The Data of Driving For Doordash

[WhoIsTheLeader]

I'm going to share ALL the data and statistics drawn from 47 documented nights delivering food for DoorDash Incorporated. The 'gig economy' is a vast and unpredictable beast, but this particular corner of it actually works well as a part time job to make some money on the side.

First, let me set the stage. Usually doing 6 nights a week several weeks in a row, I've managed to make in excess of $2,600 over 47 nights , usually between the hours of 5 - 9 PM. I live in a large and relatively wealthy suburb of Atlanta, Georgia, USA in an area with a booming restaurant scene and where the DoorDash app is quite popular. It's a great area for such a side gig as there are many upper middle class residents around who may be inclined to tip more and there are lots of popular restaurants in a central location.

Over the course of a night, usually working somewhere between 3 and 4 hours, I naturally might get drawn out towards other areas, but I have a location I always drive back to as it is a hotspot for restaurants. The app displays the locations of restaurants that have been receiving lots of orders, but I usually just hole up in the alley behind Taqueria Tsunami because it's so close to so many other restaurants.

Now, for the data. I compiled a spreadsheet containing all data points I collected and several important and interesting statistics. I only worked one day where I forgot to record my data, so this list is pretty comprehensive.

I'll pick out the most interesting and relevant statistics here. In total, I managed to earn $2,627.98 over the course of 47 days working a grand total of 160.7 hours. That gives me an average earning of $56 per night with a projected $16 per hour.

However, one of the defining characteristics of the gig economy is how uncertain your income can be. Take May 25th for example. I made $34 over 3.5 hours. 3.5 hours is also my median hours worked but puts that night at almost half my median earnings of $60.

On the vertical axis, we have my earnings per night. On the horizontal axis, we have, respectively, hours worked and miles driven. As you can see, earnings trend up with more hours worked for obvious reasons. However, the average variance between values is huge and only gets larger the longer I work. It's an unpredictable business.

And on the graph of miles driven, you can see the values sort of plateau. Sometimes you just have to drive a lot further for your orders. I still maintained an average in excess of my goal of $1 a mile at $1.20. I generally don't accept orders with less than a dollar earned per mile, but that doesn't count return trips.

Speaking of wear and tear on your vehicle, I drove 2,215 miles in total while operating the Dasher app. The median miles driven per day was 45, a not insignificant amount. My own car, a sensible thoroughly depreciated domestic sedan, doesn't have high running costs, but gas isn't the expensive part of doing DoorDash. On the median night I mentioned, I might burn 1/8 of a tank to the tune of around $5. It's really the insurance that takes a bite, especially as a younger male driver, even with a totally clean driving record.

Depreciation also takes a bite too. My car isn't losing much value with each added mile, but doing Doordash with a newer leased vehicle might prove problematic with mileage limitations and the greater depreciation miles tend to add on newer cars. Keep in mind not all cars are as well suited to doing deliveries. Ideally, you want a car cheap to run with low insurance costs that is also small enough to squeeze into tight spots but pleasant enough to drive that you don't despise getting in and out for several hours. I think my humble Chevy Cruze fits the bill.

I have come to the conclusion that what DoorDash is good for is not making pocket money, but rather covering the expenses of car ownership you're probably already incurring, freeing up a greater portion of your regular income with just a little bit of gravy on top. My median hours worked of 3.5 is doable for a typical 9-5 job, but even with less free time you can make a good dent in that insurance bill at an average of $16 an hour working the peak dinner rush exclusively.

So, what do you think? Do I have enough data? Did I miss some obvious correlations? What do you want to know about the glamorous life of a Dasher?

[davesaddiction]

@whoistheleader Very interesting stuff - good on you for tracking it all so well.

Can you add an earnings per hour column to your spreadsheet and share it? I'm interested to see the spread here. Might make sense to throw out your highest and lowest earning night(s) if you're really trying to determine a good, reliable average for others to go by.

[WhoIsTheLeader]

@davesaddiction I did include it. My average earnings per hour is $16.35. You can view the spreadsheet through the link in the post but here it is anyways.

https://docs.google.com/spreadsheets/d/1zYisYA4LKlpVJVoAOU_5h_n9Dp0RkqvQclY25SELSYU/edit#gid=0

The graphs give an indication of my highest and lowest per hour earnings but it runs the gamut from $2 to $35ish. Though the highest per hour AVERAGE (not actual) is around $20.

