DoorDash has grown exponentially since its founding in 2013, becoming one of the largest food delivery companies in the world.
As the on-demand food delivery space continues to heat up with competition from Uber Eats, Grubhub, and others, many people are wondering – how much can you earn delivering and working for DoorDash?
In this comprehensive guide, we’ll break down DoorDash pay structures for both Dashers (those who deliver food) as well as corporate employees. We’ll look at average hourly earnings in different markets, tips, bonuses, and benefits.
Let’s dive in
How Much do DoorDash Dashers Make Per Hour?
Let’s start by taking a closer look at DoorDash Dasher pay rates. Dashers are independent contractors who use their own vehicles to pick up and deliver food orders to customers. Their pay is based on a few key factors:
Base Pay Per Order: DoorDash provides dashers with a base pay for each order they complete, which can range from $2-10 depending on estimated drive time, distance, and order complexity. Base pay alone is usually not very high.
Customer Tips: Tips from customers make up a big portion of dasher earnings. On average, Dashers receive around $5-7 in tips per order. However, tip amounts can vary significantly depending on the customer.
Peak Pay & Bonuses: DoorDash offers peak pay rates and various bonuses to incentivize dashing during busy times. Peak pay is usually an extra $1-4 added to each order during rush hours or on holidays. Bonuses may include guaranteed hourly rates for hitting a certain number of deliveries.
Given these factors, the average hourly rate for DoorDash dashing falls somewhere between $15-25 per hour according to various dasher surveys and calculators. However, your actual earnings may be higher or lower depending on your market and work ethic. Here are some examples of what dashers report making:
- In most smaller cities and suburban areas, expected hourly rates range from $15-20/hour on average.
- Major metropolitan hubs like New York City, Los Angeles, Chicago see higher averages of $18-25/hour due to larger order volumes and higher tips.
- During peak hours, certain metro hotspots may allow dashers to break $30/hour on rare occasions thanks to surge pay stacking.
- Of course, hourly rates will vary day by day and week by week. You may earn more on weekends versus weekdays.
Keep in mind dasher earnings are also dependent on expenses like gas, vehicle depreciation, and insurance which are not covered by DoorDash base pay or tips. Overall though, dashing can be a valuable flexible side hustle earning $15+ per hour in many areas.
DoorDash Dasher Taxes and Expenses
As independent contractors, DoorDash dashers are responsible for paying self-employment taxes out of their earnings. Here’s a quick breakdown:
Self-employment tax rate is 15.3% on all profits to cover Social Security and Medicare taxes that W-2 employees pay as part of their payroll taxes.
Dashers must also make quarterly estimated tax payments towards their annual income tax obligation. Federal income tax rate depends on total profits but is usually 12-24%.
Vehicle expenses like gas, maintenance, and insurance are not subsidized by DoorDash. An audit estimated these costs at around 58 cents per mile.
Mileage driven can be deducted from annual taxes at a rate of 62.5 cents/mile to offset vehicle costs.
To help mitigate taxes, it’s advisable for dashers to track all active deliveries, put money aside for quarterlies, and maximize mileage write-offs.
Various expense trackers like Stride or Everlance can help automatically track miles. Dashing as a side job helps keep income levels lower as well so you don’t jump up a tax bracket.
DoorDash Dasher Benefits
While classified as independent contractors, DoorDash does provide a few benefits to dashers:
- Access to healthcare marketplace: Dashers can shop for private insurance plans through DoorDash Healthcare Marketplace from carriers like UnitedHealthcare.
- Car accident insurance: DoorDash offers third-party liability coverage of $1,000,000 while on an active delivery trip. But dashers should carry their own full coverage.
- Dasher community support: DoorDash operates online help forums and a Dasher support center to answer questions and help troubleshoot issues.
- Flexible hours: As your own boss, you can dash whenever and wherever you want based around your schedule as much or as little as you choose.
However, since dashers aren’t employees, they aren’t eligible for standard benefits like paid time off, health insurance, 401k, workers comp, unemployment, or minimum wage protections. Independent work comes with more risks and costs to consider as a result.
We now have a good understanding of typical DoorDash dasher pay ranges, taxes, expenses and benefits. But what about actual DoorDash employees? Let’s shift gears to examine typical salaries for corporate roles next.
DoorDash Corporate Salaries
Unlike dashers, DoorDash employees receive W-2 wages, standard benefits and are eligible for company stock options. Here’s a sneak peek into common DoorDash salaries based on job role:
Software Engineer: $150k – $250k base depending on experience level plus stock and bonus. DoorDash actively hires many engineers.
