of $42,784.
This rate differs based on factors including the number of hours the driver works per day, the areas they work, the time of day, and customer tips. If you schedule to work during the busiest time of day every day for a week, you are likely to earn more than a driver who works once a day, three days a week. Some drivers report making $12 per hour while others say they earn about $7.5 per delivery.
The Pros and Cons of Working on Postmates
There are different benefits to working as a Postmates driver, from having your own work schedule, the attractive pay, and being able to use a bicycle instead of a car. You can find more details below.
Pros of Working on Postmates
- Flexible Work Schedule. As a Postmate, you work flexible hours and can work in any time frame that’s convenient for you. You don’t need to set your schedule ahead of time like other delivery services and don’t have to work at the same time every day. This makes it more convenient for those with a full-time job to have a side job without pressure.
- Doesn’t Require a Car. One of the best parts of working with Postmates is not needing a car. You can sign up with your bike, scooter, or even your feet. The only difference is you may not be able to go for deliveries in far distances which shouldn’t be a problem as long as you position yourself to work in busy areas during rush hours.
- Attractive Pay. Postmates have more attractive rates than their competitors. Postmates delivery earnings for some drivers can be as much as $12 per delivery or per hour. If done right, you could earn even more while working fewer hours.
- Delivery Fees are Influenced by the Distance. The delivery fees depend on the distance of the restaurant or pick-up location to the delivery location.
- Blitz Pricing. This means higher prices during rush hours. This makes it possible for Postmates to earn more during a busy period of time. It also means more working drivers and faster deliveries. Prices during this time window can increase by up to 50 percent.
- Instant Payment. Postmates can get paid at any time they want, making it easier for them to settle bills and cover other expenses in time. Other delivery service providers often offer weekly or biweekly payments as direct deposits.
Cons of Working on Postmates
- Independent Contractor. Working as a Postmates driver doesn’t make you a full-time employee of the company. You are an independent contractor, part of the so-called gig economy, who identifies as a self-employed worker. This means you have to cover costs like taxes and insurance.
- Car Expenses. Using your car or bike frequently will require you to perform regular maintenance on it, adding more expenses and overhead costs to your Postmates delivery earnings.
- Limited Location Availability. Postmates is much more popular in larger cities which means to earn reasonable wages, you may have to work in these cities or risk earning very little while spending more.
- Taxes. As an independent contractor, you will have to cover your taxes yourself. This means you have to save money for taxes you will owe at the end of each fiscal year.
- Insurance. Insurance is another cost you have to cover on your own. You need to make sure you’re earning enough money through the service to cover this cost.
How to Become a Postmates Delivery Driver
Postmates is popularly known for having a very simple and swift application process that takes one to three days to complete. The step-by-step process is outlined below.
1. Online Application
The first step to joining Postmates as a driver is to complete an online application. To do that, you need to be 18 years or older and possess a valid driver’s license or reliable access to a mode of transportation. You’ll also need insurance and a social security number. If you meet these requirements, you will be able to complete the registration process and proceed to the next stage.
2. Background Check
The company will run a background check to confirm your status before accepting you as a driver. If you pass this, then you will be sent a Postmates card to pay for deliveries and also set up with a delivery location that can be changed at any time.
3. Start Delivering
Once you get your Postmates card and get a delivery location, you can then begin to work and earn money. All you have to do is open Postmates Fleet, the driver app, when you are ready and accept orders in your location.
How to Make More Money on Postmates
Simply working regular shifts will not make you a decent amount of money. We have provided some tips below to help you make more money working as a Postmates driver. With a little extra effort, the job can be worth your while.
Drive During Peak Hours
The best time to make more money working for Postmates is during peak hours, mostly during lunch and dinner time. It is similar to surge pricing, except it only works for certain deliveries. During these busy times, Blitz pricing is invoked where certain deliveries are more expensive due to high demand.
Deliver in Hot Spots
You can view the areas with the most demand for deliveries within the app. For this to work even better, you should stay close to these areas during peak times so that you receive more orders. This is where bike deliveries can be handy, as a bike courier can quickly navigate hot spots.
Give the Customer a Receipt
Giving a customer their restaurant receipt has proven to encourage customers to give more tips. This is something that you can use to your advantage to make more money. Customers like accountability and when they know they are not getting taken advantage of, they’ll return the favor with a tip.
This means you should spend less time driving around and more time waiting to get deliveries. When you are yet to get any delivery, it might make sense to keep driving around until something comes up, however, the best thing to do in this situation is to wait in any of the hotspots where you are more likely to get deliveries.
You can also check the app for areas that need more drivers and head that way. This will help reduce your gas costs and earn more money.
Use a Fuel-Efficient Car
Try to drive a car that doesn’t consume a lot of gas. This will help save costs and maximize your earnings.
Take Advantage of Incentives
You should take advantage of the incentives that Postmates offers to make up for your personal costs. They offer bonuses for deliveries that are completed within a specific time and area. They also have a guaranteed amount that you earn after completing a certain number of deliveries at a certain time.
Take Multiple Requests
Another great way to make more money on Postmates is by taking more than one delivery at a time. You can work to get multiple orders from one restaurant at once through chained or batched deliveries. This will help you complete more deliveries in a shorter time and also earn more money.
Provide Excellent Customer Service
Most importantly, provide excellent customer service during all your deliveries. This is where having top customer service skills will make a huge difference. Nothing works better when it comes to earning tips. You can do this by using a navigation map that can help you get to your drop-off location faster, offer spoons or serviette, and communicate with your customer to ensure prompt delivery.
Is Working on Postmates Worth It?
Working with Postmates is worth it, and can be considered a top job for part-time workers. It doesn’t require you to spend any money to start and takes only a few days to get into the service. It is an even better job for students who are looking to make extra cash as the minimum age requirement is 18 and doesn’t require a car to begin.
You also get to choose your own hours and don’t need to be confined to the same daily schedule. In general, Postmates is a good source of income as a full-time and part-time gig. It depends mostly on how motivated you are to work during peak hours.
Making Money on Postmates FAQ
How can I make $200 a day on Postmates?
You can make $200 a day on Postmates by working during peak times, having excellent customer service skills, driving in hotspots, and taking multiple deliveries at once. These methods will help you spend less and earn more, thereby increasing your daily earnings. You should also take advantage of the different incentives that the company offers.
Can you make good money with Postmates?
Yes, you can make good money with Postmates if you do it right. You can earn up to $25 per hour according to Postmates, which is more than many private employers pay. You also stand to make more if you work extra hours than other drivers or work during peak hours with Blitz pricing.
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Is it worth working for Postmates?
It is worth working for Postmates if you need extra money as it offers the perfect schedule for a side gig. You get to work on your own time and can cash out whenever you see fit. Postmates offers different bonuses like sign-up bonuses, delivery bonuses, and additional payout bonuses.
Does Postmates pay more than Doordash?
No, Postmates base rate is less than competitor DoorDash. DoorDash also offers more bonuses. However, Postmates handles more deliveries than DoorDash, meaning there is more work to go around at Postmates.
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