Find out what DoorDash is actually offering — then submit the details & help us track what’s going on with their pay model.
How it works
The Estimated Equivalent pay rate is intended to provide a baseline of comparison between apps that shows what they’re paying after accounting for expenses like mileage and extra taxes that independent contractors cover on their own. It also shows how they’re doing compared to the demand for these apps to pay $15 + expenses.
We calculate the equivalent pay rate of a given job based on guaranteed earnings offered, miles and other expenses, and estimated time to complete the job. Even though customers tip up-front, DoorDash so far refuses to break out how much pay is coming from tip, so the calculator estimates that about 33% of total earnings come from tip, a figure based on our review of weekly earnings data submitted to us by DoorDash workers. We also provide a range — the maximum amount DoorDash could be paying for a given job (with $0 in-app tip), and the minimum amount (with all but $1 of earnings in the form of tip.)
Here’s the math:
Estimated Tip = {Guaranteed Earnings} / 3
Additional payroll taxes paid by contractors but not employees = 7.65%
Mileage expense = 58¢ per mile, which is the IRS rate designed to account for the cost of driving, including gas, repairs, and depreciation.
Net pay before additional payroll taxes = ( {Guaranteed Earnings} - {Estimated Tip} - ( Miles * $0.58) )
Net pay after additional payroll taxes = {Net pay before taxes} - ( 7.65% * {Net pay before taxes} )
Estimated Equivalent pay rate = {Net pay after taxes} / Hours
The estimated equivalent rate projects the tip at 33% of total earnings. The minimum pay rate provided projects DoorDash only pays $1 for the job. The maximum pay rate provided projects there is no in-app tip, so DoorDash pays the full guarantee.