If you are looking for a simple way to earn some money, running delivery services should be on your top list. Most especially with the current pandemic that made folks loath to leave the safety and comfort of their homes. Uber Eats and Postmates are some of the more popular delivery services out there.
UberEats vs Postmates, which is better?
Here, we pit the two companies side by side and see which of them offers the best terms and conditions of service for those looking to make money doing deliveries.
How Postmates Work
Founded in 2011, Postmates is San Francisco based delivery services company. Postmates operates in over 3,500 US cities and delivers food and other items to millions of households and offices. They have excellent coverage.
The Postmates app enables users to browse through their favorite restaurants or stores and place orders. The driver, or Postmates (as they are called), fulfills the order and has the food delivered to your doorstep.
Postmates is not only for food deliveries. They also deliver goods from local stores.
Drivers must be 18 and above to work for Postmates. The registration process is straightforward. You create a driver’s account on their website.
Postmates carries out a background check on you to confirm you don’t have any history of sexual misconduct, felonies, violent crimes, or criminal activities linked to property damage.
If you clear the background check, you can log in and set up a direct deposit payment plan. You’ll also activate a Postmates Prepaid card (PEX), which you need to place orders.
With everything in place, Postmates issues you a bag and card, and you will be good to go.
How UberEats Works
Uber Eats is a scion of the popular ride-sharing service Uber. Uber Eats was born in 2014, right when on-demand food delivery services became a thing. And while it wasn’t the first, Uber Eats quickly rose to dominate the market, and it’s one of the most popular platforms now.
The app for customers operates much the same way as the Uber app. If you aren’t used to the Uber app, here is how the Uber Eat app works. Once you set-up your account, you’ll get a list of local restaurants delivering via Uber Eats.
You can browse and view menus, prices, and deals. Add items you want to the cart, and when done, you place your order. You pay on the app and track your order from its originating point until it gets to you.
Uber Eats has a different app for drivers. Once you install the app, you’ll be required to input your social security number and other info to enable them to check your background.
UberEats vs. Postmates
To help you make up your mind on which delivery services to hitch up to, we make a detailed comparison here. With this, you’ll be able to identify the delivery service platform that will be the best fit for your circumstances.
Now we have a basic grasp of their operations, let’s look at their features to see how they compare.
How to Become a Driver for Uber Eats and Postmates
The minimum requirements to start delivering for both platforms are almost the same. They are easy, and basically, anyone should be able to meet them.
To drive for Uber Eats and Postmates, you must:
- Be at least the minimum working age of 18 or 19, depending on the city you operate in.
- Have a valid driver’s license
- Have at least one year of driving experience
- Pass a background check
- In addition to the above requirement for drivers, Uber Eats has the following criteria for vehicles- you must:
- Drive a vehicle from 1998 or later
- Have your vehicle’s insurance up to date
- Have a motor no bigger than 50cc if you drive a scooter
- Postmates doesn’t have any requirements regarding vehicles.
The Registration Process
Having met all the requirements, you can download and install the drivers’ app for both platforms yourself. You will upload a profile photo and enter your necessary information, which will require verification. You will be notified once verified, and you are ready to start delivering.
This process usually takes a few days for Uber Eats. Post mates will take a slightly longer time because they’ll send you their bag and a card you need to pay for orders.
Ordering and Delivering Process
UberEats partners with all the restaurants available on their platform. When a customer places an order, it’s instantly received by the restaurant and the nearest delivery driver.
So once the driver gets to the restaurant, he picks up the order and makes a beeline to the delivery address. The customers make all payments through the app.
Uber Eats delivers straight to the ordering customer’s doorsteps. However, in some cities, drivers can only deliver curbside, and the customer is notified to come and pick up the item. In this case, the driver has it easier. He doesn’t need to come down from his vehicle, look for the customer’s house, or search for parking space.
Postmates, on the other hand, has a slightly different process, which takes a bit longer. They have many shops and restaurants on their platform, but they are not all partnered with Postmates.
