How Much Money Can You Make with DoorDash? A Fair Assessment

Within the dynamic and competitive landscape of side hustles, DoorDash prominently figures as a popular choice for many seeking flexible earning opportunities. The key question that often arises is, “How much money can you make with DoorDash?” This article will answer that question and more.

Earnings

As is the case with most side hustles, how much DoorDash drivers make depends on how much they hustle. As a service provider and subcontractor, you’ll make your own schedule and work only when you’re available.

Most DoorDash drivers’ average earnings are between $15 and $25 per hour. Drivers are paid a set delivery fee, but the hourly wage can be calculated from the total of the fees and the time period that is worked.

How much you make depends on how often you are available and how many deliveries you can make, especially during peak times.

What’s more? As an independent contractor providing service for DoorDash, you have the freedom to shape your own schedule and determine your earning potential based on your availability and effort.

What is DoorDash?

DoorDash isn’t truly a food delivery services company. It’s a logistics company (or aggregator business) that developed software to link customers’ online orders, restaurants and drivers. It got its start with three college students in the San Francisco area, and it is one of the legit money-making apps you can use.

Dashers

The drivers are called Dashers, who learn of requests for deliveries via their DoorDash app.

Once you download the DoorDash driver app, you’ll start earning extra cash.

Loan Payments

Doordash is a top choice for student loan borrowers seeking to pay off student loans or for anyone who wants to chip away at payments on personal loans. Paying off loans can greatly improve your credit score.

Here’s a word from DoorDash Diaries that discusses the money-making mindset you to adopt for delivering for Doordash in 2023:

How Much Does a DoorDash Driver Make?

The average hourly pay is $15 to $25 per hour. How is that calculated?

Minimum Payment

DoorDash sets a base minimum pay per order, ranging from $2 to $10. The amount is set based on your area and also the time of day (peak hours for restaurant delivery times equals peak pay).

Bonus

Some orders are tagged with a bonus, for example, $2 extra. Those are delivery orders linked to special clients or large events (such as a need for catered deliveries).

The App

You’ll use the DoorDash app to sign in, signaling that you are available to accept orders for deliveries.

Number of Deliveries

You don’t have to accept all the delivery requests. But you’ll get a bonus and earn more money if you accept more deliveries than the average dasher. Typically, you’ll get a bonus with an 80% acceptance rate.

Costs

When you’re calculating how much drivers make – net earnings – with DoorDash, you can’t forget your actual cost. You’ll be paying for your own gas with this side hustle, plus handling car maintenance.

Modes of Delivery

A DoorDash driver doesn’t have to be a driver using his or her own car – in some areas, they use a bicycle or scooter or deliver on foot.

How much do DoorDash drivers make? You’ll earn high hourly wages if you make many deliveries.

How to Earn Money as a DoorDash Driver

Let’s get into the specifics of DoorDash, one of the gig apps that is most popular.

Delivery Payouts

Using the system of base pay that is offered with each delivery, doordash keeps tabs on all your work as you’re driving for Doordash. Each time you deliver a customer’s order, DoorDash adds it to your total.

Your deliveries are totaled during a Monday through Sunday pay period, and you’re paid on the following Wednesday.

How Are You Paid?

You can be paid by direct deposit to your financial institution or bank account, or you can be paid via a DoorDash fast pay card (prepaid card) that you use as a debit card.

DoorDash Driver Tips

Some customer tips are paid to you in cash as you deliver.

More frequently, the customer elects to add a tip at the time they pay to have someone deliver food. Either way, the tips customers pay are added to your pay as extra income.

Peak Pay

In the restaurant business, there are peak times such as lunch and dinner. When you drive and deliver during those peak times, your DoorDash driver earnings are higher.

Bonuses and Incentives

If you take more than 80% of the available deliveries, you may get a DoorDash referral bonus. You may also earn a bonus by driving and delivering during peak times.

