Delivery Driver Expenses 2023: Does DoorDash Pay For Gas?

Are you considering becoming a DoorDash driver? It’s a great gig economy job that can help anyone make extra income and bulk up their wallet.

But one question you might be wondering is- does DoorDash pay for gas and covers car costs?

As an independent contractor, it’s your responsibility to cover costs associated with delivery driving, including gas and maintenance.

DoorDash doesn’t provide its drivers with a gas stipend or reimbursement for gas expenses. However, DoorDash does offer a pay structure that can help offset some of your gas expenses.

While rising gas prices can be a concern for DoorDash drivers, there are ways to maximize your earnings and make extra money through tips.

In this article, we will provide more information on the expenses for DoorDash drivers and offer tips on how to find savings while driving around town.

Key Takeaways

Does DoorDash pay for gas? As a DoorDash driver, you’re responsible for paying for your own expenses, including gas.
There are a few ways you can save money on fuel costs. One option is to use a fuel-efficient car to save on gas in the long run.
Whether you prefer a car, bike, or scooter, you can use DoorDash to deliver food and get paid.
Additionally, sign up for a gas rewards program. Gas reward programs can offer cash back or discounts on gas, which can help you save cash over time.
Use Upside to earn cash back when buying gas and other purchases. This can help you save money on gas while also earning rewards.
The average DoorDash pay is $19 an hour.
While DoorDash offers a pay boost for drivers who complete multiple deliveries, deliver during peak hours, or drive long-distance deliveries.

Pros & Cons Of Delivery Driving

Overall, if you’re considering becoming a DoorDash driver, it’s important to understand that you will be responsible for paying for your own gas.

But there are other pros and cons to consider when you want to deliver food, so here’s what we found:

Pros

Great side hustle for those looking to earn some extra money
Flexibility to set your own hours
Choose your own mode of transportation- car, bike, scooter, or walking
Earn bonus pay and tips
DoorDash pay is good- it offers incentives for completing more deliveries or working peak hours
Cash back apps like Upside will help you save money on gas

Cons

Rising cost of gas- as gas prices continue to increase, delivery drivers may find it harder to make more money
Delivery drivers are independent contractors, not employees- you’re not eligible for benefits like health insurance or paid time off
You’re responsible for expenses, including gas, maintenance, and insurance
Drivers deal with traffic, difficult customers, and unexpected delays

Expenses For DoorDash Drivers

As a DoorDash delivery driver, you’re responsible for all expenses related to your vehicle. This includes gas, maintenance, mileage, and insurance.

By understanding these expenses and taking steps to minimize them, you can maximize your earnings and make informed decisions about your delivery work.

Let’s go over what DoroDash drivers may need to cover:

Gas

One of the biggest expenses for delivery drivers is gas. You need to fill up to get anywhere, and delivering food means you may be traveling more and spending more time at the pump.

DoorDash doesn’t pay for gas, so it’s important to factor in the cost of fuel when calculating your earnings.

The amount you spend on gas will depend on several factors, including the distance of your deliveries, the type of vehicle you drive, and the current gas prices in your area.

Let’s do a scenario: If you make $20 per hour as a driver after tips and promos and work 6 hours, that’s $120 for the day.

If you travel 25 miles per day, you’ll hope that fuel prices don’t go more than $0.65 per gallon or so so you can keep a profit of over $100 for the day.

However, there are ways to save on gas, including joining Upside, finding fuel discounts, and earning cash back when you pay for gas.

Maintenance

If your car is the main way you deliver for DoorDash, you’ll need to consider how more usage can cause more wear and tear on your car.

It’s important to factor in these expenses when calculating your earnings as a DoorDash driver.

More wear and tear means you’ll need more maintenance to keep things in tip-top shape! This includes oil changes, tire rotations, and other routine maintenance tasks.

Regular maintenance is essential to keeping your vehicle in good condition and minimizing repair costs; skipping could make deliveries less safe.

So ensure you see what is recommended for your car and check your brakes and oil frequently.

Mileage

Mileage is another important expense to consider when working for DoorDash.

As I said, driving puts more wear and tear on your car- but it also adds up to your overall mileage.

And the more mileage you take on, the less resale value your car has or the shorter its lifespan.

DoorDash doesn’t reimburse drivers for mileage, but you can track your mileage and add it to your taxes for reimbursement.

The IRS allows you to deduct a certain amount per mile driven for business purposes, so keeping accurate records can help you save on your tax bill.

Currently, while writing this article, it seems that the current mileage reimbursement is 65.5 cents per mile.

Insurance

As a DoorDash driver, you’re required to have personal auto insurance that meets the minimum requirements in your state.

Most states don’t let you drive without car insurance, but it’s important to notify your insurance company that you use your vehicle for business purposes.

Using your car for delivery driving may affect your coverage and rates, and you may need added coverage as an independent contractor.

Tips For Savings On Car Costs

As a DoorDash driver, you are an independent contractor and responsible for covering your own expenses, including gas expenses, tolls, parking fees, and taxes.

But you can get help with gas costs and keep more money in your pocket.

Here are some tips to help you save on car costs and maximize your earnings:

Upside

One way to save on gas expenses is to use the Upside app. This app offers cash back on purchases at participating gas stations and other purchases.

Download it to your smartphone and create an account. Then, search for participating gas stations and earn cash back on your gas purchases.

