How Much Do DoorDash Drivers Make? Is it worth it?

The gig economy is all about easy money and becoming your own boss. However, can it practically pays the bill? Find out if it's worth it to become a DoorDash Dasher.

Last Updated: March 5, 2021

Last Updated: March 5, 2021

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In a world where you can be your own boss and work anytime, anywhere you want, how do you find yourself making a living out of it?

Nowadays, the gig economy is all about working behind a fixed schedule, emphasizing flexibility and decent pay. Therefore, many people work for delivery services such as Grubhub, Uber Eats, and DoorDash.

However, can you really make a living out of working from online food delivery services or treat it more as a side-hustle to earn additional income?

This post will cover DoorDash review, how do DoorDash drivers make, and determine if it's worth trying.

So, sit back, relax, and let me take you for a smooth ride.

What is DoorDash?

If you ever tried ordering foods or groceries via Grubhub or Uber Eats, well, DoorDash is no different. DoorDash is a food delivery service app that allows customers to order from nearby restaurants and grocery stores. It is one of the largest food delivery providers in the U.S.

In 2013, it was launched as PaloAltoDelivery.com when it made its first delivery. Since then, it has continuously been growing in market share and is now known in its present brand name, DoorDash.

Amid the global pandemic, DoorDash became the fastest-growing meal delivery service, offering contactless delivery and safety initiative for its drivers.

Part of Doordash's corporate responsibility is its Project DASH (DoorDash Acts for Sustainability and Hunger). They make meal donations through the Feeding America® Charity for every order placed on DoorDash’s website or app.

Moreover, Project DASH helps reduce waste through partnerships with food recovery organizations. In 2019, it reached the milestone of one million pounds of surplus, donated food diverted from the landfill, and connected to hunger relief nonprofits.

DoorDash logo

Become a Dasher

As a delivery driver, you'll make reliable money- working anytime, anywhere.

How does DoorDash work?

When you head over to DoorDash's website, there will be two available menus for customers who want to order food and for drivers who want to work as a “Dasher.” Plus, there is also another part specifically catered for partnered merchants interested in listing through DoorDash.

For Customers

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DoorDash is available in more than 850 cities across the U.S. From pizza to seafood, Asian and Vegan Foods, you named it, they have it. Ultimately, you can order food without having to leave your home.

If you're ready to order, open up the app, browse for foods or restaurants, you want to order food from. After that, place your order. Input any delivery instructions or request, and then pay in-app (you must connect your debit or credit card account.)

Right then, you will receive an estimated delivery time, and you must wait for your order to arrive.

A typical delivery apart from the cost of the food at the restaurant and local taxes would also include several fees.

For instance, the delivery fee will depend on a restaurant, and if you order food when the demand is high (holidays, or lunch break, etc.), the payment will be higher.

There is also the service fee which is about 10% of your order. Furthermore, suppose you're a super busy individual and don't have time to cook, thus frequently ordering food. In that case, DoorDash offers a DashPass subscription, which you have to place at least $12 orders from DashPass eligible restaurants. DashPass is available in some areas and costs $9.99.

Besides that, there is also a small order fee, (depending on the local market definition) which is usually less than $10; you might be charged $2.

And, of course, if you're feeling generous, you may take into account the tips. Typically, it is accepted to tip around 15%, but you can extend beyond that if you think the driver did an exceptional job.

For Drivers

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How much do DoorDash drivers make?

If you have a reliable car, scooter, or bicycle (in select cities) and a smartphone, you can start working at DoorDash. First of all, you have to sign up as a “Dasher” (that's what they call their drivers are, and so we will use this term from now on!)

There is no previous experience required, and they accept drivers or bikers in other delivery or ride-sharing gigs as well, such as Uber Eats, Postmates, Grubhub, Instacart, and so on. So, you can work at DoorDash and Grubhub simultaneously! Thus, making more money!

After signing up, it will take 1-2 weeks for your account to get activated. Once done, you can start downloading the app and “Dashing” (start to drive and earn money.)

You can start accepting orders and deliveries or set up a scheduled time depending on your availability. Remember, you are in complete control of your schedule.

