Food delivery apps have exploded in popularity in the last few years, and it’s almost taken for granted that you can sit at home and order dinner from an app. DoorDash is one of the biggest food delivery apps in the market, now available in many US cities.
How much does a DoorDash order really cost? Place an order and you’ll notice that getting food delivered to your door isn’t exactly cheap. Between delivery fees, service fees, and driver tips, the costs add up. In this article, learn why your DoorDash order costs as much as it does.
- How Much Does a DoorDash Delivery Cost?
- DoorDash Promos: How to Save
- How Do DoorDash Drivers Get Paid?
What is DoorDash?
DoorDash is a food delivery app that allows users to order food from local restaurants and have it delivered to their location. DoorDash deliverers, called Dashers, pick up and deliver the food. Payment is handled electronically in the app, though Dashers appreciate cash tips.
How Much Does A DoorDash Delivery Cost?
The cost of a DoorDash order is the sum of food cost, taxes, a delivery fee, and a service fee. You can easily see how much a DoorDash order will cost by downloading the DoorDash app and entering an order. You will see the exact breakdown of your order cost on the checkout page.
Cost of a DoorDash Order = Food Cost + Tax + Delivery Fee + Service Fee + Tip (Optional)
Does DoorDash mark up restaurant prices? DoorDash does not guarantee that prices inside the app are exactly the same as prices in a restaurant. In general, DoorDash earns income from their service fee and not from food markups. Merchants are in control of food pricing in the app, and they may choose to list higher prices in the DoorDash app to cover their own costs.
What is The Doordash Delivery Fee?
DoorDash charges a delivery fee that typically ranges from $1.99 – $4.99. Delivery fees may be higher when it’s busy, which will be indicated in the app with an icon and message saying that delivery fees are increased due to high demand.
Delivery fees are listed in several areas: Underneath the restaurant name as you browse, on the restaurant page, and on the order checkout page.
You can save on the Delivery Fee by searching for restaurants that are temporarily offering free or discounted delivery. You can also save on delivery fees by purchasing DashPass, a $9.99/month subscription. With DashPass, all orders $12 or more have no delivery fee.
The DoorDash Service Fee
The Service Fee is a percentage added to the order subtotal, typically around 10%. The Service Fee varies, depending on location and market demand.
A line item called “Fees and Estimated tax” is listed on the DoorDash order page. It lists the sum of all DoorDash fees and taxes. On the checkout page, tap the small “i” button next to “Fees and Estimated tax” to see a breakdown of fees and taxes.
The Small Order Fee is a fee added to orders that don’t reach a minimum subtotal. The Small Order Fee is around $2. The minimum subtotal varies city to city, but is typically around $8 – $10.
Is there a way to save on the DoorDash Service Fees or taxes? There’s no way around the Service Fee and taxes, so you’ll need to find another way to save. You can avoid the small order fee by adding extra items to your order.
DoorDash Promos: How to Save on DoorDash
There are a few ways you can save on your DoorDash order.
DoorDash promo codes and promotions: All new DoorDash users can save on their first order by using a promo code, or a referral link like this one: First DoorDash order, $0 delivery fee.
It’s more difficult for existing users to get credits. You can refer friends to the app and receive credit when they sign up, wait for local promotions by DoorDash, or try to find promo codes for existing users online.
DashPass: DashPass is a $9.99/month DoorDash subscription that offers free deliveries and reduced service fees on all orders $12 or more. If you consistently use DoorDash more than a few times each month, DashPass is worth it.
DashPass for Chase card members: DoorDash has a partnership with Chase credit cards that offers DashPass benefits when you use an eligible Chase credit card as your default payment method. For example, Chase Freedom users can get DashPass benefits for 3 months following the addition of a Chase Freedom card to their DoorDash account. For the next 9 months, DashPass auto renews at a discounted price. After 12 months, DashPass becomes full price again.
Other Chase cards may offer different benefits. See more details here: DashPass for Chase cardmembers.
Watch for other promotions: Many restaurants offer free or discounted delivery, and DoorDash regularly offers other promotional discounts. Make sure to check the app regularly for new deals.
How Do DoorDash Drivers Get Paid?
Of all the fees you pay as a customer, how much goes to the delivery drivers? All of the delivery fee paid by customers does not necessarily go to Dashers. Instead, Dashers are paid according to a formula: Base pay +Promotions + Tips.
Base pay is $2 – $10, typically closer to $2 than $10. Tips and promotions are where they earn most, but most cities don’t have enough demand to offer frequent promotions. So tips are where they Dashers really earn. You can tip electronically in the app, or tip cash in person.
Between base pay, promotions, and tips, Dashers hope to get around $8 per delivery, but order payout can be even lower. Dashers are free to accept or decline any order that comes their way, and can decline orders that appear to have a low payout.
Learn More About Delivering With DoorDash
Should You Tip Your DoorDash Driver?
You should always tip your DoorDash driver unless the Dasher was seriously unprofessional or incompetent. Why? Base pay for Dashers is quite low, sometimes as low as $2. That means that without a tip, Dashers earn very little. Customers can leave a tip inside the app before or after ordering, and tipping in cash is allowed.
Another reason to tip when you place your order is that it can help guarantee faster delivery. Under the current DoorDash pay model, Dashers will see the order payout (including tip) before they accept it. If there is no tip, the payout will be low and Dashers may decline the order. That means longer wait times for you.
How to Get Your DoorDash Food Faster
There are a few common sense-tips to speed up your delivery when you order from DoorDash.
- Order from restaurants with a shorter wait time
- Include clear instructions on how to find your location in the Delivery Instructions
- Turn on your porch light
- Be willing to meet your Dasher outside if your door is hard to find
More DoorDash Tips