Doordash drivers do not earn an hourly wage because they are not employees. Instead, they are independent contractors. This means that they are able to work when and where they want. They are not obligated to accept any calls they don't want to. As independent contractors, Dashers have their own business and work for themselves. They do not answer to an employer.
How do Doordash drivers earn money?
Dashers earn their money on a per delivery basis. Through the Doordash platform, Dashers will receive delivery opportunities from Doordash. The offers will show the amount of pay and the total distance the driver will have to drive to complete the delivery offer. This information will help the Dasher determine if the call is worthwhile to accept or not.
Every Doordash driver's determining factors in accepting an order or not will vary. Some Dashers will only accept calls that pay a certain amount. Others will only accept a certain amount per mile. With this always comes a gamble. By declining offers, a Dasher never knows how many other offers will be coming in. If a Dasher does not get anything they like during a whole hour, they may find themselves with zero earnings for the hour. Of course, with that said, those that know how to choose wisely can end up making $25 or more for the hour.
Do California Doordash drivers earn an hourly wage?
Until recently, the situation in California was the same as the rest of the country. The rules and regulations regarding the pay for California Dashers certainly has changed, but by no means are Doordash drivers in California paid by the hour. Just like the rest of the country, Dashers in California are independent contractors which means that they work for themselves and can work when and wherever they want. Dashers are also paid a set amount for each individual call, and like the rest of the country can accept or decline any call they choose.
With the passing of California's Proposition 22 in November of 2020, Dashers in California do have some special benefits. The victory gave these Dashers added benefits such as an active time guarantee of pay that is equal to 120 percent of minimum wage. This means that a Dasher that earns $11 for an hour of active time will instead earn $16.80 (120 % of minimum wage.) If a Dasher earns $20 for their active time during the hour, no adjustment will be made as the Dasher earned more than the 120 percent of minimum wage.
Do not get this confused with Doordash drivers getting paid by the hour. Since Dashers are not employees, there is no hourly pay. Dashers are only paid for active time and the 120 percent guarantee of minimum wage for active time is just an assurance that Doordash drivers earn a livable wage.
Under the new proposition, Doordash drivers in California are also entitled to 30 cents per mile and will keep 100 percent of customer tips. The tips have nothing do with a Dasher's regular pay. Customer's tips are not included in the base pay. This is a great thing as a driver that was active for an hour might have their hourly earnings look like this:
"The Doordash driver accepts and completes 2 deliveries during the hour. Each call pays $5. The dasher has earned $10 for an hour of active time. Since the Dasher did not earn 120 percent of minimum wage, Doordash adjusts this Dasher's pay to $16.80 for their hour of active time. The total mileage for the 2 deliveries was 6 miles. The Dasher earns an additional $1.80. Let's say each customer tipped the Dasher $3 each, that would be $6 more to the Dasher's earnings. The total earnings here would be $24.60 for the hour.
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