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What is the Minimum Amount per Mile You’d Accept for a DoorDash Delivery?

When you’re driving for DoorDash, pay per mile indicates how much you’re earning. It measures earnings for each mile you drive on a delivery. The calculation involves taking the total pay for a delivery, which includes base pay from DoorDash, tips, and any promotions. Then, you divide this total by the number of miles driven. If a delivery pays $10, and it is 5 miles, your pay per mile is $10 / 5 = $2.00. This is an example.

This metric is super helpful for comparing different delivery offers, especially when deciding which ones to accept. It gives you a standardized way to evaluate whether a delivery is worth your time. However, it’s not a perfect measure. It doesn’t account for the time you spend, like waiting at a restaurant or dealing with traffic. These factors can make a 5-mile delivery take longer than expected. So, while pay per mile is a useful tool, keep in mind it’s just part of the picture.

Minimum Amount per Mile for a DoorDash

Calculating Your Costs per Mile

To set your minimum acceptable pay per mile, you first need to figure out your total costs per mile. These costs include:

  • Gasoline Costs: This depends on how fuel-efficient your car is and current gas prices. For instance, if your car gets 25 miles per gallon and gas costs $3.10 per gallon (based on current national averages from AAA Fuel Prices), your gas cost per mile is $3.10 / 25 = $0.124 per mile.
  • Vehicle Maintenance and Repair Costs: These can vary, but research suggests an average of $0.05 to $0.10 per mile. Let’s go with $0.075 per mile as a middle ground, covering oil changes, tire wear, and other upkeep.
  • Insurance Costs: This is a bit trickier because insurance is usually a yearly cost, like $1,200 per year. If you drive 10,000 miles a year, your insurance cost per mile is $1,200 / 10,000 = $0.12 per mile. But if you drive more, say 25,000 miles a year, it drops to $1,200 / 25,000 = $0.048 per mile. So, your mileage really affects this number.
  • Depreciation: This is the decrease in your car’s value over time, a non-cash expense. If you bought a car for $20,000 and it lasts 100,000 miles, depreciation is $0.20 per mile. While it’s important for tax deductions, it might not be included in your minimum pay calculation. This is because it’s not an out-of-pocket cost.

Adding these up, your total out-of-pocket costs per mile (gas + maintenance + insurance) would be:

  • For 10,000 miles per year: $0.124 + $0.075 + $0.12 = $0.319 per mile.
  • For 25,000 miles per year: $0.124 + $0.075 + $0.048 = $0.247 per mile.

This shows how driving more can lower your cost per mile. This is something to consider if you’re planning to do a lot of deliveries.

Determining Your Desired Profit per Mile: What’s Your Time Worth?

Next, you need to decide how much profit you want to make per hour. Let’s say you want to earn $20 per hour in profit, that’s your goal for the time you spend working. Now, you need to estimate how many miles you drive per hour worked. Research from driver reports, like those on Quora, suggests DoorDash drivers typically drive 10-15 miles per hour worked. This includes both driving and waiting time. Let’s take an average of 12 miles per hour for simplicity.

So, if you want $20 per hour in profit and drive 12 miles per hour, your desired profit per mile is $20 / 12 ≈ $1.67 per mile. This means for every mile you drive, you want to make at least $1.67 on top of your costs to hit that $20 per hour goal.

Calculating Your Minimum Pay per Mile

Now, add your total out-of-pocket costs per mile to your desired profit per mile to get your minimum acceptable pay per mile:

  • For 10,000 miles per year: $0.319 (costs) + $1.67 (profit) ≈ $1.99 per mile.
  • For 25,000 miles per year: $0.247 + $1.67 ≈ $1.92 per mile.

So, in both cases, you’re looking at around $2.00 per mile as a minimum to cover your costs and make your desired profit. This number can vary based on your specific car. It also depends on how much you drive and what you want to earn. Nevertheless, it’s a solid starting point.

Real-World Examples and Variability

In the real world, not all drivers aim for $2.00 per mile. From various sources, like driver discussions on Reddit, some report accepting as low as $0.50 per mile, especially if they’re part-time or have lower costs. Some drivers, like a Quora user, accept a minimum of $1 to $2 per mile per delivery. This rate aligns with our calculations. For example, one driver said they average $20–$25 per hour and drive 8–14 miles per hour, suggesting a pay per mile of about $1.43 to $2.50, depending on the day.

This variability shows that your minimum can be flexible. If you’re just starting out or doing it for extra cash, you might accept $1.00 per mile to get more orders. But if you’re relying on it for income and have higher costs, aiming for $2.00 or more makes sense. It’s also worth noting that DoorDash’s base pay is determined by distance, time, and desirability. Longer deliveries might offer higher base pays. However, tips can vary, affecting your total pay per mile.

Table: Minimum Pay per Mile Calculation Scenarios

To help you visualize, here’s a table with different scenarios based on desired hourly profit and average miles per hour worked, using out-of-pocket costs of $0.247 per mile (for 25,000 miles per year):

Desired Hourly ProfitAverage Miles per Hour WorkedOut-of-Pocket Costs per MileMinimum Pay per Mile
$2012$0.247$1.92
$1510$0.247$1.77
$2515$0.247$2.02

This table shows how your minimum pay per mile changes with your goals and driving efficiency. For instance, if you want $25 per hour and drive 15 miles per hour, you’d need about $2.02 per mile to cover costs and profit.

General Guidelines for Setting Your Minimum

Based on all this, here are some guidelines to help you set your minimum pay per mile:

  • For beginners or part-time drivers: Starting with a minimum of $1.00 per mile might be acceptable to build experience. It helps to get a feel for the job, especially if your costs are low.
  • For experienced drivers: Aiming for $1.50 to $2.00 per mile can ensure you’re covering your costs and making a decent profit, especially in busier markets.
  • For those with higher costs or who value their time more: You might want to set a higher minimum, like $2.50 per mile or more, especially if you’re driving a less fuel-efficient car or have higher insurance.

Remember, you can always decline orders that don’t meet your minimum. DoorDash’s policy won’t deactivate you for a low acceptance rate. You have flexibility to pick and choose.

Requirements for DoorDash Drivers

To drive for DoorDash, you’ll need:

  • A valid driver’s license and insurance.
  • A car that’s in good condition and meets DoorDash’s requirements (usually 1997 or newer, depending on your area).
  • A smartphone with the DoorDash app installed.
  • To be at least 18 years old and pass a background check.

These are the basics to get started, and they ensure you’re ready to hit the road safely.

Reviews and Ratings

While specific testimonials aren’t included here, driver feedback from platforms like Indeed shows an average hourly pay of $16.57. This is 8% below the national average. Comments note flexibility, but also concerns about wear and tear on vehicles. There is also a lack of support for gas costs. This highlights the importance of setting a minimum pay per mile to offset those expenses.

Conclusion

In the end, the minimum amount per mile you should accept for a DoorDash delivery depends on your individual circumstances. These include your vehicle’s costs, how much you want to earn, and the market conditions in your area. By calculating your out-of-pocket costs and determining your desired profit, you can set a personalized minimum pay per mile, around $1.50 to $2.00 is a good target based on our examples. This approach helps you make informed decisions about which deliveries to accept. It ensures you’re not just covering costs. You are also making a profit that feels worth your time.

Sources


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