An ideal way to make extra cash is by partnering with delivery service platforms. If you’ve got a driver’s license, a car, or a bike and you don’t mind making deliveries, then you should consider becoming a Dasher. DoorDash makes it possible for you to get started in the delivery service business pretty easily, so you don’t have to worry about incurring too many business expenses.
DoorDash allows you to work flexible hours that you choose while making actual earnings, either part-time or full-time job. Aside from DoorDash delivery, you can also launch your online business by entering a partnership as a DoorDash merchant. In this article, you’ll learn about how much you can make on DoorDash, how it all works, and how to get started.
What Is DoorDash?
DoorDash is an online delivery service company that enables customers to connect with businesses within their neighborhoods. According to Statistica, DoorDash is the leading food delivery platform in the US, with a market share of 55 percent in 2021. Its services contribute to commerce growth amongst local restaurants and stores in multiple locations.
In an effort to help businesses meet the growing demands of a modern economy, DoorDash was first released in 2013 as a digital food ordering and food delivery service platform in Palo Alto, California. Today, it is a public company headquartered in San Francisco, California, with a customer base of over 20 million, a merchant base of over 500,000, and three million delivery drivers in just the third quarter of 2021.
According to its third-quarter 2021 investor report, DoorDash revenue grew to $1.3 billion with a 45 percent year-over-year growth. DoorDash delivery service exists across countries like the United States, Australia, Canada, Japan, and Germany. It is the ideal part-time and full-time job provider for students and entrepreneurs looking to make extra cash.
How Does DoorDash Work?
DoorDash acts as a middleman for merchants and customers. Merchants advertise their products on the delivery app, where customers can browse through options and order what they want. DoorDash delivery drivers are notified when customers place an order within their vicinity and can accept it through the app, pick up the order, and deliver it to the destination.
Signing up to become a Dasher or partner doesn’t take that long. All you have to do is fill out and submit an application. Then, wait a few days for approval or feedback. Finally, before beginning as a Dasher, you’re required to consent to a background check.
As a Dasher, you aren’t required to have customer service experience, although it does make the job easier. DoorDash pays weekly and allows you to track your payments and expenses through the platform. With a consistently good rating score, you can easily become a top Dasher and earn more.
How Much Can You Actually Make on DoorDash?
Dashers’ base pay per delivery is between $2 to $10. Their final amount depends on how long it takes to deliver the order, how much distance is between the pickup and drop-off points, as well as how desirable the delivery is for Dashers. Dashers are also allowed to keep all of their customer tips.
According to ZipRecruiter, the average salary for DashDoor delivery drivers is $36,565 a year on an $18 hourly wage. Dashers’ annual salaries can range from $14,500 to $64,000 on a flexible work schedule. However, it’s difficult to say exactly how much you’d make because Dashers are independent contractors and they decide how many hours they work.
The Pros and Cons of Working on DoorDash
Working as a DoorDash delivery driver has its pros and cons. Below, we’ve outlined some of the most and least desirable aspects of working as a DoorDash delivery driver.
Pros of Working on DoorDash
- Favorable Acceptance Rate. DoorDash has very basic requirements for employment. As long as you’re at least 18 years old, have a valid driver’s license and vehicle, and pass the background check, you can count on being accepted as a driver.
- Flexible Working Hours. As an independent contractor, you get to create your own schedule. That means you decide how many hours you want to work, which days you want to work on, and which jobs you want to accept or decline. Nearly everything is within your control, which gives you the flexibility to maintain your other responsibilities.
- Extra Income. As DoorDash drivers are allotted flexibility, it’s a job that can be done in addition to your full-time job, especially if you’re saving for something specific. Whether you’re saving to buy a house, car, or Christmas presents, you can use your extra time to earn extra income and quickly reach your financial goals.
- Favorable Payment Structure. DoorDash has an attractive payment structure in place. Apart from your base pay, you get extra money from promotions and tips, all of which you can keep. With a good rating score, you can apply to become a Top Dasher and enjoy the perks of having the first pick on high-value orders that pay $30 or more.
- Easily Track Payments and Expenses. DoorDash provides a means for Dashers to track their business mileage and expenses through Everlance. This application enables you to deduct taxes by recording and submitting all of the expenses that are directly related to your job as a Dasher.
Cons of Working on DoorDash
- No Health Insurance. As Dashers are independent contractors, they aren’t entitled to health benefits. However, DoorDash recently introduced a health insurance stipend for qualifying Dashers, which ranges from $614 to $1,228, depending on how many hours you work per week. This amount is paid every quarter and involves a qualification process.
- Inconsistency of Delivery Pay. You can’t predict what you’ll make each day or week. Some weeks you enjoy major cashouts, while other weeks are quite unproductive. This inconsistency makes it difficult to rely on DoorDash as a source of income.
- Increased Vehicle Maintenance. The more deliveries you make, the more you spend on vehicle maintenance costs due to the wear and tear your vehicle endures. Although DoorDash offers Dashers auto insurance, it is only effective during an active delivery and only after the driver has gone through their own insurance.
- Bad Reviews Can Impact Deliveries. As a DoorDash delivery driver, customers get to rate you on a scale of one to five. Your most recent reviews determine your Dasher rating score. Dashers who have low rating scores can be excluded from making deliveries. It can also prevent you from taking part in incentives or special programs.
- No Hourly Pay. Payments come from the number of completed orders, not an hourly salary. If it takes you two hours to complete an order, you get paid for just that order. This payment structure can be a disadvantage as you can’t predict how much you’ll make at any given time of day.
