DoorDash Driver Overview
- DoorDash accounts for 65% of the meal Delivery market; the next closest competitor is Uber Eats at 23%.[1]
- 13 million people have “Dashed” since 2013, accounting for $35 billion in driver earnings.[2]
- “Able to create my own schedule” (63%) and “work as much or as little as I want” (61%) were the two most commonly cited reasons for Dashing over other earning opportunities.[2]
- DoorDash now offers drivers guaranteed hourly pay (in select cities). The minimum compensation ranges from $10 to $19.50 per hour, according to a company statement.[3]
Launched in 2013, DoorDash has quickly grown to become the largest food delivery company in the United States. In 2022, more than 6 million “Dashers” fulfilled 1.7 billion orders worldwide.[4]
Still growing year-over-year demand for food delivery suggests there will be high driver demand for years to come. But just because DoorDash is the largest delivery service doesn’t necessarily mean it’s the best company to work for.
This DoorDash driver review covers everything you need to know about the pros and cons of being a Dasher, how to get started, tips for maximizing earnings, and ultimately, whether or not driving for DoorDash will be worth it for you.
What Is DoorDash?
DoorDash is an on-demand delivery service where drivers, known as Dashers, deliver food, alcohol, or convenience store items from local merchants.
It is similar to Uber Eats and Grubhub. What sets DoorDash apart from similar services is its focus and commitment to making sure every delivery is worth the time for every Dasher.
Liz Eischen, a West Portland area Dasher, says she’s come to prefer DoorDash over other delivery apps for that exact reason. “I know what to expect for every single delivery before I hit accept, whereas with the others you don’t see the full picture,” she said.
Three months and over 100 deliveries later, she’s come to appreciate the flexibility of working whenever and wherever she wants.
DoorDash works with independent contractor drivers known as "Dashers" to help deliver takeout food to hungry customers in the United States, Canada, Australia and New Zealand. Drivers can earn through Base Pay or Hourly Rate models, collect tips, and complete additional incentives to boost their earnings.
Show Hide moreHow Driving for DoorDash Works
Customers are able to order from an extensive list of restaurants in the DoorDash app.
Once an order is placed, it shows up in the Dasher app and any driver can accept or reject the delivery.
In busy areas, orders can be snapped up rather quickly, so you’ll want to check the Dashtab with some frequency so as not to miss out.
Alternatively, you opt to get Dasher app push notifications for each new delivery opportunity.
Once the order is accepted, it’s picked up and delivered to a location specified by the customer.
All transactions are made in the app — including tips — so there’s no cash handling needed.
Sign Up to Be a DoorDash Driver
If you meet the initial eligibility requirements, you’ll start by filling out an online application including your name, phone number, location, and information required to do a background and motor vehicle history check.
DoorDash Driver Requirements
To become a Dasher you must:
- Be at least 18 years old (21 years old to deliver alcohol)
- Have a smartphone
- Consent to and pass a background check
While owning a car isn’t a requirement in all cities, a valid driver’s license, insurance, and a clean driving record are. You can use almost any type of transportation, including a car, bike, scooter, or motorcycle, to actually deliver.
Once you pass the background check, you’ll get an Activation Kit by either going into a DoorDash office for a Dasher Orientation or having the kit shipped to you. The kit includes an insulated bag and a prepaid debit card also known as a Red Card.
The Red Card is a prepaid card loaded by DoorDash. You’ll use it to pay for food should you need to, but most drivers report rarely having to use it. You’ll mostly need it to activate your account in the DoorDash Dasher app.
Download the DoorDash Dasher App
The DoorDash Dasher app is available for Apple and Android phones. Instructions for downloading and setting it up come with the Red Card.
- DoorDash – Dasher – Apps on Google Play (4.3/5 stars, 242,000 reviews)
- DoorDash – Dasher on the App Store (4.7/5 stars, 2.4M reviews)
In it, you can see announcements, schedule dashes, review previous deliveries, and see your ratings and earnings on their respective tabs.
While Dashing, the app will show the areas with the most orders, and it will even suggest the most suitable orders for you based on location and type of transportation.
Connect Your Bank Account
Once you’ve downloaded the app, you’ll want to head to the Earnings tab and tap on the red bank icon. Here you can set up your payment preferences or update your existing banking information.
Dashers will receive their earnings weekly via direct deposit. US-based Dashers may also access their earnings more frequently via DasherDirect or Fast Pay. (More on those later.)
Start Delivering
To start Dashing, you can schedule a shift in advance on the Schedule tab or, if available, start immediately by clicking “Dash Now” on the Dash tab.
Only areas highlighted in pink or red are available to Dash Now, to ensure there are always enough deliveries to keep all pre-scheduled Dashers busy.
The scheduling feature is unique to DoorDash, and a feature Eischen was hesitant to use at first – but now she loves it.
