Amazon Flex vs DoorDash: An In-Depth Comparison for Prospective Drivers

The explosive growth of e-commerce and on-demand delivery apps has created a wealth of opportunities for individuals looking to earn extra income on their own schedules. Two of the biggest players in this space are Amazon Flex and DoorDash, which collectively have over 1 million active drivers delivering packages and food orders to customers across the US.

While both services provide flexibility and the potential for solid earnings, they operate in distinct markets and have key differences that prospective drivers should be aware of. In this comprehensive guide, we‘ll take a deep dive into how Amazon Flex and DoorDash stack up in terms of requirements, pay, benefits, drawbacks, and overall earning potential.

By the end, you‘ll have a clear understanding of which service is the best fit for your goals and be equipped with expert tips for maximizing your success as an independent contractor in the delivery gig economy.

Amazon Flex Overview

Amazon Flex is an on-demand delivery program that launched in 2015 to help Amazon meet the surging demand for same-day and next-day deliveries. Flex drivers are independent contractors who use their own vehicles to deliver packages from Amazon warehouses and fulfillment centers directly to customers‘ homes and businesses.

Flex drivers reserve "delivery blocks" through the Amazon Flex app, which typically range from 2-6 hours. During that block, drivers are assigned a batch of packages to pick up from an Amazon facility and deliver within the specified timeframe. Blocks are released throughout the day based on demand, and drivers can choose the ones that fit their schedules.

Driver Requirements

To be eligible for Amazon Flex, you must:

  • Be at least 21 years old
  • Have a valid US driver‘s license and a clean driving record
  • Pass a criminal background check
  • Have a qualifying vehicle (4-door sedan, pickup truck, or minivan)
  • Have a smartphone capable of running the Amazon Flex app (iOS or Android)

Amazon also requires drivers to have valid auto insurance and provides supplemental commercial insurance coverage at no cost while delivering orders.

Onboarding Process

After submitting an online application, potential drivers have to pass a background check that typically takes 2-5 business days. Once approved, drivers can watch a series of training videos through the app and complete a short quiz before selecting their first delivery block. The entire onboarding process can take anywhere from a few days to a few weeks depending on current hiring needs.

DoorDash Overview

DoorDash is a leader in the online food delivery space, partnering with over 340,000 restaurants and food merchants across 4,000+ cities in the US, Canada, and Australia. The company has seen explosive growth since its founding in 2013, with annual revenue jumping from $850 million in 2019 to $2.9 billion in 2020 [1].

As a DoorDash driver (or "Dasher"), you use the app to accept delivery requests from participating restaurants in your area. The typical order involves driving to the restaurant, picking up the prepared food items, and delivering them to the customer‘s location. Dashers are paid a base rate for each order plus any promotions and customer tips, which they keep 100% of.

Driver Requirements

The requirements to become a Dasher are slightly more flexible than Amazon Flex:

  • Must be at least 18 years old
  • Have a valid driver‘s license and insurance
  • Pass a criminal background and driving record check
  • Have a smartphone capable of running the DoorDash app (iOS or Android)

There are no vehicle restrictions for DoorDash, so you can use any car, truck, scooter, motorcycle, or bike to make deliveries. In some dense urban markets, you can even Dash on foot.

Onboarding Process

To start the sign-up process, potential Dashers fill out an online application with their basic information and consent to a background check. Most applicants are approved within 1-2 days and can then complete a short in-app orientation. At that point, you‘re ready to start accepting orders and earning money. All in all, the DoorDash onboarding process is typically quicker and simpler than Amazon Flex.

Comparing Amazon Flex and DoorDash

Now that we have an overview of how each service works, let‘s take a closer look at how Amazon Flex and DoorDash compare in the areas that impact drivers the most.

Scheduling and Flexibility

Both Amazon Flex and DoorDash are flexible side gigs that allow you to create your own schedules and work as much or as little as you want. However, there are some nuances in how that flexibility plays out.

