This article will help you understand how much can you make on Doordash in a day. DoorDash is one of the largest and fastest-growing food delivery services, with over 2 million customers now earning money through the service. In terms of money, how much can you earn on DoorDash in a single day?
Knowing how much DoorDash drivers make will help you evaluate whether this side business is worthwhile. To assist you in making that decision, we’ll go over all you need to know about DoorDash.
How Much Can You Make on DoorDash in a Day?
Before we address this question, it’s crucial to note that each region is unique. We’ll explain DoorDash driver remuneration in different parts of the country in a moment, but let’s get this one out of the way first.
There is no such thing as an average DoorDash pay rate. This is due to the fact that drivers are compensated based on the distance, time, and desirability of each order.
It also depends on how much your customers tip you, and you keep 100% of the tips they give you.
The highest paying cities in the United States for DoorDash drivers, according to indeed salary data, are:
Average hourly wage in Chicago, IL is $24.46.
Denver, Colorado Average hourly wage is $24
Atlanta, Georgia Average hourly wage is $23.70.
The average wage in Dallas, Texas is $23.50 per hour.
Phoenix, Arizona Average hourly wage is $23.01.
Salt Lake City (Utah) Average hourly wage is $22.29
Average hourly wage in Indianapolis, IN is $22.24
It varies on the city you deliver in more than the state, but the lowest-paying states overall include Utah, Florida, Illinois, Georgia, and Mississippi. If you look closely at the list of highest-paying cities, you’ll discover that several of them are in states with lower overall income.
How Does DoorDash Pay?
To understand why pay varies so much, it’s helpful to know how DoorDash calculates driver pay. They use a formula called the Dasher Pay Model, which is Base Pay + Promotions + Tips = Earnings.
Here’s the DoorDash pay model:
Base pay
Your base pay ranges from $2-$10. It varies by order and is based on an algorithm that looks at the time, distance, and desirability for each order. The app shows you the base pay per order, and you can decide whether or not to accept the order from there. If the customer has added a tip in advance, you’ll see that too before accepting the order, and you always keep 100% of tips.
Promotions
DoorDash has a couple of promotions that help drivers boost their pay:
- Challenges are incentives to complete a certain number of deliveries in a set amount of time. An example of a challenge is an extra $20 if you complete 15 deliveries over 6 days. Your challenge progress is tracked in the app.
- Peak Pay is an extra $1.00+ amount per order for driving during busy times. The dinner and lunch rush is typically busier, and holidays like Halloween, St. Patrick’s Day, New Year’s Eve, etc.
Tips
DoorDash drivers always keep 100% of the tips they earn while on delivery. DoorDash customers to tip in advance.
How Much Money Can You Make With DoorDash in a Week?
We all have particular financial objectives. For example, “I want to make $1,000 extra per month to pay off my credit card debt.” While we wish we could guarantee that DoorDash will accomplish those targets, it all relies on how much time you have and the types of orders you complete.
DoorDash drivers earn between $1,045 and $7,000 each month, with the average being $2,645 according to Glassdoor but this hugely depends on the city.
Costs of Driving for DoorDash
Now that you understand how much you can make in a week or month with DoorDash, there’s one major caveat we need to discuss. Food delivery drivers are independent contractors, not employees.
This means one thing: you are personally liable for your taxes.Because you are not an employee, you must pay both the employer and employee halves of your FICA taxes.
How Do DoorDashers Get Paid?
Drivers are paid weekly via direct transfer by DoorDash. When you sign up, you enter your bank account information into the driver app so that DoorDash can begin collecting money as soon as you begin delivering.
For faster payments, DoorDash has two options:
- Fast Pay: You can use Fast Pay for a cost of $1.99 each transaction, and DoorDash will immediately send your money to your bank account.
- DasherDirect: Dashers can get a free prepaid Visa business debit card (subject to approval), and DoorDash will automatically transfer payment from each delivery to your DasherDirect card if you’ve signed up for it.
Aside from paying extra taxes as an independent contractor, other expenditures you should consider before driving for DoorDash include:
- Gasoline
- Wear and tear on your car
- Parking costs
- Insurance