Scheduled blocks of time limit the number of working Dashers, keeping the competition for deliveries much lower.
You can schedule a time block up to a week in advance or as quickly as the day of.
There are also fewer in-person orders to place with DoorDash, meaning less time sitting around in restaurants and more time for taking deliveries.
“I very rarely ever wait for anything,” Eischen said. “I usually just walk in, grab an order, and walk out.”
DoorDash Driver Pay
There are currently three ways for drivers to earn income with DoorDash for each order.
1. Base Pay
The way DoorDash keeps pay enticing and fair for Dashers is by showing a Base Pay amount for completing each delivery before you accept it. The Base Pay amount is based on factors like the size of the order, whether you have to place it in person, driving distance, traffic, etc.
Note: In June 2023, DoorDash announced a new alternative Base Pay method known as Earn by Time(as opposed to the traditional Earn by Offer). This is available in select cities and guarantees a minimum compensation between $10 and $19.50 per hour plus tips, according to the company.
2. Tips
Additionally, DoorDash allows customers to allow Tips on all orders, and drivers get to keep 100% of their earned tips.
3. Promotions
Lastly, Promotions — like Peak Pay and Challenges — help you earn more per delivery when it’s busy.
For example, if there are many customer orders pending in a particular part of your town, DoorDash will add a small cash incentive to your Base Pay to encourage drivers to mobilize to that area to fulfill those orders. Peak Pay generally appears as an additional $1 to $3 tacked on to each order, but some users have reported seeing as much as $10 in Peak Pay available.[5]
“The other day I was delivering and it was +$1 and +$2, so it was really like three extra dollars per delivery,” Eischen said. “When that’s happening, I’ll just accept everything that comes through.”
Eischen sees Peak Pay opportunities up to three times a week in some areas and only once or twice every couple of weeks in others.
Challenges let you earn extra money for completing a certain number of deliveries in a set amount of time.
With several incentives available, Eischen is selective with the deliveries she chooses. “I often only pick up deliveries where I’m likely to earn double digits.”
Related: 6 Companies That Will Pay You to Advertise on Your Car
DoorDash Driver Sign-Up Bonus
It’s natural to wonder if there are any driver promotions or sign-up bonuses you can capitalize on. Unfortunately, DoorDash has an established driver presence in nearly every major US city and thus has pulled back on its promotional efforts.
- DoorDash does not offer a sign-up bonus to US drivers at this time. (We will update this post if we hear differently).
- DoorDash is currently offering a $200 sign-up bonus for Sydney, Australia-based Dashers who complete 20 deliveries in their first 30 days.
The company does host a Driver Referral program in which Dashers who have completed 30 deliveries and have been active for 30 days can refer friends to Dash as well. Reddit users report seeing Referral bonuses as high as $1,800 for referrals that complete 270 deliveries in their first 90 days. (DoorDash’s own FAQ page shows this exact bonus structure).
Getting Paid
Dashers get paid weekly for deliveries made Monday to Sunday of the previous week. Paychecks come via Direct Deposit and payment is usually available within 2 to 3 days, so payments will appear by Wednesday night.
If you need your money a little faster, there’s the aptly named Fast Pay option.
Eligible Dashers can collect earnings daily using Fast Pay for $1.99 per cash out. Dashers must be in an active Fast Pay market, have completed 25 deliveries, and Dashed for at least two weeks to begin using Fast Pay.
Lastly, DoorDash now also offers a separate app, reward, and payment program named DasherDirect. Interested Dashers can apply for the program, and if approved, are sent a DasherDirect Visa Business debit card.
The app and its associated card allow Dashers to get paid instantly [to the debit card] after every delivery with no associated fee. Additionally, participants can get 2% cashback on gas at thousands of stations nationwide.
| Fee | |||
| Pay Frequency | |||
| Deposit Location | |||
| Available In | |||
| Additional Perks |
Earning Tips
- Keep track of all expenses. Like with any business, there are start-up and maintenance costs associated with a DoorDash gig. Tolls, parking, gas, vehicle maintenance costs, your smartphone, and phone plan are all costs that DoorDash doesn’t cover. Yet, many of these expenses are tax-deductible. Keeping good records can mean tremendous savings come tax time.
- Find the best times to Dash. Intuitively, the best times to Dash often revolve around meal times, especially on weekends. 6 AM to 9 AM, 11 AM to 1 PM, and 5 PM to 9 PM are generally the busiest hours. But there’s some nuance to this. For example, downtown city areas are often ghost towns after 5 PM at the close of business — you’ll know your market best, but there needs to be some steady demand to maximize earnings.
- Consider off-hours. Non-peak hours, especially after 10 PM, can also be lucrative hours to Dash. Less competition for orders and the tendency for customers to tip more generously can ultimately mean higher take-home pay.
