Food Delivery; How Much Does DoorDash Cost?

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It seems like everyone but me is ordering food these days. Every time I’m in a fast food restaurant, I see someone walking in with a red DoorDash bag so I know it is becoming a “thing” Maybe it is time for me to start ordering something other than pizza. Therefore, it was time for me to see how much it costs to use DoorDash

To cut to the chase, the DoorDash delivery fee is usually $5.99. The service fee is another fee to use DoorDash, and this cost varies from restaurant to restaurant. We have found that users typically see service fees from $1.99 to $7.99, so the overall cost to use DoorDash ranges $7.99 – $13.99.

Want to drive for DoorDash? See how much money you can make here!!

What Costs Should I expect to see with DoorDash?

  • Price of the item (prices you see on the menu)
  • Taxes (just like if you are in the restaurant)
  • Optional Tip to the Dasher
  • Delivery Fee (Usually $5.99)
  • Service Fee: (Usually $1.99-$7.99)
  • There may also be “additional fee” if the order is below a minimum subtotal or if demand is really high
  • In some areas of the country, DashPass is available. This is a subscription program that offers $0 delivery fee and reduced service fees for subscribers when ordering $15 or more from any DashPass eligible restaurant. The subscription is $9.99/month.

Check out how much Uber Eats Costs Here

Should I Tip

In most restaurant environments, tipping is the right thing to do. If you don’t tip, the worker likely gets paid very little. With DoorDash, this actually works a little differently. Based on what we have heard from drivers, you should only really worry about tipping if you are going to tip in cash.

When a Dasher receives an order, DoorDash gives the driver a “guaranteed” earnings from a trip. Let’s say this amount is $7. The driver delivers the food. You are a nice person, so you give them a $5 tip. What would you expect them to earn? The answer is probably $12 in your head. That seems reasonable, but the real answer is that the driver will receive $7. This is because your tip went towards their “guaranteed” earnings.

So How Does a Dasher Get Paid?

The formula that Door Dash uses to explain payment to drivers includes four amounts.

  • Base Pay: This is based on amount of time, distance and desirability of the delivery
  • Promotions: This comes up with Peak Pay and Driving Challenges. Driving Challenges can be something like 100 deliveries in a month. Peak pay could be a $1 bonus per delivery when demand is high.
  • Tips: DoorDash says that 100% of customer tips go to drivers. This is somewhat true, but as we discussed earlier, the math doesn’t quite work out as you would expect.
  • Total Earnings: Base Pay + Promotions + Tips = Total Earnings. If this amount is less than the guaranteed amount then DoorDash will make up the difference.

Base Pay

According to DoorDash, “Base pay from DoorDash to Dashers ranges from $2-$10+ per delivery depending on the estimated duration, distance, and desirability of the order. Deliveries that are expected to take more time, that require Dashers to travel a longer distance, and that are less popular with Dashers have higher base pay.”

Promotions

According to DoorDash, “Dashers also have the opportunity to earn more through promotions. Promotions include Peak Pay and Challenge Bonuses that we plan to roll out in the coming months. When it’s busy, Dashers can earn extra money on each delivery through Peak Pay, and Challenge Bonuses will better reward more active Dashers and help them meet specific earnings goals for the week”

Tips

According to DoorDash “Every dollar customers tip is an extra dollar in their Dasher’s pocket, and customers are able to tip at checkout and soon, after the delivery. The amount DoorDash pays in base pay and promotions will never vary based on the tip amount. Tips left at checkout are shown as part of the Dasher’s guaranteed earnings when the Dasher is offered a delivery, and any tips provided after the delivery will also be added to the Dasher’s earnings.”

All in, as we have started to use DoorDash, we love the service and the ability to order more food from home. Give it a try and see if you like it!

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