What are Vehicle Ownership and Operational Costs for Independent Contract Drivers (Uber, Lyft, DoorDash, Amazon Flex, others….)?

Independent contract drivers for Uber, Lyft, DoorDash, Grubhub, UberEats, Postmates, Instacart, Gopuff, Amazon Flex, Shipt and others are all impacted by rising costs in automotive repair and maintenance.

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Cost of Vehicle Operational Expense

The cost of auto repair and maintenance services has risen between 4%-5% annually between 2019 and 2021. For 2019, average miles driven by U.S. drivers reached 14,263 miles according to the United States Department of Transportation – Federal Highway Administration (FHWA). However, for independent contract drivers, driving upward of 1,000 miles per week is common. Independent contract drivers on rideshare platforms (Lyft, Uber), food-delivery services (DoorDash, Grubhub, UberEats, Postmates, Instacart), everyday needs delivery (Gopuff), and package delivery (Amazon Flex, Shipt).

For this segment of drivers, higher miles traveled translates directly into higher automotive repair and maintenance costs (see graph). Annual costs for an independent contract driver can vary from $4,143 for a small sedan to as much as $5,423 for a medium sedan.

Given current economic conditions, auto part prices and labor rates continue to rise. When you add in the hike in gasoline prices, earnings impact on independent contract drivers becomes material. Several companies such as Gopuff are addressing this challenge head-on by deploying Openbay+ for all its delivery partners, nationwide.

Savings and Convenience: benefits of Openbay+

Openbay+ helps independent contract drivers reduce the total cost of owning and operating their motor vehicle. Within a few seconds, a service request receives upfront pricing from automotive service professionals nearby. Customer ratings and reviews for each service professional are available alongside location information. Amenities, shop hours, and automotive certifications are available, so that drivers can choose the professional that best fits their needs and preferences.

All automotive service providers on Openbay+ offer discount on parts and labor. Discounts range by each provider and are upwards of 25% for parts and labor.

Openbay+ is available now and through several partners of Openbay. There is no fee to the vehicle owner for use of Openbay.

Interested in learning more about Openbay and Openbay+:

Automotive service centers – learn more about Openbay+, contact us here
Automotive service centers – have an Openbay representative contact us here
Companies interested in deploying Openbay+ for your drivers, customers, or employees, contact us here

Image credit: Pictures of Money, Flickr  

 

Openbay Staff