Due to the pandemic, many people had to work from home. The number of food delivery requests increased. Following this, food delivery became an essential service. Many food delivery companies experienced growth in 2020, and DoorDash was no different
According to Google Finance NYSE data, DoorDash revenue grew by 167.6% in 2020. On its first day of trading in 2020, DoorDash closed its trade at $189.51 at the New York Stock Exchange. It has managed to sustain its growth levels and is now home to over 1 million drivers.
If you are looking for a perfect opportunity to earn some money on the side, DoorDash is a chance you don’t want to miss. This guide discusses everything you need to know to start earning extra income with DoorDash.
A DoorDash Overview
The gig economy is taking over regular 9 to 5 jobs. Among the many options that people have is offering delivery services. DoorDash, one of America’s top online food ordering and delivery platforms, is one of them.
The San Francisco-based company boasts a magnificent 56% share of the food delivery business, making it the largest in the US. It also offers convenience delivery services, like groceries, pharmaceuticals, and pet food. This makes up 60% of the US market share.
At the end of 2020, DoorDash was home to 450,000 merchants and over 20 million customers. Over 1 million drivers worked with the platform, serving over 7,000 cities in Australia, Canada, and the US.
In September 2021, DoorDash recorded a negative net income of $101 million. At the same time, in 2020, the company had losses amounting to $43 million. This is not a good indicator and has led many to think that DoorDash is a giant in a dead-end industry.
How does DoorDash make money?
Like any other online delivery business, DoorDash earns money by charging commissions from its merchants. It also charges an order delivery fee to its customers and earns from paid advertisements on the platforms.
Drivers working with DoorDash, commonly referred to as Dashers, receive their payment directly from the company. The intuitive platform is a favourite among customers because it is easy to use. Consequently, more people use the forum.
Once you become a Dasher, you become your own boss. You choose the hours you work and which routes you will service. Furthermore, you know the amount of money you want to make in a day. All you need is a means of moving you from one place to another and a smartphone.
However, you first need to become a Dasher to enjoy the benefits of working with DoorDash. To be a Dasher, there are a few requirements. These include:
- You must be over 18 years old
- Must have a valid driver’s license in your country
- Any means of transport, a car, a scooter or a bicycle. This depends on the city you will be operating in
- A social security number for US residents
- Consent to a background check
How to make money with DoorDash
If you fulfil the requirements, you can make money with DoorDash by signing in to the platform. This process is simple.
- Log into the DoorDash Sign Up Page and complete your profile
- Submit your profile with an official name and a password
- Enter your vehicle’s information, including the make, model, and colour of the vehicle
- Consent to the background check request- you enter your social security number and driver’s license number. The process takes about 5-10 days
- Link your payment information-usually a routing and account number
- Start driving with DoorDash, after filling in a W-9 form for tax purposes
Once you are an official Dasher, you can make money with DoorDash. But first, you need to attend an orientation session. You also receive a DoorDash activation kit, including an insulated bag to keep your food warm, a red card, and a starter guide.
When customers order food from their favourite restaurant, Dashers pick up the food and deliver it to the customers.
DoorDash driver pay
Dashers earn their money from 3 different sources:
- Base pay- constitutes their time, distance covered, and desirability
- Promotions- which includes peak pay and challenges completed
- Tips- which they receive from their customers
Dashers are independent contractors. You can earn an average of $23 per hour while on delivery. This pay includes compensation from peak pays, tips and incentives. Otherwise, drivers on DoorDash earn a base pay of $2-$10 for each delivery. They also get to keep 100% of their tips.
If you choose long-distance deliveries, then your base pay increases. However, the amount you take home will depend on your expenses. You have to pay for gas, maintenance, registration, and sometimes, parking.
Dashers receive their payment directly through their bank account. This may take 2-3 days, or you can choose to cash in your payment daily at a $1.99 fee.
How to make more than average as a DoorDash driver
When working on a regular schedule, you earn an average of $23 as a Dasher. However, why settle for average when you can increase your income? Below are some tips you can employ to increase your earnings with DoorDash.
1. Take up challenges
DoorDash has challenges you can compete in all the time. Most of these challenges involve completing a certain number of deliveries within a certain amount of time. If you win, you receive rewards.
You can access these challenges on the DoorDash app and select the ones in your area. If you choose a DoorDash Drive challenge, you sign up to deliver large catering orders with special handling.
However, to qualify for the challenge, you must have at least 100 deliveries under your belt. You also need a 4.8-star rating with a 90% order completion rate.
2. Work on peak hours
One can argue that most deliveries happen during peak hours, but that is not the case. When you decide to work the whole day, you may find yourself delivering food at 9 am or 3 pm. The pay during these hours is incomparable to what you earn during peak hours.
You earn peak pay when you deliver during lunch, dinnertime, or on the weekends. You can view this amount when you preview the order.
3. Improve your customer’s experience
Dashers get to keep 100% of their tips. Therefore, if you improve your customer experience, you will earn more bonuses. Now, how do you make a good delivery experience?
