As you may know DoorDash, Uber Eats, Grubhub throw out various promotions that you can earn additional money from. But based on certain dynamics, it may not be in your best interest to pursue those promotions.
Reason being is, it may not be worth it based on the amount of money they’re offering for the promotion versus how much effort you actually have to put in to get the promotion.
Take a look at the video below to see our evaluation of promotions, and scroll to read a full transcript.
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Should You Pursue or Ignore a Delivery Promotion?
We’re actually going to take one of our most popular videos in our Maximum Delivery Profits course and actually show it now, because we discuss this very topic of how to find out exactly if a promotion is a good thing for you.
Our Top Tips for Drivers:
Should you pursue it? Are you better off just ignoring it?
Two Types of Delivery Promotions
We’re going to use DoorDash to demonstrate these examples of the two types of promotions.
The first type of bonus is a bonus per delivery. This promotion is basically saying that you’re going to get a bonus per delivery that you do in general. So whenever you do a delivery inside the city or zone, then you get an extra $2.50. Pretty straightforward.
The second type of promotion that we’re looking at requires you to hit a certain amount of deliveries before you make the money.
So, as we see in this example, it’s asking for me to do five deliveries before I get a $15 bonus. That means that if I complete four deliveries, not five, I’m not going to get anything, but if I do complete five deliveries, I’ll get $15.
With the first type of promotion, you’ll get the money as soon as you complete a delivery. With the second type of promotion, you have to complete a series of deliveries before you get the amount guaranteed in the promotion.
Are Quests and Challenges Worth it?
We’re going to focus on the second type of promotion, the one that has you complete a certain number of deliveries.
If you’ve been doing delivery for any portion of time, or even if you haven’t, you’ll find that there are going to be certain parts of your market that are going to be easier than others. And by easier, I mean, they have less effort to get from point A to point B and complete the drop-off.
Just because the company wraps a promotion around a particular area doesn’t necessarily mean it’s going to be worth your time.
Factors to Consider on Streak/Challenge Bonuses
There are factors in the drop-off process that you need to take in consideration when you’re in a certain part of your market, I’ll give you a good example.
There are some parts of your market that are going to be mostly houses, nothing but residential areas. There’s also going to be parts of your market that are full of apartment complexes, apartment buildings, gated communities, et cetera. These areas in your market by default are going to take longer to drop off food, because there are more obstacles that you’ve got to go through in order to get the food to the customer.
When you drop off food at a house, how long does that take? Maybe a minute, maybe two. But if you drop off food to an apartment building, we have to deliver the food to the 50th floor. The actual drop-off could take around 10 to 15 minutes, maybe even more. That’s something to take into consideration.
Math to Figure out Bonus Earnings Per Delivery
You need to actually do the math to see how much you’re going to be making per delivery if you get that promotion. Let’s say there’s a promotion where if you do 10 deliveries in a given area, then you’ll get an extra $20.
When we do the math is that’s an extra $2 per delivery. So you want to look at the promotion in that context, because it’s very important for this next part.
Two Bonus Scenarios: One Worth it, One Not
We’re going to look at two scenarios, scenario A and scenario B. For scenario A, let’s say Uber Eats is giving a quest bonus where if you do 10 deliveries in a given area, then you’re going to get $20.
And as the math that we’ve already done, that’s an extra $2 per delivery. Now, that area that we talked about has mainly houses, maybe a few apartment complexes.
Now let’s look at scenario B, same situation where if you do 10 deliveries in a given area, it’s going to be $3 for delivery after we’ve done the math. But this area has a bunch of apartment buildings, let’s say it’s a downtown area. So it has a lot of apartment buildings, some apartment complexes and rarely any houses.
Which one of the two scenarios do you want to go after? Because in most cases, you’re not going to be able to go after both of them. You’ve got to pick one. Believe it or not, you may actually be better off going after scenario A, because you’ll be able to get more deliveries in that given hour, as long as there’s enough activity to satisfy that demand.
But on the surface, a lot of people would pick scenario B because you’re getting an extra $3 per delivery. But what if you only get two deliveries in that hour versus with scenario A, you could get three, maybe even four deliveries in that hour. You may actually make more money if you go on with scenario A.
And this is important because we want to stay within that $11 to $18 a hour range that we talked about before. But obviously, we want to get it as close to $18 as possible, maybe even higher.
That’s why it’s important to do the math on these promotions that these delivery companies spit out and take in consideration, what area do they want you to work in?
There are some cases where you don’t have to do the deliveries in the certain areas, just get them done. In that case, it doesn’t matter where you do the deliveries. But many times, these quests have certain areas you’ve got to be in. So make sure you fully analyze the situation using the parameters that we’ve talked about here.
The key takeaways is that there’s two types of promotions. The first promotion is where you do the delivery and then you get the bonus right there after you finish the delivery. The second type of promotion is where you get the bonus only after you do a certain amount of deliveries.
In both cases, you want to make sure that you take into consideration how long it takes to complete a delivery in that given area, and that way you can maximize your income that you can earn from promotions.
Now that you’ve seen one of our most popular videos in the course, you probably have a much better handle on how exactly to gauge promotions and figure out if that delivery promotion, whether it be on Grubhub or DoorDash or Uber Eats, is exactly worth it for you, and how you can compare different promotions to see which one you should go after and which one has the most benefit to you as a delivery driver. And by benefit, I mean, which one is going to make you the most money in the least amount of time.
That does it for this video. If you have any questions or comments, feel free to leave them in the comments section below. And consider enrolling in the Maximum Delivery Profits course!
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