With the rise of the Uber third-party model, side gigs have become a leading source of part-time earnings for millions of delivery drivers worldwide. As well, it has created an economic class to be understood and reconned with.
The third-party mobility model stands at odds with the first-party model in multiple, definitive ways. The third-party model has pushed new definitions of what constitutes an employee and to what extent drivers for third-party platforms can obtain employee benefits.
However, at the heart of the differences is the separation between a part-time gig worker and a full-time business owner. To look at some of the biggest disadvantages of the gig worker driving for extra money, Rapidgo Driver looked at the 10 things side gigs don’t offer. The points of separation disclose the advantages of being an Independent Business Owner (IBO), providing first-party delivery services.
Independent Business Owners can:
Schedule their daily calendar in advance
Independent business owners (IBOs) want equity in what they create. They understand the importance of consecutive deliveries and multiple orders.
Business owners tend to be slaves to their calendars because they have goals that are time-sensitive. They want to earn more money, sooner than later.
IBO’s schedule priorities into their days. They are focused on creating more than a star rating. They are building equity in their own enterprise.
Maximize expense deductions
Business owners deduct expenses associated with a sale against the income from the sale. By maximizing allowable expenses as write-offs, IBOs improve their profits. Expenses most gig workers miss include the expenses in advertising, equipment, subscriptions, business-building activities, travel, and training.
Charge their own fees and adjust as needed rapidly
As an IBO, delivery drivers can increase or decrease their rates as needed. Just as third-party platforms fluctuate rates by time and place, the IBO will have circumstances that warrant price adjustments.
However, the independent delivery driver does not need to wait for the platform to recognize and adjust rates. Business owners are faster to respond to market demands. They have time-sensitive and local data to analyze and make pricing decisions.
Business owners offer superior service over part-time workers. They are motivated by greater rewards for greater service. They are committed to service improvements that offer added value, can separate them from competitors, and warrant higher pricing.
Schedule activities to minimize down time and dead head driving
The greatest income reducers for delivery drivers are downtime and dead time. Drivers earn income when they are in a seat that is moving with a fare. Sitting idle at the curb saps earnings at a fast rate and extends the hours needed to drive to meet financial goals. The time wasted is considered downtime. Deadtime is the drive time it takes to transition from one fare to another. The longer the drive time between fares, the greater cost to the driver for unpaid miles.
Have someone else fill in while sick or on vacation while continuing to earn income
One of the greatest concerns to being a business owner is fearing the loss of income due to sickness or family responsibilities. The gig worker on a third-party platform is attracted to the flexibility of scheduling time away from home and family. The IBO has the added advantage of covering their time away with additional drivers, while still earning an income.
Offer repeat service to the best pax and home delivery clients
Being an IBO provides the freedom to choose customers to service. It also means an IBO can solicit repeat deliveries from the same customer and offer multiple services to the same passenger or home delivery user. IBO’s build personal relationships with exceptional repeat services,
Earn income advertising to customers and other drivers
Having control of advertising for an IBO means they earn income and rewards from advertisements placed on social media, click imprints within proprietary apps, or with every order delivered.
Offer discounts, coupons, or specials at will
IBO’s have the unique ability to offer discounts and specials for services at will, thereby attracting more business for their first-party services. They may earn income and rewards from local food kitchens and other businesses.
Provide charitable services independently, and at will
One of the greatest rewards for an IBO is to offer its services to those most in need as a gift. Independent drivers do not wait for a large third-party platform to decide a course of action based on stock value. They respond quickly to provide much-needed services for local areas devastated by storms or in need of special services.
Provide gender and age specific service
In addition to the real flexibility offered by owning a business, drivers have the unique opportunity to offer specialized services and express their authentic selves. Safety for passengers and drivers is paramount for IBO’s. Being able to offer gender and age-specific drivers and services provide transparent security.
Conclusion
Side gig workers are attracted to third-party platforms for flexibility and freedom from responsibility for finding fares. Their efforts do not build a personal business asset.
Independent business owners have a long-term commitment to creating equity in their own businesses. They risk the livelihood of short-term gain for long-term benefits. In addition to the flexibility of when to work, IBO’s enjoy extra expense write-offs. These include advertising, equipment purchases, subscriptions, business-building activities, travel, and training.
For more advantages of the first-party platform, look at the advantages of the lower cost and greater convenience to last-mile mobility by eliminating the middleman.
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