The Market Crash Is Coming! (…Eventually)

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Here on the Best Interest, I provide a lot of “you should be investing!” advice. I talk about the power of long-term investments. And stock market strategies. And even about my specific investment choices. But today is different. Today’s post is about the upcoming market crash. Well…it’s coming eventually.

Perhaps you’ve come to believe that I’m an unwavering bull. A pure optimist. That I think investments can do nothing but increase in value. But that’s not true. I know the crash will come. It always does.

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And that might seem scary. If the crash is coming, then why not do something about it? So that’s what today’s post is about. Even though we’re aware that a market crash is coming (eventually), we can take a step back and think about it rationally.

Being a Bull Before the Market Crash

Here’s a prediction.

I predict that I will eventually make a blog post where I say something like,

“I bought some shares of an index fund this month—just like every other month. And I think it’s one of the smartest things you can do as an investor.”

And after that future blog post, the market will proceed to fall 30% over the next few months.

Some people will then look at the Best Interest and think, “Pfff! This guy Jesse doesn’t have a clue what he’s talking about! He invested a few thousand bucks right before the market crashed!! What a dummy!”

I’m calling it now. It’ll happen. And I understand why it will appear like I’d be a dummy.

So let’s dig in. Am I a dummy?

Dummy Test GIFs | Tenor

Historical Data: The Market Crash Always Comes

The market crash always comes eventually.

Bear markets—where the stock market value drops by 20% or more from its previous high—have occurred 12 times since 1929.

Years of Bear Markets Percent Drawdown from Previous High
1929 – late 30s (Great Depression) -86%
1956 – 57 -22%
1961 – 62 (Flash Crash of ’62) -28%
1966 -22%
1968 – 70 -36%
1973 – 78 (Bretton Woods + Oil Crisis) -48%
1980 – 82 -27%
1987 – 88 (Black Monday) -34%
1990 -20%
2001 – 05 (Dot Com Bubble) -49%
2008 – 09 (Financial Crisis) -56%
2020 (COVID) -32%

The market ebbs and flows, oscillating between “unsustainable optimism and unjustified pessimism.” If we believe the assumption that stock prices are current unsustainably optimistic, then it’s believable that a serious bear market could happen in the next few years.

But lesser corrections—typically defined as at least a 10% drawdown—occur even more frequently. Since 1950, there have been 37 corrections of 10% or more. That’s more frequent than one every two years.

It doesn’t take Nostradamus to predict a future market downswing. I’m not calling a 1-in-1000 event. Market corrections happen all the time.

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“But if he gets elected…!!!”

You can find arguments from both sides of the political aisle that certain parties lead to better stock market performance. But let’s investigate the data itself.

First, let’s look at the president only. But heed warning: this is a slightly dangerous game. Does the president alone have enough influence to affect the stock market? Will the answers we find here be conclusive of causation? Or will they only present correlation?

From 1926 to 2020, we have 95 years of S&P 500 data. During that time, we’ve had 48 years of Democratic leadership and 47 years of Republican leadership. Republican years saw an average S&P 500 return of 9.0%, while Democratic years saw an average return of 14.9%.

That’s a pretty big difference! But is it causal i.e. one thing causes the other to occur? Can a system as complicated as the stock market be tied down to a single influencing variable like the president’s political party? Probably not.

After all, that’s only 23 presidential terms and 15 individual presidents. Eight Republicans and seven Democrats. Not exactly a huge sample set.

Keep this in mind for the next time a President tweet-brags about the stock market’s success.

President + Congress

But there is another working theory worth inspecting. The theory is that our government is more efficient when the Congress (both Houses) is controlled by the President’s party. If the President and Congress work together effectively, then we all benefit. It’s a “teamwork makes the dream work” situation.

In the 95-year period since 1926, we’ve had 48 years of President/Congress unification (14 years Republican and 34 years Democrat) and 47 years of division (33 with a Republican president and 14 with a Democrat). The market performance during these periods is very interesting.