Like the Uber Eats model, some orders go to both the restaurant/shop and a driver.
Orders to restaurants not partnered with Postmates will be received by a driver who then places the order. This means he has to wait for the order to be ready before making a delivery. That is why it takes a longer time to make a delivery for Postmates. For drivers’ this could reduce the number of deliveries they’ll be able to make in a day and, therefore, their income.
The Postmates app allows users to make payments for prepaid orders on the app. But when an order is not prepaid, the driver has to make the payment. That is where the card issued to drivers by Postmates comes in handy. The drivers make the payment with the card, which is loaded with the exact amount for the order.
All Postmates deliveries are made straight to the ordering customers’ doorsteps. They do not have the option of curbside delivery. Some orders on Postmates do not require any delivery at all. Some customers come to pick it up themselves after Postmates has placed the order to avoid delivery fees.
This naturally is the most important feature here. How much can you earn as a driver on both platforms?
UberEats fees are made up of four components:
- Drop-off fee: about $1 to $2
- Pick-up fee: about $1 to $2
- Mileage fee: $0.50 to 60/mile
- Time fee: $0.20
Uber Eats takes a cut of 25% to 35% as their profit from each transaction and leaves the rest for the delivery driver. Therefore, you can roughly expect to earn between $8 to $12 per hour.
You can make more money on Uber Eats with the ‘Boost’ feature. The apps show you areas with a higher number of orders and then lure you with higher fees to ensure more drivers handle the higher volumes. You also make more money with surge pricing when you deliver from an area or restaurant with, particularly, excessive demand.
Postmates pay drivers a baseline of $1.35 per order. Every minute spent waiting for an order earns then an additional $0.10. and then $1.03 for each mile traveled. Similar to Uber Eats, Postmates allows you to make more money during peak hours with the ‘blitz’ pricing feature.
As is customary in the US, service workers expect a tip for excellent services. Both apps make it easy for drivers to receive tips. The Uber Eats app has an option for the customer to tip drivers. They can also give cash tips.
Postmates also has an in-app tipping option. However, there is a slight difference. Postmate app actively encourages tipping since users must input an amount in the tipping field to complete a transaction. Users who do not want to leave any tip must put 0 in the field to move to the next step.
The best part is that for both platforms, the tip belongs 100% to the drivers.
UberEats vs Postmates: Pros and Cons
A great way to get a snapshot of the Uber Eats vs. Postmates comparison is to look at the pros and cons of the services side-by-side.
Pros of Uber Eats
- Flexible work hours and days
- Use your vehicle
- Cash-out instantly
- Drive for both Uber and Uber Eats together.
- Cash bonuses on meeting delivery targets
- Referral bonuses and discounts
- Reduced waiting time
- Straightforward delivery process
- Enhanced navigation using Uber’s robust GPS
Cons of Uber Eats
- Stricter vehicle requirements
- Mandatory doorstep delivery, which means more time finding parking spaces and houses
Pros of Postmates
- Flexible work hours and days
- More restaurants equal more orders.
- Less strict requirements
- Cash-out your earnings instantly
- Wider availability in US cities
- Easy payments for orders with the Postmate card
- You can keep the food if the customer doesn’t show up.
- No rating system
- Bonus, in the form of discounts, for drivers that meet set delivery targets.
- Accepts any vehicle
Cons of Postmates
- Longer wait times at restaurants
- Some orders could be challenging
- GPS is not as good as Uber
- Less popular than Uber
If you are looking for ways to earn money on the side or full-time, the on-demand delivery business is on point. There are plenty of platforms to choose from, but Uber Eats and Postmates are the most prominent. The terms of service and processes are similar in many regards. The notable difference is that Uber Eats only handles food deliveries, while Postmates delivers food as well as other items.
You work for both companies as an independent contractor. This means flexible working hours and time, and no boss or supervisor breathing down your neck.
Choosing between the two platforms boils down to your circumstances. For instance, if you live in a city where Uber Eats isn’t available or drive a vehicle older than 20 years. You have only the option of going for Postmates.