How to Get Started with DoorDash

Ready to chip away at student loan debt, save for a vacation or supplement your main income? If so, delivering food to hungry customers through an app is likely a good fit. You can choose from multiple delivery apps, but DoorDash can be an excellent choice due to its popularity and ease of use.

DoorDash provides a delivery bag that helps keep restaurant orders hot (or cold). You’ll also get a DoorDash shirt (you don’t have to wear it unless you want to!).

It’s easy to get started too. Here’s a step-by-step guide on how to get started with DoorDash:

Step 1: Sign Up

The first step is to sign up for a DoorDash account. This involves agreeing to a background check and credit report. A valid driver’s license is a must.

Step 2: Receive DoorDash Kit

After successful registration, DoorDash will send you a kit, which includes a delivery bag to keep the food items at the appropriate temperature and a branded DoorDash shirt. Wearing the shirt is optional, but it might help in creating a professional appearance.

Step 3: Install DoorDash App

Next, you will need to install the DoorDash app on your smartphone. The app is available for both iPhone and Android devices.

Step 4: Availability Indication

You can indicate your availability for deliveries by turning on the app. This will notify the system that you’re ready to accept delivery orders.

Step 5: Choose and Make Deliveries

Use the app to view available deliveries near you and accept the ones that suit your schedule and location. Make sure to be prompt and professional in picking up and delivering the orders.

This will enhance your chances of getting positive reviews from restaurants and customers, which could lead to more opportunities in the future.

Comparison Table

Here’s a comparison table that illustrates the sequential steps you’ll need to follow to start working as a DoorDash driver. This table serves as a convenient quick-reference guide, highlighting the crucial steps from signing up to successfully making deliveries. It also emphasizes the importance of professionalism in gaining positive reviews, which can play a significant role in your success as a DoorDash driver.

Maximizing Earnings as a DoorDash Driver

To optimize your earnings with DoorDash, consider the following strategies:

1. Strategic Scheduling: While flexibility is a key advantage of driving for DoorDash, strategically choosing your working hours can significantly impact your income. Peak times, such as lunch (11 am to 2 pm) and dinner (5 pm to 9 pm), often see higher demand and can boost your earnings. Additionally, working on weekends and holidays, when demand is high, can be more lucrative.
2. Efficient Routing: Maximizing the number of deliveries per hour can increase your earnings. Using navigation apps to find the fastest routes and planning your pick-ups and drop-offs can save time and allow for more deliveries.
3. Maintaining High Ratings: Customer satisfaction plays a crucial role in your success as a Dasher. High ratings can lead to more frequent and higher-paying delivery opportunities. Ensuring timely deliveries, being courteous, and handling orders carefully can help maintain high ratings.
4. Taking Advantage of Promotions: DoorDash occasionally offers promotions and challenges that can boost earnings. These may include extra pay for completing a certain number of deliveries within a set timeframe or bonus pay for working during specific hours.
5. Reducing Expenses: Since expenses like gas and vehicle maintenance can eat into your profits, finding ways to reduce these costs is crucial. Regular vehicle maintenance, using fuel-efficient driving methods, and planning routes to minimize mileage can help lower expenses.

Understanding the Impact of Location

The location where you choose to dash can significantly affect your earnings. Urban areas and cities typically have higher demand and offer more delivery opportunities compared to rural areas. Additionally, dashing in affluent neighborhoods might increase the chances of receiving higher tips.

The Role of Customer Tips

Tips from customers can make a substantial difference in your total earnings. Although you cannot control how much a customer tips, providing excellent service can encourage more generous tips. Some Dashers find that a friendly greeting and ensuring orders are correct and well-handled can positively influence tipping.

Seasonal Variations in Earnings

It’s important to note that earnings with DoorDash can vary seasonally. During colder months or bad weather, more people tend to order in, potentially increasing demand for deliveries. However, this can also mean more challenging driving conditions, so it’s important to balance the potential for higher earnings with safety considerations.