President / Congress S&P 500 Average Annual Return
Dem / Dem (34 years) 14.5%
Repub / Repub (14 years) 13.9%
Dem / Repub or Split (14 years) 15.9%
Repub / Dem or Split (33 years) 7.0%
Total Unified (48 years) 14.3%
Total Divided (47 years) 9.7%

Is this causal? Does a unified Federal government ensure that the economy and stock market perform better? I doubt it’s conclusive. But it is interesting nonetheless.

The market trends upwards no matter who is in office, but it appears that political cooperation might help grease the wheels.

The Silver Lining of Market Crashes

Back when we consulted Mr. Market, one big takeaway was:

The only two prices that ever matter are the price when you buy and the price when you sell.

Ask yourself: what are your investing plans are for the next few years? Are you going to be a buyer—someone who is investing for the future? Or are you going to be a seller—someone who has invested for the past few decades and now wants to live off those investments?

If you’re a buyer, then a market crash has a pretty significant silver lining. Cheaper prices! If the market declines, then you get to invest at lower prices. It’s the easiest way to increase your long-term investing potential. Buy low, sell high. Dollar-cost average investors relish these chances to decrease their cost basis.

If you’re a seller, let’s look at how your past 30 years have been. The S&P 500 value was around ~350 in 1990. And now it’s at ~3500, or about 10x higher. If the market drops 20% next week to 2800, then your returns are only ~8x compared to 1990. But an 8x return ain’t bad!

“If the market crash is coming…why not sell now and wait to re-invest after the prices drop?”

Before I answer the question above, let’s consult Peter Lynch—who is considered one of the most successful investors of all-time.

Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves.

Peter Lynch

What exactly is Lynch saying? How do people lose money by “preparing” for corrections?

People lose money “preparing” for corrections because they sell too soon and then don’t know when to buy back in. It’s that simple. Both actions—selling too soon and not buying back in soon enough—can cause investors to miss out of years of growth and years of dividends.

That’s why Peter Lynch’s quote rings so true. Timing the market is hard.

So we don’t sell in preparation for a crash. But what about saving up cash and waiting to buy? Why not hold cash, wait for the 10% drop (that we know happens every 2 years, or so) and buy in then?

Well, I looked at that too. Back in March ’20, my “Viral Stock Market Strategies” article (get it? viral?!) looked at an assortment of supposed strategies that involved holding onto cash while waiting for the market to drop. I back-tested these strategies against the historical S&P 500 data, and simple dollar-cost averaging beats all the “wait for a drop” strategies.

You think there’s a market crash coming? I know, me too (eventually). There’s certainly a chance that holding onto cash and waiting for the crash is correct right now. But if you try that tactic over time, it’s a losing strategy.

Don’t sell. And don’t wait to buy. Carry on with your normal investing cadence.

Don’t do something. Just sit there.

Jack Bogle

“But what if it’s the crash?!”

What if what’s coming is the big market crash? The mother-of-all-crashes! What if society falls apart? Or if a meteor hits Earth and life changes as we know it? What if we all start scavenging for beans and scrap metal and fuel for our souped-up dirt bikes?

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Mad Max – where fuel and water are all that matter.

Scary questions, but they have a pretty simple answer. If an existential threat ruins your investments, then the stock market will be the least of your worries. That’s it. If “the big one” hits, then the stock market will be one of many societal structures that no longer matter.

If it’s not “the big one,” then the market will recover. It always does.

Why? Why does the market always bounce back? In part, it’s because humans are resilient. We learn and grow and work towards progress. While this year’s COVID market recovery can be attributed to many different factors—like the Federal Reserve lowering interest rates—it can also be attributed to human resiliency.

If “the big one” is coming, then shouldn’t you just “YOLO” and spend your money now? Yeah, you should. I suppose we all need to do some probability analysis.

  • What are the odds that “the big one” is about to come and you look stupid that your investments become worthless?
  • What are the odds that “the big one” never comes and you wish that you had invested in your younger years to enable retirement?

I’ll take my chances and save for retirement.

Crash Landing

So, am I a dummy? I hope I’ve convinced you otherwise.