[DipodomysDeserti]

@whoistheleader I may have missed it, but I don’t see any taxes taken out of your earnings. You’re considered an independent contractor, right? Self employment taxes come out to around 16% of gross earnings, but if you set up an LLC you can write off a plethora of costs.

[Jb boin]

As a curiosity : Could you do the same deliveries about as fast if you were on a scooter or a bike (EV or normal)?

Around here almost nobody does deliveries with a car, it's usually longer and cost more.

[Chariotoflove]

@whoistheleader What is the emotional plus/minus of spending all those hours ferrying people's dinners around the city vs. the ability to spend more time in your car?

[LooseonExit]

@whoistheleader
Totally naive to the gig work economy, aside from tipping drivers well. But interesting stuff. Lots of data is good.

I assume this is all pre-tax earnings which come out later? And you can deduct miles as well? Phone/phone plan too like a normal contract hire? If your $/mi costs are less than the IRS rate ($0.56/mi in '21 IIRC) then that's a little bonus as well.

[S65]

@whoistheleader Are you in Buckhead? My aunt used to live up there. I never thought about how much the drivers made, there are Amazon Flex drivers at my job but I seldom interact with them.

[WhoIsTheLeader]

@jb-boin I don't think there would be any advantage where I live and I have taken quite a few large orders that might not fit as well. Parking is really only an issue in this one place where I have a trick out of the way public spot I use. In a modern urban area, a scooter would be a must because of parking.

[WhoIsTheLeader]

@chariotoflove said in The Data of Driving For Doordash:

@whoistheleader What is the emotional plus/minus of spending all those hours ferrying people's dinners around the city vs. the ability to spend more time in your car?

I often get very hungry, especially when delivering from the Mexican food places, but it's actually pretty great to be alone with your thoughts and your jams for many hours a week. It's somewhat cathartic until it isn't (ie, terrible orders, slow restaurants, or dark unlabeled apartment complexes). Though I've sometimes demanded a free drink because I waited over a certain amount of time and I've always gotten it.

[WhoIsTheLeader]

@s65 said in The Data of Driving For Doordash:

@whoistheleader Are you in Buckhead? My aunt used to live up there. I never thought about how much the drivers made, there are Amazon Flex drivers at my job but I seldom interact with them.

No, Marietta. It's like Buckhead but for poors and hicks (not really, but it's not within the perimeter of Atlanta so it might as well be if you ask someone from Buckhead).

Amazon drivers probably make a good deal more but also probably work more hours on average. DoorDash is less viable as a real job than Uber and most of the other gig economy jobs centered around driving.

[Chariotoflove]

@whoistheleader said in The Data of Driving For Doordash:

Though I've sometimes demanded a free drink because I waited over a certain amount of time and I've always gotten it.

Oh that's nice. A cheap way to do a nice thing for someone.

I would get crazy hungry with mex in the car as well. I'd have to factor in something for myself in the cost of the enterprise

[davesaddiction]

@whoistheleader I meant the calculation for each day.

I can't view your spreadsheet.

[WhoIsTheLeader]

@looseonexit said in The Data of Driving For Doordash:

I assume this is all pre-tax earnings which come out later? And you can deduct miles as well? Phone/phone plan too like a normal contract hire? If your $/mi costs are less than the IRS rate ($0.56/mi in '21 IIRC) then that's a little bonus as well.

I think you're overestimating how much I get from DoorDash Inc. Which is to say, nothing at all. I'm an independent contractor whenever it's convenient legally so no benefits whatsoever. It's more like being an Ebay seller than being contracted by a construction company.

[WhoIsTheLeader]

@chariotoflove said in The Data of Driving For Doordash:

Oh that's nice. A cheap way to do a nice thing for someone.

No, no, no, the drink is for me. The customer isn't waiting 30+ minutes in a store with no bathroom open.

