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How Does DoorDash Work? Making Money as a Dasher
If you meet the eligibility requirements, you can become a Dasher and start making money within a few days.
Lauren Schwahn is a writer at NerdWallet who covers credit, budgeting, and money saving strategies. Her work has been featured by USA Today, the Associated Press, MarketWatch and more. She has a bachelor’s degree in history from the University of California, Santa Cruz. Email: <a href="mailto:[email protected]”">[email protected]</a>.
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Drivers, known as Dashers, make money delivering food with DoorDash as independent contractors. The gig takes little time to start, pays frequently, offers flexible hours and could be a great way to make money without a traditional job. But earnings can fluctuate along with demand and delivery details.
Is becoming a Dasher the right choice for you? Here’s how DoorDash works.
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 with the DoorDash app.
If you meet the requirements, you can sign up online and use the Dasher app to complete the process.
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How does DoorDash work for drivers?
Once approved and ready, you’ll use the Dasher app to schedule a shift or tap "Dash Now" if there’s enough action at the moment. The map in the app will show active hot spots in red where you’ll have better chances to be matched with orders.
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. DoorDash gives you 45 seconds to accept or reject a delivery. If you accept, you’ll follow the instructions given in the app. Usually, that means simply traveling to the restaurant and providing the customer’s name, then picking up the order and dropping it off at the customer’s location.
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 extra, on top of the base rate, from tips and promotions, like “peak pay” during busy times. Drivers keep 100% of tips.
You have the flexibility to accept or reject orders based on their earning potential, including the base rate and the size of the tip.
Or earn an hourly rate (in some cities)
In some cities, you may have the option to earn by time instead of by order and receive a minimum guaranteed “active” hourly rate. At the start of a shift, you can see what the hourly rate is before choosing that earning mode.
If you choose the hourly rate, you’ll get paid only for the time spent actively on a delivery, beginning when you accept an order and ending when it's delivered. In other words, the clock stops during the time you spend waiting for an offer to hit.
Dashers getting paid an hourly rate can still earn tips and promotions on top, but 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 offer per hour, or be required to end your Dash or switch to “earn by offer” mode.
How much do DoorDash drivers make?
The average hourly pay for DoorDash drivers in the U.S. is between $16 and $24, according to workplace insights website Glassdoor.
A NerdWallet writer tried DoorDash as a side hustle and made less than that though, especially when factoring in the cost of driving.
Gas, tolls and vehicle maintenance is on you as a Dasher, and those costs cut into your earnings. 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?
You can make money fast by delivering for DoorDash. How quickly you pocket that money depends on the payout method you choose.
If you stick with the standard option, you’ll get paid weekly by direct deposit for deliveries completed Monday through Sunday of the previous week. Payments typically take two to three days to land in your bank account.
Eligible Dashers can use Fast Pay to transfer earnings to a debit card daily, for a $1.99 fee. DoorDash Crimson is a new 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 offers 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 transport people, learn how to become a Lyft driver or Uber driver.
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See the full picture: savings, debt, investments and more. Smarter money moves start in our app.
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