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Even though we know that the stock market will eventually succumb to 10%, 20%, or even larger drawdowns, there’s no basis that you’ll benefit by trying to wait or time that market crash. It might work, but it usually doesn’t. That’s what the historical data tell us.

Waiting for the election doesn’t matter either. Democrats, Republicans…the market does its own thing. There might be some causality, but it’s tough to tell.

There are silver linings in corrections and crashes. If you’re investing for the long-term, then corrections enable cheaper prices and greater returns.

And if this market crash is “the big one,” then none of this really matters. It’s hard to blog if the electrical grid fails.

If you enjoyed this article and want to read more, I’d suggest checking out my Archive or Subscribing to get future articles emailed to your inbox.

This article—just like every other—is supported by readers like you.

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Tagged crash, stock market, timing

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10 At-Home Date Night Ideas, Whether You’re Together or Apart

Even if you hail from the same place (or have already gone home to meet the parents), you could use Google Earth or Google Maps to show your sweetheart around your college campus — or explore a city you’re hoping to visit together someday.
So they’ve kept their long-standing date night tradition alive through the pandemic with some pretty adorable dates — one of which you may even have seen a glimpse of on John Krasinski’s “Some Good News.” (Look for the fine dining experience around 7:55!) Here are some tips to make it feel more like you’re actually together.
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They printed real menus, got dressed up and dined al fresco on a three-course meal at “Jack & Olivia’s” — so named for their kids. Kenny cooked up the steaks, while the kids made the salad and dessert.

A couple hold hands as they enjoy dinner in their backyard.
Kenny and Celina Beaumont have a date night in the backyard of their home in Orlando, Fla. Photo courtesy of Kenny and Celina Beaumont

Date Nights if You’re at Home Together

But there are still free and low-cost ways to keep up the date night tradition.

1. Fine Dining

It might not sound like the peak of romance to some, but sitting down to a game of Scrabble or Chess together is a great way to spend some quality time while also giving your brain a workout. If you’re really geeky, you might even take on a match or four of Magic: The Gathering.
Jamie Cattanach’s work has been featured at Fodor’s, Yahoo, SELF, The Huffington Post, The Motley Fool and other outlets. Learn more at www.jamiecattanach.com.

2. Ballroom (or Any Other Kind of) Dancing

Although they’ve been married for over a decade, Kenny and Celina Beaumont have always realized the importance of romance — especially after having kids.
We recommend adding fancy duds to the equation to make it feel even more date-y.

3. Game Night

Thanks to technology, there are some ways to recreate a date experience even if you’re miles apart.
If that’s a little too intimate, you could simply spend time together being creative, whether that means knitting, cross-stitching, painting or something else entirely. You could even make plans to gift each other the products of your art therapy session.

4. Virtual Hometown Tours

Re-create the concert experience at home with a cocktail and maybe a band T-shirt, and enjoy unlimited bathroom breaks without having to snake through a pushy crowd.
A browser extension called Teleparty easily syncs Netflix, Disney, Hulu and HBO videos for multiple parties while also providing a scrolling text chat along the right side of the screen.

5. At-Home Spa Services

A seriously romantic idea for the bold: re-create each other’s likenesses while on a video chatting application like FaceTime.

Tips for Successful At-Home Date Nights

Even with the best of intentions and lots of planning, it’s easy for an at-home date night to feel like … well, just another night at home.
You might not make it out to your local Arthur Murray studio, but that doesn’t mean you can’t learn how to dance. Some couples’ counselors suggest that a tango or two can be as good for your relationship as it is fun.

  • Put away your phone. Celina and Kenny say they make a point of putting their screens down during dates.
  • Wait until after bedtime. It’s fun to get the kids in on the action — but if they go to bed earlier than you do, those couple hours of quiet can be a great time to rekindle your connection.
  • Look for the silver linings. Although staying home is hard in a whole lot of ways, it also offers a lot of opportunity for closeness, especially in a world where we’re usually running all over the place.

Here are some tips to keep it feeling romantic.

