A few days ago, I saw a delivery person in front of a local pizza shop changing the battery of their electric bike while on a call. I overheard them say, "Today, I made over $30 an hour," and honestly, I became curious about that number. The money displayed on the app and what actually ends up in your pocket can be quite different.

So today, I'm going to break down the numbers. This should serve as a reference for those considering delivery as a side job.

First, let's look at the regulations in New York City. According to the New York City Department of Consumer and Worker Protection (DCWP), starting April 1, 2026, the minimum wage for app delivery workers will increase to $22.13 per hour. This is a 3.2% increase from the previous $21.44.

This standard applies not only to food delivery services like DoorDash, Uber Eats, and Grubhub but also to grocery delivery apps like Instacart starting this year. Importantly, tips are not included in this amount; they are received separately.

There's a common pitfall here. The $22.13 is not for all the time the app is on, but primarily based on "trip time." This refers to the time from when an order is accepted until delivery is completed or canceled.

The time spent waiting for orders while the app is on is classified as "on-call time." The city regulations do have provisions for app companies to account for this waiting time, but from an individual perspective, what you are guaranteed is essentially the minimum for trip time.

For reference, when the city established these regulations, they used data showing that from January 2021 to June 2022, the average utilization rate for the three major apps was 60%. This means that during the time the app was active, actual delivery time was around that percentage. Therefore, I'll use an example of 10 hours of app usage with 6 hours of actual delivery.

Let's create a hypothetical day. Assume the app is on for 10 hours, with 6 hours of actual delivery, and that I drove 60 miles. Since tips can vary greatly day to day, I'll just estimate $40 for tips.

The base pay is $22.13 multiplied by 6 hours, which equals $132.78. Adding the $40 tip brings the total earnings for the day to $172.78.

Next, let's consider vehicle expenses. The IRS set the standard mileage deduction rate for business vehicles at 72.5 cents in January 2026, which increased to 76 cents on July 1 due to rising fuel costs.

This deduction rate is a guideline for tax calculations, not actual expenses. However, it reflects costs like fuel, insurance, repairs, and depreciation, making it useful for estimating expenses. Multiplying 60 miles by 76 cents gives us $45.60.

Subtracting the vehicle expenses from the earnings of $172.78 leaves us with $127.18. That's already more than a quarter gone. I was honestly a bit surprised.

But we're not done yet. Most delivery drivers are independent contractors, so they have to pay self-employment tax directly. The rate is 15.3%, applied to 92.35% of net income.

Applying this formula to $127.18 results in $17.97 going to taxes. The remaining amount is $109.21. Federal, state, and city income taxes vary by individual, so I left those out of the calculation.

Now, let's break it down by the hour. Dividing $109.21 by the 10 hours of app usage gives us $10.92 per hour. Considering that the general minimum wage in New York City in 2026 is $17, that's a bit disheartening.

Of course, if we divide by just the 6 hours of delivery time, it comes to $18.20 per hour. But those 4 hours of waiting also count as part of my day. The calculation based on app usage time is a more honest assessment.

The biggest variable is the utilization rate. If you focus on peak lunch and dinner times and reduce waiting time, your actual earnings per hour can change dramatically.

The second factor is the mode of transportation. Many delivery workers in New York City use electric bikes, which have lower fuel and insurance costs compared to vehicles. However, you need to account for battery replacements, repair costs, and theft risks separately.

The third factor is tips. Whether you receive $20 or $60 in tips can significantly impact your earnings. Therefore, I believe it's safer to view tips as a bonus rather than a guaranteed income.

The fourth factor is tax preparation. Independent contractors don't have taxes withheld by a company, so they may need to pay estimated taxes quarterly. Without mileage records, you can't claim deductions either.

From my perspective, I generally respect the prices set by the market. However, I believe that the minimum for trip time is a necessary safeguard for individuals with less negotiating power. That said, there have been reports that apps have restricted driver access after the regulations were implemented, so regulation isn't a cure-all.

So, is delivery worth it? My conclusion is that "for those who need flexibility in their hours, it can be a decent side job, but if you're considering it as a primary income, you need to calculate carefully." When comparing it to part-time jobs, always consider the app usage time.

If I were to do this, I would track app usage time, actual delivery time, miles driven, and tips separately for the first two weeks. Then, I would calculate the actual earnings per hour using the formula above.

If that number is lower than my expected minimum, I could adjust by only working during peak hours or changing my mode of transportation. If it still doesn't work out, it would be wise to explore other options.

If you suspect that the app isn't paying the minimum wage correctly, you can report it to the DCWP. You can call 311 or use the online portal on the city's website. This adds another reason to keep records.

The "$30 an hour" displayed on the app isn't a lie, but it's only part of the whole picture. Only after accounting for waiting time, vehicle expenses, and taxes do you see the real numbers. This calculation could help protect your time.