Dashing for DoorDash comes in three easy steps:

  1. Drive to the restaurant.
  2. Pick up the food.
  3. Drive to the customer and drop off the food.

That's it! Easy right? How about the requirements to be a dasher? Here it goes.

  • 18 years or older
  • Reliable vehicle (car, scooter, or bicycle)
  • Driver's license and active car insurance
  • Background check

For Merchants

man in a mask handling order food to a delivery guy

For those restaurants that don't have an online presence yet or delivery system, this is where DoorDash enters. Restaurants that partner with DoorDash will help them have dashers pick up and deliver food orders to their customers and connect them. Which, in turn, gives the dashers or drivers a job.

On the other hand, merchants that already have their delivery fleet can still use DoorDash to list their menus, fulfill deliveries in-house, and down business costs.

Since DoorDash has a large user-based, listing your restaurant menu can be an excellent boost to your market share, increase profits, and ultimately save on operational expenses.

How much do DoorDash drivers make?

Going back to our dashers, in case you're interested in signing up to become one, of course, you have to know how much is your potential income. Is it any good? Well, honestly, it depends.

The company claims that dashers can earn as much as $15-$19 per hour, and although it is technically possible, it's not always the case.

There will be times when food delivery in a specific area is in high demand, there will be hot spots and these, in turn, can bring you larger money. Not to mention the tips you'll collect. But, once you started dashing, you'll have an estimated amount of pay plus the tip amount, so you are free to accept or decline the order.

In turn, DoorDash will offer the order to the next available dasher nearby.

You see, there are many things you need to weigh in to come up with your net pay. (more on this below.)

Therefore, expect that some orders will pay more, some will pay less. Although DoorDash pays a guaranteed minimum delivery fee of at least $1 plus 100% of any tips a driver receives, you must also factor in your gas expenses, mobile data expenses, time, etc.

how much do doordash drivers make

Is driving for DoorDash worth it?

Speaking of whether DoorDash pay is any good, you must see the bigger picture first before actually claiming that you earn x amount during the given time. As mentioned, the pay varies.

If you're someone who enjoys working on his terms or looking for a nice side-hustle for additional income, then the DoorDash gig might be worth it to you.

However, if you take into account the following expenses, or let's say investment, that you must have in the first place, think again whether the income can pay the bills.

Below is a list of expenses that may eat out your DoorDash gig.

  • Fuel Costs – The cost of gasoline is a reality for most drivers. The location and the type of vehicle you drive will also affect how much you spend on fuel. Remember, delivery driving involves two rides; one from the driver's location to the restaurant and the other from the restaurant to the customer's place. Therefore, you'll spend more fuel than the average rideshare driver.
  • Insurance– It may not add too much, but you have to include insurance cost in the equation since you'll use your vehicle.
  • Maintenance and Repairs– To lessen this burden, you must set aside a portion of your earnings to cover maintenance and repair expenses. Since you may work every day or a few times every day, your vehicle is prone to wear and tear. Sooner or later, those occasional brake and tire replacements add up quickly.
  • Cellular phone plan– You should also check out how much your cellphone bill will accumulate once you started dashing. It would be best if you had an internet connection to see orders and drive around.

A few years back, DoorDash encountered controversy regarding how they actually pay their drivers. It was still not entirely clear as to how DoorDash came up with the estimated payments. Yet, the minimum guarantee is calculated based on the size of the order, approximate driving distance, traffic delays, parking, and how long it takes for the food to be made and packed up at the restaurant.

Some drivers reportedly earn even less than the minimum wage, and significant earnings come not from the company's pay but from customer tips. This blog analyzed how DoorDash's new pay model works, backed up with insight from actual drivers themselves. It shows that earnings from DoorDash are not enough to cover their basic expenses — and sometimes, not even that much.

So, whether it is worth driving for DoorDash, well, maybe you have to experience and see it for yourself. After all, not everybody has the same experiences and insights, and this type of economy gig may work or not work for you.

How DoorDash Drivers get paid?

According to the DoorDash website: “Dashers get paid weekly for all deliveries completed between Monday – Sunday of the previous week (ending Sunday at midnight PST). Payments are transferred at that time directly to your bank account through Direct Deposit, and usually take 2-3 days to show up in your bank account, so payments will appear by Wednesday night.”