Date Night Ideas if You’re Apart

Treat yourself — and your beau — to some DIY indulgence. Whether you give each other manicures, facials, or massages, it’s bound to be a whole lot more affordable (and considerably more fun) than it would be in a salon. Check out this list of spa treatments you can do at home.

6. Virtual Coffee (or Cocktails)

There’s nothing quite as cozy as snuggling up with your sweetheart for a movie, whether at the theater or on the couch at home. But even if you’re stuck apart, you can spend time in front of the silver screen together.

7. Reading to Each Other

You can definitely recreate the restaurant experience at home, complete with dressing up for the occasion and actually sitting down and being waited on. That’s exactly what the Beaumonts did. According to Celina, Kenny and the kids had been conspiring about the idea for several days before surprising her.
“We never get to spend this much time with each other,” Celina said of her family. Try to look at your at-home dates as an opportunity to slow down and enjoy yourselves.

8. Live Streaming Concerts and Events

Crank up a YouTube video, clear out a spot on the living room floor, and give it a whirl. After all, nobody except your SO — and maybe the cat — is watching.
If you were already cohabitating, there are plenty of ways to set aside some special time for each other.

9. Virtual Movie Nights

If your movie or TV show is on another service — or if, quaintly and adorably enough, you’re going to watch the same DVD in separate houses at the same time — you can always hop on the phone and queue up the video. Don’t forget the popcorn!
“If we’re not happy and having fun,” Celina told us in an interview, “our household’s not going to be happy and having fun.”
The options are endless: You could pick a book neither of you have read before or revisit an old favorite.

10. Art Therapy

Ready to stop worrying about money?
This one’s super romantic whether you’re at home together or apart. If you’re not in the same place, you can read to each other over video chat or over the plain-old phone.

Tips for Successful Date Nights Spent Apart

A woman FaceTimes with her boyfriend.
Getty Images

But dinner dates are just the beginning. Here are some of our favorite at-home date night ideas.

  • Get dressed. It’s all too easy to lie around the house in pajamas all day… and even attend your dates that way. Wearing real clothes can make you feel more like you’re on a real date.
  • Connect often. If you can’t be with each other in person, spending digital time together is extra important. Maybe try to move your date night tradition from one night a week to two or three.
  • Remember: It’s only temporary. They say absence makes the heart grow fonder, and although we don’t know when this pandemic is going to end, end it shall.

Video call applications like Zoom and FaceTime make it easy to recreate classic low-stakes, first-date ideas like grabbing a drink or a cup of coffee. <!–

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The coronavirus pandemic put a halt on a whole lot of awesome things, including date night. If you’ve been with your sweetie for years, it can be tough to find something special to do when you’re spending most of your time at home together. And if you were just getting started dating, it’s hard to establish a connection when you’re apart.

Here Are 6 Easy, Healthy and Cheap Breakfast Ideas

We’ve all heard that breakfast is the Most Important Meal. But when it’s 7 a.m., you’ve got hungry kids who need to be fed and out the door and your brain simply can’t deal with constructing another meal — you might easily resort to the usual: cereal & milk or frozen waffles. And by “you,” I mean, “I.”

So I turned to nutritionists who offered healthy, cheap breakfast ideas for everyone who is too frazzled to create their own (me!).

Cheap Breakfast Ideas and Advice, from Nutritionists

Here’s what the experts told us.

Why is breakfast important? 

“You’re literally breaking a fast and restoring your body with all the nutrients and energy it needs to take on the day,” says Rachel Naar, a registered dietician in New York.

What should you always include in your morning meal?

Aim to get whole foods and whole grains, Naar says. Plus, you should get a carbohydrate and a protein: You are the most insulin-resistant in the morning, so protein helps with blood sugar stabilization/ glycemic control, she says.

What ingredients should you always have at home for a budget-friendly breakfast?

Old fashioned rolled oats, eggs, milk, plain yogurt, frozen fruit, frozen spinach, nut butter and toast, says Rebecca Clyde, a registered dietitian nutritionist based in Salt Lake City.

