DoorDash is a popular company that pays delivery drivers based on their own schedule. If you work for DoorDash, you earn base pay and customer tips for your hard work. Of course, to complete a delivery, you have to drive from place to place. You might wonder – do you have to pay for gas while working in your own hours, or Does Doordash pay for gas expenses?
In this post, I'll explore if Doordash pays for gas or if Doordash delivery drivers do and much more. Let's get started!
Does DoorDash Pay for Gas?
Does Doordash pay for gas? The short answer is no.
The company does not cover gas in their DoorDash base pay or compensation for the fuel utilized. You're working as an independent contractor, so you don't get the employee benefits that come with a salaried worker.
If DoorDash doesn't pay for gas, what do they consider with the income you earn? Let's talk about how the DoorDash pay model works so you can better understand what goes into the finances you receive as a driver.
How Does the DoorDash Pay Model Work?
Dasher breaks down in a specific way. Let's talk about the process DoorDash uses to determine what they'll pay a driver at the end of the day.
Here's how the DoorDash pay model works for a typical drive. You will earn:
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Base Pay: This part is the base portion of the payment. Every income includes DoorDash base pay. This item considers the time it takes to complete the order on the DoorDash app, the distance drove, and the desirability of the drive.
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Promotions: This factor considers outside considerations that might happen simultaneously and change the pay. These might include peak pay and extra challenges DoorDash occasional offers for income.
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Customer's Tip: Finally, the tips add to the pay. Every driver gets 100% of the tips earned every drive. These can be cash or paid with an item like a debit card.
These three factors can change the pay every time you hit the road.
It's critical to think about every order you take before accepting. Since DoorDash doesn't pay for gas, you want to consider if the income for the delivery is worth the pay offered for the service. In a way, you can pick higher-paid services to trick DoorDash into helping pay for your gas.
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Can You Use the Red Card to Pay for Gas?
The Red Card is given to DoorDash drivers when the welcome kit goes out. This card allows drivers to pay for certain orders that require payment at the restaurant rather than ahead of time. Are you allowed to pay for gas with the Red Card, or Does Doordash prohibit that method?
You can't utilize the Red Card to pay for gas. It only works at the correct time inside certain restaurants. It also only charges the correct amount for the order.
If you try to pay for fuel with the Red Card, it won't work. The DoorDash app will prompt you when it's okay to take advantage of the card, and gas isn't in that scenario.
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Why Do Gas Payments Matter With DoorDash?
Why does it matter so much if DoorDash pays for gas? To many people, it might not seem like a big deal. However, there are several items impacted by this company choice. Let's talk about a few reasons why this payment matters to drivers working with DoorDash.
Gas Prices Are Rising
Gas prices are on the rise, and payments for DoorDash remain stagnant. The more gas goes up, the less value each DoorDash drive holds for an independent contractor.
Look for a place to get gas that's lower than the competitors and dash smart by minimizing the distance you drive compared to the money you earn.
As gas prices go up, you will need to take more and more delivery orders to make the journey worth it. If DoorDash refuses to pay gas, it might become too expensive to dash full-time for the average human being.
Payment Lowers
Paying for gas means that the true amount you earn is lower than it seems. You might make $500 a day, but it will be closer to $400 after you cover fuel costs.
Before you start your day as a dasher, you should sit down and calculate how much you need to make for the day. Determine the best distances to drive, look for ideal locations, and determine the gas expenses that might come with it. Take away these funds ahead of time for a more accurate money result.
To make more money, you need to maximize the order you complete per full tank of gas. You can earn more cash by taking high-demand orders that don't require you to drive miles and miles on end.
Tax Deductions
Here's one of the only good things that come with paying for gas – you can deduct it from your tax as a work expense. You're an independent contractor, so it's as if you're running your own business.
When you file a tax return as someone who is in charge of their company, you can consider gas costs. Turn to a financial expert to see if you can file for any deductions based on your situation. You also might be able to take things out like vehicle repairs, mileage, and even your phone bill.
Are There Other Extra Expenses to Consider?
While looking at Door Dash pay, it's critical to remember that gas is not the only expense you'll need to think about. There are other items to cover that are necessary to keep your DoorDash pay in a profit-based direction.
Phone Bill
To earn pay with Door Dash, you will need a phone to get from place to place. This requirement means keeping up with your phone bills, especially if you need data to get to where you're going.
You may need to pay for items like:
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Minutes with family or friends
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Data
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WiFi services
Jot down the cost that comes with your phone company.
You can always search for more affordable phone company options if you want to save money or cut down on data costs. It's critical to count your phone bill in with other costs as a DoorDash delivery driver. Gas is not the only thing.
Taxes
As someone who works a full-time or part-time job with DoorDash, you are considered an independent contractor. The money you earn with the company is eligible for taxes. You will need to ensure you've paid these fees by the end of the fiscal year.
You will need to keep track of your income if you work with DoorDash since the company will not do this for you. You will confirm your tax information ahead of time with the company. They'll email out reminders and further information, and then you will need to file a tax return by the appropriate date.
