Table of Contents
1. What is Doordash?
This is an American Food delivery app that mainly concentrates on connecting restaurants with its customers. This company was started in 2013 by Andy Fang, Stanley Tang, Evan Moore & Tony Xuand. In the first quarter, this even crossed the records of market shares and valuation of the popular food delivery app Ubereats.
This has been expanding its business and works in almost 800 cities in the United States. And also during this Covid Pandemic, it came up with an idea of contactless delivery which ensures safety for both the delivery person and the customer. It is one of the prominent food delivery apps worth 16 Billion USD.
They managed to raise decent funding from the investors and tied up with almost all popular restaurants in the United States.
2. How does it work?
The doordash works in a pretty simple and easy way. The customer can use this app or website to order from nearby restaurants. When they place the order the drivers with the app get notification about the order. Then the dasher near the restaurant location can accept the order.Â
The drivers also have the option to reject the offer if they can’t deliver it on time. Once they accept the order, they go to the respective restaurant and pick the order up and deliver it to the user.
3. Doordash Business Model
Most of the on-demand business delivery services have a similar business model. There will only be a few minor changes that lead to vast differences. Let us see how Doordash business model is:
3.1 Choose the order
The first and the basic step is choosing what you want to eat. You can either do that by searching the food item name in the search bar or by your favorite nearby restaurant. You will also have filters that sort the items you want and make the order process simpler.
3.2 Payment
Once you decide what you want you can order the food item and make the necessary payment for the food. Then the dasher will receive the notification and forward it to the restaurant.
3.3 Order Tracking
After the driver receives the order, you can track the dasher by using the tracking feature given in the app. You can also estimate the food delivery time using this track feature.
3.4 Food delivery
After the order is picked up the next is to deliver it to the user and collect the payment or tip. The driver gets to keep 100% of the tip given by the customer.
4. How Doordash Makes Money?
Revenue generation and revenue generation model if a business plays a vital role in any business. As we are talking about Doordash today, Let us see How doordash makes money:
4.1 Commission on orders
As we know, doordash works as a delivery bridge between restaurants and the customer. To do this, doordash charges a commission of 20% for each and every order from the restaurant.
4.2 Restaurant Advertising
Other than commission and other forms of income, Doordash also charges from restaurants for marketing and advertising their restaurant on their app. Restaurants have to pay to doordash to stay on top of the list for a particular period of time.
4.3 Delivery Charges
Doordash has its own drivers who are known as dashers. They are the one who delivers the food items that are ordered through the app. The delivery charges vary from place to place but on an average, the delivery fee would be $5 to $8 per order.
5. How Much Does DoorDash Drivers Make?
As a doordash driver, one can have flexible work hours, to work as their own boss to pick up and deliver the orders. It was announced by Doordash in 2020 that the dashers earn around $22 per hour. So it is a good opportunity for full-time or as a side hustle.
5.1 How much does doordash pay?
Food delivery or any delivery job is unlike other regular full-time jobs so there is no guaranteed salary. But the salary of doordashers is given below and how they are paid.
5.1.1 Base Pay
The basePay of dashers will be ranging between $2- 10+ based on the estimated time and distance. If the distance is longer than expected and takes more time, then the base pay of the dashers increases.
5.1.2 Promotions
Promotion is additional pay for the dashers, these are given for the drivers as a choice to earn more. For example, peak pay. Peak pay is something that dashers earn on a busy day or during a busy delivery schedule. If the dashers agree to work during that peak time they are rewarded more than the original amount known as peak pay.
5.1.3 Tips
The third option through which the dashers earn a commission or extra money is through tips. The tip given by any customer belongs to the dasher completely.
5.2 Does doordash pay hourly?
They definitely don’t pay the dashers hourly, but it was estimated that dashers earn a minimum rate of $1.45 per hour.
5.2.1 DoorDash Driver Hourly Earnings
Doordash drivers not only earn well but they also have a lot of expenses to incur during the delivery. So it is more important to look at net earning other than gross earnings. As it was said above, the average dashers hourly rate is $1.45 and the gross earnings are $15.76 per hour.
5.2.2 DoorDash Driver Earnings By Location (Table)
City | Per hour earnings |
San Mateo | $21.67 per hour |
Berkeley | $20.94 per hour |
Daly City | $20.88 per hour |
Richmond | $20.33 per hour |
Stamford | $19.80 per hour |
Bellevue | $19.74 per hour |
San Francisco | $19.57 per hour |
Brooklyn | $19.44 per hour |
Lakes | $19.36 per hour |
Knik-Fairview | $19.33 per hour |
5.3 Is doordash base pay low?
As we discussed before, the base pay of the dashers will be ranging from $2- 10 based on the delivery. If the distance is long and needs more effort then the pay also increases as per the order. Previously they used to pay the same amount for all types of deliveries which is between $2-$10, but now they pay according to the order.
5.4 When do Dashers get paid?
5.4.1 Weekly pay
Dashers get paid once a week for all the deliveries that they make between Monday to Sunday through direct deposit. They send the amount directly to their bank account which will be appearing in the bank by Wednesday after 2-3 days of processing time.
5.4.2Â Dasher Fast Pay in the United States
Fastpay allows the doordashers to cash out their earnings daily but it charges a fee of $1.99. So, this can be a loss sometimes, as the dashers pay a minimum of $2 a day for free.
6. Conclusion
Starting a business and earning money is easy only by developing a food delivery app like Doordash.Â
Every company has its own terminologies, policies, and development ideas. As this is the current trending business in the world and people are attracted to food easily.Â
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