“I love these ingredients because I can make yogurt bowls, overnight oats, smoothies and eggs, all of which are quick and portable.”

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Six Simple Breakfast Recipes

Some of these can be made ahead.

Overnight oats

By Rebecca Clyde

½ cup of dry Old Fashioned Oats oats

½ cup milk (any type)

½ cup of Greek yogurt

Optional: ½ sliced banana, 1 tsp peanut butter powder and chia seeds, ½ cup frozen berries

Directions: The night before (or a few days before), put the fruit and oats into a mason jar. Pour the milk over it. Seal. Put it into the refrigerator. Make this up to four days before eating. Eat cold, or warm it up in the microwave.

Whole grain toast with nut butter, topped with fruit or honey and cinnamon

By Rachel Naar

Whole grain toast

Nut butter

Any fruit

Honey or cinnamon

Directions Self-explanatory

Smoothie

By Monica Ruiz-Noriega, of Vigeo Nutrition

1 cup of frozen berries

Handful of fresh or frozen spinach

¼ of a banana

½ avocado

Scoop of protein powder

1 cup plain yogurt or liquid of choice

Directions Blend everything together. Make the night before if desired.

Oatmeal muffins

By Melissa Schuster, registered dietitian nutritionist based in New York

3 ripe bananas

2 cups oats

1 egg

¼ cup milk of choice

½ tbsp baking powder

½ tbsp cinnamon

1 cup blueberries

½ cup chopped walnuts (optional)

1 tbsp chia seeds (optional)

Directions Preheat oven to 350 degrees. Mash the bananas in a large bowl. Add the remaining ingredients and mix well. Line muffin tins with liners or oil spray. Bake for 20 minutes. Enjoy with melted peanut butter or tahini, or top with Greek yogurt.

Egg vegetable quiche cups

By Melissa Schuster

1 bag of frozen pepper

1 bag of frozen spinach

12 eggs

Directions Defrost the spinach and peppers. Whisk the eggs, and mix them with the vegetables. Ladle everything into muffin tins and bake at 350 degrees for 25-30 minutes or until cooked through. These can be cooked ahead of time.

Yogurt with mix-ins

By Len Lopez, nutritionist and chiropractic sports physician

12 oz whole plain yogurt

Optional: hemp seeds, pecans, dark chocolate chips, cinnamon, raw honey and milk.

Directions Mix yogurt with your choice of toppings. Prepare ahead if desired.

Danielle Braff is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

7 Eviction Moratorium FAQs for Renters, Landlords

7. Are there any circumstances in which a tenant can still be evicted?
The order doesn’t include financial assistance, however, you could be eligible for a piece of the billion of rental relief. Check with your local housing agency for more information.

7 Eviction Moratorium FAQs: What Renters and Landlords Should Know

If your rent is ,000 a month and you last paid in August, you should expect to owe ,000 in back rent for September through March, plus whatever fees and interest your landlord tacks on AND April’s rent when April 2021 rolls around.
6. What if I live in a motel?
Print out this declaration form, fill it out and give it to your landlord or whoever owns the property you live in. Note that the form still cites Jan. 31, rather than March 31, as the date the moratorium ends. Each adult covered by the lease should print out their own form. You don’t need to send a copy to the federal government.

  • You’ve tried to obtain government assistance for your rent or housing payments.
  • You earned no more than $99,000 in 2020 if you’re a single tax filer or $198,000 if you’re married filing jointly. You could also qualify if you weren’t required to file taxes in 2019 or if you received a coronavirus stimulus check. (The income limits for the first stimulus checks were the same as the moratorium limits.)
  • You’ve been unable to pay the rent because you lost your job, income or work hours, or you’ve had significant medical expenses.
  • You’ve made your best attempt to make partial payments that are as close to the full payment as possible.
  • The eviction would either leave you homeless or force you into close quarters or a shared living situation.

