The price of Gas is rising, and delivery drivers around the world, especially riders in the US, UK, and Canada, are eager to know if their company is offering any compensation for travel expenses. One of the food delivery companies drivers want to know if they will pay for gas with their own money is DoorDash.
Are you aware that buying gas is one of your biggest expenses while delivering?
Does DoorDash pay for gas in 2023? let’s dive into this topic, and discuss it. Are there other food delivery companies that pay for Gas in 2023? What about compensation, does DoorDash compensate drivers for gas?
In this article, we’re going to answer the question: Does DoorDash pay for gas?
Let’s not forget the power wielded by DoorDash in the US food delivery market. This company currently holds 65% of the U.S. food delivery market, and depending on your region and season, Doordash drivers makes between $15 to $25/hour, work flexible hours, and get paid weekly.
Does DoorDash Pay for Gas?
No. DoorDash does not pay for gas for its delivery drivers. Currently, Uber Eats, Instacart, Grubhub, and Shipt does not pay for gas for their delivery drivers. DoorDash has never paid gas fares for its drivers, and this policy is very active in 2023.
All Dashers should know that DoorDash is not legally responsible for any reimbursements.
In the first quarter of 2022, DoorDash announced a gas rewards program for Dashers to offset the rising cost of fuel. The program includes:
- 10% cash back on gas for U.S. Dashers who use their DasherDirect card, which is a prepaid Visa debit card created only for Dashers. All Dashers can get this prepaid Visa debit card, and there are no fees or credit checks required to apply for this card.
- DasherDirect has the added benefit of free FastPay, which is DoorDash’s instant cash-out feature.
- The Doordash gas reward program offers all high-mileage Dashers, a weekly gas bonus. There were three bonus tiers in this reward program: 100 miles, 175 miles, and 225 miles. From the company’s calculation, drivers who earned the weekly gas bonus and use the Doordash cashback reward, they’ll receive anywhere from $1.65 to $2.00 per gallon of gas.
Sadly, the weekly gas bonus was stopped in late 2022, However, the 10% cash back on gas using your DasherDirect card was extended according to DoorDash.
Although Doordash introduced the reward program last year to reduce fuel expenses for drivers, none has been introduced this year. Dashers who want to know if they are required to pay taxes, should read this → Does Doordash Take Out Taxes?
About DoorDash Pay.
Before we discuss further about Doordash paying for its drivers’ gas, let’s talk about How much Doordash drivers are paid, are they paid per mileage, per order, or per delivery? DoorDash pays drivers per order, DoorDash does not pay a flat hourly rate or monthly salary to its workers.
The average DoorDash driver’s pay comes out to $15 to $25/hour, depending on how many orders you’ve fulfilled. Now, let’s dive into how the DoorDash pay model functions, and how you can benefit the most from driving for this food delivery company.
Here’s how the DoorDash pay model works:
- Base Pay: Base Pay ranges from $2 to $10 per order, and the amount payable is determined by the time, distance, and desirability of the order fulfilled. The good thing about fulfilling an order is that you’ll get to see this amount before you accept the order, and you always keep 100% of your base pay.
- Promotions: There are programs that will increase your pay, programs like Peak Pay and Challenges are the current DoorDash promotions offering drivers the platforms to increase their earnings. Peak Pay is when the app is having much traffic than normal from customers. The map lights up in the app, with a plus sign and dollar amount, which is the additional amount you’ll earn on top of the base pay and is typically between $1-$4 extra per delivery. However, the challenges program is where drivers are requested to complete a certain amount of deliveries within a period of time… In the app, you’ll see something like: “Complete X number of deliveries in a set amount of time.” Dashers who are able to complete the challenge will receive bonus pay, and yes, it’s possible for dashers to earn challenge bonuses on top of Peak Pay.
- Tips: Dashers who are given tips by the customers are legally allowed to keep 100% of their tips, and DoorDash encourages customers to tip in the app.
Why Doesn’t DoorDash Pay for Gas?
Because Dashers are independent contractors, which is why DoorDash doesn’t pay for gas. This is because Independent contractors are not employees, and there are laws regarding compensation that are different for independent contractors.
As a dasher who starts delivering food to customers, you’re agreeing to DoorDash’s Independent Contractor Agreement (ICA), a legal document outlining the responsibilities and requirements of DoorDash and its contractors.
According to the DoorDash’s Independent Contractor Agreement (ICA), there is a specific portion regarding equipment and expenses, outlining whether you’re qualified to recieve the DoorDash gas fee. Here’s what it says:
- All Independent CONTRACTOR represents that they have or can lawfully acquire all equipment, including vehicles and food thermal bags (“Equipment”) that are necessary for performing Contracted Services, and CONTRACTOR are 100% responsible for ensuring that any vehicle used conforms to all vehicle laws pertaining to registration, safety, equipment, inspection, and operational capability.