With Amazon Flex, drivers reserve delivery blocks in advance for a fixed amount of time (usually 2-6 hours). You have to be available for the entire duration of your selected block and complete all assigned deliveries within that timeframe. While you can forfeit a block up to 45 minutes before the start time, dropping blocks at the last minute can impact your driver standing.

DoorDash offers more fluid scheduling by allowing Dashers to log into the app and toggle their availability at any time. There are no minimum hourly commitments or advanced scheduling required (though you can reserve a "Dash" ahead of time to secure access to a busy time slot). This flexibility allows Dashers to fit deliveries around an irregular schedule or only work when it‘s most profitable.

Pay Structure and Frequency

Both Amazon Flex and DoorDash pay drivers as independent contractors rather than employees. This means you‘re responsible for withholding your own taxes and don‘t receive any employee benefits like health insurance or paid time off. However, the way pay is structured differs between the two platforms.

Amazon Flex pays drivers a flat hourly rate for each delivery block, which can range from $18 to $30 per hour depending on location, time of day, and demand. Rates tend to be higher for early morning (4am-8am) and weekend blocks, as well as during peak seasons like Prime Day and the holidays. The amount you‘ll earn for each block is confirmed in advance, so you know exactly what you‘re getting when you accept a block. Amazon Flex earnings are disbursed via direct deposit twice a week on Tuesdays and Fridays.

DoorDash uses a slightly more complex pay model that includes:

  • Base pay: Ranges from $2-$10+ per order depending on time, distance, and desirability
  • Promotions: Bonus opportunities such as Peak Pay and Challenge Bonuses for completing a certain number of orders in a set period
  • Tips: Customers can add a tip at checkout or after delivery, and Dashers keep 100%

DoorDash‘s pay model means total earnings can vary quite a bit from order to order and day to day. Base pay is typically lower than Amazon Flex‘s hourly rates, but generous tips and promotions can help boost earnings. Dashers are paid weekly via direct deposit, with the option to cash out earnings once per day for a small fee.

So which service pays more? It‘s hard to say definitively as there are many variables at play. But according to data from thousands of drivers on the Gridwise app, Amazon Flex drivers earn a median of $18 per hour before factoring in expenses like gas and vehicle maintenance [2]. In comparison, DoorDash drivers earn a median of $15 per hour before tips and claim an average total of $17 per hour after accounting for tips [3].

Driver Expenses and Costs

Since delivery drivers are independent contractors, they‘re responsible for all costs associated with operating and maintaining their vehicles. The main driver expenses to account for are:

  • Gas
  • Vehicle maintenance (oil changes, tire rotations, repairs, etc.)
  • Added mileage and depreciation
  • Insurance premiums
  • Self-employment taxes (15.3% of net earnings)
  • Data plan for phone

These costs can quickly add up and take a substantial bite out of your gross earnings. A 2019 study by Gridwise found that rideshare and delivery drivers spend an average of $0.58 per mile on expenses, and around 32% of their overall earnings goes towards costs [4].

Because of the longer delivery radiuses and higher package volumes, Amazon Flex drivers may incur more expenses related to gas and vehicle wear-and-tear compared to food delivery drivers. However, DoorDash drivers often have to deal with parking hassles, traffic, and apartment/high-rise deliveries that can drive up costs in the form of parking tickets, idling, and wasted time.

Ultimately, your actual expenses will depend on your location, vehicle type, and driving habits. To maximize your profitability with either app, it‘s important to track your earnings and expenses diligently, work during peak demand hours as much as possible, and find ways to minimize costs through proper vehicle maintenance, strategic routing, and using a fuel-efficient vehicle.

Benefits and Incentives

As independent contractors, neither Amazon Flex nor DoorDash drivers receive traditional employee benefits like health insurance, paid time off, or retirement plans. However, both companies do offer some perks and incentives to support and reward their drivers.

Amazon Flex provides drivers with commercial auto insurance coverage at no extra cost while they‘re actively delivering on the app. The policy includes liability, uninsured motorist, and contingent comprehensive and collision coverage that kicks in after your personal auto insurance. Amazon Flex also offers some driver bonuses and incentives during peak periods, but these are fairly limited and inconsistent compared to other gig platforms.

