In today's gig economy, people are always on the lookout for creative ways to make money.
And Doordash has become quite the mainstream way to earn some extra money on the side.
But is it worth it?
After all, you'll be forced to use your own vehicle, fuel, and time to make deliveries – which isn't exactly free.
What is Doordash?
Doordash emerged in 2013 as a food delivery service that was intended on delivering food to people who were…well, hungry. This app service is currently available in the United States, Canada, and Australia.
Since its inception, it has grown tremendously. Plus, it has also inspired direct challengers in Uber Eats, Grubhub, Postmates, and others.
As of today, Doordash is responsible for more than 800,000 deliveries. They are also partnered with nearly a quarter million merchants including large chain restaurants and your local mom-and-pop restaurants.
What are Doordash Drivers?
Doordash drivers are delivery drivers that will pick up your order. They are also known as Dashers. These are people who will work all hours of the day so your food is delivered right to your door. You could be craving breakfast or a midnight snack.
You set your own schedule: Love to work the morning shift? Are you a night owl? You can set your own hours the way you want. That's the beauty of being a Doordash Driver. You are not working for a specific restaurant. You just deliver the food no matter where it's from (so long as they have the Doordash service available).
You get paid good money: It's true. You get paid money depending on the amount of hours you work. If you are earning extra money or thinking about getting paid per hour, Doordash will be worth it. As one of the largest food delivery services in the world, why wouldn't you want to be a part of it?
You can do food delivery your way: Got a bike? Have your own car? Either way, if you got a set of wheels, you can deliver food as a Doordash driver. Did I mention that you can set your own hours? That's delivery your way. And it's one of the major Doordash pros whether you use it as a customer or a driver. How can you not love Doordash delivery at this point?
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How Does Doordash Work?
Doordash is simple and straightforward. A customer will order food on the Doordash app. They'll order from their local restaurant that is listed. When a customer orders food, a Doordash driver with the app will get a notification.
They'll have the option to accept or reject the gig. If accepted, the Doordash driver will pick up it up, make thier first Doordash delivery, and that's it. Quick, easy, and a win-win for both.
Sure, there may be times when the delivery isn't perfect. Things can happen beyond the control of not only the driver, but also the customer and the restaurant. But still, Doordash is a breath of fresh air for those that want food delivery from their local restaurants any day of the week.
For Drivers, it's an opportunity to add extra money to their bank account whenever they want to. They can set their own hours or do gigs at any time. So how do you become a Doordash driver? I'll explore the requirements below.
What are the Doordash Driver Requirements?
If you are considering the idea of becoming a Doordash driver, pay special attention to this section. I'll be going to go over the requirements that you need to fulfill in order to become one. Even though you are working as an independent contractor, you will still need to provide Doordash with the proper information.
Let's take a look at the following requirements to ensure that you meet them:
Vehicle requirements: As mentioned before, anything with wheels will do. This can be a bike, a car, or even a scooter. If you've got a vehicle, you should be set. If you do have a car, obviously you'll need a valid driver's license.
Driver Requirements: To begin the process, you'll want to install the Doordash app on your phone. It's available on both Android and iPhone. You will receive your orders from there. If you plan on using a vehicle, you must be 18 years of age. You will also need to pass a background check prior to your approval. Keep in mind that every prospective driver for Doordash has to do this. The background check will take anywhere from 3 to 5 days. If the process appears to be taking longer, contact Doordash support and you will be able to learn the status.
No major driving violations: If you have committed major driving violations in the past 7 years such as DUI, vehicular homicide, or operating with a suspended license, you will likely be disqualified. Also, you must not have more than three vehicle incidents in the span of the past three years. Doordash knows that safety is a priority, so if you have dealt with any major driving violations you may not be able to drive for them.
How Do You Sign Up as a Doordash Driver?
Now, let's take a look at the process on how you can sign up as a driver for Doordash:
Enter your legal name that appears on your driver's license
Include your date of birth, phone number, and zip code
Enter information that includes the state your driver's license was issued in (including the driver's license number)
You will need to agree to a background check.
Provide information regarding your vehicle. This includes the model, year, plate information, and other pertinent information requested by Doordash.
After the application is submitted, you will get an email in your inbox. This will request you to schedule an orientation. You will receive information on where these orientations are held near you. During your orientation, you will need to fill out paperwork that consists of a non-disclosure agreement and a W-9 form.
As you can see, the process is quite easy. No need to wait for interviews. But again, you will need to wait for your background check to clear.
Once you have gone through the orientation process, you should be set and ready to go. You can accept deliveries and work on your own time. Pretty cool, right?
How Much do Drivers Get Paid?
OK, so I went through the process of helping you become a driver for Doordash. So the next question you're asking is: how do you get paid for doing this? This is where I'll discuss as much as I can about how you can get paid and snag some extra cash in the process.
If you want to make more money, learn how Doordash pays you below!
Is There Hourly Pay?