You can improve your customer’s experience by:
- Always confirm that you have the correct order
- Delivering food on time
- If you leave it by the door, make sure it is in a safe place
- Getting the correct information from your customer to avoid mix-ups
- Follow the customer’s instructions to the letter
- Being extra careful with the food
- Always separate hot and cold items
4. Delivering with other apps
Food delivery can be slow on your platform but not on others. Maybe another platform includes a restaurant not included in DoorDash, and it gets many orders around you. So, rather than sticking to DoorDash, you can try other food delivery platforms like Uber Eats, Postmates, Caviar, Instacart, and GrubHub.
Postmates has the highest pay, and you can quickly sign in to Uber Eats. Caviar offers the best tips, while GrubHub services the big cities. If you want to deliver the most comprehensive variety, Deliv is an excellent alternative, and Instacart lets you deliver to shopping fans.
5. Go to hotspots
On the map, you notice hotspots. These are areas with many orders. If your neighbourhood has no orders or long waiting periods, you can move to a hotspot zone.
6. Be selective with your orders
Your earnings depend on how much you deliver and if your customers leave a tip. Delivering far away means fewer orders in a day. So, when you are selecting the orders, be wise about it. If you choose to deliver long-distance, you can select multiple orders.
If there are many orders along the path to your final destination, DoorDash allows you to select multiple orders.
DoorDash Driver Review Pros and Cons
Delivering with DoorDash has its share of difficulties. Drivers enjoy some strong suits, as well as some demerits of working with DoorDash.
- DoorDash is a leading marketplace in the food delivery business. Therefore, customers are constantly placing orders
- The platform includes a vast network or restaurants and customers
- You can diversify your services, thanks to DoorDash collaborating with pickup, marketing, and storefront partners
- The platform is intuitive, which makes ordering simple for customers
- As for the Dashers:
- You get to earn extra money for your short-term or long-term goals
- You get to choose your working hours, unlike seasonal and permanent jobs
- You can drive anywhere, even when you visit a different city
- Signing up n DoorDash is relatively simple; car inspection and vehicle restrictions do not apply
- Once you sign up, you start receiving delivery orders right away
- You can estimate how much you will earn with the clear and concise pay model
- DoorDash charges its users a high commission, which can be 15-30%
- The food delivery cost is relatively high, compared to other delivery services
- DoorDash does not have hourly pay. Therefore, you waste time waiting for an order and earn nothing more
- You need to sign up for a shift in advance to get orders. Otherwise, you cannot get orders to deliver
So, is DoorDash worth it?
This is the question of the hour. Before you can sign up as a Dasher, you start by analysing the earning potential of your side hustle. In addition, you look at the cost of the newly found opportunity. Now, is DoorDash worth investing in, or can you do better?
DoorDash claims to pay its drivers an average of $23/hour. However, GlassDoor puts the average hourly pay for Dashers at $11, while Indeed averages courier pay between $13 and $18. In Canada, the amount lingers at around $16 per hour.
From what we can tell, DoorDash pays well above the minimum wage. However, the amount you earn will depend:
- Where you are operating
- The vehicle you are using
- When you work
- If you are up for challenges
Anyone who works on peak hours will pocket more than $23/ hour, while regular working hours bring in $ 11-$18/hour.
The gig economy has its dynamics. Nevertheless, if you are looking for a side hustle to complement your income, working with DoorDash is a reasonable and feasible opportunity.
DoorDash is a leader in the food delivery business. It covers a broad base and services millions of customers. With more than 450,000 merchants, the platform is sustainable for the near future.
It is a worthy investment if you want to complement your income, but not full-time. While you have the opportunity to earn even $30/hour, there are times when you will wear out your vehicle and get $9/hour.
Most importantly, you will need to consider all the angles before joining the business. There are many merits to working with DoorDash. You get to choose where you work, how much you earn, and when you will work. In addition, the platform is open to anyone with a clean record, above 18 years, and with a vehicle.
The pay at DoorDash is good. $23/hour is well above the minimum wage. You can even boost your income by working during peak hours and taking on challenges.
However, DoorDash fought for bills that prevent their drivers from being employees. This means that as a Dasher, you work as an independent contractor. Consequently, you face many complex tax implications. As a self-employed worker, you have to report your income and pay the tax.
You also need to consider the constant vehicle depreciation as you work with DoorDash. No one compensates you for fuel, wear, tear, or general maintenance. Therefore, delivering with a bike, which is tiring, is a better option for driving your sedan.
Finally, you can only earn so much from this side hustle. After you hit a particular mark, you no longer have room to grow, despite working in this demanding industry.
Alternatives to DoorDash
While it is an industrial giant in the US, Canada, and Australia, DoorDash has many competitors for the same market. These companies make excellent alternatives for DoorDash. Some of the major ones include:
1. Uber Eats
This in-built customer base delivers foods. You can earn $8-$15/ hour, including a flat amount per pickup and drop-off. Drivers earn per mile, per minute, and through promotions. They also get to keep 100% of their tips. However, the payment system is a little complex.
You can earn $22/hour delivering food, alcohol groceries, dry cleaning, and office supplies with Postmates. Drivers earn per minute, per mile, and keep 100% of their tops. The flat-rate amount earned depends on successful pickups and drop-offs.
When you sign up with GrubHub, you get a zone where you work. You can earn up to $12/hour and keep 100% of your tips.
Additionally, you can check another business opportunity and see it it suits your financial needs