The gig economy is growing fast. In 2024, it's already worth $556.7 billion, and experts predict it could reach $2.1 trillion by 2033.
More people are ditching their 9-to-5 jobs for flexible work options, and services like DoorDash are making it easier to earn on your own schedule. But if you’re thinking about delivering food for DoorDash, how much of that huge gig economy can you actually take home?
Let’s break down what driving for DoorDash really looks like and if it’s worth the time and effort.
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What Is DoorDash?
DoorDash is a food delivery service that allows customers to order from restaurants through an app. It’s the largest food delivery service in the United States, so hungry folks are more likely to use it, since it offers the widest variety of dining options.
DoorDash does not hire delivery drivers, instead using independent contractors to deliver food around town. Drivers are called Dashers, and they find deliveries through the Dasher app. In theory, this system allows Dashers to work when they want, where they want, and earn as much or as little money as they want to make that day. But is that realistic?
The Economics of DoorDash
In our search for an answer to the question “is working for DoorDash worth it?” let’s start by looking at the money, which is usually the factor that matters most.
How Much do Dashers Make?
Dashers are not paid an hourly wage. Instead they are compensated using an algorithm that factors in:
- Time
- Distance
- Location
- Promotions
- Tips
We’re not going to try to explain the pay model in detail here for two reasons:
- It’s so complicated that even DoorDash struggles to explain it fully on their website
- It changes according to the needs of DoorDash, regardless of how that affects drivers
Basically, if you work in an area with a high base rate (San Francisco, Houston, Dallas-Fort Worth, Phoenix, Washington DC, Atlanta, Los Angeles, Chicago, New York City, Boston, Miami), constantly seek out promotions, and only get good tips, you can earn at the top of your potential on DoorDash. Otherwise, you’re going to be average or below.
The DoorDash website claims that Dashers make $25 per hour in the United States. If you take a second to verify that elsewhere, you’ll find that Glassdoor puts it somewhere closer to $20 per hour, with a maximum wage topping out at $30 per hour, whereas Indeed sets the average around $16 per hour.
The truth is that there is no guaranteed hourly wage while driving for DoorDash, so the pay can be extremely variable — you could conceivably go out to work and make $0 for your effort.
What About DoorDash Expenses?
Great question: Dashers have to pay taxes, fuel, parking, tolls, car repairs, and maintenance out of their DoorDash wages. So even if you’re earning at the high end of the scale, say around $30 per hour, that rate could come down significantly after deducting all of your costs.
And if you’re in a city with a lower base rate and you have a slow shift, it could end up costing you to drive for DoorDash.
DoorDash recently announced a fuel subsidy in the U.S. to try to combat high gas prices, but it only offers drivers 10% cash back on fuel purchases or $5 per week. That’s not enough to negate the rapidly increasing cost of fuel.
So before you start Dashing, you need to ask yourself two critical questions:
- Is DoorDash worth it after taxes?
- Is DoorDash worth it with gas prices constantly going up?
In some cities, at some times of the day, if you have a highly fuel-efficient vehicle and you write off your mileage, the answer is MAYBE. But it’s far from a sure thing. And it’s certainly not predictable income, even at the best of times.
DoorDash Pitfalls
The DoorDash system may seem straightforward — open the app, accept a delivery, pick it up from the restaurant, deliver it to the customer, and repeat. But plenty of things can go wrong along the way, affecting your pay. For example:
- The restaurant might delay or lose your order while you're waiting.
- The delivery address could be far away, hard to find, or even incorrect.
- Traffic might slow you down.
- The customer could take a long time to collect their order.
- Tips could be low or nonexistent (which happens all too often).
Every Dasher will experience these issues at some point, and they can eat into your earnings — or worse, hurt your driver rating. The reality is, the amount you make driving for DoorDash often depends more on luck than anything else.
If these pitfalls don’t sound appealing to you, there's still plenty of opportunity to work for yourself and start your own business.
We have a library full of Business Starter Guides to help you find the right business idea and step-by-step guides to get started. You could be launching your own small business sooner than you think!
Here are some of our most popular business starter guides:
- How to Start a Cleaning Business
- How to Start a Personal Training Business
- How to Start a Tutoring Business
When you're ready to take the next step, Durable is here to make the process easy.
With our platform, you can build a professional website in just 30 seconds. Durable simplifies the tools you need to run your business so you can focus on bringing your creative spark to customers quickly and effortlessly.
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What About Dashing by Bike or Scooter?
In some cities, you have the option of making deliveries on your bike or scooter. This approach definitely cuts back on fuel costs, maintenance, and vehicle depreciation since you aren’t driving a big steel gas guzzler. So there is potential to earn more money.
But there are drawbacks, the biggest of which is location. If you’re on a bike or scooter, you’re pretty much tied to the area where you live, and there are a limited number of urban centers where bike delivery is an option. If there aren’t deliveries available in that area, or if it’s an area with a low base rate, you probably aren’t going to ride 30 miles to get a better gig. You also can’t complete long distance deliveries (especially of hot or frozen foods). So your options are limited, which further restricts your earning potential.
And let’s get real, the fuel cost is still there — instead of gas going into your tank, it’s food going into your belly.
So just like delivering in a car, Dashing by bike or scooter might be a great option, but it also might be a waste of your time and money.
Start Your Own Small Business Instead
Are you thinking about listening to the little entrepreneurial voice in your head? DoorDash could be an option if you tick all the right boxes. But why not start something that is yours, that you control, with profits that aren’t artificially limited by a multi-billion dollar corporation?
Launching a small service business can be an incredible way to build something from the ground up, on a budget and on your own terms.
What type of business? Here are some ideas.
Home Improvement and Maintenance
If you’ve got handyperson skills, someone out there is ready to pay for your help. Even simple tasks like mowing lawns, power washing, and painting can add up to big profits if you’re motivated. Get creative with the tools you have and the demand in your area, and you could be in business.
Learn how to start a handyman business here →
Landscaping
If you enjoy working outdoors, landscaping could be a great business to start from home. With many people looking for help maintaining their yards, this is a service that's always in demand. Whether it's mowing lawns, trimming hedges, or designing flower beds, landscaping is an excellent option if you have the right tools and enjoy physical work.
This is a cost-effective business to launch, especially if you already have a reliable vehicle and basic landscaping equipment. Plus, the flexibility to work in your local area allows you to build strong relationships with clients and grow your business.
Get a step-by-step guide on how to launch a landscaping business here →
Cleaning
You know how to clean. The equipment and supplies are cheap. And homeowners and office managers are always desperate to find a reliable cleaner who knows how to keep their spaces sparkling. Office cleaning is a no-brainer for night owls, while home cleaning is perfect for early birds.
Learn how a Durable customer turned her passion for cleaning into a thriving business →
Don’t see the career for you? We’ve got you covered. Check out:
- Business Ideas for Stay-at-home Parents
- Business Ideas for Introverts
- Business Ideas for Animal Lovers
- Easy Business Ideas Anyone Can Start Today
And when you’re ready to start your business, Durable has everything you need to make it happen.
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