No, no, NO. We cannot stress that point enough. Any unpaid rent you owe will continue to accrue. In fact, the order explicitly states that it doesn’t preclude landlords from charging fees, penalties and interest as the result of missed payments.
The assistance will be administered by state and local governments. Renters may be eligible if their household income is less than 80% of the area median income, they’ve been impacted financially by COVID-19 and they’re at risk of losing their home. Money can be used for back rent and utility payments, as well as future payments.
Get connected with local resources now. When you’re facing homelessness, the best resources are available at the local level. Calling that 211 helpline now, even though you’re not on the brink of eviction, is a good starting point. They can also connect you with local food pantries, which could free up some money to put toward rent.
If you’re behind on your rent because of the coronavirus pandemic, you just got extra time to catch up. During his first day in office, President Joe Biden extended an order that bars most landlords from pursuing evictions through the end of March 2021.
No. The order simply delays eviction proceedings for another two months. It doesn’t offer financial assistance for renters or landlords. However, the stimulus bill that became law in December included billion in emergency rental assistance.
You’re not covered under the order. The moratorium only applies to tenants covered under a lease. It explicitly states that those living in hotels, motels and other temporary housing are excluded.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
3. Does this mean my back rent is forgiven?
Organizations that violate face a fee of up to 0,000 in cases that don’t involve death, or up to 0,000 for cases where a death occurs.
With millions of people at risk of eviction, housing advocates have argued that a large wave of homelessness could worsen the spread by crowding shelters and forcing people into cramped living spaces.

Your first step is to try negotiating with your landlord. They may be willing to accept partial payments or waive fees, particularly if you can show them that you’ll be able to resume on-time payments.
An individual who violates the order could face a fine of up to 0,000, a year in jail or both — and that’s if the eviction doesn’t result in death. If a death does occur, the possible fine goes up to 0,000, in addition to the possibility of a year in jail.
2. What should I do if my landlord is threatening to evict me?
Pay whatever you can. Every dollar you can put toward rent is a dollar that you won’t owe in April, so pay as much as you can toward your rent, even if you can’t afford the full amount. If you do find yourself facing eviction, showing that you made a good-faith effort to pay can only help your case.
1. How do I know if I qualify for the eviction moratorium?
Yes. You can still be evicted for reasons other than not paying. Engaging in criminal activity on the property, threatening other tenants and causing property damage are all still grounds for eviction.
Landlords can still pursue evictions, back rent, fees and interest once the moratorium ends. But the order also makes it clear that landlords who violate it could face hefty penalties.
5. I’m a landlord who lives off of rental income. What does this order mean for me?
To apply or get more information, you’ll need to contact your local housing agency. Figuring which agency to connect with can get complicated. If you’re not sure what agency to contact, try calling the 211 helpline for direction.

What to Do if You’re Behind on Rent

Take a hard look at all your bills. Your food, health care and shelter are your top priorities. We’d advise paying your rent unless doing so means going hungry or without medication. Stop making credit card and loan payments if you must. You’ll still owe that rent come April. It will be a lot easier to recover from falling behind on credit cards than losing your housing.
Source: thepennyhoarder.com
4. Does the order provide money for rental assistance?
If you’re behind on rent, you need to treat this as a temporary reprieve to get a plan in place. Don’t wait until March to make your action plan.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.
President Donald Trump initially passed the order through the Centers for Disease Control in response back in August. Before Biden ordered the extension, the moratorium was set to end Jan. 31, 2021. We’ve compiled what we know about the latest order into this eviction moratorium FAQ.
In this case, we strongly suggest calling the 211 helpline, which can connect you with local housing resources.
To qualify, you’ll have to sign a sworn declaration affirming that:
Reach out to family and friends. If you know someone with a spare room who might be willing to let you move in, now is the time to start talking — provided, of course, that the living situation wouldn’t put you at increased risk of contracting the coronavirus.

DoorDash vs. UberEats: Which App Is Right For Your Next Side Gig?

