Does DoorDash Pay For Gas?

If you’re working as a DoorDash driver, you might be asking yourself, does DoorDash pay for gas?

The short answer to this question is this – no, DoorDash does not pay for gas. If you’re delivering for DoorDash, you are an independent contractor. That means you’re responsible for your expenses, including paying for your gas.

But that doesn’t mean there aren’t things you can do to reduce your gas costs (and vehicle costs in general). Indeed, if you use the right strategies, you can even earn some money from the gas you’re already buying. Or if you are willing to try something different, you may even avoid paying for gas altogether.

In this post, we’ll take a closer look at the question of whether DoorDash pays for gas and discuss the tips and strategies you can use to save on gas costs.

DoorDash does not pay for gas. Dashers are responsible for all of their vehicle and fuel costs because they are independent contractors. Unlike employees who do get their gas expenses reimbursed by their employer, as independent contractors, Dashers are essentially acting as their own small delivery business. I’ll go into more detail about the nature of being an independent contractor in the next section, but the gist of it is that when you’re Dashing, you should think of yourself as a small, independent delivery business.

What makes Dashing different than a regular job is that Dashers are paid on a per-delivery basis. So, rather than trading time for money like an employee would, Dashers are trading tasks for money. As a Dasher, you get an assignment, decide whether you want to accept it, and then complete it. In return, you get paid for completing the task, regardless of how long it takes you to complete it.

Every DoorDash payment consists of three parts: (1) the base pay, (2) peak pay bonuses if applicable, and (3) tips left by the customer for the Dasher. When you receive a delivery request, you should take into account whether the payment is worth the costs you’ll incur to deliver the order.

An example of a typical DoorDash payout.

So, while DoorDash does not directly pay for gas, in a sense, Dashers cover their gas costs with the payments received from DoorDash. If the payout for a delivery isn’t enough, then you should reject those orders. After all, you don’t want to do work where you aren’t making a profit.

DoorDash Drivers Are Independent Contractors

If you’ve never owned your own business or worked as an independent contractor, it can be a bit confusing as to the nature of your work relationship with DoorDash when you are Dashing. DoorDash drivers are independent contractors. When you’re an independent contractor, you should think of yourself as your own small business.

The payouts you receive for each delivery can be considered your gross revenue. This is the total amount of money you earn before expenses. After you pay your expenses, what’s left is your profit (otherwise known as “net revenue”). The profit you earn is what really matters because that’s the money you’ll actually be able to use.

So what are some common expenses you might have to deal with? There are a few you can think about. The main one is likely going to be your vehicle costs. In general, this will include the maintenance you have to perform on your vehicle and the gas you have to use to operate your vehicle.

After you pay your expenses, you’re left with your profit. This is the amount that you pay taxes on. Remember, as an independent contractor (and business), you pay taxes on the profit you earn.

Just remember the following equation and you won’t have any issues:

Revenue – Expenses = Profit

How To Save Money On Gas When Delivering For DoorDash

Even though gas prices are expensive and will hurt your bottom line when delivering with DoorDash, you can still take steps to reduce your gas expenses. Here are some ideas that you can use to keep your gas costs as low as possible.

1. Use Ebikes or Electric Scooters

Of course, the easiest way to reduce your gas expenses is to not use gas at all. That’s exactly what I do. From the very beginning when I first signed up to be a Dasher, I’ve always done my deliveries using a bike. Not only does it save me money because I don’t have any fuel expenses, but it also gives me added health benefits since I’m able to get outside on a bike and get some exercise.

A few years ago, I transitioned over to using ebikes and electric scooters to do my deliveries. It’s been a complete game-changer. I can cover huge distances now. I don’t get tired when I’m biking or scooting. And I can move as fast as a car most of the time without having to worry about parking or gas prices.

If there’s one thing you can do to reduce your gas expenses, it’s to get yourself an electric bike or scooter. It’s well worth it.

himiway escape bike review — One of the ebikes I use when I’m out doing DoorDash.

2. Use a Fuel-Efficient Vehicle

If you can’t make the move to an electric bike or scooter, then your next best bet is to be sure you’re using a fuel-efficient vehicle. You don’t want to be driving a pickup truck or SUV when you’re doing DoorDash.

For conventional cars, a hybrid vehicle like a Toyota Prius is a good option. The nice thing about the Toyota Prius is that it’s not that expensive compared to some cars. You can get a solid used Prius at a very good price.

If you’re willing to make a bigger jump, going to an electric can make a big difference. You’ll have less maintenance and you won’t have to pay for gas anymore. The downside is whether the range is going to be enough for what you’re trying to do, but you’ll have to look at your situation and determine if an electric car makes sense for you. I’m personally considering getting a used Nissan Leaf as a second vehicle at some point.

3. Track Your Miles

The IRS allows you to deduct the mileage you drive when you’re doing DoorDash. It’s a bit confusing if you don’t understand what this means, but basically, every mile you drive costs you something in gas, maintenance, and depreciation of your vehicle. The IRS understands this, so they’ve come up with what they think every mile costs you to drive.

In 2022, the IRS has put the mileage deduction at 58.5 cents. So, the IRS is saying that every mile you drive costs you 58.5 cents.

Tracking your mileage is important because these are expenses you incur, which means they should be deducted from your revenue. For example, if you drive 50 miles in a day doing DoorDash, under the 2022 mileage deduction rate, that would cost you $29.25 (50 miles x 58.5 cents). if you made $100, after deducting your mileage, you’d be taxed on $70.75. In other words, your profit for the day after expenses would be $70.75.

Long story short, you should always track your mileage whenever you’re doing DoorDash. I use Gridwise, which is an excellent free app that you can use to track your mileage. I highly recommend it.

4. Use Cashback Apps

Cashback apps are a great way to get some money back for the purchases you’re already making. There are a few apps that are geared specifically towards gas purchases, where you can earn cashback for the gas you’re buying.

Two good apps you can use are Trunow and Upside. You can use both apps to earn a small amount of cashback whenever you buy gas.

5. Use Credit Cards So You Can Earn Points and Miles

The final strategy you should use is taking advantage of credit cards to earn points and miles. Even a basic 2% cashback card will at least get you something back for the purchases you’re already making.

If you want to get more advanced, it’s worth taking a deeper dive into credit card points and miles. I haven’t had to pay for a flight or hotel in over 5 years because I’m able to utilize points and miles for all my travel. The caveat is you should only use credit cards if you’re responsible with them and never carry a balance. Otherwise, you’ll lose more than you gain.

If you want more information on good cards to get, you can check out my best credit card offers page.

Final Thoughts

DoorDash does not pay for gas. It’s an expense you have to pay yourself if you’re working as a Dasher for DoorDash. Whenever you’re working, you need to think like a business and make sure that you’re making enough money to cover your vehicle and gas costs.

But even though DoorDash doesn’t pay for gas, that doesn’t mean you’re at the mercy of gas prices either. With the right strategies, you can do things to reduce or eliminate your gas costs completely.

This post may contain affiliate links. Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. Financial Panther, AwardWallet, and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact on how and where card products appear on the site. The site does not include all card companies, or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.

More Recommended Investing App Bonuses

For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.

More Recommended Bank Account Bonuses

If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.

Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
US Bank Business ($900) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.

Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $900 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.