Updated: 07/04/2021
DoorDash is a San Francisco based food delivery service that employs “Dashers” to deliver food to over 300 cities across the United States and Canada. The company was founded in 2013 by Andy Fang, Evan Moore, Stanley Tang and Tony Xu.
History and Funding
DoorDash has entered its active stage of funding. The founders are all Stanford graduates who collectively had experience at Facebook, Square, eBay and Vevo. The company has raised almost $187 million in funding to date.
Main investors of DoorDash include Sequoia Capital, Kleiner Perkins Caufield & Byers, Khosla Ventures and Y Combinator. Their only acquisition to date has been local delivery company Rickshaw. Rickshaw was also founded in San Francisco and offered services similar to DoorDash. DoorDash acquired the company in September of 2017.
In October, the company announced the opening of several delivery-only kitchens, with the hope to open more soon. These kitchens allow restaurants to only pay for culinary staff and use DoorDash’s facilities to prepare food which is specifically delivered only by Dashers.
How Much Can You Earn with DoorDash?
DoorDash advertises earnings of up to $25 per hour. However, most Dashers report earnings of around $11-12 per hour. Dashers earn a set rate that varies based on which city they are in. For example, San Francisco area drivers earn $12 per delivery, with bonuses of $20 and up for deliveries that are over ten miles away. Pay rate also varies based on how high the total order is.
Dashers also have a minimum rating they must maintain and a minimum number of orders they must accept. The minimums vary by location as well, but the standard is around 75 percent order acceptance rate with around a 4.4 rating. More information about the various standards and fee structures can be found here.
Dashers also keep 100 percent of their tips.
Job Requirements
Dashers must be at least 18 years old and have a smartphone (iPhone or Android). They also cannot have any major traffic violations in the last seven years and no more than three driving incidents in the last three years.
Dashers must also pass a background check. They do not have to deliver via a car. They can also use a scooter, a bike, or even walk. DoorDash also offers insurance as well as some tax statements for Dashers who earn over $600. These Dashers will receive a 1099-MISC form. However, as with almost all gig economy platforms, they do not withhold taxes from their Dashers’ paychecks.
Dashers may only drive in one area as well, which is a shift from other gig economy platforms.
DoorDash also gives Dashers a DoorDash card, which they will use to pay for some orders (if the customer does not pay in app). DoorDash issues payments to its Dashers every week.
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