To become a Dasher or Uber Eats driver, you have to meet a baseline of requirements. Some are vehicle related and some are age and experience related.
The activation kit includes a Dasher manual, a hot bag and a credit card, which is used to pay for orders. Once you receive and set up the card through the app, you can start accepting orders.
During the pandemic, these services have seen demand like never before. For customers, the apps make ordering food from just about any restaurant as easy as opening their smartphones. For drivers, it’s almost as easy to land a delivery job hawking food from local eateries.

DoorDash vs Uber Eats: The Top Food Delivery Apps Duke It Out

This one’s easy. Both services are available in most big cities in all 50 states.
Glassdoor review: 3.9 out of 5.
Previously, DoorDash and Uber Eats ran driver support centers in major metro areas of most states. In 2020, many of these centers closed due to the coronavirus. Some still exist, but neither company offers a comprehensive, public list of remaining locations.

Round 1: App Reviews

A woman looks at what's offered on Uber Eats.

All Uber drivers receive discounts for vehicle maintenance and phone service plans. Uber also partners with Stride Health to provide health plans and tax advice. Drivers automatically receive supplemental auto insurance, which covers up to million in damages. There’s a ,000 deductible before benefits pay out.

DoorDash Driver (Dasher) Reviews

The general premise of the two apps is almost identical: Customers place food orders at local restaurants. The apps alert drivers in the area with the order details. The first driver to accept the order picks up the food and drops it off to the customer. Simple enough, right?
If you’re a current rideshare driver for Uber, it’s easy to start delivering with Uber Eats. You simply opt in to Uber Eats orders through the driver app and start delivering without any additional screening.
Dashers report earning between and an hour depending on location, but those earnings aren’t guaranteed. Pay is based on how many orders you accept per hour and how much customers tip you. DoorDash pays weekly through direct deposit, or you can access your earnings early through Fast Pay, for .99.
Feedback from Dashers is overall mixed, but there’s a clear preference for the iOS version of the app. Trends in negative reviews across all platforms show that many drivers have trouble with glitches and crashes, especially Android users, and that the nature of the work takes a toll on their vehicles. Many negative reviews mention that DoorDash’s strict performance metrics are a hassle.

Uber Driver Reviews

To make automobile deliveries, the minimum age requirement is based on your local jurisdiction, plus at least one year of driving experience. Vehicles must be no more than 20 years old. Drivers must be properly insured and can use bikes and scooters in certain markets. The age requirements are higher for those who prefer two wheels — 18 for bicycles and 19 for scooters.
Promotional offers are popular with both DoorDash and Uber, but they’re temporary and vary by location. Aside from sign-up bonuses and referral codes, here are a couple perks that are here to stay.
The two apps handle pay a little differently, both in how you get paid and how you pay for customers’ orders when you pick them up. Neither company offers guaranteed wages (unless you live in California).
Uber Pro perks have recently expanded to all of Uber’s markets across the U.S. Only top-rated drivers receive Pro perks like tuition and gas reimbursement, and the program is designed for Uber drivers primarily, not Uber Eats drivers.
But before you download your next job, take some time to review the key differences between DoorDash and Uber Eats so that you can make the most of your delivery gig.

Round 2: Job and Vehicle Requirements

A woman drives for Uber.

You can sign up to become a Dasher on the driver app. You’ll have to consent to a background and motor vehicle check (and pass both). They could take as little as a few days, but err on the side of a week or two.

DoorDash

When picking up orders, you may be required to pay for the order using the company red card from your activation kit.

Uber Eats

App Store (iOS) review: 4.7 out of 5.
Google Play (Android) review: 3.3 out of 5.

Round 3: Sign-Up Process

And if it’s too close to call, you can always sign up for both to see which one suits you better.

DoorDash

Several differences are worth noting, though. Some minor and some major. We took a deep dive into those differences, looking at pay, vehicle and job requirements, available locations, driver reviews and more to help you make an informed decision before you start delivering.
The decision goes to our judges. (That’s you.)
Ding! Ding! It was an even match-up. Uber Eats and DoorDash were neck and neck throughout. No knockout punches. A good few jabs by DoorDash’s insurance coverage and grocery options and a couple of hooks by Uber’s overall ratings and ability to switch to ridesharing.