There is really no hourly pay rate that you'll specifically earn on Doordash. That's because it will vary on several factors. This includes the city you live in, your schedule, and whether or not the customer tips you extra or not.
However, Doordash claims that most drivers will earn an average of $19 – $25 an hour. While that is not a guaranteed hourly pay rate, it is possible to earn that much. In the United States, minimum wage will depend on the state.
Your hourly pay will differ if you live in a smaller area compared to a larger city. Not to mention, you also have to deal with traffic from the restaurant you are delivering from to the customer. Also, the distance you'll travel for delivery will differ from one place to the next.
Working for Doordash can be a great side hustle for anyone looking to make some extra cash. When compared to other delivery apps, Doordash pays just as much (if not more!).
Check out the video below for more info!
How Else Does Doordash Pay You?
Once again, there are factors that will play a role. Aside from hourly pay, there's also base pay.
The base pay averages anywhere from $2 to $10 per delivery. This will depend on the following factors: the distance, the amount of time required, and drivers taking on less popular delivery gigs. Longer distances and lengthy deliveries completed can mean more money in your pocket. Maybe those quick short-distance deliveries shouldn't be just all you want to accept.
Do You Get Paid in Customer Tips?
Yes, you can get paid in customer tips. You can receive these tips when your customer checks out during their order. You can get extra money in your pocket for a job well done. Plus, you may have a customer that will tip extra because they may be feeling a little generous. These instances may be few and far between, but it's exciting knowing that you might have a customer that will tip you extra.
Doordash customers tip you an amount they so choose. Some may not even tip at all (and that can be a real pain. Especially for independent contractors who want to earn extra money).Check out these Doordash hacks to make more money!
What are Promotions?
Promotions are defined as more earning opportunities. These are done through instances such as peak pay and challenge bonuses. During busy times, drivers can earn extra money via peak pay.
It's basically the same model that Uber uses when their drivers earn money. Deliveries that are done during busy or rush hours will usually fall under the peak pay threshold. Imagine doing Doordash deliveries during the peak hours of the day and getting paid extra.
That's the beauty of peak pay. You'll be insane for missing out on such an opportunity if you want extra cash in your pocket. All I can say is take a few gigs and extra Doordash pay never felt so good.
Plus, it's a great way to save money. Whether it's for living expenses or a little spending cash. No matter your financial goals, Doordash is a pretty good side hustle to have.
The Doordash Pay Model
So now that you know some of the ways to get paid, here's the formula for the Doordash Pay Model:
Base Pay + Promotions + Tips = Your total earnings
The base pay will be the pay you will earn period. From there, you'll earn via promotions and tips. By the way, you earn 100 percent of your customer tips.
Notice that you do not get paid per hour. That's because you are not required to enter any hourly information like you would on a time care. Doordash does not pay you per hour.
You set the ‘per hour' rate depending on how many hours you want to work every day or week. Some other apps will have something similar to a per hour set up. However, Doordash does not want to make things complicated.
If you have an idea of how much you want to get paid per hour, you'll have to come up with a strategy. Think about a goal for deliveries completed in a day or a week. What kind of deliveries are you willing to accept?
How far are you willing to travel? Remember, longer distances can mean larger pay. This will increase your per hour rate if you choose to take on gigs like that.
Making money online in your spare time with Doordash is a no brainer. Sign up below to get started!
Do Doordash Drivers act as an Independent Contractor?
The short answer: yes. To further explain, Doordash drivers operate as an independent contractor. This means that they are not employees of a specific restaurant or place of business. They can pick up deliveries from the restaurants that the customer requests their food from.
Do I Have to Pay Self Employment Taxes?
Tax time can be a daunting time of the year. Especially for delivery drivers for Doordash. Do they have to pay a self employment tax?
The answer is: it varies. If you are making more than $600 as a Doordash dasher, you will need to pay taxes. Doordash sends you a 1099 form if you surpassed this $600 threshold.
Otherwise, if you earned less than that, there is no need to pay tax. You might do it once in awhile and you might not make enough to meet the minimum requirement to pay taxes.
How Do I Receive My Pay?
For one, you can schedule it to where Doordash can direct deposit your payment. These are scheduled on a regular basis. Your pay period will end on Midnight on Sunday. All payments from the previous week should be in your account no later than Wednesday night.
If you wish not to receive your funds via direct deposit, there are other ways. First, there's DasherDirect. It is a prepaid debit card that is issued exclusively to a Doordash dashers.
This includes deposits without paying extra fees. You can also get two percent cash back when you make gas purchases. That reward alone is perfect for you when you are dealing with business expenses. On top of that, you get access to over 20,000 ATMs without additional fees. Even better, you can get the cash in your hand at any time.
Next, there's Dasher Fast Pay. This is available in the United States and parts of Canada. You will need your own debit card (no prepaid cards) on file to qualify. This will allow you to receive your cash on a daily basis instead of waiting a week.
