As a DoorDash driver, one of your biggest operating expenses is gas. With fuel prices consistently high across the country, it‘s natural to wonder: does DoorDash pay for gas? The short answer is no. As independent contractors, Dashers are responsible for covering the cost of gas themselves, along with other vehicle-related expenses.
However, there are steps you can take to minimize your fuel consumption and maximize your earnings as a delivery driver. In this comprehensive guide, we‘ll break down everything you need to know about DoorDash‘s gas policy, industry norms, and expert strategies to help you succeed.
Understanding DoorDash‘s Stance on Gas
DoorDash classifies its drivers as independent contractors rather than employees. This distinction is important because it means the company is not legally obligated to reimburse Dashers for on-the-job expenses like gas. Instead, drivers are expected to factor those costs into their overall earnings.
According to DoorDash‘s Independent Contractor Agreement, "You will be responsible for all costs and expenses associated with your performance of Services, including but not limited to costs related to your Personnel, Vehicles, fuel, maintenance, and insurance." This language makes it clear that fuel is the driver‘s responsibility.
It‘s worth noting that DoorDash is not alone in this stance. Other popular food delivery apps like Uber Eats, Grubhub, and Postmates also hire drivers as independent contractors and do not pay for gas directly. This practice allows the companies to keep their operating costs down while providing flexible earning opportunities for couriers.
The True Cost of Gas for Delivery Drivers
So how much does gas actually cost DoorDash drivers? It varies depending on several factors, including:
- The current price of gas in your area
- The fuel efficiency of your vehicle
- How many miles you drive for deliveries
- Your driving habits (quick acceleration, idling, etc.)
According to a recent survey of over 500 app-based delivery workers conducted by the labor advocacy group Working Washington, the average courier spends $1.27 on gas per order. With most drivers completing 2-3 deliveries per hour, that adds up to roughly $3-4 per hour spent on fuel.
Keep in mind that gas is not the only vehicle expense to consider. Delivery driving also contributes to faster depreciation, more frequent oil changes and tire replacements, and potentially higher insurance premiums. The IRS estimates that it costs around 58.5 cents per mile to operate a vehicle for business use in 2022.
Using that figure, if you drive 100 miles during a DoorDash shift, you can expect to incur around $58.50 in total vehicle expenses. If you earn $200 over that same shift, your true net earnings after expenses would be closer to $141.50. That‘s why it‘s so important for Dashers to carefully track both their mileage and their fuel costs.
How to Maximize Your DoorDash Earnings
Despite the lack of gas compensation from DoorDash, many drivers are still able to earn a substantial income from the gig. The key is to be strategic about minimizing your expenses and maximizing your revenue. Here are some of the best ways to boost your bottom line:
1. Track your mileage
One of the most important things you can do as a Dasher is to keep detailed records of the miles you drive for deliveries. This is because you can deduct your business mileage from your taxes at the end of the year, which will significantly lower your tax burden.
The current IRS mileage rate is 58.5 cents per mile, which accounts for gas as well as general wear and tear on your vehicle. There are many apps like Stride and TripLog that make it easy to automatically track your mileage and generate reports for tax purposes. Taking advantage of this deduction can save you hundreds or even thousands of dollars per year.
2. Choose a fuel-efficient vehicle
The vehicle you use for DoorDash can make a big difference in your overall profitability. Choosing a car with good gas mileage will obviously require fewer trips to the pump, while a larger vehicle like an SUV or truck will guzzle fuel more quickly.
Of course, most drivers use the vehicle they already own rather than buying a new one specifically for deliveries. However, if you do need to purchase a car and plan to use it for gig work, prioritize fuel efficiency. According to FuelEconomy.gov, some of the most fuel-efficient vehicles on the market right now are the Mitsubishi Mirage, Hyundai Elantra, and Toyota Corolla Hybrid, all offering over 35 MPG.
3. Plan your routes strategically
As the old saying goes, time is money. The more efficiently you can complete your DoorDash deliveries, the more you can earn per hour. One way to optimize your time and mileage is by planning your routes carefully.
When you receive an order request, take a look at the pickup and dropoff locations before accepting. Try to choose deliveries that are close together and form a logical route rather than zig-zagging back and forth across town. You can also use apps like Google Maps and Waze to find the fastest path and avoid traffic jams.
Another strategy is to stick to a tight delivery radius around a cluster of restaurants. This will minimize your driving distance between pickups and allow you to complete more orders in less time. Just be sure to find a good parking spot so you‘re not circling the block and wasting gas!
4. Take advantage of gas rewards programs
Many major gas station chains offer loyalty programs that give you points or cash back for every fill-up. These rewards can add up quickly, especially if you‘re frequently refueling. Some of the most popular programs include:
- Shell Fuel Rewards: Save 5 cents per gallon on every fill-up, plus additional rewards for shopping at participating retailers.