Then, for those who want instant access to their pay, you can opt for Fast Pay. You can cash out your earnings daily for a small fee of $1.99. However, you must have a debit card to use the Fast Pay service.

Besides base pay + tips, you can also earn from DoorDash's promotional pay. Basically, during busier times, you can achieve higher gain. Also, DoorDash offers challenges and incentives for their dashers such as earning an extra $20 for completing 15 deliveries.

Tips on how to make the most money in DoorDash

Now that you are aware that DoorDash earnings are different from time to time, you should also know several ways to increase your earnings as a Dasher.

  • Work during peak and busy hours– Those times when people usually have lunch or dinner can be a peak hour in your city, so try to drive during these hours.
  • Grab large orders– For bigger or bulky deliveries, tips may also get higher so, don't think twice and grab it.
  • Strategize your working hours– Experiment on those times when you think people won't bother to go outside. Usually, these will be during a national holiday event, big sports event, final episode of a popular TV show, bad weather, etc. Think of those times when people would rather stay indoors and then, as for you,  choose to roll your sleeves up and do the work.
  • Sign-up for more than one economy gig– Delivery gigs aren't limited to DoorDash. There are many delivery services out there and you can work for them while also working at DoorDash. The sky is the limit. Plus, you can even do rideshare services together with food delivery.
  • Accept orders at a reasonable amount– Don't get too prickly; you can refuse an order and wait for another turn. Think about the net pay after deducting all your expenses. If a $2 order (excluding tips) will cost you to drive 25 miles, think again.

Related reads: How To Make The Most Money As An Instacart Shopper

What are the good and the bad in driving for DoorDash?

PROSCONS
Flexible working hours– work whenever you want. It's all up to you whether you wish to work full-time or part-time.Not always able to get on a schedule– If times are super busy, it can be a bummer. But, if you're a top dasher, you can work even if it's slow and managed to chime in a schedule.
You can make a good amount of $– This is when you live in a small town and busier area.Limited customer support– some drivers are reportedly annoyed by the slow customer service of DoorDash.
Good if you have good gas mileage.DoorDash will not pay for your taxes– as an independent contractor, you do your taxes; that's why it's crucial to keep track of your expenses for tax deductions at the year or quarterly end.
You can freely accept or decline any order.Wear and tear on the car, maintenance, and repair expenses.
Pay varies– you may get paid a little less or higher, or you may even live off by sole tips.
There is no payment for waiting time spent on the restaurant.
You don't have benefits (such as health, retirement, etc.)
How much do DoorDash drivers make?

How DoorDash make money

In case you're wondering how DoorDash makes money, well, their business model is quite simple.

They charge restaurants a 20% commission fee for every order delivered. Besides commission, they also charge restaurants for their marketing and advertising on their app. To be on the top of the list of restaurants for a limited time, for pop up in advanced search, restaurants pay DoorDash, and in turn, DoorDash profits from it.

Lastly, they earn from delivery/service fee charge on its app users (customers). The DoorDash delivery fee is $5 to $8 per order.

Does DoorDash Pay for Gas and Other Expenses?

No. DoorDash isn't liable to your expenses since you are a freelancer and not an actual employee of the company.

Wrapping up

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It's easy to get swayed by people saying they earn x amount of this money in just x days. Yes, it's easy money, but it may not always be the case for someone. The greatest drawback in delivery gigs is that you can't expect fixed pay. So, you shouldn't expect too much.

There will be low and high days. Well, this is normal. After all, these are but a few prices you have to pay as being your own boss.

Therefore, the key is to practical ways in maximizing your pay. Who knows, you might also earn $20-$25 or more in an hour!

I'd also like to add to use cashback apps to save money on gas, groceries, and other purchases when dashing.

Overall, driving for DoorDash seems like a great fit. However, since the market is already saturated with ride-share and delivery apps, all with its unique proposition, earnings from this gig are easy money but not enough to pay for the bills.

Still, it can be an excellent way to earn extra bucks in college or during leisure time.

Have you tried DoorDash? What is your experience in the app so far? How much can you make dashing for DoorDash?

Tell us about your dashing journey, and if you have any questions, feel free to reach out.

Ride safe, dashers!

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