Keep in mind that there is a fee of $1.99 for every withdrawal. If you need cash fast, this will be your best possible option. Otherwise, it could be worth the wait or using DasherDirect.
This is the closest you can get to a fast pay option.
Either way, you can receive your Doordash earnings how you want. Being a Doordash courier does have its rewards. Even if it means having cash in your hand sooner rather than later.
Is Doordash Worth it After Taxes?
Besides the other expenses I've mentioned, taxes are going to take a nice chunk of your earnings away from you.
Now, this is no different than any other side hustle or job – but it's important t0 remember when calculating how much you actually make.
You can expect to lose around 25% of your profit to taxes. Remember, this is profit – so after your fuel, maintenance, and other expenses.
So is Doordash worth it after taxes?
It depends on your needs!
For some people, it's an amazing opportunity to earn some quick cash. But if you don't need money desperately, there might be other side hustles that you're better off with.
Is Doordash Worth it vs Other Side Hustles?
If you're thinking of delivering food with Doordash, you're probably debating other side hustles as well.
So is Doordash worth it compared to others?
Here's the deal. If you need money fast, yes Doordash is worth it. But if you don't need money immediately, there are plenty of other side gigs you might want to consider.
Oftentimes, you can make more money per hour with other side hustles when compared to Doordash, but they aren't guaranteed.
Who are Doordash Competitors?
While Doordash isn't the only app for food delivery, there are others out there. They may have differences in terms of how drivers get paid and who are the participants. Uber eats is one of the competitors partnering Uber Drivers with local restaurants where you can deliver food for customers.
If there are no Doordash-partnered restaurants in your area, Uber eats may be an alternative option for you. The pay per hour may also vary, if not be the same as described above. Since there is no set hourly wage, you can earn a various amount depending on your local area.
Other competitors of Doordash include Slice, Swiggy, Deliveroo, and others. In case Doordash is not worth it, know that you have other options to consider. Each have their own delivery apps, but not everyone may be partnered by them.
Frequently Asked Questions
Now that have covered all the important details, we'll go over some frequently asked questions about Doordash and the gig economy itself.
Is Doordash a Good Side Hustle?
It can be a good side hustle for you if you so choose. In today's gig economy, there are so many side hustle opportunities, it may be hard to choose. However, it will all depend on your financial goals, your schedule, and your desire to put in the work. You can do things like grocery delivery and even become a Doordash courier.
The good news is that you won't have to deal with any conflicts of interest. A reminder: you are an independent contractor. You work for yourself and won't likely be forbidden to do any other gig work other than Doordash Delivery.
What is the average Dasher payouts?
Again, this depends on factors including how many deliveries you've made, your work schedule, where you live, and other specific factors. Keep in mind that your base pay for Doordash will be anywhere from $2 to $10 (as a flat fee) per delivery. Keep in mind, you may also earn peak pay if you accept such gigs.
Your pay per hour may go up as a result. Remember, your hourly pay will depend on your availability of when you want to do deliveries. The best times may be peak hours such as breakfast, lunch, and dinner hours.
Your pay per hour may be minimum wage in one state, but well above it in another.
You can also consider busy days of the week such as the weekend or even the lunch rush from Mondays to Fridays. You could earn more and have it in your hand thanks to the Fast Pay option you have.
Or you can have it deposited in your bank account if the need for money isn't as urgent.
What are Some Business Expenses that Dashers Have to Pay?
The expenses will depend upon whether or not you are using a bike or a motor vehicle.
In case of the latter, you may be paying for such expenses like parking fees, gas, car insurance, and maintenance. So basically, the business expenses of being a Dasher is the same as expenses you would regularly pay just for driving.
Is Doordash Worth Using as a Customer?
If you are craving food from a local restaurant, the Doordash app will certainly be your best friend. Many food delivery companies either don't have an app themselves or may want to take advantage of currently existing apps such as Doordash. Either way, we live in an age with a few taps of a screen, you can have food delivered to you.
Is there a Specific Doordash Dasher App?
The Doordash app is also used by Dashers as well. Dashers that have signed up and went through the process will receive notifications through the app. They can accept or reject the gigs from deliveries made by customers.
Can Dashers Get Paid a Referral Bonus?
Dashers can be awarded a referral bonus just by referring other people to become Dashers themselves. Dasher can earn up to $15 referral bonuses if each one is qualified in a single calendar year.
So… Is Doordash Worth It?
If you want to get paid extra (even on a per hour basis) to deliver food, then yes. Is Doordash worth it? Yes!
Or maybe it isn't depending on your preferences or needs. At the end of the day, it's up to you whether or not if Doordash is a good side hustle or not.
You can get paid a good amount of money per hour if you allow your schedule to do so. If you can make Doordash work for you, give it a shot. Your actual earnings may vary depending on the day.
Lastly, we hope that you take on any side hustle opportunity you can if you don't want to get stuck with the usual 9-5 stuff. We understand how boring and draining it can be. If you are looking for something exciting, then become one of the Doordash pros in your area today.
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