How Much Does DoorDash Pay Drivers In 2023? Explained

Are you thinking about becoming a Dasher? It’s a job that has plenty of variety and flexibility, but the pay structure can seem confusing to a first-timer!

The following article will answer the question, “How much does DoorDash pay?” so you can decide whether to join the DoorDash team.

In this article we break down how much DoorDash pays, including:

• Base pay and promotions
• How DoorDash tips work
• What can affect your earnings
• Extra earning opportunities
• What you’ll have to pay for.

Let’s get into it!

How Much Does DoorDash Pay?

DoorDash offers Dashers a base pay rate of $2 – $10+, as well as additional pay for busy times and customer tips.

This means that you can reasonably earn between $15 and $25 per hour as a DoorDash driver, but some drivers report earning more. They report incomes as high as an average of $20 per hour.

The actual figure depends on the base pay, tips, promotions, and the number of completed deliveries. However, it would be best to consider delivery distances and fuel costs to keep your vehicle running.

How Much Do DoorDash Drivers Make Per Delivery?

The amount a DoorDash driver earns per delivery depends on the minimum base pay offered by DoorDash in their region, customer tips, and promotions.

DoorDash has promotions like peak pay that offer drivers extra money to deliver during peak hours.

They also offer bonuses to deliver to particular clients and catered events.

How Much Does DoorDash Pay Per Delivery?

DoorDash offers a minimum base pay of between $2 and $10 per delivery, depending on your area and time of day.

However, you can earn more by accepting the challenges offered by DoorDash.

You can also increase earnings by taking higher-paying offers and accepting orders denied by other drivers since DoorDash often increases the pay after a few denials.

How Much Do DoorDash Drivers Make Per Month?

Like hourly earnings, monthly earnings depend on the number of deliveries and the base pay, tips, and promotions per delivery.

However, based on the average pay of $20 per hour and working 40 hours a week, a driver can earn $800 a week. That translates to an average of $3,200 a month for full-time drivers.

Can You Make a Living Off DoorDash?

Yes, you can work as a DoorDash driver full-time and earn a living wage. The average earnings of DoorDash drivers of $20 an hour are above the minimum wage in most states.

If you apply yourself, you can earn more by working a few extra hours a week and taking on high-demand orders.

The Basic Payment Structure of DoorDash

Base Pay

Your base pay rate is the minimum amount you’ll receive for each order. The base pay rate can range from $2 to more than $10 and varies depending on a few factors.

Orders requiring long travel times and on less popular routes will have a higher base pay rate.

Select cities in the US also have the option of an ‘earn by time’ mode for Dashers, which guarantees an hourly rate.

Promotions

DoorDash offers promotions that let their Dashers earn extra money at certain times. Peak Pay is available at the busiest times and is added to the total earnings show when you’re offered a delivery.

DoorDash also offers incentives to help Dashers earn extra money in the form of Challenges. For example, you might be required to complete a certain amount of deliveries in a specific time frame to qualify for the Challenge payment.

Tips

The DoorDash app allows customers to leave a tip when they check out the order, or after the delivery is completed. Customers may also tip in cash.

Dashers are notified if tips are added after checkout, and an updated earnings breakdown is shown in the ‘earnings’ tab of the Dasher app.

100% of tips go directly to Dashers.  DoorDash will never vary its base pay or promotions based on tips – all the tips you earn are yours, and they don’t affect your other earnings.

The Different Factors That Affect DoorDash Earnings

Location

Your location can have a big impact on your Dasher earnings. Densely populated areas or affluent neighborhoods might have a higher demand for deliveries.

The location you’re in can also impact peak pay and promotions – peak pay is more likely to be in effect in places where there is a high volume of DoorDash orders.

Time of Day

Dashers usually earn more when working during peak times. Lunch and dinner times are the most popular times for orders, and they will often come with higher base pay and incentives like Peak Pay.

Other times such as early mornings or overnights may have far fewer orders, so you’ll be less likely to receive incentives.

Vehicle Type

DoorDash allows drivers to use any type of vehicle, and the base pay rates and other incentives are not affected by this.

However, using a larger vehicle such as a car allows you to take on more orders at once, which can boost overall pay compared to using a scooter or bike.

Fuel costs are also a consideration – driving a car with high fuel costs can offset some of the earnings you make Dashing.

Order Size & Type

Large orders or orders from certain restaurants may come with a higher base pay thanks to the added complexity and time taken to complete delivery. Big orders often also mean bigger tips!

Additional Earning Opportunities

Drive Orders

Drive Orders are big orders that take more time and effort to deliver. They might be from businesses, large groups, or catering companies.

They usually come with a higher base pay rate. Drive orders can sometimes be claimed in advance, and Merchants can select ‘preferred’ Dashers who have done a good job in the past to get the first chance to claim these orders.

Referral Bonuses

Referral bonuses are sometimes offered when DoorDash needs to recruit more drivers to the platform. If you’re a current Dasher and you refer someone, once they’ve completed a certain number of deliveries, you can earn a bonus.

The amount of the bonus will vary based on location, and they are not always available.

