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How Much Does DoorDash Pay? (Full Guide)

how much does doordash pay

Are you looking for a simple way to make money in your spare time?

If you enjoy driving, working as a DoorDasher could be for you. These drivers work as independent contractors and use their own vehicles to complete orders through the DoorDash app. There are a lot of advantages to becoming a DoorDasher. However, it is important to take the drawbacks into account before signing up.

If you want to know, ‘how much does DoorDash pay?’ then it’s time to find out…

About Working As A DoorDasher

About Working As A DoorDasher

DoorDash is an app that allows people to order food and beverages and have them brought to their door. DoorDashers are the people who deliver. Once an order has been placed on the app, the nearest driver has the opportunity of accepting the order.

After accepting, the DoorDasher goes to the restaurant to collect it. They need to make sure that the food and beverages are properly packaged and delivered to the waiting customer.

Read more: Best Times to DoorDash

Flexible hours

DoorDashers can choose when they want to work and select the area they wait in to receive orders. Drivers use their own vehicles and are responsible for making sure it is maintained. They only get paid when they complete orders, so there is no set hourly rate for this job.

While this job does not come with the benefits of job security, DoorDashers can choose their hours. This can be a good part-time job for students and people who have other commitments. However, it is also possible to work full-time hours and even choose different shift patterns each week.

Payment Methods

There are two main ways that DoorDashers can choose to get paid by the company. Each of these methods comes with pros and cons that should be taken into account. Let’s take a closer look at them and what they involve.

Bank deposits

You can choose to have your base pay transferred to your account every week. The good thing about this payment method is that there is no transfer fee. However, you will usually have to wait around two or three days to receive your funds.

FastPay

If you choose this payment method, you will receive your funds almost instantly. Choosing FastPay is a good option if you are strapped for cash and need to purchase gas. DoorDashers who choose this option receive a DasherDirect card. The company makes transfers directly onto this card for drivers to withdraw.

What is a DoorDasher Card?

The DasherDirect card is a Visa Business Card, and most applicants are approved immediately. New cardholders can enjoy 10% cashback for a limited period. There are lots of ATMs that do not charge a fee for using the card. However, DoorDashers are charged around $2 each week when their base rates are transferred.

How Payments Are Calculated

Before you check out the amount of money you can make, you need to understand how the fee is calculated. A rate is offered for each order, which is based on a number of different factors. In addition to this base rate, DoorDashers also make money from tips and promotions.

The Base Pay

The Base Pay For DoorDashers

This is a fixed amount that is provided by the company for each order completed. The DoorDash team uses several different factors to calculate the base pay. This includes the time of day, the demand for DoorDashers, the size of the order, and the delivery distance.

The base pay starts at $2 and can rise as high as $10. However, accepting an order with a higher base pay doesn’t necessarily mean you will earn more money. You need to take a careful look at the order and work out how long it will take to complete.

DoorDash Promotions

 

The company offers special promotions to encourage drivers to work harder and take on more shifts. Peak pay is offered as a bonus when drivers are reluctant to take certain orders or in a particular area.

An additional $2 may be given for certain orders to help sweeten the deal and stop the company from losing customers. Rates can also rise when there is a large number of orders and few drivers to complete them. You are likely to find that rates go up during peak dinner hours, during the weekend, and during bad weather.

Drive Incentive

DoorDashers who maintain a high acceptance rate and complete a certain number of orders are also treated to special rewards. They are provided with access to the Drive incentive program, which allows them to take on special orders. These usually come with a higher earning potential and include large catering events.

DoorDasher Challenges

These weekly challenges serve as another incentive to keep drivers working hard. Each week, DoorDashers are provided with details of the current challenge. Drivers who complete a certain number of deliveries within the week will be rewarded with a bonus.

Tips from customers

Customers are encouraged to give their driver a tip after they receive this order. This is one of the main ways that DoorDashers make money. In many cases, the tip can be just as high as or even higher than the base rate they receive. Therefore, it is worth focusing on providing excellent customer service and increasing potential tips.

How Much Does DoorDash Pay?

The amount that DoorDashers can make during their shifts can vary. It depends on factors such as the number of orders you complete and the value of those orders. That said, let’s take a closer look at the earning potential.

The average salary

Most DoorDashers report making between $15 and $25 per hour. This makes the average hourly rate for this job $20 per hour. However, carefully choosing when and where you work can allow you to make $25 per hour or even slightly more.

