Table of Contents
Delivery Drivers
Delivery drivers work as independent contractors or employees who deliver food, groceries, or packages from businesses to customers’ homes or workplaces. Popular platforms like DoorDash, Uber Eats, and Instacart connect these drivers with local delivery requests through mobile apps.
What Do Delivery Drivers Do?
Delivery drivers pick up and transport items from local stores, restaurants, or warehouses and deliver them to customers within a set time. They rely heavily on navigation apps, fuel-efficient routes, and mileage tracking tools to manage their time and expenses.
For most gig delivery platforms, drivers are responsible for their own vehicles, fuel, insurance, and maintenance costs. This makes tracking business mileage and expenses essential — especially for maximizing tax deductions and reimbursement accuracy.
How Delivery Drivers Earn
Most delivery drivers in the U.S. are paid per delivery, with income that varies based on:
The distance and duration of the trip
The base pay from the platform
Customer tips
Occasional bonuses or peak pay incentives
Because many delivery apps treat drivers as independent contractors, taxes aren’t automatically withheld. Drivers must report their income and can deduct qualified business expenses, such as:
Vehicle mileage or actual vehicle expenses
Parking fees and tolls
Phone and data plan costs used for deliveries
Hot bags, insulated carriers, or equipment used for the job
Accurately recording these deductions can significantly lower taxable income, which is why many drivers use a mileage tracker like MileageWise to automatically log delivery-related trips and ensure IRS-compliant reporting.
Why Mileage Tracking Matters for Delivery Drivers
The IRS allows drivers to deduct business mileage using the standard mileage rate.
However, without detailed mileage logs — including dates, destinations, and trip purposes — deductions can be disallowed during an audit. Tools like MileageWise simplify this process by automatically tracking trips, reconstructing past miles from Google Maps Timeline data, and generating IRS-Proof mileage logs for delivery drivers.
How Delivery Drivers Differ from Rideshare Drivers
While rideshare drivers focus on transporting passengers, delivery drivers handle food and goods instead. Delivery work generally involves shorter trips, more stops, and less passenger interaction, but both rely on accurate mileage records for maximizing deductions.
Delivery platforms often allow drivers to schedule blocks of time or go “on-demand,” offering flexibility to combine multiple apps — known as multi-apping — to boost earnings.
FAQ
Yes. If you’re an independent contractor with apps like Shipt, Grubhub, the Spark driver app by Walmart, or Amazon Flex, you’re responsible for your own taxes. Tracking your mileage lets you claim the IRS standard mileage deduction, reducing your taxable income.
Eligible deductions may include car insurance, phone bills, hot bags, tolls, parking fees, and even part of your car maintenance costs. You can choose between the standard mileage rate or the actual expense method, depending on which gives a higher deduction.
The easiest method is to use a dedicated mileage tracking app like MileageWise, which automatically records your trips, distinguishes between business and personal miles, and generates IRS-compliant reports — saving time and preventing costly errors.
Try MileageWise for free for 14 days. No credit card required!
Automatic Mileage Tracker App