- CONTRACTOR agrees that they are responsible for all costs and expenses arising from CONTRACTOR’s performance of Contracted Services, without any exclusion but not limited to, costs linked to CONTRACTOR’s Personnel (defined below) and Equipment. Except as otherwise stated by law, all independent CONTRACTOR assumes all risk of damage or loss to their Equipment.
To summarise this particular portion of the ICA, it reads is that all Doordash drivers are responsible for acquiring a vehicle and any additional equipment required to deliver, and Dashers are responsible for any costs incurred during deliveries, including gas.
How to Take Tax Deductions for Gas.
Since you are now aware that DoorDash does not pay dashers for gas or take up any other expenses, since you’re an independent contractor, there are ways you can take tax deductions when it comes to paying for gas.
There are two ways you can get a Gas deduction if you’re DoorDash Driver:
- Federal Standard Reimbursement For Mileage: The IRS offers a standard mileage deduction of 62.5 cents per mile in 2022, and 65.5 cents per mile in 2023. This mileage deduction will certainly cover any of the expenses you’d take as a DoorDash driver, including gas. With the IRS standard mileage deductions, you can easily track the miles spent when delivering for DoorDash, and use this when you file your DoorDash taxes.
- Actual Expenses: The Actual Expenses option provides drivers with the ability to accurately track how much they spend on vehicle maintenance, gas, tolls and parking fees, equipment, phone and cell service, insurance, roadside assistance, inspections, and any other expenses that are related with DoorDash deliveries.
How DoorDash Drivers Can Save Money on Gas.
These tips below will go a great way in helping you save money on gas, and saving money on gas will help greatly in reducing your expenses as a DoorDash driver.:
Drive a Fuel-Efficient Car: The very first step to saving money on gas as a DoorDash driver is finding/buying/using a fuel-efficient car. If you’re yet to purchase a car, I’ll highly recommend you buy a fuel-efficient car that will save you more gas.
Tracking your Mileage: Another great step in saving money spent on gas is by tracking the miles you spend delivering for DoorDash, this will ensure you take the most accurate deduction when filing your taxes.
As an independent contractor, you are allowed to manually track your miles by making note of your mileage when you stop and start. However, I’ll recommend you use apps like Everlance, which is a mileage-tracking app.
Get a Cash Back Gas Card: This is very important, and it is open for every dasher to get one. The DasherDirect card is one option because you earn 10% back on gas purchases. However, if you don’t want the DasherDirect Card, you can go for credit cards that offer cash back when you purchase gas.
Delivering During Busy Periods: Another great tip for saving gas money, is delivering during DoorDash’s busy times. Using the Doordash app, you’ll see map lights in the app, with a plus sign and dollar amount, identifying that you’ll earn additional income when you deliver during these times. This method provides you with more money and you can use the extras to cover your gas prices.
Is DoorDash Worth It With the Cost of Gas?
Dashers, I hope I have answered your question on this topic, “Does DoorDash pay for gas?”, but honestly, the bigger question as a beginner who wants to earn extra income on the side is this: “Is DoorDash Worth it?”
Although DoorDash does not pay for gas, there are various benefits to working for this food delivery company.
There is no direct answer to this question, to answer the question of whether DoorDash is worth it after paying for Gas, solely depends on your goals. For people who want a flexible side hustle that allows them to make extra income in their spare time without much obligation, then I think Doordash is an excellent choice!
Registration is simple, and you can personally schedule your working hours in advance, drive when in your spare time, and get paid daily or weekly, depending on your choice. Finally, on average, drivers can easily make between $15 to $25/hour.
DoorDash Income FAQs.
Does DoorDash pay more for longer deliveries?
Going through this company’s income TOS, they do not have any distinct policy about what constitutes a longer delivery and the amount you can earn while going for a longer delivery. However, Dashers are sure to earn more money when delivering orders that are farther away, or that are more difficult.
Can I use the DoorDash Red Card to pay for gas?
The simple answer is: No. According to the Company’s policy, the DoorDash Red Card can only be used for purchasing customer orders. Most orders are paid for in advance, but if you happen to accept an order that isn’t paid for, dashers can use the Red Card to purchase it. But if you’re looking for ways to save money on Gas, just know that you can’t use the DoorDash Red Card to pay for gas.
Do other Delivery Companies Pay for Gas?
No. Other food delivery companies, such as Instacart, Grubhub, Postmate, and Uber Eats, do not pay for gas because couriers/food delivery drivers are considered independent contractors, so they are to take care of everything pertaining to their vehicle maintenance.