[WhoIsTheLeader]

@davesaddiction Fixed it

https://docs.google.com/spreadsheets/d/1zYisYA4LKlpVJVoAOU_5h_n9Dp0RkqvQclY25SELSYU/edit?usp=sharing

Per day, IDK that sounds like more work than I feel like spending.

[Chariotoflove]

@whoistheleader said in The Data of Driving For Doordash:

@chariotoflove said in The Data of Driving For Doordash:

Oh that's nice. A cheap way to do a nice thing for someone.

No, no, no, the drink is for me. The customer isn't waiting 30+ minutes in a store with no bathroom open.

Yeah, that's what I mean. Giving you a drink for waiting is a nice thing go do, even if you have to ask for it first.

[MUSASHI66]

You should deduct $1240 from your earnings to cover gas, insurance, depreciation, and wear and tear (56 cents per mile). In that scenario, your earnings go down to under $9 per hour, which is not spectacular. You might think that running your car doesn't cost you 56 cents per mile, but there is a reason why that number exists.

On the other hand, you already have the car, you don't go through a lot of gas, and it is old and depreciated already, and $2600 extra in the pocket means a lot at your age. I applaud you for putting in the hours and making money. Invest the $2600 now, and you'll have extra $50000 at retirement age. Interest compounding rules.

[WhoIsTheLeader]

@chariotoflove Nice, eh, I don't give them a choice. "I've been waiting x time (usually 30+ minutes) and I'll take that soft drink for my trouble."

[WhoIsTheLeader]

@musashi66 said in The Data of Driving For Doordash:

You might think that running your car doesn't cost you 56 cents per mile, but there is a reason why that number exists.

That's precisely the reason why doing this isn't earning me much money but rather helping cover the already given costs of running a depreciating asset. I pocket a decent amount, but I'm not really spending that money. I really should invest it.

[LooseonExit]

@whoistheleader said in The Data of Driving For Doordash:

@looseonexit said in The Data of Driving For Doordash:

I assume this is all pre-tax earnings which come out later? And you can deduct miles as well? Phone/phone plan too like a normal contract hire? If your $/mi costs are less than the IRS rate ($0.56/mi in '21 IIRC) then that's a little bonus as well.

I think you're overestimating how much I get from DoorDash Inc. Which is to say, nothing at all. I'm an independent contractor whenever it's convenient legally so no benefits whatsoever. It's more like being an Ebay seller than being contracted by a construction company.

I didn't state it well. I just assumed you could take the IRS tax deductions for miles driven and for the a percent of the phone plan like any other free lance type contractor. You should be able to, but I'm wasn't sure. It'll save you some dollars if you can.

[GrindIntoSecond]

@davesaddiction what is interesting is that we used to be able to deduct business expenses before the recent tax bill, and mileage was .50/mile. Given that a car costs not that much to actually operate, I am curious how much more you are spending on oil changes and maintenance and gas and factors that in to a true income. At $16/hr minus any perceived taxes, minus car expenses, what are you really ending up with? Actual profit minus expenses in the wallet. I’m curious how much can be made with Microturk vs. door dash given the hours. Hmm

[WhoIsTheLeader]

@grindintosecond said in The Data of Driving For Doordash:

@davesaddiction what is interesting is that we used to be able to deduct business expenses before the recent tax bill, and mileage was .50/mile. Given that a car costs not that much to actually operate, I am curious how much more you are spending on oil changes and maintenance and gas and factors that in to a true income. At $16/hr minus any perceived taxes, minus car expenses, what are you really ending up with? Actual profit minus expenses in the wallet. I’m curious how much can be made with Microturk vs. door dash given the hours. Hmm

You'd be a fool to think you could make a lot of money doing this. It is a good way to pay for something you use. And I really don't know anything about deducting business expenses.

[Rusty Vandura]

@dipodomysdeserti @WhoIsTheLeader Taxes. In my experience, self employment taxes are more than 16%, more like 25%. Difficult to quantify the wear and tear, but the 1990 Corolla Base that I just sold would've been perfect.

[Rusty Vandura]

I encountered a woman in Costco who was working one of these gig/delivery schemes. She was decked out in exercise tights and running shoes and was partnering with her husband where he was driving and she was pulling orders and they were dividing the spoils between two accounts.