DoorDash introduced its “Earn by Time” feature in June 2023, offering delivery drivers—known as Dashers—a guaranteed hourly wage instead of the traditional per-order payment. This change aims to provide more predictable earnings, but does it truly benefit drivers? Let’s delve into how both payment models work and which might be more advantageous for you.
How Does “Earn by Time” Work?
In the “Earn by Time” mode, Dashers receive a fixed hourly rate for the time spent actively completing deliveries. Active time begins when you accept an order and ends when the delivery is completed or canceled. This mode includes waiting time at restaurants or stores, offering a more consistent income stream. Additionally, Dashers keep 100% of customer tips.
However, there are conditions:
- You can decline or unassign one order per hour without penalty.
- Declining or unassigning a second order within the same hour will end your “Earn by Time” session, and you’ll revert to the “Earn per Order” mode for the remainder of your dash.
It’s important to note that “Earn by Time” isn’t available in all areas and may be subject to availability based on market conditions.
How Does “Earn per Order” Work?
The traditional “Earn per Order” model compensates Dashers based on each delivery completed. The payment comprises a base rate, which varies depending on factors like distance and time, plus any customer tips. This model offers higher earning potential, especially if you can select high-paying orders and maintain a high acceptance rate.
However, earnings can be inconsistent, and Dashers are not compensated for time spent waiting for orders or during periods of inactivity. Additionally, long wait times at restaurants or stores can reduce overall earnings.
Comparing the Two Models
| Feature | Earn by Time | Earn per Order |
|---|---|---|
| Payment Structure | Guaranteed hourly rate + tips | Per delivery (base pay + tips) |
| Waiting Time Pay | Yes | No |
| Order Declines | One per hour without penalty | Varies; high declines can affect ratings |
| Flexibility | Less; limited to one decline per hour | More; can decline multiple orders |
| Earning Potential | More predictable, but potentially lower | Higher, but less predictable |
Real-World Experiences
Some Dashers have reported mixed results with the “Earn by Time” model. For instance, one driver worked seven hours without receiving a single tip, while another found that the guaranteed hourly rate often became a ceiling rather than a floor, with earnings rarely exceeding the promised amount significantly. Additionally, some drivers have been automatically switched out of “Earn by Time” mode after declining two orders in an hour, limiting flexibility.
In contrast, the “Earn per Order” model allows Dashers to choose which orders to accept, potentially leading to higher earnings if high-paying orders are selected. However, this model also comes with the risk of inconsistent earnings and the challenge of managing wait times and order declines.
Which Should You Choose?
The choice between “Earn by Time” and “Earn per Order” depends on your personal preferences and circumstances. If you value predictable earnings and are willing to accept a guaranteed hourly rate, “Earn by Time” might be suitable for you. On the other hand, if you prefer flexibility and the potential for higher earnings by selecting specific orders, “Earn per Order” could be more appropriate.
It’s advisable to experiment with both models to determine which aligns best with your driving habits and financial goals. Remember, you can switch between the two modes based on your preferences and market conditions.
Final Thoughts
DoorDash’s introduction of the “Earn by Time” feature provides Dashers with more options to tailor their earnings to their needs. While it offers a guaranteed hourly rate, it may not always lead to higher earnings compared to the traditional per-order model. By understanding the nuances of both payment structures, you can make informed decisions that best suit your driving style and financial objectives.
