How Much Money Can You Make With Doordash

Doordash

As the economy becomes more and more strenuous to work in, making money through side hustles is what most people resort to for some extra cash. Working for Doordash is one of the ways you make some extra bucks, after following a simple sign-up procedure. 

How much money you make via Doordash is reliant on several factors. These include how many hours you are putting in, what your schedule looks like, and many others.

Eligibility

You don’t need skills or even training to work as a delivery person for Doordash. All you need is to be at least 18 years old, and have some kind of transport. If you own a car, bicycle, motorcycle, van, or pickup truck, you’re good to go.

Some other requirements are:

  • A valid driver’s license
  • Insurance that mitigates any emergency expenses
  • A social security number
  • Passing a stringent background check
  • A credit score analysis

All these need to be verified before you can hop on and work for Doordash.

Signing up for Doordash as a driver is very simple. Fill out an online application, after which you will be called in for an interview within a week. Next, you have to attend an orientation where you will receive an activation kit, a delivery bag, and a Doordash T-shirt. Then, download the app and sign in with your Doordash credentials and that’s that! 

The best part about making money with Doordash is that it’s flexible work. You need only take on delivery requests as your schedule allows. You also have the benefit of selecting the deliveries that pay more, after viewing the location. However, you can’t take too long to choose—the offer lasts a total of 40 seconds before being made visible to other drivers.

You need to only follow the instructions per the customer’s request (some may add generous tips if you have to make a trip to buy something extra), pick up the order from the restaurant and deliver it to the customer.

The earning process

Simply put, most Doordash drivers make an average of $15-$25 per hour, with a relatively full-time commitment. Since drivers are paid via a fixed delivery fee, which can range from $2 to $20 per delivery, the number of hours worked greatly alters the total earnings made in a day, week, or month. 

The per-delivery fees also depend on the area, nature of the restaurant you’re picking up orders from and what day and time you are working. The more time you commit, and the more deliveries you make especially during peak hours, the higher your average earnings will be. 

This is especially useful for students, since you can make some spending money on the side outside of school with a flexible, do-when-available job. Catered deliveries and those with extra perks come with tips and bonuses!

Acceptance rate

Thought you’d only have to read these words in the context of college admissions? Doordash also rewards drivers that take on more deliveries through bonuses. While you don’t have to accept any and all requests, if you accept more than the average driver at a rate of 80%, Doordash will give you a referral bonus. 

Make sure to work during peak times, such as lunch and dinner hours, so you can make a number of deliveries within a short while and improve your acceptance score. Pay rates during peak hours are also higher than times where orders for deliveries are slower. 

Payouts

So how exactly does the Doordash system ensure that the money you are earning is being deposited? Firstly, the base pay system is quantified automatically by Doordash, which keeps tabs on all your deliveries, bonuses and tips. Every time you click on the “complete delivery” option in the app, Doordash adds it to your total.

The payments are released on a weekly basis every Wednesday, after your earnings from Monday to Sunday are totaled with your tips and bonuses to equal your cumulative weekly amount. The best mechanism to procure your pay is through a direct bank deposit, or via deposit into other accounts like PayPal. 

If you don’t have a bank account, you can redeem your earnings through Doordash’s fast, prepaid card that works as a debit card to withdraw your pay.

Costs to consider

While this is a side-job, how much you make using Doordash is also largely dependent on what it is costing you to undertake the work. You will have to, before committing to it, account for the expenses you will incur such as gas, insurance (if you’re buying a vehicle just for this), and possible increased maintenance, to name a few.

However, you should be comfortably making at least minimum wage after having subtracted all said expenses. Many drivers commit to it full-time, or even work only during peak hours to raise their average pay to a higher amount. 

Some of the costs you will incur and will have to account for in your wages from Doordash are:

1. Fuel, mileage and distance costs

Your miles per gallon rates greatly determine how much you will have to fork over for rising fuel prices. In-city Doordash driving, especially in commercial hubs where restaurants are situated will on average cost you less in fuel because you will be travelling a shorter distance to make more deliveries. 

In months where gas prices are especially spiked, you will notice a decrease in your Doordash earnings since you will have to spend larger amounts on fuel. If you file a schedule C on Doordash, you will have to keep a meticulous record of the distance you travel on your Doordash rounds. However, if you qualify for the standard deduction you won’t be deducting fuel costs from your earnings anyway.

2. Maintenance costs

No matter how meticulously you regularly maintain your car, deliveries at a frequent rate will wear your car down over time. You may need to account for tire repairs/replacements, towing costs, more frequent oil changes, and general maintenance costs.

3. Taxes

The money you make via Doordash is taxable income, reported on a 1099-NEC from their partner, Stripe—however, Doordash does not automatically withhold anything for federal, state (if applicable) or local (if applicable) income tax. Be vigilant to set money aside for taxes so you’re not surprised by a nasty tax bill come April.

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