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Hi goons - has anyone driven for Skip The Dishes currently or in the past? I'm considering trying it and wondering if it's worth it. Wondering if anyone can give me incite on taxes/etc. since I've read you're considered an independent contractor. Thanks!
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Apr 22, 2017 15:34
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All the reasons doing this is a bad idea are the same as why driving for Uber etc is a bad idea minus the carrying other people angle. Call your car insurance provider and ask them how much it will cost you to change your policy so you can use your vehicle for commercial/business/delivery use (you have to do this). Consider the new wear and tear and maintenance and depreciation on your car. Consider the gas costs. You will be expected to cover all this on your own using only tips and delivery charges, then pay all your own taxes, and still make a worthwhile profit for this to be a good idea vs literally anything else you could be doing for money in the same amount of time. There's a reason most pizza drivers either use lovely cars or are college students who are too dumb to care about liability and paying taxes.
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Apr 25, 2017 10:03
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EugeneJ posted:Hi goons - has anyone driven for Skip The Dishes currently or in the past? I'm considering trying it and wondering if it's worth it. If you get a tax form called a 1099, you're an independent contractor. This means that as far as the government is concerned, you're operating an independent small business and so all of the taxes that are appropriate to a small business are also appropriate to you. In addition, any business has costs and risks associated with it -- like the previous poster said, it's a good idea to consider depreciation on your car, gas, insurance, etc. These are costs which you would not incur if you were not in business, and so get called "overhead". With some research and some math you can estimate what your daily overhead will be. You can then determine how much food you'd need to cover your costs. Let's assume your overhead is $20/day, the average delivery charge + tip per order is $15, and the average order takes 30 minutes to fulfill and there's 10 minutes of downtime after each order. You could make 12 deliveries in an 8 hour period, netting you a total of $180. Subtracting your overhead, you're left with $160 for 8 hours of work, which is a profit of $20 per hour. Then you have to pay taxes on that money. It's a good idea to consult with a CPA (Certified Public Accountant, someone qualified to provide professional guidance on money/taxes) before starting a business. Whether or not that seems good to you, I can't say. But that's some napkin math for what you're walking in to. It might be worth your time to do some research and replace my made-up numbers with realistic ones -- how much an average delivery brings the driver, how long it takes per delivery, how much idle time is involved, and what you're paying in overhead. e: fixed the math error in my example
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Apr 25, 2017 20:24
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Thanks guys - I'm currently 2 years into a 3 year car lease and have around 10,000 miles on it out of a 36,000 mile allotment. So if I did do this, I'd finish out my lease then buy a used car in a year's time.
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Apr 28, 2017 22:23
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