You can be on Entrepreneur’s cover!

Doordash Is Starting an Hourly Pay Option for Drivers — Up to $19.50 an Hour The delivery app announced a slew of new features on Wednesday, including giving drivers the option between being paid by delivery or being paid a flat rate.

By Madeline Garfinkle

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Simone Hogan | Shutterstock
Dashers will now have more power of choice in how they get paid for deliveries.

Doordash announced a series of new features for drivers on Wednesday, including an hourly pay option for its drivers. The company is the first app-based delivery service to implement an hourly pay option for drivers.

The payment program, "Earn by Time," gives drivers — or "Dashers," as the company calls them — the choice between getting compensated for each delivery or being paid an hourly flat rate for their deliveries. The flat rate of compensation will also vary by region, and range from $10 to $19.50, The New York Times reported.

Currently, Dashers are paid per delivery and given an "offer" — which ranges between $2 to $10 — and is determined by distance, duration, and desirability of the order, according to Doordash. However, the current pay-per-delivery model often leaves drivers who accept smaller orders or don't receive tips at a disadvantage.

Now, with Earn by Time, Drivers will have an option and be able to switch between the two modes (per delivery or per hour) as much as they like, and Dashers will still receive 100% of tips when opting for hourly pay. However, the hourly rate only applies to the time between accepting and delivering an order, not time spent waiting for another order.

The company says the new program was implemented in response to driver feedback.

"One of the things we've heard a lot is around choice: Choice of when, where and how they earn is really important," Cody Aughney, head of the Dasher & Logistics team at Doordash, told the New York Times.

The new feature aims to address some concerns about drivers being paid a fair wage, as well as giving them more of an incentive to pick up smaller orders that, when only being paid per order, may not make a driver's trip worthwhile.

Related: Viral Video Shows Workers Not Taking Deliveries Without Tips, Sparks Debate: 'We Can Pick and Choose'

"On their end, the point is to push as many orders as they can, and on the driver's end, it may give them some security," Sergio Avedian, a longtime driver, told The Times.

Doordash also added an additional safety feature that allows drivers to share their location while making deliveries with up to five contacts.

The new features come as the gig economy has been under fire over concerns regarding driver safety and fair wages. In April, three gig workers were victims of violent crimes over the course of a single week in Florida — prompting drivers across the country to speak out regarding surmounting fears.

Competing apps have different pay incentives: Uber Eats sometimes pays drivers a "supplement" for distance, as well as surge pay during peak hours. GrubHub also gives drivers a "contribution" on slow days to ensure drivers make a minimum guaranteed rate. According to The Rideshare Guy, a blog that offers information and tips for drivers, GrubHub drivers earn an average of $12-$13 an hour, and Uber Eats is $20-$25.

Related: Gig Workers Advocate For More Safety Following Attacks on Drivers

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Side Hustle

This Insurance Agent Started a Side Hustle Inspired By Nostalgia for His Home State — Now It Earns Nearly $40,000 a Month

After moving to New York City, Danny Trejo started a business to stay in touch with his roots — literally.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Scrabble Makes First Change to Its Board in Over 75 Years

The new roll out is only available in Europe as of now.

Business News

CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs

The average U.S. household is paying $227 more per month for goods compared to one year ago.

Growing a Business

Want to Become an Industry Leader? Be a Guest on Podcasts — But Not the Ones You Think

If you are trying to promote your new product or service, there's a simple yet effective way to stand out from the rest.