Times are tough with Covid. Many people have lost their jobs, had hours cut back or just looking to make a little extra money. At the same time, many people really want flexibility when they are working, so maybe DoorDash could be a great opportunity to get that extra cash. That said, how much money should you expect to make as a DoorDash Driver?
Door Dash drivers are independent contractors and can work as little or as much as they want. Therefore it can vary widely how much money they make. According to DoorDash, a driver’s base pay will range from $2-$10+ per delivery and then tips will be added on top of this extra amount. DoorDash tells drivers to expect $15-$25 per hour, but according to Indeed, the average DoorDash Driver makes approximately $14.49 per hour. At that rate, working full time 40 hours, you would hope to make $579.60 per week.
How Does DoorDash Set the Pay Rates?
The good news is that when DoorDash sets the pay rates, you will know exactly how far you have to drive and how much you will make before accepting a new delivery.
DoorDash states that base pay 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.
Dashers also have the opportunity to earn more through promotions. Promotions include Peak Pay and Challenge Bonuses.
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. An example of a challenge may be something like “Get an extra $100 if you complete 60 deliveries in the next 6 days”
The last component of the equation is 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. All tips provided before or after the delivery will be shown in the Dasher’s earnings breakdown.
DoorDash Driver Costs to Consider
From an hourly earnings perspective, DoorDash drivers can make some good money, especially given the flexibility of being a driver. That said, since you are an independent contractor, you will be in charge of withholding your taxes. When you get paid, social security, medicare, and other taxes must be paid later.
As an independent contractor, DoorDash will send you a 1099 form for the money you made during the year (if it was greater than $600)
The other major costs associated with driving include the expenses associated with owning and operating a car. These costs include gas, insurance and maintenance.
According to AAA, gas and insurance expenses cost from 10-12 cents per mile while maintenance will cost about 5-6 cents per mile. Therefore, you should expect about 20 cents per mile in costs (while the IRS will allow you to write off much more, therefore lowering your tax liability)
Requirements to become a DoorDash Driver
The requirements are pretty simple to become a driver with DoorDash. Here they are:
- Be 18 or older
- Own any car (doesn’t matter how old), scooter or bicycle (in select cities)
- Have and provide a Driver’s license number
- Provide social security number (in the United States)
- Consent to a background check
Do you Need Experience or to work a certain amount to be a DoorDash Driver?
You don’t need any prior work experience to be a driver. DoorDash will also allow drivers and bikers from other companies like UberEats, Postmates, Lyft, Caviar, Eat24, GoogleExpress, GrubHub, AmazonFresh, Instacart, Amazon, Uber and Bite Squad to drive as well.
You can work as much or as little as you would like. You’re the boss!! As an independent contractor, you have the flexibility and freedom to drive whenever and wherever you want. You can make it full-time, part-time, or once in a while — and dash practically anywhere. It’s a great alternative to seasonal, temporary, and part-time work.
How Long Does it Take to Start Working with DoorDash?
The signup process with DoorDash is pretty quick. After signing up, it usually takes 1-2 weeks to get your account fully activated to start driving.