How to Become a DoorDash Delivery Driver
If you’ve decided to become an entrepreneur by working on DoorDash as a delivery driver, the starting process is relatively straightforward. Below is a step-by-step guide on how to become a DoorDash driver.
1. Ensure You Meet the Entry Requirements
DoorDash demands that interested delivery drivers be at least 18 years old. You should own a car or motorcycle, and have a valid driver’s license. Depending on your location, DoorDash sometimes allows Dashers to use bicycles, scooters, or deliver on foot. You must submit your social security number and agree to a background check for security reasons.
2. Start Your Application
You need to fill out and submit your Dasher application to become a Dasher. All you need is an email address and phone number to register on the platform. Next, you’ll need to input your full name and password and provide your vehicle details. As part of your application process, you’ll need to consent to a background check and additional disclosures, which usually take about a week to get processed.
3. Complete Your Sign-up With a Driver Orientation
Once the background check has cleared, you can order an activation kit or attend orientation. You must first complete a W-9 form to confirm your request to order the kit. Then you will be sent an email containing the tracking information for your activation kit status. This information should arrive within a couple of business days.
4. Download the App and Start Dashing
Once your background check is complete and your profile is approved, you can start dashing. Download the DoorDash app from Google Play or Apple Store and register the red card that is included in your activation kit. Log into your app and click “Dash Now” to view orders. Once notified of an available pick-up order, you have about 45 seconds to accept it. After confirming the delivery, DoorDash will provide you with the order details.
5. Set Up Your Payment Account
Once you complete an order, check your driver earnings in the earnings tab. You immediately get paid once you complete an order. To add your bank account to your profile, click on the red bank button at the top of the screen. This lets you fill out your bank details to set up direct deposit. Once complete, submit your details.
6. Become a Top Dasher
You can be accepted into the top Dasher program if you have consistently completed orders through the platform and received good ratings. If you meet the specifications for a top Dasher, DoorDash will notify you through the app and you can enjoy the benefits, starting from the 2nd of that month to the second of the following month.
As a top Dasher, you’re given priority for deliveries, regardless of whether it’s a slow or busy time. To qualify for the top Dasher program, you should have at least a 4.7 rating score, an acceptance rate of 70 percent, at least a 95 percent completion rate, 100 deliveries completed within the last month, and at least 200 orders completed throughout your time with DoorDash.
How to Make More Money on DoorDash
DoorDash makes it easy to start earning on the platform, but even with that, you have to have your strategy for success to optimize the opportunities provided by the platform. Below are some tips that will help you get the most out of dashing.
Schedule Orders in Advance
DoorDash makes it possible for delivery drivers to claim orders in advance. To do this, check the schedule section on the app to view available orders you can claim. You can set an alarm to notify you of the pre-claim period so that you can claim large orders before other drivers do. Most of the pre-claim orders start in the evenings.
Track Your Mileage and Expenses
DoorDash has made it easy to keep track of your delivery mileage and other directly related expenses for tax deductions. Make sure you download the Everlance app or a similar tracking app to easily calculate and file your work-related expenses.
Take Advantage of Promotions
Promotions are a great way to boost your earnings, but it requires you to closely monitor the app and spot busy zones. DoorDash pays drivers more during busy times, so select orders during this promotional period in high traffic areas. Peak pay is a great way to boost your earnings. You can also look out for pay challenges to complete.
Try to Maintain a Good Rating Score
Your rating score qualifies you for special promotions and incentives. You should be sure to offer good customer service throughout all stages of your deliveries. This ensures you’re not poorly rated and will positively impact your tips. Also, getting a poor rating score can prevent you from receiving order notifications in the future.
Choose Your Deliveries Wisely
Low-paying orders can be a waste of time and effort. Imagine completing a three-dollar delivery that takes twenty minutes, when you can direct your effort towards a high-paying delivery. You should consider the gas, time, and overall effort each delivery offers you, in order to choose the most rewarding deliveries.
Is Working on DoorDash Worth It?
Yes, it is. As long as you’re at least 18 years old, have a reliable vehicle, and can pass a background check, you shouldn’t have any issues getting started. You can create your own schedule, work as few or many hours as you want, and use it to supplement your income or replace your current nine to five job.
Making Money on DoorDash FAQ
Do DoorDash drivers make good money?
DoorDash drivers can make good money, especially with the special offers and incentives provided by the platform to boost drivers’ motivation. On average, you can make up to $1000 to $2000 a month driving for DoorDash. By providing optimal customer service, you can secure tips that could pay you more than your base pay.
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Does Doordash pay for gas?
DoorDash provides an incentive for Dashers in the US who use the DirectDasher prepaid debit app. They get a two percent cash back on every gas purchase they make regardless of the gas station or location. This might not be much but it’s a great way to save some cash. This app also allows Dashers to enjoy direct access to their money without paying deposit fees or waiting.
Can you live off of income from DoorDash?
Yes, if you live in a hot spot for deliveries. On average, you would need to consistently maintain a delivery rate of above ten orders each day. You can maximize your time by ignoring low-paying orders, reserving your time and effort for the highest paying jobs. You should also take advantage of promotions and other incentives to maximize your profit.
Do I have to put Doordash on my taxes?
Yes, you do. You should report your DoorDash driver earnings on your tax report. Once your earnings get to $600 a month, you will receive a 1099 form from DoorDash to fill and submit. Even if you’re making less than $600 a month, you should still report your earnings to the IRS as part of the tax compliance policy for US workers.
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