Simply search for a nearby participating gas station, scroll through the available discounts and offers, select the deal you want, and head to the pump.

Pay as you normally do, then earn cash back on every gallon of gas you buy, which can add up over time.

In addition to cash back on gas purchases, the Upside app also offers rewards cash back for shopping.

You can use your cash back for gift cards like Amazon and Target for more gas and other purchases, such as groceries and restaurants.

These rewards can help offset other expenses and save you money in the long run.

Fuel Efficient Vehicle

Another way to save on gas expenses is to drive a fuel-efficient vehicle.

If you’re in the market for a new car, consider purchasing a hybrid or electric vehicle, which can save you money on gas and reduce your carbon footprint.

You can search online for what’s available, find a nice used car and check its price against Kelly Blue Book, plus read articles about the best-rated cars for delivery drivers.

But I realize that not everybody is in the market for a new car, so if you own a car and want to make it last, make sure it’s well-maintained and running efficiently.

Regular tune-ups, oil changes, and tire rotations can help improve your car’s fuel efficiency and save you money on gas.

Mileage-Tracking App

Since you can get reimbursed for your DoorDash gas money, you should track how many miles you spend on the road making deliveries.

To track your mileage and expenses, consider using a mileage-tracking app. These apps allow you to easily track your miles driven, gas expenses, tolls, and parking fees.

Popular mileage tracking apps include MileIQ, Everlance, and QuickBooks. These apps can help simplify your record-keeping and save time and money come tax season.

MileIQ is great because it runs in the background and tracks mileage automatically.

FAQs

Does DoorDash pay for gas or car expenses?

No, DoorDash doesn’t pay for gas or car expenses.

As an independent contractor, it’s your responsibility to cover all expenses related to your delivery work, including gas, car maintenance, and insurance.

Can I get tax deductions for gas and car maintenance?

Yes, you may be eligible for tax deductions for gas and car maintenance expenses.

However, you should consult with a tax professional to determine the exact amount you can deduct and how to document your expenses properly.

You’ll also need to track your expenses and keep receipts to keep things right for tax time.

How much can I make as a delivery driver?

DoorDash pay breaks down into Base Pay + Yips + Promos.

Indeed states that full-time Dashers, on average, make $19 per hour.

The amount you can make as a delivery driver for DoorDash depends on factors such as your location, nearby restaurants, and if you drive during peak hours.

Can I make $500+ a week with DoorDash, even with car costs?

It’s possible to make $500 or more a week with DoorDash, but it depends on your location, the number of hours you work, and the demand for deliveries in your area.

If you make an average of $19 per hour, you must work about 26 hours per week delivering food to earn around $500.

However, keep in mind that you will need to deduct your car expenses from your earnings, which can significantly reduce your take-home pay.

How do you save money on gas and car expenses?

To save money on gas and car expenses, you can minimize the distance between deliveries and use Upside to find gas savings.

Also, try to make multiple deliveries at once and 

Are there any other tax deductions when working for DoorDash?

Yes, there may be other tax deductions available to you when working for DoorDash

This can inclue phone and internet expenses, delivery bags, and other work-related expenses.

Again, you should consult with a tax professional to find out what expenses can be deducted from your taxes and how you should file your taxes.

Other Delivery Services

If you’re considering working with DoorDash, you may also be wondering about other delivery services and whether they pay for gas.

This is a great idea to see what’s more available in your area or pays more for delivery services.

Plus, as an insider tip, you should see if you can deliver with multiple apps to earn even more money from food orders.

Here’s a breakdown of other popular delivery services and their policies on gas expenses:

Postmates

Postmates is another delivery service you can join to make money as a driver.

They’ll pay you to deliver groceries and other house necessities like groceries.

They also don’t provide any reimbursement for gas expenses. However, they do offer “Blitz Pricing,” which increases the delivery fee during peak hours.

Just like DoorDash peak hours, you may be able to earn more during those times to offset your gas costs.

Check how else they compare in our Postmates Vs. DoorDash article!

Uber Eats

Uber Eats is a popular app for food, so they’re hiring more drivers to deliver meals.

Uber Eats doesn’t cover gas costs either, but drivers can earn extra money during “Boost” times and by referring new drivers to the platform.

See how working for Uber Eats compares in our Uber Eats Vs. DoorDash article.

Grubhub

Grubhub is rated one of the top delivery companies, and you can still make $18 – $20 an hour delivering food.

Grubhub doesn’t directly reimburse gas, but they do offer a feature called “Per Order Pay,” which pays drivers a set amount per order based on the distance traveled.

This means that drivers may be able to earn more during longer trips to offset their gas costs.

See why people prefer DoorDash with our DoorDash Vs. Grubhub comparison article.

Final Thoughts

In summary, DoorDash doesn’t pay for your gas or car expenses. As an independent contractor, Dashers have to cover all car costs when driving their vehicles.

But you can still make extra cash with DoorDash as a side hustle if you’re willing to cover your own fuel costs.

It’s important to consider your own financial situation and whether the potential earnings from DoorDash outweigh potentially high gas prices.

You can use tools like mileage trackers and fuel cost calculators to estimate your expenses and earnings.

See if how much you’ll earn is enough profit for you to become a DoorDash delivery driver.

And don’t forget to join Upside to get discounts on gas and cash back for more savings.

Overall, if you’re looking for a side hustle and ]willing to cover your own fuel expenses, DoorDash can be a great option to earn extra money and start a profitable side hustle.