How Much Money Can You Make with DoorDash?

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.

Earnings

Most doordash drivers’ average earnings are between $15 and $25 per hour. Drivers are paid by 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.

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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 request 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.

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 don’t have to be 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 paying student loan debt? You can choose from multiple delivery apps, but doordash is one of the most popular for food delivery service.

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 the shirt

It’s easy to get started.

Sign Up

Sign up and agree to a background check and credit report. You must have a valid driver’s license.

Install Doordash App

Install the app, using an I-phone or Android phone.

When the App is On

When you turn on the App, that’s a signal that you’re ready to take deliveries.

Choose and Make Deliveries

Use the app to look for deliveries and accept doordash work. Be prompt and professional, which will guarantee favorable reviews from restaurants and customers.

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

Of course, you’re not earning all the money. You should earn much more than minimum wage on hourly earnings, even after subtracting expenses. Experienced drivers who hustle hard to earn extra money are pulling up the numbers on those average hourly earnings.

Here are expenses and costs involved to remember while you’re making money:

Distance, MPG and Fuel Costs – Your net profit will fluctuate along with the national per gallon gas price. How many miles you can go per gallon is also a factor, and MPG decreases in city driving.

If you keep scrupulous records of the miles you travel, you may be able to deduct fuel costs if you file a Schedule C. But you can’t deduct mileage expenses if you qualify for the standard deduction.

Vehicle Maintenance – In addition to fuel costs you’ll have wear and tear maintenance costs. You’ll need to keep up with oil changes as needed and also pay for upkeep (tires) and repairs.

Pay Taxes – As a doordash driver you’ll get a 1099. You’ll have to pay federal, state and local income tax on those earnings (unless you live in a state that doesn’t collect state tax). On top of that, you’ll have to pay self employment tax (15.3%) on the earnings for Medicare and social security.

Image: Depositphotos

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