The weekly earnings

The weekly earning potential also varies according to how and when you work. If you can score around $20 per hour, you can multiply this figure by the number of hours you work. However, the more you work, the higher your maintenance costs and other expenses will be.

Payment per delivery

The base rate for deliveries varies from $2 to $10. However, accepting an order with a higher base rate does not always mean that you will make more in the long run. The rate is usually higher for orders that involve more time, effort, and gas to complete.

Driver Expenses

Before you start getting excited about your earning potential, it is important to take your expenses into account. DoorDashers are responsible for covering all of the expenses by themselves. Here are some of the main factors that can seriously eat into your earning potential.

Taxes

DoorDashers are 1099 contractors and are responsible for making their tax payments. Forgetting to factor in these tax contributions can result in a nasty surprise. It is important to make sure you have enough money to pay your taxes in full at the designated time.

You will be sent a Form 1099-MISC from the company with a summary of your earnings to make the process simple. You will also need to work out your rough operating costs for the year. If you are new to filing taxes, it may be a good idea to seek assistance from another independent contractor.

Gas

This is one of the biggest expenses that DoorDashers are faced with. According to the 2021 IRS standard mileage rate, the cost of gas is 57.5 cents per mile. It is important to take this cost into account when accepting orders that are far away.

Vehicle maintenance

Vehicle maintenance

If you own a car or motorcycle, you will know the importance of regular maintenance. The more often you use your vehicle, the more often you will have to service your vehicle. You need to remember to deduct the cost of wheel alignments, oil changes, and other maintenance from your earnings.

Insurance

The company provides DoorDashers with excess auto insurance. However, you also need to purchase your private auto insurance policy. Without this policy, you will not be qualified to drive for the company.

Self-employment taxes

As an independent contractor, you will need to pay taxes for Social Security and Medicare. This fee is calculated at a little over 15% of your annual earnings. It is essential to keep track of how much you will need to pay and have it ready.

How Much Does DoorDash Pay? – Ways To Boost Your Income

As you have seen, the amount of money you can earn varies. If you commit to this career, you will want to make sure you earn as much as possible. Here are some ways to earn more without having to work additional hours.

Consider your transportation method carefully

One of the biggest expenses you will incur while doing this job is the cost of gas. People who drive an electric scooter or car can skip this cost to a certain extent. While traveling by bicycle can be slower, this can also be a good way to cut costs. Another key advantage of using a bicycle is that you can nip through congested roads more easily.

Referral bonuses

You can earn extra cash by referring family members and friends to work as DoorDashers. Each time someone you refer starts working, you will receive an incentive bonus. This is a great way to help your loved ones earn money while getting something extra yourself.

The incentive bonus varies from $350 to $750. While you have to wait at least thirty days to receive it, this can add up over time. It is worthwhile working your connections and finding people who want to be DoorDashers.

Drive during peak hours

Drive during peak hours

The rate for accepting orders during busy periods is usually higher than during quiet periods. The rate is raised to persuade DoorDashers to work so that customers are properly served. It is worth finding out when the peak hours are in your area and arranging to work at those times.

Accept large orders

The rates are also higher for large catering orders and orders for special events. This is because DoorDashers have to wait longer while these orders are put together. If you are available to take on these huge orders, you are sure to find that it is worth your while.

Know where you’re going

Getting lost on the way to restaurants and customers will make your deliveries take much longer. Not only will you end up using more gas, but your earning potential will also be reduced. If you are late because you got lost, the customer may give you a bad review and, more than likely, reduce your tip.

You can avoid this by studying the map before dashing off to your destination. Take the time to work out the best route, including the busiest streets that should be avoided. This can save you a lot of time and trouble in the long run.

Time your trip with Google Maps…

If you are unfamiliar with a particular area, it is a good idea to use Google Maps. After entering the destination, the suggested route will be marked on the map. You will also be given a rough journey time, which you can use to update the customer.

Conduct quality assurance

It is essential to make a positive impression on each customer you deliver food to. This will help to boost your tips as well as your rating. Take the time to review it and see if there is room for improvement.

Several things can help you create a more positive impression with customers. Providing great customer service, such as giving delivery updates and greeting them by name, can go a long way. Customers are also sure to appreciate little extras such as napkins, disposable cutlery, and condiments if the restaurant forgets them.

Work during bad weather

The number of people who place orders through the app rises dramatically during bad weather. People are less likely to head to a restaurant or go grocery shopping during heavy rain. While driving in a storm can be unpleasant, it is a great way to boost your income.

