Doordash Delivery Fee vs Tip: Why they’re both important

Doordash Delivery Fee vs Tip: Why they're both important

Over the past few days, we’ve been talking a lot about fees and charges on Doordash. From the delivery fee to sales tax, and even all hidden fees you should know.

Today, we’ll be talking about something a bit different, which is a comparison between the Delivery fee and tip.

Doordash Delivery Fee vs Tip: Comparing them

It’s easy to get curious about why you should be paying all the fees you have to, on Doordash.

As a matter of fact, you only needed a delivery service, right? Why the extra service?

Even more worst, why would you still need to tip drivers when you already spent reasonably for the delivery fee?

Meme for Doordash Delivery Fee vs Tip

Yeah, it’s probably not what you think…

Before we go on to make a solid comparison or note, let’s make sure you understand what the purpose of these fees is…

Overview of the Delivery Fee

When it comes to getting Doordash work for you, there are a number of fees you need to pay, which could be basically grouped into the following:

  1. Subtotal – This is the actual cost of the food you ordered from Doordash, without adding extra fees or charges.
  2. Estimated Tax and Fees – This is where most fees are being compressed to. Some of the fees that are added here include Sales tax, Small order fee, Service fee, regulatory response fee and a list of others. Most of these fees are usually charged for the running of the company, “business-wise.” You can read comprehensively about these fees here.
  3. Delivery – On the other hand, the delivery fee is charged for the running of the company, “delivery-wise.” This includes paying drivers, and a couple of other transportation-related charges. So you’re

If you’re confused by what we mean by business-wise and delivery-wise, you might want to read our article on the comparison of the delivery fee and service fee.

Talking more about the Delivery fee, basically, you pay this fee for Doordash to deliver your order to you. This is the only fee that does this.

Other fees are just petty expenses that are accumulated in the process of getting your order delivered.

A big misconception here, however, is that the Delivery fee goes directly to the driver. In fact, that’s the reason most people complain about it.

The complaint is that, since the delivery fee may seem worthwhile to drivers already, why then tip?

Well, the truth is that drivers only get a cut of the delivery fee.

In fact, the amount a driver earns per delivery is totally independent of the delivery fee.

Editors note: The amount a driver earns per delivery is calculated using factors like time spent on the delivery, distance travelled, and the desirability of the order. While the delivery fee helps maintain the platform’s functionality and partially compensates drivers, it does not fully address the drivers’ efforts and expenses, such as vehicle maintenance, fuel, and insurance. That’s probably where tips come in.

So, how much do drivers earn from the delivery fee?

Well, it’s not actually possible to tell, as Doordash doesn’t share exactly how it’s calculated. However, a driver should earn anywhere from $2 to $5 per delivery.

Overview of Tips on Doordash

Now to Tips…

Just like we do at local restaurants, at the bar, or maybe at the barber’s shop, you could also replicate that same gesture on Doordash.

When you tip a driver, it goes directly to them (100% unlike the delivery fee) and works like a “thank you” for a service well done.

Delivering goods is not the most exciting job, especially during bad weather, high traffic, or peak times. And a delivery driver has to go through this, regardless of the situation to get your order delivered.

So yeah, a few dollar Tip could go a long way in this vein.

But are people being a bit aggressive about tipping?

Yes, probably. And this is unfortunately because the pay from Doordash per delivery is usually not worth the effort for most people.

Hence most drivers have learnt to rely basically on Tips for the earnings they get.

But then, it’s still worth mentioning that Tips are only voluntary.

So can you just leave them? Well, let’s take a quick look at that in the next section.

Should you Tip Dashers? and Why

While Tipping on Doordash is totally voluntary, it is more of a standard practice in the industry than not.

In fact, drivers are unlikely to take your order when you don’t tip – we don’t support this, though. But this is the fact, unfortunately.

So what’s the need? Why should you tip a dasher? Below are some reasons:

  1. Dashers rely on tips basically: Delivery drivers are typically regarded as independent contractors. As a result, they’re not entitled to benefits such as Health insurance, car insurance or paid time off. They also have to fuel their vehicles, as well as maintain them. In this course, Tips help big time.
  2. It serves as an Incentive for good Service: Since Doordash allows customers to tip or increase already made Tips after delivery, this could serve as a benefit for offering good service. Hence, could generally increase the level of good deliveries for the company.
  3. It’s a way to show Appreciation: Tipping drivers is typically a gesture. Just an act of kindness that could go a long way.

So how should you tip?

Well, there’s actually no one way to Tip “ri”ght”

However, most people recommend that you Tip between 10-15% of your subtotal.

Some will also say tipping below $3 it’s not ideal.

But the truth is, there’s no one way to do it.

Final Thought

While they might seem like the same thing, the delivery fee and tips on Doordash are entirely different.

For one thing, the delivery fee is being paid to Doordash, who then pays drivers a cut. However, Tips go directly to dashers in their fullness.

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