Uber Eats

Workers reviewed DoorDash more than 760,000 times.
Check out how this food delivery driver may ,000 in one month.
Because the apps are so popular, they’ve amassed more than 4.1 million driver reviews. Both companies require their drivers to use different apps than customers, a huge perk when trying to get a sense of drivers’ perspective. Worker reviews from Glassdoor are also included.

Round 4: Pay and Tipping

Glassdoor review: 3.7 out of 5.

DoorDash

Trends in negative delivery reviews on Glassdoor indicate GPS issues and trouble contacting customer service. Several drivers mentioned problems with promotion and surge pay (bonus pay during in-demand times). Negative reviews regarding vehicle wear-and-tear are common.

Uber Eats drivers get a variety of discounts and may be eligible for Uber Pro perks.

If you drive for both Uber and Uber Eats, your food deliveries may apply to Uber Pro, but Uber-Eats-only drivers aren’t eligible.
More than 3 million drivers reviewed Uber. A caveat worth noting is that Uber has one driver app. That means it’s hard to get the opinions of only Uber Eats drivers because general Uber app reviews are mixed in. Overall, reviews are positive.

Uber Eats

For drivers new to Uber, you can sign up on the website or through the driver app. Because of the stricter vehicle requirements, the application requires more detailed information on your ride. A background check is also required, which may take three to five business days to process.
To qualify as a Dasher you must be at least 18. Dashers need to have a valid driver’s license. There are no car requirements, but auto insurance is required. In some markets you can make deliveries on scooters, bicycles and motorcycles.

Round 5: Available Locations

People walk alongside a lake and tall buildings.

Depending on your location, you can expect to earn to an hour on average. Again, those wages aren’t guaranteed because your earnings are based on orders and tips. With Uber Eats, you pocket 100% of your customers’ tips. You get paid weekly via direct deposit, or you can pay a fee to access your earnings early through Instant Pay for 50 cents.
App Store (iOS) review: 4.6 out of 5.

Final Round: Additional Perks

While DoorDash doesn’t offer health insurance, the company does partner with Stride Health, which provides free health care advising and assistance to Dashers who need help finding affordable insurance plans.

DoorDash

After passing the checks, you’ll need to select what type of “orientation” you want. The pandemic paused in-person orientations. Depending on your market you may need to request an “activation kit” instead. Receiving your activation kit may take an extra couple of weeks, according to driver reviews.
For better or worse, apps like DoorDash and Uber Eats have disrupted the food-delivery industry. Since their launch in 2013 and 2014 respectively, restaurants across the country have outsourced delivery services to independent drivers who use the apps to make extra cash.
As of Fall 2019, the company switched to a payment model where Dashers earn a higher base pay per order in addition to keeping 100% of their tips. Previously, a customer’s tip would subsidize the Dasher’s base pay.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

FROM THE MAKE MONEY FORUM

Uber Eats

After the background check clears and your application is approved, you’re free to start taking orders. No orientation or additional equipment is needed.
Dashers also get supplemental auto insurance and occupational accident insurance for accidents or injuries that fall outside your current auto insurance. The insurance plan covers up to million in medical costs, a weekly payment of 0 for disabilities and 0,000 to dependents for fatal accidents. Coverage is automatic. There are no deductibles or premiums.
Google Play (Android) review: 3.8 out of 5.
Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

Final Decision in DoorDash vs Uber Eats

A few perks unique to DoorDash include grocery delivery options, automatic insurance coverage and health care services.
Source: thepennyhoarder.com

There are a lot more delivery options out there. Here’s how the top 10 delivery apps stack up.

You won’t be involved in the payment process for food orders. Partner restaurants are reimbursed directly by Uber.
After you’re screened and accepted as a Dasher, you can choose to deliver food in any city where DoorDash operates, meaning there are no hard location requirements. The company also launched grocery delivery services in some Midwest and West Coast areas.
Becoming a delivery driver for DoorDash and Uber Eats is simpler than landing a part-time job. You can complete the entire process from your smartphone or computer.