Earning In Different Parts Of The United States

The amount that you can earn varies slightly in different parts of the country. This is due to the cost of parking and how much customers tip. Here are the typical rates in different major cities in the United States.

Detroit

The average hourly rate in the city of Detroit is $25. It is important to note that this figure includes tips from customers. The safest and most profitable areas to work as a DoorDasher are metro areas like Bloomfield, Troy, and Birmingham. However, it is best to avoid delivering orders near 8-Mile Road, as this area can be comparatively dangerous.

Philadelphia

Depending on the part of the city you drive in, you could make between $15 and $25 per hour. Drivers usually recommend trying to work in the Northern suburbs of the city. Traffic is much lighter in the suburbs, and it is possible to complete a higher number of orders each hour.

San Francisco

San Francisco

Although the cost of living is notoriously high, you can make between $21 and $30 per hour driving in San Francisco. The best times to earn money are during dinner hours and on weekends. DoorDashers who offer excellent customer service have the opportunity to make good tips at these times.

Atlanta

The typical hourly rate in this city is between $15 and $25, including tips. The best way to maximize your tips is to work in the downtown area of the city during peak dinner hours. However, traffic can be very heavy in the downtown area, and it can be difficult to find a parking space.

Boston

The potential hourly rate, including tips, is quite high in Boston and ranges from $20 to $30. The downtown and Northshore areas of the city are the best places to work. The earning potential also rises dramatically on the weekends and during public holidays.

Charlotte

The average hourly rate for working in North Carolina is between $18 and $25, including tips. Wealthy areas such as Mooresville are great places to work, as the tips tend to be higher. While the number of orders can be higher in the downtown area, there is also greater competition for orders. In addition, tips tend to be lower, and available parking spaces can be very limited.

Washington DC

This city boasts a very varied hourly average of between $10 and $30, including tips. The best time to earn the highest tips is on the weekends. Drivers can also earn more by choosing to work at lunch and dinner times.

DoorDasher Requirements

You need to be at least eighteen years old to work as a DoorDasher and have your own vehicle. There are no restrictions on the type of vehicle you can use, and electric scooters and bicycles are also permitted. In big cities and some other areas, riding an electric scooter or bicycle could help you complete orders more quickly.

If you choose to use your car, you need to have a valid driver’s license, a clean driving record, and car insurance. You will also need to make sure your vehicle is roadworthy and properly maintained.

How To Get Started As A DoorDasher

DoorDash Application tip

The process is fairly simple. You will be provided with a DoorDash t-shirt as well as a branded insulated delivery bag. Let’s take a look at how to start working for the food delivery service.

Sign up

The first step is to sign up through the company’s website. Even if you plan on riding a bicycle, you will be asked to show a copy of a valid driver’s license. A credit report and background check will also be required. You need to provide your social security number and a copy of your vehicle insurance. The customer service team will need a contact number, and it is also necessary to complete the provided W-9 form.

Install the app

Once you have been approved, you need to download the driver app onto your smartphone or tablet. Free versions of the app have been created for both the iOS and Android platforms.

Turn on the app

When you are ready to start making deliveries, turn on the app. This will show that you are ready for work and standing by. It is best to drive to the area you want to work in before powering up the app.

Choose orders and make deliveries

Take the time to check out the available orders and work out how much you can make. Once you have accepted an order, try to complete it as quickly and professionally as possible. This is the best way to earn higher tips and earn positive reviews from both customers and restaurants.

Let’s Help You Apply Today!

So, you want to be a DoorDasher? Great news, then find out more with our in-depth guide to the DoorDash Application, and you might be curious to find out Do DoorDash Drivers See Tips?

Or perhaps you’re just ordering dinner and want to know How To Get Free DoorDash, as well as, Can You Use Restaurant Gift Cards On DoordashHow Much Should You Tip A Delivery Driver, and depending on what time you order, How Late Does Doordash Deliver?

With so many delivery companies today, what not take a look at alternatives? So check out our guides to the Uber Application, and the Uber Eats Application, along with the Best Times To Drive For Uber And Uber Eats and How Much Do Uber Eats Drivers Make in 2023.

How Much Does DoorDash Pay? – Final Thoughts

The amount of money you can make as a DoorDasher can vary widely. Unlike other jobs, there is no hourly rate. Instead, the rate of pay is determined by several different factors.

If you have your sights set on this job, it is important to work out ways to maximize your income. Choosing the right time to work and providing excellent customer service can make a big difference. While it is unlikely to make you rich, it is a good way of making some extra money.

Good luck, and enjoy driving for DoorDash

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