Whether you need side hustle cash or want to work full-time, DoorDash is a fantastic opportunity to consider in the gig economy. Working as a delivery driver for this platform allows many people to earn a reliable income.
DoorDash workers are independent contractors known as “Dashers.” They can work at any time and almost anywhere.
If you’re looking for employment options, it might be tempting to become a driver. Can you earn a living while delivering food to people throughout your community?
Can You Make a Living Off DoorDash?
The average full-time worker using DoorDash for employment earns approximately $19 per hour. That creates an annual salary of roughly $43,000. Expenses must come from that figure, including fuel and vehicle maintenance. The best way to maximize income is to dedicate hours to prime delivery hours.
Working in the gig economy comes with numerous perks.
- You can maintain a flexible schedule that works around other things you need to do during the day.
- You’re making extra cash while doing something you love.
- It doesn’t take much to get started with most opportunities.
If you want to be a Dasher, you can start online right now to complete a profile. Once the information is in the system, possible deliveries where you live will start coming your way to boost your income.
Is it possible to earn a fair living when working as a Dasher? Yes – and no. Like most gig apps, independent contractors face a few challenges that traditional employees don’t worry about with their income.
Your keys to success depend on your income goals, the value in your marketplace, and the hours you’re willing to work.
How Much Do Dashers Make with DoorDash?
ZipRecruiter interviewed thousands of people who work for DoorDash. The lowest hourly salary they received in their surveys was $6.97 per hour. At the top of the spectrum were workers earning $30.78.
That creates an annual salary range of $14,500 to $69,500. Those figures don’t take expenses into account.
The highest-paid cities for DoorDash deliveries include San Francisco, Fremont, and San Jose. Seven of the top ten locations are in California. The others are Seattle (WA), Jackson (WY), and Barnstable Town (MA).
Earning a high DoorDash salary in these communities doesn’t mean your standard of living is better. Dashers make more because it costs more to live in these cities. That means you could have a more comfortable living where the cost of rent and fuel are below-average compared to the rest of the country.
It’s important to remember that Dashers are considered independent contractors in the gig economy. That means fuel and maintenance aren’t the only costs to manage. American workers in this situation must also pay the employer’s share of Social Security and Medicare taxes.
It’s called the “self-employment tax.”
How Does Compensation Work with DoorDash?
DoorDash offers a compensation package that includes base pay, promotions, and tips. The first amount is the primary contribution to each order, with values ranging from $2 to over $10.
Factors contributing to a higher payment amount involve long distances, expected time for delivery, and less popular routes.
The base pay for each order doesn’t change, even if a customer offers a significant tip. Dashers that receive tips earn 100% of the amount the customer provides.
DoorDash offers some promotions that lead to extra pay when certain conditions are met. These payment options typically fall into three categories.
- Peak Pay Promotions. When it gets busy in your community, this option lets you earn extra money with each delivery. It’s added to the total earnings shown when offered a job.
- Challenge Promotions. If you complete a specific number of deliveries within a particular time, you can qualify for this extra pay.
- Guaranteed Promotions. This pay incentive is for selected Dashers to earn a specific amount (excluding tips, challenge payments, and referrals) within a particular number of days. This offer is sent by text or email.
When you accept an order as a Dasher, you’ll see the minimum amount available to earn for the delivery. The final pay could be higher, and you’ll receive notifications for any tips a customer adds to the order.
The hourly pay noted for DoorDash independent contractors includes all these options, including tips and incentives.
Do Customers Tip on DoorDash?
In 2021, DoorDash announced that they’d be changing their commission structure. It is now adding a 6% commission to restaurants, which means more of the fees get passed along to the consumer.
Slower order fulfillment also means higher commissions for restaurants to pay, which means the additional fees get passed to the consumer.
Many consumers need clarification on the upcharge that DoorDash puts on their order for a tip to the driver. When customers offer a tip, it tends to be between 10% and 15% of the amount.
That means the average Dasher earns between $10 to $15 for every $100 in food they deliver. If the tip rate in your community is 50%, that number drops to $5 to $7.50.
Even if you only get three tips in an hour, you’ll still hit the median salary for DoorDash delivery drivers in the United States (when the base fee gets added to that amount). If you qualify for other promotions or incentives, you’ll earn even more.
What Are the Pros and Cons of Working with DoorDash?
Freelancers, consultants, and most gig workers are considered independent contractors (ICs). These people perform services for others without being granted the legal status of an employee.
Most individuals who qualify as independent contractors have their own businesses or trade. In Washington State, they must have a business license if they earn more than $12,000.