- BP Driver Rewards: Earn 10 cents off per gallon for every $100 you spend on BP fuel purchases.
- ExxonMobil Rewards+: Earn 3 points per gallon on fuel and 2 points for every $1 spent in the convenience store. Points can be redeemed for cash back or gift cards.
To maximize your savings, sign up for multiple programs and strategically fill up at the station with the best rewards whenever possible. Just be sure not to go too far out of your way just for cheaper gas, as the extra mileage may negate any savings.
5. Use cash back apps for gas purchases
In addition to loyalty programs, there are also several apps that offer cash back specifically for gas purchases. One of the most popular is GetUpside, which gives you up to 25 cents back per gallon at participating stations. All you have to do is upload a photo of your receipt after filling up.
Other apps like GasBuddy, Checkout 51, and Receipt Hog give you points or discounts for uploading gas receipts as well. You can typically redeem your earnings for PayPal cash, gift cards, or other perks. While the amounts may seem small, they can really add up over time, putting a dent in your overall fuel expenses.
DoorDash Initiatives for Drivers
Although DoorDash does not directly pay for drivers‘ gas, the company has implemented some initiatives to help couriers keep more of their earnings. The most notable is DasherDirect, a financial platform designed specifically for Dashers.
With DasherDirect, drivers can sign up for a free business checking account and Visa debit card. The account has no minimum balance requirements or monthly fees, and you can access your earnings instantly after each dash with no transfer fees. Plus, the debit card offers 2% cash back on all gas purchases, which can equate to big savings over time.
DoorDash also occasionally offers bonus pay and incentives for drivers who complete a certain number of deliveries or work during peak hours. These promos are designed to encourage drivers to log more hours on the platform and can help offset expenses like gas. Keep an eye on your email and the Dasher app for information on current offers.
The Future of Gas Prices and Delivery Work
It‘s no secret that gas prices have been on the rise in recent years, and experts predict that trend will continue. According to the U.S. Energy Information Administration, the average price of regular gasoline in 2022 is expected to be $3.84 per gallon, up from $3.18 per gallon in 2021.
These high fuel costs are putting a strain on delivery drivers, many of whom are already struggling to make ends meet. A report by Salon found that after accounting for expenses, the average DoorDash driver makes less than $7.50 per hour, which is below minimum wage in many states.
As gas prices continue to climb, it may become increasingly difficult for couriers to turn a profit without some form of fuel assistance from the platforms they work for. Some have called on delivery companies to add a temporary fuel surcharge to customer orders, with the extra funds going directly to drivers. Others have suggested implementing a per-mile gas stipend or raising base pay rates to account for higher expenses.
So far, DoorDash and other delivery apps have not announced any plans to change their gas policies. However, as the industry continues to grow and competition for drivers heats up, it‘s possible that companies will need to find ways to better support couriers if they want to attract and retain workers.
The Environmental Impact of Delivery Driving
Another factor to consider when it comes to gas usage and delivery work is the environmental impact. With the rise of app-based delivery during the pandemic, there are more cars on the road than ever before, leading to increased emissions and traffic congestion.
A study published in the journal Transportation Research Part D found that in 2020, the carbon footprint of food delivery was 1.8 megatonnes of CO2, which is equivalent to the annual emissions of a small country. The researchers also found that using bikes or scooters instead of cars for deliveries could reduce emissions by up to 26%.
Some cities have started to take action to mitigate the environmental impact of delivery driving. For example, in New York City, the Department of Transportation recently announced a pilot program that will allow delivery workers to use electric cargo bikes in designated bike lanes. The goal is to reduce congestion and emissions while providing a safer and more efficient option for couriers.
As more consumers become aware of the environmental cost of their delivery habits, there may be increased pressure on companies like DoorDash to invest in sustainable transportation options for their workers. This could include incentivizing the use of electric vehicles, partnering with bike and scooter rental services, or even developing their own fleet of eco-friendly delivery vehicles.
Conclusion
In conclusion, while DoorDash does not currently pay for drivers‘ gas directly, there are still many ways for couriers to maximize their earnings and minimize their fuel expenses. By tracking your mileage, choosing a fuel-efficient vehicle, planning your routes strategically, and taking advantage of rewards programs and cash back apps, you can make the most of your time on the road.
However, as gas prices continue to rise and the environmental impact of delivery driving becomes more apparent, it‘s clear that systemic changes may be necessary to ensure the long-term sustainability of the gig economy. As a society, we need to have honest conversations about fair compensation for workers, support for small businesses, and responsible consumption habits.
Ultimately, whether or not being a DoorDash driver is "worth it" depends on your individual circumstances and financial goals. It‘s important to crunch the numbers and factor in all of your expenses before deciding if this type of gig work is right for you. And if you do choose to hit the road as a Dasher, remember to prioritize your safety, health, and well-being above all else.
