Is DoorDash Earn by Time Worth It? I Did My Analysis

You’ve probably heard the buzz about DoorDash’s Earn by Time. It’s a tantalizing prospect, isn’t it? The idea of knowing exactly how much you’ll earn before you even start your shift sounds like a dream come true for many gig workers. But as with anything in life, the devil is in the details.

Analyzing the DoorDash Earn by Time

DoorDash’s Earn by Time mode claims to offer Dashers a more reliable and predictable earning structure. According to DoorDash, this payment model provides:

• A guaranteed minimum active hourly rate for time spent on deliveries, ranging from $10 to $19.50 per hour depending on the region.
• 100% of customer tips on top of the guaranteed hourly rate (the company however clearly states that tips will be less frequent with this mode – sounds sinister).
• Earnings for every minute from accepting an order until dropping it off, including time spent waiting at restaurants or in traffic
• The ability to decline one order per hour without strict penalty (other than having the option disabled)
• Flexibility to switch between Earn by Time and Earn per Offer modes at any time.

DoorDash positions this option as a response to Dasher feedback, emphasizing the desire for more choice in how earnings are calculated. 

The company suggests that this model can provide greater pay transparency and may encourage Dashers to accept smaller delivery orders that might otherwise be declined.

Additionally, DoorDash claims that Earn by Time can reduce stress for Dashers by eliminating the need to constantly evaluate which offers to accept or reject. 

This could potentially lead to a more consistent workflow and steadier income, especially during periods of unpredictable order volume or in areas with frequent long waits at merchants.

However, it’s not all roses as we discuss in the next few sections…

Active time

To simply put, the active time is a time frame which represents the period where the guaranteed minimum hourly rate applies in DoorDash records.

However, this period is only during a delivery and doesn’t not account for the time outside a delivery (e.g wait time for other orders).

So imagine, you accept an order, and your active time starts. It keeps ticking until you complete the delivery or the order gets canceled. That’s the time you’re actually getting paid for at the guaranteed hourly rate.

But here’s the catch – that downtime between orders? It doesn’t count. You’re not earning anything while you’re waiting for the next ping. This can really mess with your actual hourly earnings, especially on slow days.

Think about it. You might be logged in for a full hour, but only spend 40 minutes actually delivering. Guess what? You’re only getting paid for those 40 minutes.

Now, it’s not all bad news.

Sometimes, this system can work in your favor. If you’re juggling multiple orders at once, you might end up earning more than the base rate.

One Dasher on Reddit even reported making $64.51 for about 3 hours of active time at a $15.50/hour rate. Not too shabby, right?

But let’s be real – there are some downsides. You might feel pressured to take on more orders, even the not-so-great ones, just to keep that active time rolling. And DoorDash? They might be more inclined to send lower-paying orders your way if you’re on the hourly rate. You may also be burning more fuel for less money when all summed up.

Is DoorDash Earn by Time Worth It? I Did My Analysis

DoorDash’s Earn by Time mode has received mixed reviews from drivers, with many finding it less profitable than the traditional Earn per Order system.

Real-world experiences suggest that while it offers consistency, it may result in lower overall earnings:

• Drivers report receiving fewer tips in Earn by Time mode, with one user working 7 hours without a single tip.
• The guaranteed hourly rate often becomes a ceiling rather than a floor, with earnings rarely exceeding the promised amount significantly.
• Dashers are required to accept most orders, including low-paying and long-distance deliveries, which can reduce profitability.
• Some drivers report being automatically switched out of Earn by Time mode after declining two orders in an hour, limiting flexibility.

A YouTube comparison found that over an 8-hour shift, the difference in earnings between Earn by Time and Earn per Order was minimal, with the Earn by Time driver making only $3 more while driving significantly more miles (160 miles for $113). 

This suggests that for most drivers, especially those skilled at selecting profitable orders, Earn by Time may not be worth it due to reduced earning potential and increased wear on their vehicles.