Delivery apps show you what each order pays, and many drivers judge a shift by the total at the end of the night. But two things quietly change the picture: the time you spend waiting between orders, and what each mile costs you. Here’s how to work out your real hourly pay, using your own numbers.

Step 1: Track a few real shifts

For each shift, write down:

  • Time online, from when you start accepting orders until you finish, including waiting.
  • Miles driven, including the drive back from your last drop-off. A trip odometer or a mileage app makes this easy.
  • Total pay, including tips.

Three or four shifts at different times of day will tell you far more than one.

Step 2: Put a cost on your miles

Every mile costs you something: fuel, tires, oil changes, repairs, and the value your car loses as the miles pile up. There are two useful ways to count it.

The full cost. The IRS sets a standard mileage rate each year as an estimate of what it costs to run a car for business. For 2026 it set the rate at 72.5 cents a mile. It’s built to cover fuel, maintenance, depreciation and insurance, so it’s a good stand-in for the true long-run cost of your driving. (The IRS occasionally adjusts the rate mid-year, so check irs.gov.)

The cash cost. What leaves your bank account this week, mostly fuel. It’s lower, but it ignores the wear that turns into a repair bill later.

Step 3: Do the math

Here’s an example shift (the numbers are made up to show the method):

  • 4 hours online
  • 62 miles driven
  • $78 in pay and tips

Counting the full cost of the miles: 62 × $0.725 = $44.95. $78 − $44.95 = $33.05 for 4 hours, or about $8.26 an hour.

Counting only fuel, say at 15 cents a mile: 62 × $0.15 = $9.30. $78 − $9.30 = $68.70 for 4 hours, or about $17.18 an hour.

Both numbers are true, and both matter. The first tells you what the work is worth once your car is paid for. The second tells you what you take home this week. If the first is very low, you’re slowly spending your car to earn money.

Step 4: Remember taxes

Delivery drivers are usually independent contractors, so no tax is withheld from your pay. On your net earnings you’ll owe income tax plus self-employment tax (15.3%, which covers Social Security and Medicare). The good news: if you use the standard mileage rate, your business miles at 72.5 cents each come off your taxable income. In our example, that’s $44.95 of the $78 that you wouldn’t pay tax on. That’s one more reason to log every mile.

How drivers improve the number

  • Drive the hours and areas that pay best. Your log will show which shifts are worth it.
  • Decline orders that don’t cover their miles. A long drive for a small payout can lower your hourly rate.
  • Check your insurance. Many personal auto policies don’t cover driving for delivery. Ask your insurer about a delivery or rideshare add-on.
  • Keep your log for taxes. The IRS expects a record of business miles, made at the time.

When you want work the app can’t switch off

Delivery apps decide your pay and your next order. Drivers who want something steadier often add services they sell directly: courier runs for local businesses, moving help, errands for regular clients. That kind of work is found online: a free Google Business Profile, a simple page that says what you do and where, and a list of regular customers you can email when you have openings. See how to get your side gig found online.

The point isn’t that delivery work is good or bad. It’s that you can only judge it with your own numbers.

The example below is made up to show the method; it isn't a statement of what any app pays. Your results depend on your market, your car and your hours. This is general information, not tax advice.

Sources

  1. IRS: 2026 standard mileage rate set at 72.5 cents per mile (IR-2025-128)
  2. IRS: Gig Economy Tax Center
  3. IRS: Self-employment tax (Social Security and Medicare taxes)
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