When Does DoorDash Pay?

How often will you get the extra cash? DoorDash makes weekly rather than monthly payments.

DoorDash totals your deliveries from Monday through Sunday, and DoorDash pays the following Wednesday. DoorDash will add your base pay and customer tip totals.

Business Expenses DoorDash Drivers Should Consider

While being a DoorDash driver can be a lucrative side hustle, it’s important to remember that there are costs associated with the job. Here are some of the key expenses to consider when evaluating potential earnings:

1. Distance, MPG, and Fuel Costs: Your net profit can be significantly affected by factors such as fuel costs and the efficiency of your vehicle. City driving can further decrease your miles per gallon (MPG), leading to higher fuel costs. Keeping diligent records of your mileage can allow for deductions on fuel costs when filing a Schedule C, though it’s important to note that you cannot deduct mileage expenses if you qualify for the standard deduction.
2. Vehicle Maintenance: Aside from fuel costs, wear and tear on your vehicle is an unavoidable expense as a DoorDash driver. Regular maintenance such as oil changes and tire replacement will need to be factored into your overall costs. Additionally, potential repairs due to increased use of your vehicle should also be taken into consideration.
3. Income and Self-Employment Taxes: As an independent contractor for DoorDash, you will receive a 1099 form, making you responsible for federal, state, and local income taxes on your earnings. Additionally, self-employment tax, which includes contributions to Medicare and Social Security, accounts for an additional 15.3% of your earnings.
4. Insurance Costs: Depending on your personal car insurance policy, delivering food might not be covered, and you may need to get additional coverage. Some insurance companies offer a rideshare insurance policy that can be added to your existing coverage. Always check with your insurance company to ensure you’re adequately covered.
5. Smartphone and Data Usage: As a DoorDash driver, you’ll be using the DoorDash app extensively, which means you’ll need a reliable smartphone and potentially a large data plan. The cost of upgrading your phone or data plan, as well as any potential repair or replacement costs, should be factored into your overall expenses.

Understanding these expenses can help you more accurately calculate your potential earnings and ensure that your experience as a DoorDash driver is financially beneficial.

Conclusion: Maximizing Earnings as a DoorDash Driver

Understanding DoorDash Earnings:

• Income Factors: Earnings depend on your dedication, availability, and number of deliveries.
• Average Pay: Most drivers earn between $15 to $25 per hour.
• Delivery Fees & Hours: Wages are based on these factors, with more deliveries leading to higher earnings.

DoorDash’s Role in the Gig Economy:

• A Logistics Platform: Connects online orders, restaurants, and drivers.
• Opportunity for Flexibility: Ideal for paying off loans or managing personal finances.

Being a Dasher:

• Flexible Work: Choose your hours and method of delivery (car, bike, scooter, walking).
• Income Components: Base pay, bonuses, and delivery volume affect earnings.
• Startup Process: Sign up, pass background checks, and receive a delivery kit.

Financial Considerations:

• Weekly Payments: Earnings calculated weekly via direct deposit or DoorDash prepaid card.
• Boost from Tips & Peak Pay: Customer tips and peak hour pay can increase income.
• Expenses to Factor In: Fuel, vehicle maintenance, taxes, insurance, and smartphone use.

Strategies for Increased Earnings:

• Peak Time Management: Work during busy hours for higher pay.
• Expense Tracking: Monitor and manage costs to maximize net earnings.
• Quality Service: Deliver excellent service for more tips and better opportunities.

Working as a DoorDash driver offers a flexible way to earn money, but it requires strategic planning and consideration of various factors to maximize your earnings. By understanding peak times, managing expenses, and providing excellent service, you can enhance your earning potential. Remember, success in this role isn’t just about the hours you put in, but also about how smartly you work those hours.

Image: Depositphotos

This article, "How Much Money Can You Make with DoorDash? A Fair Assessment" was first published on Small Business Trends