Working as a DoorDash driver is not cutting it financially in this economy, as one delivery driver recently discovered after delivering 10 orders left her with less than expected.
New college graduates are already stressed about making ends meet. 59% of the class of 2024 say they’re concerned about covering basic expenses after leaving school, according to a March survey of 2,687 students graduating with a bachelor’s degree in 2024.
College graduates turn to DoorDash gigs
According to a CNBC article, more than 40% of college seniors expect to pursue a gig or freelance work after graduation with nearly a a third saying they’ll do it on top of a full-time job. Nearly half say they plan to put in these extra hours because they’ll need the additional income to pay for their everyday expenses and debt.
Becoming a DoorDash driver is a common part-time job, but as Dom, a TikTok creator, and others are learning, it is not as financially sustainable as they expected.
Power California, an account on TikTok “trying to build an unapologetic youth movement, one vote at a time,” reposted Dom’s TikTok video. The reshared clip has already garnered over 200,000 views and has sparked a conversation about how little DoorDash drivers make, especially with the cost of living expenses today.
How much do DoorDash drivers make?
According to the DoorDash site, there are various ways for a Dasher to make money off of delivering orders.
They can initially make a base pay, which is DoorDash’s base contribution for each offer made to Dashers. This can range from $2-$10+ and is determined based on time, distance, and desirability.
The base pay is always guaranteed but Dashers can also make money off of tips and promotions, which vary by order.
Promotions can come from peak pay, challenges, and delivery streaks. Peak Pay allows Dashers to earn extra money on each offer. Challenges give Dashers the chance to earn extra money for completing a certain number of deliveries in a set amount of time. Delivery Streaks allow Dashers to earn extra money by accepting and completing offers consecutively when they dash.
Tips vary by how much the customer who placed the order gives. Dashers receive 100% of the tips.
The struggle of being a Dasher
Dom calls out the unsustainability of DoorDash delivery as an income in her video. She shares that she completed 10 DoorDashes in the last two hours and only made “a whopping $24.76.” She notes that’s not enough to get her food DoorDashed.
Dom continues to share the financial struggles she has faced since moving from Texas to California.
She was excited to be “living the Cali dream,” noting she has a full-time job that has health insurance and benefits. “All the stuff I thought I needed to live a comfortable life,” she describes.
But unfortunately, that isn’t the case. “I can never make ends meet,” she says.
The cost of living in Texas versus California
According to 2021 data from the Bureau of Economic Analysis, the annual average cost of living in California is $53,082. Based on that, it costs $4,423 per month to live in California.
The same data states that the average total personal consumption cost in Texas is $45,114 per year, making Texas the state with 19th lowest cost of living.
The cost of living in California is 38% higher than the national average, while housing is 97% higher. Similarly, utilities are 22% higher and food, clothing, and groceries are 10% higher than the rest of the country.
Massachusetts Institute of Technology tracks living wage calculations for cities and states across the United States, defining a living wage as the “approximate income needed to meet a family’s basic needs.” MIT further defines basic needs as “food, clothing, housing, and medical care.”
According to its 2021 figures, an individual has to have 28.5% more income to earn a living wage in California than in Texas.
Housing is the biggest disparity between Texas and California, as 2021 housing costs were 48% higher in California than in Texas.
But, Texas does have more transportation costs. The average adult in Texas spends 9.9% more on transportation than the average adult in California.
Frustrations while trying to make ends meet
Dom continues to voice her issues, noting that despite her college degree, she’s unable to be in financial control.
“I’m just so frustrated because I feel like I’ve done everything right,” she says. “I went to school, I got my degree, I got a job. But with rent and bills and student loans and groceries it just feels like I just cannot get ahead.”
TikTok users in her comment section felt the same way. Some viewers said that as DoorDash or Uber Eats delivery drivers, they’ve become more selective about the orders they accept.
“I did 6hrs made $200 last night. I don’t accept anything under $9.50 short distance. Dont accept anything,” one said.
Another wrote, “I double dip. I ubereats and DoorDash. My acceptance rate is 3% though. Only accept orders that make sense.”
Dom feels like it’s time billionaires do something because they have money but “have never had to lug 5 Big Mac meals and drinks up 3 flights of stairs.”
The CEO of DoorDash, Tony Xu, reached billionaire status in 2020—and has a current net worth of $1.7 billion, according to Forbes.
Dom ends her video by saying, “The billionaires need to start opening their pocketbooks because I can’t afford to keep opening up mine.”
Dom received support from the TikTok community on the reposted video.
“Noo because you’re right…this is unsustainable,” one user commented.
Another said, “This is ridiculous. I always tip my delivery drivers $10 and I’m learning that’s still not enough. Even after I’ve paid $60 for an order.”
@powercalifornia We are hustling and grinding and still can’t make rent. ?? 👎🏾 We should be able to afford our rent and bills, and not struggle! Via @domthefurious #RentersRising #WorkersWillWin #HouseTheHomies #PeopleOverProfits #doordash #gigworker #doordash #CommunitiesOverCorporations #gigworkertips #doordashpartner #doordasher #doordashlife ♬ original sound – Power California
Financial stresses linger over many new grads and young adults
Student debt is something that many new grads are left to deal with. Just over half of the 2024 college graduates expect to carry student loan debt. Within that group, almost 70% say their debt will influence jobs they consider after graduation, according to Handshake’s report that surveyed 1,148 students.
Having to work a five-to-nine after working a nine-to-five job can be taxing on young adults, which can lead to burnout. 80% of the class of 2024 report that they’ve felt burned out as undergrads, with feelings of persistent exhaustion, a lack of motivation, and unusual negativity. 25% of this class say they’re “highly worried” about being burnt out once they start working.
The Daily Dot has reached out to Dom via TikTok direct message and DoorDash via email for comment.