Does DoorDash Take Fees From Drivers?

DoorDash does not take fees from drivers. Initially, the company used to take tips from customers to drivers and used them to subsidize the delivery fees they paid drivers.

That policy received backlash since it disadvantaged drivers while increasing corporate earnings. Due to the outcry, DoorDash discontinued the policy, meaning drivers now receive 100% of customer tips in addition to delivery fees.

How Much is DoorDash’s Commission?

DoorDash drivers receive 100% commission on their deliveries. The company makes its money by charging merchants like restaurants commissions of 15%, 25%, or 30%, which transfer some costs to the consumer.

Their model allows DoorDash to give drivers 100% of delivery fees and tips, increasing their guaranteed income.

Does DoorDash Pay For Gas?

DoorDash hires its drivers as independent contractors, meaning all operating costs are the driver’s sole responsibility. Therefore, DoorDash does not pay for gas.

It would be best if you chose your means of transportation wisely. For example, a car will consume more fuel than a motorcycle or scooter.

If you find a car easier to operate, consider the cost of gas and pick one with reliable fuel efficiency.

However, you should record your fueling expenses and determine if they fall under tax-deductible operating expenses to reduce your liabilities.

You should also sign up for incentive programs like gas apps that pay you back, in order to save on the cost of things you’d already be spending money on.

Deductions and Expenses for DoorDash Drivers

Platform Fees

As we mentioned above, DoorDash doesn’t charge Dashers to use their platform – the displayed amount for each order plus your tip is what you’ll receive. You are responsible for paying your own taxes and expenses, however.

Operational Costs Gas, vehicle maintenance, insurance, and other out-of-pocket expenses

When you’re working as a Dasher, you’re essentially self-employed, which means you’re responsible for all the costs associated with running your business. This includes:

• Gas: Depending on prices and your vehicle’s fuel efficiency, this is likely to be the biggest expense
• Vehicle maintenance: Just like any driving, Dashing increases the wear and tear on your vehicle. You may have to spend more frequently on new tires, oil changes, and other maintenance costs
• Insurance: You’ll need to pay for your car insurance and your own health insurance when working as a Dasher
• Other expenses: In some cases, you may need to pay for parking fees, phone plans, and accessories like insulated bags to keep food warm.

Do You Pay Taxes on DoorDash Income?

Yes, DoorDash drivers must pay taxes on their income.

You must pay tax like other working-class citizens if you earn $600 or more in base pay and tips.

However, your DoorDash paycheck doesn’t automatically withhold taxes.

DoorDash drivers are independent contractors responsible for keeping track of their daily income and filling their taxes based on their income records.

DoorDash does not give you a breakdown of your earnings, nor does it give tax advice.

All the company does is give you a subtotal of your earnings based on the base pay, tips, and other earnings.

Contact an account or tax professional to find out how much taxes you owe based on your DoorDash earnings.

Nonetheless, DoorDash makes completing your tax obligations more manageable by providing a 1099-NEC form to drivers who earn more than $600 on the platform.

Is DoorDash Worth It To Make Money?

Whether DoorDash is worth it depends on a few factors, including where you live, how much your car costs to run, and how much you’re willing to work.

If you like the flexibility and are happy to ensure you always work the busy periods to take advantage of promotions, then DoorDash can be a great way to make money!

Moreover, the average pay at DoorDash is above the minimum wage. There are also numerous ways to increase your income. For example:

• Avail yourself during peak hours Peak hours include breakfast, lunch, dinner, nights, and weekends. You earn more during peak hours because people tend to place more orders and give higher tips.
• Avoid high traffic areas Delivery time is one of the factors that determine fees. Therefore, avoid high traffic areas to deliver items faster.
• Refer other drivers When there is a shortage of drivers in an area, DoorDash will ask you to refer other drivers in exchange for cash bonuses.
• Accept challenges DoorDash has in-house cash incentives to push drivers to make more deliveries. Completing challenges raises your rating, guaranteeing you receive more orders.
• Improve customer service The better you serve your clients, the more likely you will receive more tips.

What Food Delivery Service Pays the Most?

Food delivery service is a huge market with several players competing with DoorDash for customers and drivers to expand their market and influence.

Therefore, these companies offer competitive pay to attract drivers.

When it comes to hourly wages, Instacart and Shipt offer the highest pay, with the former paying an average of $29 and the latter $20 per hour.

However, drivers who work with these companies earn less than their counterparts due to their small market share.

Although companies such as DoorDash and Uber Eats provide lower base pay and hourly wages, you are likely to earn more due to their large market share and customer base.

You will have more orders which translates to more delivery earnings and tips.

Frequently Asked Questions

Below are popular questions asked about DoorDash driver jobs.

Wrapping Up

DoorDash is a flexible way to make money, and earnings are influenced by where you like and the times that you work.

There are opportunities for earning an increased rate through promotions and bonuses, although this is offset by Dashers being responsible for all their operating costs.

For Dashers who understand how the payment structure works and take advantage of promotions, it can be an excellent way to make money or supplement your income.