People have often disregarded the gig economy and focused more on getting conventional and established job types.
However, as the gig economy grows, more people are interested in joining the industry.
Still, one of their biggest concerns is their ability to earn a stable or reliable income.
DoorDash is undoubtedly one of the most significant players in the food delivery business.
The company’s popularity and accompanying service delivery have made it a great employer, with thousands of part-time and full-time drivers.
However, before joining the DoorDash family, you may want to ascertain its worth by looking into how much they pay.
The following article will answer the question, “How much does DoorDash pay?” so you can decide whether to join the DoorDash team.
How Much Does DoorDash Pay?
You can earn between $15 and $25 per hour as a DoorDash driver.
DoorDash reports their drivers to make 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 $3200 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.
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.
How Do DoorDash Drivers Get Paid?
Once registered as a DoorDash driver, you are entitled to reimbursement from the company for the rendered services.
Various factors determine the amount of money you get from the company.
DoorDash drivers’ pay is determined by the number of deliveries they make daily and the tips they receive from customers.
For every delivery trip, drivers earn a base pay calculated according to the distance, estimated time, and urgency of the order.
Most deliveries also include a tip the customer pays should you accept their request.
The amount of money you make daily from the base payments and tips is calculated at the end of the week and paid directly to your account.
DoorDash makes no tax deductions, so you get your total earnings at the end of each week.
Additionally, you could earn extra income from DoorDash by participating in promotions and completing challenges.
For instance, once a promotion is advertised, you can earn extra money by completing a certain amount of deliveries within a stipulated duration.
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 it Worth it To DoorDash?
Working as a DoorDash driver has several benefits that make it an excellent source of income.
One of the most significant factors is the level of flexibility and independence it offers drivers.
As a driver, you get to decide how much time you will spend delivering food to clients.
Therefore, it can help you bring in extra cash as a side hustle since you can work in your free time.
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.
Do DoorDash drivers see tips?
Yes.
DoorDash drivers can view the amount of tip money after completing a delivery.
Before accepting and delivering orders, DoorDash drivers can see their expected total earnings, including the tip and base pay.
However, once they have delivered the order, the app breaks down the earnings, showing the tip earned from the trip.
Does DoorDash pay for any bills you incur while working?
No, DoorDash does not pay for gas, car maintenance, or any other expenses you may incur while working as a DoorDash driver.
These bills are your responsibility.
Wrapping Up
Working with DoorDash is an excellent way to earn income as a part-time or full-time driver.
The company has favorable base payment rates supported by promotion earnings and tips you get with every delivery.
While the pay is relatively lower than other food delivery services, working with DoorDash will ensure you have more deliveries, translating into a higher income.
You need a vehicle and a favorable location, and you are good to go.