There are plenty of people out there with experience paying DoorDash taxes. You should speak to a financial advisor if you're nervous about keeping track of these expenses throughout your time as a driver.
Repairs
Cars require more than just gas to get paid. You may need to fork over cash to cover mechanical repairs that appear during your time earning DoorDash pay. It's critical to factor these in, even if you don't run into car trouble.
Some of the most common car troubles you might run into as you drive include:
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Engine troubles: Engine troubles can appear suddenly. They're often expensive to deal with for most people. In the worst cases, they can keep your car from starting.
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Accessory issues: Although accessory issues can be ignored, troubles like faulty air conditioning can make the workday very uncomfortable, especially if you work in the city.
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Tire faults: A flat or bald tire can make a driving experience dangerous. You should stay on top of tire changes to remain safe on the road.
These can be costly, especially if your car is on the downslide.
Repairs can also take time away from your dashing experience. You should ensure you have money set aside or another form of payment to thrive if your vehicle needs to go in for repairs. It's bound to happen at some point during your time as a DoorDash driver.
How Can You Save Money on Gas Costs?
Does Doordash pay for gas? No. While this is an unfortunate part of working for the company, there are other ways you can save on your minimum wage income. Let's talk about a few of the best methods you can use to keep your own money in your pocket. Don't pay for more gas – save instead.
Use a Bike
If you don't mind biking everywhere, you can cut fuel costs completely and get to your delivery location with a bike or a scooter.
Not only is this a fuel-efficient option for delivery drivers, but it's also a form of exercise so you can stay in shape every day.
DoorDash is adaptable to a DoorDash driver on a bike. If you indicate this driving method, they will only send you orders within biking distance, like to local restaurants. They will also adjust the estimated time accordingly. You can still pick up a DoorDash order while avoiding costs like vehicle maintenance and fuel.
Riding a bike is a commitment. Still, if you're making minimum pay while working with the DoorDash app, biking can help you make as much money as possible with the estimated time you work.
Get a Side Hustle
If you have extra time on your hands, you can earn an hourly wage with a side hustle to cover other costs with DoorDash. You can get paid weekly for simple jobs and set aside these funds for fuel purposes.
Some of the best places you can search for a side hustle include:
- Instacart
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Upwork
These are ideal places to earn extra money.
UpWork is a good company to start with because you can search for jobs you want and apply to them as you wish. You can look for people in need of a paid virtual assistant, or a small-town writer. There are plenty of options.
Most of these companies pay through direct deposit to your bank account. You will get fast pay to help cover fuel costs as an independent contractor.
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Drive in Peak Pay Periods
There are good times to drive DoorDash and bad times. The best moments for DoorDash drivers are during the peak pay periods. During these times, DoorDash pays extra for services from their independent contractors.
As a DoorDash driver, you will find the peak hours during the week to be:
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Friday and the weekend when people pay more for food
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Mealtimes – breakfast, lunch, and dinner
These are when DoorDash claims to pay the most.
Of course, some of these times will require you to pay for gas to sit in traffic and travel further. It's critical to analyze the orders you take before driving so you can limit what you pay for gas. Work smarter, not harder, for the best results.
Utilize Cash-Back Rewards
There are both cash-back rewards apps and cards you can use to save money on gas costs. These are simple to access without any additional fees.
Cash-back gas cards come with most credit card companies. Some offer cash-back when you pay for gas, usually around 2%. Utilize them directly at the pump to earn money right away.
Cash-back apps are another way to earn extra cash on a delivery basis. Many independent contractors utilize this technology to save.
Some of the best apps you can check out include:
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GetUpside
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PetrolPrices
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GasBuddy
These will give you everything you need as a delivery driver to keep the way you spend money on fuel in check.
When using cash-back formats, it's critical to know that the savings won't appear right away. The more you drive, the more money you'll find deposited back into your account.
Steer Something Fuel Efficient
To maximize your DoorDash pay and save money, you need to ensure you're driving a fuel-efficient vehicle. It's best if you have an older car you can dedicate solely to the purpose of earning DoorDash earnings.
Some examples of fuel-efficient vehicles for DoorDash drivers include:
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Toyota Prius
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Honda Accord
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Hyundai Sonata
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Honda Civic
These are reliable vehicles, and they have excellent efficiency to minimize gas expenses.
If you want to minimize fuel expenses, ensure you check your own vehicle ahead of time. Being smart about what you drive is a vital part of keeping more money in your pockets.
Find a Mileage Tracking App
A mileage tracking app will help you keep track of the distance you drive. A good app will display how far you've gone so you can claim tax deductions when the time comes. Many of them keep track automatically as you hit the road.
Some of the best mileage tracking apps on the market include:
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Gridwise
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Hurdlr
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Everlance
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Triplog
These will keep everything in line if you're an independent contractor.
You can make up some of the money spent on gas by logging miles when tax season rolls around. You can get excellent deductions based on the distance driven with your total earnings.
Final Thoughts on Does Doordash Pay for Gas
Unfortunately Doordash does not pay for gas. But that doesn't mean you can't make extra money with this food delivery app.
Most drivers can make over $20 per hour delivering food – making it an excellent side hustle for many people.
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