That means a few advantages and disadvantages must be carefully considered when determining if you can make a living off DoorDash. Here’s a closer look at the key points to consider.
| Pros of Working as an Independant Contractor | Cons of Working as an Independant Contractor |
| You can earn more being in business for yourself than you would working for another person. Independent contractors are typically paid at least 20% more per hour than employees doing the same work. | There is no job security when working as an independent contractor. You’re not getting a paycheck from DoorDash or other platforms if business is slow. If you fail, you’re not getting bills paid. |
| People working as ICs get to be their own bosses. That comes with some risks and rewards, but you get to choose how and when to work (and sometimes where) while setting your preferred hours. | You don’t receive employer-related benefits when working as an IC. That means health insurance, paid vacations, paid sick leave, bonuses, and other perks are not part of your compensation package. |
| The amount of money you can earn as an IC is directly related to the quality and quantity of what you do. If you want a raise, you can start taking more jobs. | Most ICs don’t have the safety net of unemployment insurance or worker’s compensation. If you get hurt or lose your job, there’s nothing to collect. |
| Some independent contractors pay less in income taxes this year because there are some benefits available to them that aren’t there for employees. It’s up to you to decide how much to pay. | Fewer state and federal laws exist to protect ICs from unfair exploitation or discrimination as there are for standard employees. |
| Some independent contractors can access business-related tax deductions and establish SEP-IRAs and 401(k) plans to shelter some income until retirement. | Most independent contractors work as sole proprietors, which means they’re personally liable for business debt. Investing in an LLC structure can prevent the issues that develop with this disadvantage. |
How to Sign Up to Become a Dasher
If you’re interested in seeing how much money you could make with DoorDash, the first step is to sign up to become a delivery driver. You’ll need to visit the platform’s website at https://www.doordash.com.
Scroll down the home page until you find the icon that says, “Become a Dasher.” Click on the link that says, “Start Earning.”
The site asks you a series of questions to help get things going for you.
- Enter your ZIP or Postal Code to get started. Before clicking “Next,” please remember to read the Dasher Privacy Policy and DoorDash’s Independent Contractor Agreement. That includes agreeing to a weekly payout or paying $1.99 per transaction to receive funds via Fast Pay to a debit card.
- You’ll need to enter your email address next. It must be a valid account.
- Submit your profile information next. You’ll need to provide your legal name, then a password for the account. Your middle name is required.
- Choose your vehicle type on the next screen. If you pick a car, you’ll be asked for its details, including the make and model.
- You must complete an identity verification process to ensure no one is attempting to earn an income under your name. A valid government ID is required, and then DoorDash asks that you take a selfie that matches the image from your identification.
- Dashers must agree to submit to a background check as part of the registration process. DoorDash uses Checkr for this requirement. They’ll pull your motor vehicle report if you say you’ll use a car for making deliveries and then a criminal history report. Most background checks are completed in a day, but some can take more than a week.
- Select the payout method you prefer. Instant or weekly options are your only choice, although DasherDirect lets you get money after each completed delivery.
- Download the Dasher app once you’ve reached this stage. If you signed up through the app, click the “Start Dashing” button to begin earning.
What Happens After I Complete My First Delivery?
After completing your first delivery with DoorDash, you’ll be asked to enter your physical address for your welcome kit. You’ll receive an insulated hot bag and the platform’s Red Card in a few days.
DoorDash sends you the tracking information for the welcome kit and encourages you to keep making deliveries until it arrives.
The Red Card is a prepaid card that Dashers use to pay for some, but not all DoorDash orders. Earnings are not deposited to it, and the information isn’t linked to your bank account.
Once you receive your Red Card in the welcome kit, you’ll need to set it up with your mobile device.
Steps for Setting Up Red Card on Android
- In the Dasher app, tap the menu icon located in the top left corner.
- Select the Red Card from the dropdown menu.
- Enter the card’s delight number and the last four digits of the 16-digit account number.
Steps for Setting Up Red Card on Apple Devices
- Go to the Dasher app, then tap the Account option.
- Next, tap the red-colored link that says, “Did DoorDash give you a payment card?” It’s on the top of the page.
- Enter the last four of the 16-digit account number, then enter the Delight number.
Dashers only use the Red Card when prompted by the app. It might say, “Place Order” or “Pay with Red Card.” It can only be used at the correct time and restaurant.
Is It Worth Working for DoorDash?
People can make a living working for DoorDash, but it takes plenty of self-discipline to be successful. The most successful drivers put in more hours, work harder, and stay more dedicated than others in their communities. Even with that approach, success is never guaranteed with this employment option.
Self-employment can be rewarding, but it takes a specific mindset for it to be a successful experience. There can be long hours, impatient customers, and long pickup lines at restaurants to navigate.
Even when you do everything right, there can be times when people will still get upset with you. A few customers might even try to complain about your performance to try to get refunds from DoorDash.
Although there are challenges to navigate, the overall experience of being a Dasher is often fun. Even if you only want a little extra cash with a part-time side hustle, this gig lets you earn while supporting your community. That’s a win-win situation.
