You will have more stability with guaranteed earnings. During active delivery time you are guaranteed to be paid at least 120% of the local minimum wage at your pickup location, plus $.30 per mile compensation driven during active delivery time. And, of course, you will continue to receive 100% of tips.
- For example, let’s say you made one delivery in a week, and the following were true:
- Minimum wage in the pickup location in California is $14 per hour
- Active time for the delivery was 15 minutes (or 0.25 hours)
- Mileage driven for the delivery was 8 miles, and you used your motor vehicle
- Your minimum earnings at the end of that pay period would be: ((120% x $14) x 0.25) + ($0.30 x 8) = $6.60.
Your tips do not count toward your minimum earnings. If the customer tipped $3 for this delivery, your total earnings would be $3 + $6.60, or $9.60.