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.

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 are used by 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 are expected to 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.

Given current economic conditions, auto part prices and labor rates are expected to 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.

Openbay+ and how it works

Openbay+ is available through Openbay corporate, channel and affiliate partnerships (Partner). Partner drivers, partner employees, and partner customers on Openbay+ get matched instantly with multiple local automotive service professionals that can service their brand of vehicle and deliver the requested service for that brand. Some of the more popular services requested on Openbay+ include oil changes, fluid replacements, brake services, suspension, diagnostic services (check engine light), and OE recommended maintenance.

Openbay+ provides a variety of automotive service professionals on its platform to select from, including mobile mechanics that will service a vehicle at a desired location (driveway of home), independently owned and operated service centers, national name-brand and franchise businesses, national corporate brands, and franchise dealerships. Every service provider on Openbay+ goes through a vetting process and once approved, are trained on how the Openbay+ platform operates to ensure a great customer experience.

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 can be entered on Openbay+ and upfront pricing is delivered from qualified automotive service professionals nearby. Verified customer ratings and reviews for each service professional are also presented alongside location information, amenities, shop hours, and specialized automotive certifications, so that drivers can choose the professional that best fits their needs and preferences.

All automotive service providers on Openbay+ are required to offer a 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 charged 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