Doordash has been in the news a lot lately. From the #declinenow movement earlier this year to the more recent discussions of a national strike day in online forums, there is growing frustration with the nation’s largest food delivery platform. In addition, the company went public last winter and has been adding additional services like grocery and prescription delivery to it’s suite of delivery services as we slowly emerge from the pandemic.
With so many factors to consider as a dasher, we thought it was time to dig deeper into the delivery giant’s numbers to help you understand where, when and whether or not it makes sense to keep dashing.
First, Let’s Breakdown Your Earnings on Doordash
The most important thing to know about delivering food is that approximately half of your overall earnings comes from tips. That’s right - 50%! We covered this topic across all food delivery platforms a few months ago, but you can see the breakdown specifically for Doordash through 2021 below.
Given how important tips are to your income, it’s not surprising that the lack of visibility in the Dasher app is the root of much of the frustration that we’ll discuss below.
In addition to having a steady breakout across base rate and tips, Dashers made over $20/hr in Seattle 74% of the hours they worked. That’s definitely a positive if you’re looking for a gig job that you can regularly count on to earn.
Did the #declinenow movement help raise dasher earnings?
The #declinenow movement, which advocated for Dashers nationwide to decline delivery requests that paid out less than $5 (or more depending on who you talk to), really gained momentum in the Spring. This coincided with a big hourly earnings increase of 22% from March to June for dashers - topping out at near $30/hr!
It’s hard to directly prove causation, but there certainly seems to be a strong correlation between when Dashers got stricter on the deliveries they accepted and the sudden bump in earnings. But was it all driven by a widespread gaming of the algorithm?
Tips are trending up...but still lack transparency
To put it lightly, Dashers are unhappy with the lack of ability to see the tip payout on each request. Given tips make up more than half your earnings it’s infuriating to have to find that out after the fact - especially when Doordash is withholding that information from you.
But there’s good news - tips have actually been trending up through the year. Below, you can see the average tip per delivery on Doordash and how it has progressed from around $5.25/job in January to over $5.50/job in July.
While a 5% increase in tips/job may not seem like a lot, it definitely helps your earnings given they account for half of the hourly income on the platform. Other good news? Tips have been pretty consistent as well holding steady between ~$5 and $6 per order.
Even with the recent issues the company is facing, Doordash still delivers a pretty consistent opportunity. As we emerge from the pandemic, earnings per hour has trended up by 22% in recent months and 74% the time Dashers are earning more than $20/hr. This means you can either schedule or dash on demand with reasonable certainty.
However, there’s no doubt that the growing dissatisfaction with the dasher experience and continuing to hide tip amounts is going to produce justified backlash from workers. We hope the company makes the necessary changes to right this wrong and give transparency back to the worker.
Looking for other options beyond Doordash?
Diversifying your portfolio of jobs gives you more options to take advantage of peak pay periods. At Solo, we show you not only which jobs are busiest for every hour of the week, but also predict how much you’re going to earn and guarantee it as a part of our Pay Assurance program. Check out our free Earnings Forecast tool to take the anxiety out of gig work and start earning with certainty.