Product Manager: $140k – $225k base plus equity and incentives. Product roles are high growth areas at DoorDash.
Sales Representative: $70k – $150k base salary plus generous commissions. Sales roles have high earning potential.
Account Manager: $55k – $100k base pay varying by seniority. Account teams focus on key merchant relationships.
Customer Support Agent: $40k – $70k base wage. DoorDash employs large support teams across various sites.
Campus Recruiter: $80k – $120k base salary with bonus tied to hiring goals. DoorDash recruits heavily from target schools.
Marketing Manager: $100k – $175k base depending on department plus equity awards. Marketing sees continued investment.
Keep in mind San Francisco pay will usually be higher than other DoorDash office locations. Fast growing startups also provide ample stock option grants which have significantly increased in value as DoorDash stock has performed well on public markets.
Many employees are also eligible for standard benefits like health, dental and vision insurance; 401k matching; unlimited paid time off; family leave; commuter benefits; and reimbursed gym memberships or telehealth subscriptions.
In summary, while salaries vary based on role and experience, most DoorDash corporate employees earn very competitive pay packages commensurate with their fast-growing technology company status. Let’s also not lose sight of the growing remote opportunities as DoorDash adapts to hybrid work models.
Additional DoorDash Earnings Potential
Beyond base dasher pay or corporate salaries, DoorDash also enables various ways to earn additional income on the platform:
Fleet Manager Program: Take a $500 weekly base pay to manage 3-8 independent Dashers and help them maximize earnings. Earn bonuses and override commission as well.
Become a DoorDash Store: Prepare and sell your own meals available for DoorDash delivery. Earnings vary greatly depending on business model and meal prices.
Start a DoorDash “Virtual Restaurant”: Partner with DoorDash to run a cloud or delivery-only kitchen generating income through commissions on sales.
Sell Branded Merchant Items: Propose selling featured items from your retail store through DoorDash Marketplace for additional promotional revenue streams.
Drive Referral Bonuses: Refer new drivers and earn up to $1000 in referral bonuses when they complete their first deliveries. Friends and family make for easy sign ups.
Cash In on Rewards: Redeem credits earned through DoorDash rewards programs towards free food, merch, or even cash. Points add up quickly with regular driving or ordering.
While not substitutes for a primary source of income, these ancillary DoorDash programs present viable options to generate additional supplementary earnings on top of regular dasher pay or day jobs. For the motivated, the platform offers diverse opportunities.
The Future of DoorDash Pay in 2024 and Beyond
As DoorDash continues scaling up operations and growing its market share, here are a few projections on how dasher and employee compensation may evolve:
Higher Dasher Pay Floor: DoorDash piloted the “Dashers’ Fare” model that guarantees $15-25 hourly rates in some cities. Expect this or similar minimum standards to roll out more widely as driver retention becomes crucial.
More Benefit Options for Dashers: Concerns over contractor status may push DoorDash to start optional 401k, health stipends, insurance programs, and mileage/training reimbursements to remain competitive in the gig economy.
Premium Dashers Earn More: Tiered dasher programs allow top Dashers rated 5 stars or higher to earn higher guaranteed rates, priority routing, support perks
Performance-Based Corporate Incentives: Look for DoorDash to tie more executive and employee compensation to long term stock performance and specific KPI metrics like order volume growth, merchant retention, etc.
Stock Refreshes for Retention: As startups enter maturity, expect regular stock option grants to remain part of compensation packages to lock in top talent beyond initial join packages.
Flexibility and Remotes Continue: The shift to remote and hybrid workplace policies at DoorDash and beyond will allow salary dollars to maintain purchasing power nationwide rather than tying to a single cost of living.
Partnership Bonuses: Additional payouts may emerge for cross-promotion partnerships between DoorDash and other companies looking to leverage their delivery infrastructure and massive consumer base.
Supplemental Income Streams Grow: From virtual restaurants to fulfillment centers, DoorDash continues developing new models that enable individuals and businesses complementary ways to profit from platform services beyond core delivery functions.
Wrapping Up
In summary, while independent contractor structures leave some Dasher pay variables outside company control, DoorDash still faces incentive to strengthen Dasher benefits and adapt models ensuring partners share in the growing prosperity.
Corporate salaries seem poised to keep pace with market rates needed to attract tech talent. And novel partnership formats presage additional revenue streams emerging across the ecosystem.
By proactively creating more financial transparency and upside opportunity for all constituents, DoorDash positions itself favorably versus those clinging to contractor misclassifications facing legal issues down the road.
The forward-looking strategy bolsters its role as an employer and sustainable platform of choice for years ahead.