How Much Does DoorDash Pay?
Last Updated: August 25, 2022
Today’s high demand for food delivery services makes industry leaders like DoorDash a good choice for both part and full-time employment. Apart from enticing work conditions such as flexible working hours, DoorDash offers weekly cashout. But how much does DoorDash pay its employees?
In this article, you will find answers to this and the following questions:
- What is DoorDash, and how does it work?
- What is the drivers’ employment status?
- How much do DoorDash drivers make?
- Are there additional expenses for drivers?
- How to increase earnings if you work for DoorDash?
- What are the pros and cons of becoming a DoorDash driver?
What Is DoorDash and How Does It Work?
DoorDash is an online food ordering and delivery platform that currently operates in 7,000 cities across the US, Canada, Australia, and Japan. The platform is pretty straightforward — it allows customers to order and get the products they want from local businesses.
When a customer places an order, a DoorDash driver (Dasher) is responsible for delivering it. They work with the help of the DoorDash Dasher App and use it to:
- Review current orders
- Accept orders
- Get pickup and delivery instructions
- Get paid
How to become a DoorDash Driver?
Becoming a Dasher is easy and requires completing only a few steps:
- Submitting an application
- Downloading the Dasher app
- Completing sign-up
Naturally, those who want to become a DoorDash driver have to meet a few requirements:
- Be at least 18
- Own a car, scooter, or bicycle
- Have a valid driver’s license
- Consent to a background check
Employment Status Options & Benefits
DoorDash drivers are allowed to create their own schedule and take on as many orders as they please. Why such a level of flexibility? Well, because DoorDash drivers aren’t considered salaried employees but independent contractors.
Being a DoorDash driver means you aren’t on the company’s payroll and don’t receive any employee benefits. Instead, you can count on flexible work hours but have to pay self-employment taxes. The self-employment tax rate is 15.3% (12.4% goes toward paying for social security, and 2.9% is paid for Medicare).
How Much Do DoorDash Drivers Make?
DoorDash drivers’ base pay depends on the type of delivery, working hours, and peak times. Dashers’ total earnings include base pay, promotions, and tips.
Base pay
The base pay for DoorDash drivers ranges from $2 to $10+ per delivery. What usually determines it is the traveled distance and the estimated delivery time. Deliveries that take more time and require Dashers to travel longer usually pay more.
Promotions
Drivers can increase their earnings through promotions that DoorDash offers. These include Peak Pay (a frequent incentive during busy hours to increase the number of drivers on the road) and occasional Challenge bonuses. Using these promotions, Dashers can meet or surpass their weekly DoorDash payment goals.
Tips
DoorDash drivers are allowed to keep 100% of their tips. Customers can tip them in the app at checkout or after the delivery.
Average DoorDash pay
DoorDash claims that Dashers around the US can make roughly $25 per hour. However, the latest pay averages reveal that they earn approximately $16 per hour. Still, the national pay rate for DoorDash drivers can vary from $3 to $34 per hour.
The truth is, the amount a Dasher can earn mostly depends on how many deliveries they accept and at what DoorDash hourly rate. Also, let’s not forget that tips and promotions can significantly increase their total earnings.
Note: DoorDash pay per delivery doesn’t include driver expenses (e.g., gas and vehicle maintenance).
Drivers’ Expenses
Because Dashers have to cover driver expenses on their own, this affects their overall earnings. These include:
- Gas – if you use a motorized vehicle for deliveries, a large portion of your DoorDash income will be spent on gas. Considering the current gas prices, if you don’t have a fuel-efficient car, you’ll be better off using a scooter or bike for deliveries.
- Vehicle maintenance and registration – as an independent contractor, you’ll have to cover the car registration and vehicle upkeep costs. It can significantly affect your earnings, so you may want to think about changing your delivery vehicle.
- Car insurance – unlike Grubhub, DoorDash offers its drivers auto insurance. However, you can only use it if an accident occurs while using a motor vehicle on an active delivery. Because of this, many drivers pay for car insurance on their own.
- Car loans – if you have a car loan, this can affect the total amount of money you’re left with after monthly car loan payments.
- Income tax – As an independent contractor, you have to pay self-employment tax. Therefore, 15.3% of your earnings goes toward paying for social security and Medicare.
How Can Drivers Increase Their Earnings?
There are many ways to maximize your payments and increase your DoorDash salary. Some of them include:
- Cost reduction – by tracking delivery expenses, you’ll know what most of your money is spent on and how you can minimize the costs and maximize the profit.
- Referral Bonus – helping DoorDash get new members can get you a $350-$750 referral bonus.
- Promotions – using available DoorDash promotions can help boost your weekly earnings. This mostly includes taking on more orders and delivering during peak hours in the busy parts of town.
- Becoming a Top Dasher – this incentive is available for hard-working DoorDash drivers. If you meet the criteria, you can expect to earn rewards and benefits, which ultimately means increasing your earnings.
DoorDash Driver Payment Methods
DoorDash drivers can get paid:
- Weekly via direct deposit to personal bank accounts
- Daily via no-fee deposits to DasherDirect cards
- Instantly via Fast Pay service (fast deposits to debit cards for a $1.99 fee)
With these straightforward DoorDash payout options, you can easily cash out all the earnings, including the tips.
Pros and Cons of Working for DoorDash
Now, let’s summarize the advantages and drawbacks of becoming a Dasher:
Pros
- Flexible working schedule
- Possibility of boosting base pay
- Top Dasher Program
- Frequent bonuses and incentives
Cons
- Drivers pay vehicle maintenance
- Inconsistent income
Key Takeaways
Being a DoorDash driver comes with many benefits, first and foremost the flexible work hours. Depending on how many orders you take and how many hours you’re willing to put in, you can expect to earn a decent amount of money.
One of the best things about DoorDash is that earnings from this job can be enough for those looking for a part-time job, but also those willing to commit to it full-time. If you create a good operating strategy, take advantage of frequent bonuses and incentives, and receive good tips, this can turn out to be a great job opportunity.
But is driving for DoorDash a good job for you? This is a question only you can answer after considering all the pros, cons, and expenses you have to cover. Whatever you decide, we’re hopeful this article has helped with informing you about what you can expect as a Dasher.
Related reads:
How Much Do Uber Eats Drivers Make?
FAQ
No. DoorDash doesn’t cover your vehicle’s gas consumption.
To work for DoorDash, you need to turn in an application and meet several requirements, including being at least 18 and having your own vehicle.
Depending on location, time of the day, or popularity of the order, the DoorDash hourly rate may range from $3 to $34.
DoorDash pays its drivers once a week via direct deposits to bank accounts or daily deposits to DasherDirect cards.
Yes. Dashers are independent contractors, meaning they don’t have any benefits and pay self-employment tax.
ABOUT AUTHOR
Getting weightlifting medals in my late 20's, living abroad, and finishing security studies somehow led me to build an HR career in a couple of different industries. But a nine-to-five doesn’t stick if you don’t have time for something meaningful. After my short stories were published a decade ago, writing for the crowd has never stopped. My list of interests is long, and the financial industry is my new craze. Following the experts and teaming with great folks drove me to spendmenot.com, where I explore this fascinating field and share my journey with you.
