How Does DoorDash Work? Making Money as a Dasher

Considering a delivery gig side hustle?

DoorDash is one option. It requires little ramp up, pays frequently, offers flexible hours and is a feasible way to make money. Drivers, known as Dashers, deliver food as independent contractors in their own vehicles.

» Tommy Tries It: Nerd Tommy Tindall signed up and spent a couple days slinging fast food in his truck.

What are the requirements to deliver with DoorDash?

DoorDash operates in many cities and towns across the U.S. You don’t need prior delivery experience to become a Dasher. However, you must:

• Be at least 18 years old.

• Have a car, motorcycle, scooter or bicycle (options may vary by location).

• Have a valid driver’s license and insurance, if you drive.

• Have a Social Security number.

• Agree to a background check.

• Have a smartphone.

If you meet the requirements, you can sign up online and use the Dasher app to complete the process.

How does DoorDash work for drivers?

Once approved and ready, you’ll operate from the Dasher app. The map in the app will show active hot spots in red where you’ll have better chances to be matched with orders.

You can dash on demand when your area is busy enough. Aim for lunch and dinner times to get more orders.

Tindall, who tested DoorDash, lives in a rural town. He says he had to head for miles to get to the red, which wasn’t ideal.

Earn by the order

When matched with an order, you’ll see details for each opportunity, such as the location and how much it pays. Be ready to act, though. You get just 45 seconds to accept or reject a delivery.

If you accept, you’ll follow the app’s instructions to navigate to the restaurant (or business), grab the customer’s order, then deliver it to their doorstep.

DoorDash guarantees a base rate from $2 to $10 (or more) for every order. Factors, such as distance and the estimated time required, determine the exact amount. You can earn tips on top, and score promotions, like “peak pay” during busy times. Drivers keep 100% of tips.

“I hit the road three times, never saw any peak pay bonuses, but counted heavily on tips,” Tindall says. “They made up half of my total earnings.”

As you get a feel for what constitutes good pay in your area, you can accept or reject orders based on rate and tip amount.

Or earn an hourly rate (in some cities)

In some cities, you can choose to earn by time instead of by order and receive a minimum guaranteed “active” hourly rate.

With this option, you’ll get paid only for the time spent actively on a delivery. In other words, the clock stops during the time you spend waiting for an offer to hit.

DoorDash says tips can be less frequent in “earn by time” mode and peak pay may not be available. Another stipulation of “earn by time” is that you can only decline one order offer per hour, or be required to end your Dash or switch to “earn per offer” mode.

Tindall had the option to select a $16.75-hourly rate during one Dash. “I debated for a minute or two, but chose to stick with earning by the order.”

That turned out to be a good call after he pulled in $21.50 for the single hour he was out. 😅

How much do DoorDash drivers make?

The average hourly pay for DoorDash drivers in the U.S. is between $17 and $24, according to workplace insights website Glassdoor.

Tindall says he yielded less. “Much less, in fact, after factoring in gas ... in my truck.”

Gas, tolls and vehicle maintenance are on you as a Dasher, and those costs cut into your earnings. Demand and delivery details can also affect your earnings.

“I made around $10 an hour after deducting expenses,” he says.

As an independent contractor, you’ll also need to budget for taxes and insurance. DoorDash provides up to $1 million of liability insurance, but coverage applies only when there’s an order in your car. Consider purchasing rideshare insurance for extra protection.

How do DoorDash drivers get paid?

The standard way to get paid is weekly via direct deposit to your bank account, but there are faster options.

Eligible Dashers can use Fast Pay to transfer earnings to a debit card daily, for a $1.99 fee. DoorDash Crimson is another option that works like a personal bank account. You can get daily earnings instantly and manage it within the DoorDash app.

How can you make more money with DoorDash?

Deliver more, make more. But that’s easier said than done. DoorDash suggests a few tips and tricks for increasing your earnings:

• Deliver during peak times when DoorDash pays extra. The lunch and dinner hours are usually the busiest.

• Seek out hot spots. You’ll see a heat map in the Dasher app that highlights areas with more orders available.

• Pick up batched orders, which are multiple orders along the same route.

• Communication, punctuality and ensuring you have the correct order go a long way with customers — and can help you earn a higher rating and tips.

DoorDash isn’t the only company that will pay you to deliver goods. Learn about making money with similar services, such as Amazon Flex, Instacart and Uber Eats.

If you'd rather try rideshare, learn how to become an Uber driver.