Since its founding in 2013, DoorDash has become a major player in the food delivery industry, competing with platforms like Uber Eats and Grubhub. Whether you’re considering becoming a Dasher (a delivery driver) or looking into corporate opportunities with the company, understanding DoorDash’s pay structures is key to maximizing your earnings.
This guide provides an in-depth look at what DoorDash pays its Dashers and employees, including typical hourly rates, corporate salaries, bonuses, benefits, and ways to maximize your income on the platform.
How Much Do DoorDash Dashers Make Per Hour?
Dashers, the backbone of DoorDash’s service, are independent contractors who deliver food using their own vehicles. Their pay depends on multiple factors:
1. Components of Dasher Pay
- Base Pay Per Order:
DoorDash pays a base rate of $2–$10 per delivery, calculated based on the estimated time, distance, and order complexity. - Customer Tips:
Tips make up a significant portion of Dasher earnings, averaging $5–$7 per order, though this varies based on customer generosity. - Peak Pay and Bonuses:
To incentivize deliveries during high-demand periods, DoorDash offers additional $1–$4 per order for Peak Pay and bonuses for completing a certain number of deliveries within a set timeframe.
2. Average Hourly Earnings
DoorDash Dashers report average hourly earnings of $15–$25, with variations based on location, demand, and hours worked:
- Smaller Cities/Suburban Areas: Expect $15–$20/hour on average.
- Major Metros (e.g., NYC, LA, Chicago): Earnings can reach $18–$25/hour, driven by higher order volumes and larger tips.
- Peak Hours/High-Demand Times: Dashers in busy urban areas sometimes exceed $30/hour during surges.
Important: Actual earnings depend on factors like order availability, drive times, and expenses such as gas and vehicle maintenance.
Dasher Taxes and Expenses
As independent contractors, Dashers are responsible for their own taxes and expenses. Here’s what to know:
Taxes
- Self-Employment Tax:
Dashers pay a 15.3% self-employment tax on profits, covering Social Security and Medicare contributions. - Quarterly Estimated Taxes:
Federal income tax rates range from 12–24%, depending on total earnings. Dashers must pay quarterly estimated taxes to avoid penalties.
Expenses
- Vehicle Costs: Gas, maintenance, insurance, and depreciation are significant expenses, estimated at 58 cents per mile.
- Tax Deductions: Dashers can deduct 62.5 cents per mile for business-related driving on their annual taxes.
Pro Tip: Use expense tracking apps like Stride or Everlance to log miles and expenses automatically. Set aside a portion of your earnings for taxes.
DoorDash Dasher Benefits
While Dashers are not classified as employees, DoorDash offers a few benefits:
- Healthcare Marketplace:
Dashers can access insurance plans through the DoorDash Healthcare Marketplace, with options from providers like UnitedHealthcare. - Car Accident Insurance:
DoorDash provides up to $1,000,000 in liability coverage during active deliveries. - Flexible Scheduling:
Dashers can set their own hours and work as much or as little as they choose.
However, Dashers do not receive traditional employee benefits like paid time off, 401(k) plans, or health insurance.
Corporate Salaries at DoorDash
Unlike Dashers, DoorDash corporate employees are W-2 workers who receive competitive salaries, stock options, and benefits. Here’s a breakdown of common corporate roles and their pay:
Typical Salaries
- Software Engineer: $150,000–$250,000 base salary, plus stock and bonuses.
- Product Manager: $140,000–$225,000, with growth opportunities in high-demand product roles.
- Sales Representative: $70,000–$150,000 base salary, plus generous commissions.
- Account Manager: $55,000–$100,000, depending on seniority and client portfolio.
- Customer Support Agent: $40,000–$70,000, supporting Dashers and customers.
- Marketing Manager: $100,000–$175,000, with additional equity awards.
Benefits for Corporate Employees
- Health Insurance: Comprehensive medical, dental, and vision coverage.
- Retirement Plans: 401(k) matching to support long-term financial goals.
- Paid Time Off: Unlimited PTO policies for many roles.
- Stock Options: Significant equity grants, especially for senior positions.
- Additional Perks: Commuter benefits, reimbursed gym memberships, and telehealth services.
Additional Earning Opportunities with DoorDash
Beyond traditional pay structures, DoorDash offers several ways to boost income:
For Dashers
- Fleet Manager Program:
Earn a $500 weekly base to manage 3–8 Dashers, plus bonuses and commission overrides. - Referral Bonuses:
Earn up to $1,000 for referring new Dashers who complete a set number of deliveries. - Rewards Program:
Dashers can accumulate points through the Dasher Rewards Program to redeem for food, merchandise, or cash.
For Entrepreneurs
- DoorDash Store Partnerships:
Sell meals or merchandise through the DoorDash platform. - Virtual Restaurants:
Operate a cloud kitchen to sell delivery-only meals. - Merchant Promotions:
Feature products on the DoorDash marketplace to boost visibility and sales.
Future Outlook for DoorDash Pay
As DoorDash grows, its compensation strategies are likely to evolve. Here are some potential changes for 2024 and beyond:
- Guaranteed Hourly Pay:
DoorDash has tested guaranteed hourly rates of $15–$25 in select markets, which could expand nationwide. - Expanded Benefits:
Rising competition in the gig economy may prompt DoorDash to offer more benefits, such as mileage reimbursements or health stipends. - Premium Dasher Programs:
High-performing Dashers may receive access to higher guaranteed rates, priority order routing, and additional perks.
Conclusion
DoorDash provides diverse earning opportunities for both Dashers and corporate employees. While Dashers enjoy flexibility and competitive hourly rates averaging $15–$25, corporate employees benefit from lucrative salaries, equity, and comprehensive benefits.
Whether you’re looking for a flexible side hustle or a full-time corporate role, DoorDash offers options tailored to various career goals. By understanding pay structures, maximizing bonuses, and leveraging additional earning opportunities, you can make the most of your time with this fast-growing company.