- Order value over order volume.Work smarter, not harder. Accept orders that maximize hourly earnings versus always taking the highest-paying gig and/or completing as many gigs as possible. Low(er) volume and high(er) hourly rates will also help reduce the expenses mentioned in tip #1, making your earnings go further.
- Book Dashes in advance. For once, it’s okay to be a little selfish. If you know you’re going to be free [up to 6 days in advance], sign up to Dash in premium areas. Be it areas of good volume or higher than average affluence, getting a leg up on other Dashers means more money in your pocket.
- Know which orders to accept. It’s okay to pass on low-value orders. Instead, aim for orders that guarantee at least $2 per mile and have a total order value above $6. Doing so should almost guarantee you stay above the double-digit hourly earning threshold.
Relate: 9 Ways to Generate Passive Income with Your Car
Alternatives to DoorDash
If you enjoy delivering for DoorDash, but find that it is competitive at times and simply want to stay busy, you can check out some of their competitors. While they all hold some similarities, there are some key differences that may make the alternatives more or less attractive.
DoorDash vs. Uber Eats
While DoorDash gobbles up the lion’s share of the food delivery market, Uber Eats — especially after their Postmates acquisition — also commands a respectable slice. Notably, ZipRecruiter has found that earnings for both companies’ drivers back out about the same, a reassuring measure for contractors on both sides of the aisle. Uber Eats drivers do haveless time to decide whether or not to take an order (sometimes just 15 seconds). The forced urgency in decision-making can lead to accepting orders that have a lower return on your time.
Note: One massive perk worth noting is that Uber Eats offers 100% tuition coverage for a driver or a family member to one of Arizona State University’s top-ranked online degree programs.*
* Delivery people must have completed 2,000 lifetime trips and have Gold, Platinum, or Diamond status in a U.S. city where Uber Eats Pro is in operation to be eligible for 100% tuition coverage.
DoorDash vs. Grubhub
Grubhub, albeit smaller in market share than both DoorDash and Uber Eats (which means fewer orders to fulfill), tends to pay better, according to drivers on Reddit. The consensus seems near universal according to dozens of drivers who have delivered with all three platforms. When given the choice, they’ll accept Grubhub orders over the two competitors. That said, Grubhub takes a notably pro-customer stance at the [some would argue deserved] expense of the contract driver. The penalties for missed, dropped, or rejected orders are seemingly stiff and drivers may be eligible for fewer orders in the future.
DoorDash vs. Instacart
A slightly different model altogether, Instacart shoppers fulfill on-demand grocery orders and deliver them to a customer’s requested address. Contractors can choose to work on the shopping side (the actual fulfillment of the grocery order), the delivery side (driving it to their home), or both (full-service shoppers). One perk is a guaranteed $5 base pay for each delivery, which comes in slightly higher than their takeout food delivery competitors.
| Available In | US, CA, AU, NZ | US, CA, UK, and AU | US only |
| Tips | Drivers keep 100% | Drivers keep 100% | Drivers keep 100% |
| Fast Pay/Instant Cashout | Yes, $1.99 fee (1x per day) |
Yes, $0.50 fee (Up to 5x per day) |
Yes, $0.50 (No daily limit) |
| Perks | Peak Pay + Challenges | Quest, Surge, Boost | Missions |
| Tuition | Up to 100% covered (see T&C) | No | No |
FAQ
The Bottom Line
It doesn’t matter what city you live in – every city has an area where deliveries are common. Eischen herself is proof you can stay in the suburbs and still do well with DoorDash.
“I’m not in downtown Portland, mostly because Portland doesn’t have great parking,” she said. “I’m in the Beaverton-Hillsboro area and for me, that’s still fantastic. We have Nike over here, we have Intel, we have a bunch of places there and still, quite a few orders come in.”
That said, how you make out at the end of the day matters. With a poor delivery strategy, you can actually lose money once expenses are factored in. $2 and $3 orders don’t make logical sense when they’re 8 miles across town.
By employing the earning tips found above and being diligent about tallying expenses, it is reasonable to expect double-digit net earnings when it is all said and done. Only you can determine whether a $10 to $20 per hour side gig is worth it to you. For some, the flexibility and work hours are second to none. For yet others, the net pay can be eclipsed by one of several ways to make money online.
Ultimately, a good side gig is relatively enjoyable, doesn’t add significant stress to your life, and is fiscally worth your time. If flexibility and respectable earnings are what you crave, DoorDash may be the best fit on the menu for you.
Related:
- 189 Side Hustle Ideas for Making Extra Money
- 20 Best Money-Making Apps for Earning On the Go
- Why Weird Side Hustles Often Make Great Money (And How to Find One)
Sources:
The post DoorDash Driver Review: How It Works, Pay & Is It Worth It? appeared first on DollarSprout.
