The gig economy offers drivers two primary compensation structures that directly impact profitability and efficiency. Drivers must choose between accepting a consistent hourly rate for active time or optimizing the payout for each individual delivery. The decision hinges on whether a driver prioritizes maximizing income over a set duration or securing the highest possible profit from every transaction. Analyzing the mechanics of both strategies is the first step toward building a profitable delivery operation.
Defining the Two Delivery Models
The Earning by Order (EBO) strategy grants drivers autonomy over which deliveries they accept. When an offer appears, the driver sees the guaranteed upfront payout and total distance, allowing them to immediately calculate profitability and decide whether to accept or decline. This model requires the driver to calculate the profitability of each offer before committing to the service.
Conversely, the Earn by Time (EBT) model guarantees a set hourly wage for active time, defined as the duration spent from accepting an order until its completion. While EBT provides income stability, the driver typically does not see the destination or full payout details before they are obligated to accept the request.
The Strategy of Earning by Order
The Earning by Order (EBO) strategy is a selective process often called “cherry-picking.” Success depends on strictly adhering to specific financial thresholds before accepting any offer. The most common evaluation metric is the dollar-per-mile ratio, with many successful drivers targeting a minimum of $1.50 to $2.00 for every mile driven.
Drivers also scrutinize the total guaranteed payout, often setting a minimum floor, such as never accepting an offer below $6.00, regardless of the short distance. This discipline ensures that the deliveries undertaken are the most profitable ones available at that moment. By consistently rejecting low-value offers, the driver minimizes the time and vehicle wear dedicated to unprofitable trips.
The primary advantage is a significantly higher average payout per completed trip. However, this strategy inherently leads to a very low Acceptance Rate (AR), as the driver declines the majority of offers. This low AR creates the major drawback of substantial unpaid wait times between offers. During these gaps, the driver is not actively earning, which can severely diminish the effective hourly wage during slower periods. The entire strategy relies on the market consistently generating enough high-value orders to justify the downtime.
The Strategy of Earning by Time
The Earning by Time (EBT) strategy shifts the focus from individual transaction profitability to maximizing the dollar amount earned per active hour. The guaranteed hourly rate typically ranges from $12 to $18 for active time, plus any gratuities. This structure provides a predictable and consistent income stream, alleviating the financial anxiety associated with the volatility of order-by-order selection.
A significant benefit of EBT is the reduction in mental fatigue, as the driver eliminates the constant need to rapidly evaluate the profitability of incoming offers. The driver accepts orders as assigned, minimizing decision-making time and maximizing the flow of work.
The major obligation under EBT is the requirement to accept every dispatched order once active time begins. This means drivers are frequently assigned orders that would be immediately rejected under EBO, such as those with poor mileage-to-pay ratios. Long, low-value deliveries are often unavoidable and consume significant time. Drivers must weigh the security of the hourly minimum against the increased vehicle wear and fuel consumption from less efficient routes. The driver sacrifices control over the route in exchange for guaranteed compensation.
How Your Acceptance Rate Impacts Priority
Both EBO and EBT strategies directly influence a driver’s Acceptance Rate (AR), a metric that holds significant weight within the platform’s dispatch algorithm. Platforms establish concrete AR thresholds that unlock various program benefits for the driver.
Maintaining an AR above a threshold like 50% or 70% typically grants priority access to higher-paying orders, such as larger catering or group deliveries. The algorithm rewards commitment by sending the most lucrative offers to drivers willing to accept the majority of requests, which can significantly boost hourly earnings potential.
A high AR is also often a prerequisite for specialized scheduling perks, such as Top Dasher status. This status provides the flexibility to log in and work anytime without reserving a specific time slot in advance. This enhanced flexibility allows drivers to exploit unexpected busy periods, gaining a competitive edge over lower-AR drivers restricted by standard scheduling.
Consequently, EBO drivers must accept that their low AR restricts access to these higher-tier benefits and increases their reliance on pure chance for profitable orders. Conversely, EBT drivers automatically maintain a high AR, securing ongoing access to these priority and scheduling features.
Market Conditions That Change Optimal Strategy
The choice between EBO and EBT should remain fluid, constantly adapting to the external market environment. Several conditions influence the optimal strategy:
Time of day. EBT is often better during slow, off-peak hours when high-value EBO orders are scarce. A guaranteed hourly minimum provides better results than waiting for a profitable order that may never arrive.
Local market saturation. High volumes of active drivers intensify competition, favoring EBO where drivers can quickly secure profitable requests. Low driver supply favors EBT, ensuring consistent assignments.
Traffic and road conditions. Heavy congestion or adverse weather favor EBT, as the driver is guaranteed compensation for extra time spent waiting or navigating difficult routes. Under EBO, time spent in traffic directly reduces the effective hourly wage.
Promotions. Incentives like Peak Pay often favor EBO. When the platform adds bonus pay to every order, it increases the base profitability of all requests, making cherry-picking more lucrative and worthwhile.
Creating Your Personalized Hybrid Strategy
The most successful delivery professionals operate a dynamic hybrid strategy, constantly switching between EBO and EBT based on the real-time market conditions they observe. Building this approach requires establishing firm, non-negotiable personal minimum thresholds for each model.
When operating under EBO, a driver must commit to never accepting an offer below a pre-determined return, such as $1.50 per mile or $7.00 total payout. This strict adherence prevents low-value orders from diluting the overall hourly average. These thresholds should be adjusted based on vehicle operating costs and local fuel prices to ensure the gross pay always covers expenses with a healthy margin.
For the EBT model, the driver must set a minimum acceptable hourly guarantee before engaging the service. If the offered rate is too low, perhaps below $15 per active hour, the driver should avoid EBT unless conditions, like extreme traffic or poor weather, make the guaranteed compensation worthwhile. Switching to EBT should primarily occur during periods of high platform demand but low order value, ensuring time is never wasted.
Effective tracking is the final and most important component of the personalized strategy. Drivers must record their earnings, mileage, and active time for both models over several weeks to gather sufficient comparative data. By comparing the net hourly earnings of EBO versus EBT in similar market conditions, the driver can empirically determine which model is more profitable for their specific operational area. This data-driven approach removes guesswork, allowing the driver to optimize their long-term profitability by utilizing the right tool at the right time.