Driving for DoorDash is an excellent way to earn some extra money, especially if you live in a bigger city. Also, DoorDash allows its drivers to cash out immediately, so you can get your money right away.
However, before you sign up to be a DoorDasher, you likely have some questions, such as: does DoorDash pay for gas? I wondered about the same thing, so keep reading to see what I learned!
Does DoorDash Pay for Gas In 2023?
DoorDash doesn’t pay for its delivery drivers’ gas expenses in 2023. As independent contractors, DoorDash delivery drivers are responsible for paying for their gas, car, car repairs, and tracking their mileage. However, there are several fuel reward credit cards that allow you to save money on gas or earn cashback at certain gas stations.
If you want to learn more about being a DoorDasher, like why DoorDash doesn’t pay for gas, what fuel rewards cards are best, how to save money on gas expenses, and more, keep on reading!
Does DoorDash Pay for Gas?
DoorDash doesn’t pay its delivery drivers for the gas they use while completing deliveries. Instead, drivers are paid on a per delivery basis that includes the following:
- DoorDash base pay
- Incentives like peak pay
- Customer tip
Does DoorDash Pay for Mileage?
DoorDash also doesn’t pay for the mileage you incur while out for deliveries. However, it’s still important to keep track of your mileage to write the expense off on your taxes.
That said, apps like Everlance are convenient because it automatically tracks your mileage while driving for DoorDash.
Further, Everlance subscription plans start at $5 a month, which tracks an unlimited amount of trips.
Why Doesn’t DoorDash Pay for Gas?
DoorDash doesn’t pay for gas because the delivery drivers are independent contractors, not DoorDash employees.
As an independent contractor, DoorDashers agree to do the work for DoorDash as a business and not as an employee.
With that, DoorDash cannot control the work of its delivery drivers, allowing DoorDashers to choose their hours and only work when they want to.
Does DoorDash Keep Track of My Earnings?
Unfortunately, DoorDash doesn’t keep track of your earnings or provide a breakdown of your total base pay earnings, tips, and pay boosts.
Instead, you are responsible for keeping track of your earnings, which is a condition of being an independent contractor.
Do You Have to Report DoorDash Earnings on Your Taxes?
If you earn $600 or more for completing orders on DoorDash for the year, you’ll have to report those earnings on your taxes.
Fortunately, DoorDash gives you a 1099-NEC form if you meet those earnings via the company’s partner, Stripe.
How Do You See Your DoorDash Earnings History?
If you earned more than $600 on DoorDash, the 1099-NEC form would clearly indicate how much you made on DoorDash throughout the year.
Otherwise, you can see your earnings via your bank account statement when you cash out.
How Can You Save Money on Gas When Driving for DoorDash?
Before you become a DoorDasher, it’s helpful to know the tips and tricks that can help you save money and earn a bigger tax return.
Keep Track of Your Mileage
There are numerous DoorDash-related expenses that you can write off in your tax return, and mileage is one of them.
That said, Everlance is an app that automatically tracks your mileage, making it simple to keep a running total of how many miles you drive.
Also, the IRS states that the standard business mileage rate is $0.56 per mile, which adds up as a DoorDasher.
In fact, DoorDashers claim that you can save up to $2,200 per year by just using Everlance.
Moreover, Everlance is a subscription service that costs between $5 and $12 a month, depending on the type of plan you select.
Use Reward Apps
There are a number of apps that allow you to earn cashback rewards on your DoorDash gas expenses. For example, one of the most popular apps is GetUpside.
With GetUpside, you can see offers from nearby gas stations, where you can save around $0.25 per gallon.
That said, all you have to do is claim the cashback offers on the GetUpside app and upload a picture of your receipt.
Additionally, other apps that let your earn gift cards and PayPal cash for uploading gas receipts include:
- Receipt Hog
- Checkout 51
Drive a Fuel-Efficient Vehicle
Another way to save a lot of money on gas while driving for DoorDash is to drive a fuel-efficient vehicle.
If your car isn’t fuel-efficient, you may end up spending more on gas than you earn with DoorDash.
Use Fuel Rewards Credit Cards
Certain credit card companies have partnerships with gas stations, allowing you to save money on your gas expenses. For example, some of the most popular fuel reward cards include:
- Exxon Mobil Rewards+
- Shell Fuel Rewards
- Speed Rewards Program
Further, you can earn discounts or cashback for filling up at certain gas stations when you use these cards.
Do Other Food Delivery Services Pay for Gas?
Similar to DoorDash, other food delivery services also don’t pay for gas. For example, the following companies don’t pay for their delivery drivers’ gas expenses:
- Uber Eats
If you deliver orders with any of these companies, you’re an independent contractor like you are with DoorDash.
How Do You Become a DoorDash Driver?
Almost anyone can become a DoorDash driver. That said, you must complete the sign-up form on DoorDash’s website to become a delivery driver.
Also, DoorDash performs a background check on all its applicants to ensure customer safety. Moreover, some of the other qualifications you must have to become a DoorDasher include:
- Must be at least 18 years old
- Must have a smartphone (Android or iPhone)
- Must have a working vehicle
After your background check is complete, DoorDash will send you an email informing you whether or not you’re qualified to deliver.
Is Becoming a DoorDash Driver Worth It?
According to several DoorDashers, becoming a delivery driver is well worth it. For example, some of the advantages of becoming a DoorDasher include:
- Earn an average of $25 an hour (rate varies based on location, time of day)
- Get 100% of customer tips
- Set your own hours
- Easy way to earn extra money
- Only work when you want
- Relatively easy work
If you’re a delivery driver for DoorDash, you’re responsible for paying for your own gas, car repairs, and tracking mileage. That said, DoorDashers are independent contractors, not employees.
Therefore, DoorDash doesn’t have to cover their expenses, and delivery drivers can set their hours and only work when they want to.