DoorDash provides excess auto insurance for Dashers, but only for property damage or bodily injury caused to third parties. There‘s no coverage for damage to the driver‘s own vehicle. Where DoorDash shines is in its promotions and incentives for drivers. Dashers can earn extra money during designated "Peak Pay" periods in their area, as well as complete "Challenges" for bonus pay by hitting certain order milestones. The platform also offers the "Top Dasher" program, which rewards high-performing drivers with priority access to orders, among other perks.

Both Amazon Flex and DoorDash have been expanding their driver support options in recent years, with 24/7 phone, email, and in-app support to help troubleshoot issues. However, many drivers complain that support can be slow and unhelpful in resolving problems. Neither platform offers robust in-person support options like a driver hub or resource center.

Pros and Cons Comparison

To summarize, here‘s a quick rundown of the main advantages and disadvantages of driving for each service:

Amazon Flex Pros:

  • Predictable earnings with transparency into expected pay before accepting blocks
  • Opportunity to earn a higher hourly rate compared to food delivery
  • More consistent work volume and demand
  • No dealing with restaurant delays or customer food complaints
  • Don‘t have to worry about keeping food hot/cold during delivery

Amazon Flex Cons:

  • Stricter vehicle requirements (4-door sedan, truck, or van only)
  • Longer onboarding process with more extensive background checks
  • Can be physically demanding to load and deliver large volumes of heavy packages
  • Less flexibility in scheduling due to advance block reservations
  • Often requires more miles driven per hour (and more gas) than food delivery
  • Delivering in unfamiliar areas and apartment/office buildings can be stressful

DoorDash Pros:

  • Low barrier to entry with no vehicle restrictions
  • Quick and easy sign-up and onboarding process
  • More scheduling flexibility to Dash on-demand or on a set schedule
  • Potential for higher earnings from Peak Pay and Challenge Bonuses
  • Ability to be selective in the orders you accept (to an extent)
  • Can choose to only deliver in areas you know well

DoorDash Cons:

  • Base pay tends to be lower than Amazon Flex
  • Inconsistent order demand and intense driver competition in some markets
  • Having to place orders and wait for them to be prepared at restaurants
  • Reliance on tips for earnings means greater daily and weekly income volatility
  • Dealing with missing items, incorrect orders, spills, etc.
  • More frequent customer interactions and potential for complaints

The Bottom Line

So, which delivery gig is better for drivers? As with most things in life, the answer is: it depends.

Amazon Flex can be great for drivers who prioritize steady and predictable pay, don‘t mind putting in longer hours, and live in an area with high demand for Amazon deliveries. The higher base rates also make Flex a good choice if you prefer not to rely on tips or deal with the hassles of food delivery.

On the flip side, DoorDash is ideal for drivers who crave maximum flexibility, lower start-up costs, and the potential for sizable tips. If you enjoy interacting with people and live in an area with a high density of DoorDash restaurant partners, you may find it easier to stay consistently busy and earn strong wages.

Many savvy drivers actually sign up for both services (and others like Instacart and Postmates) in order to cherry-pick the best opportunities from each app and keep their calendars full. By diversifying your delivery options and being strategic about when and where you work, you can maximize your earnings and create a lucrative side hustle or even a full-time gig.

Whichever path you choose, it‘s important to do your research, know your numbers, and stay on top of industry trends. The delivery gig economy is constantly evolving, with new players, regulations, and consumer habits emerging all the time. By staying informed and adapting your strategies accordingly, you can position yourself for long-term success as an independent contractor.

Sources:

  1. https://www.bloomberg.com/news/articles/2021-02-16/doordash-quarterly-results-beat-analyst-estimates-shares-gain
  2. https://gridwise.io/amazon-flex-driver-earnings
  3. https://gridwise.io/doordash-driver-earnings
  4. https://gridwise.io/how-much-do-rideshare-drivers-really-make