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A recent ranking by High Rise Financial has unveiled the best and worst states for DoorDash drivers, with Wisconsin claiming the fourth position as an ideal location for delivery work. Wyoming, on the other hand, emerged as the top state for pursuing a food delivery side hustle, while North Carolina ranked at the bottom of the list.
As grocery prices continue to rise and inflation takes its toll, many individuals are contemplating taking on a second job to make ends meet. Food delivery platforms like DoorDash have become a valuable avenue for supplementing income, although the viability of such opportunities varies across states.
High Rise Financial compiled the ranking by assessing five key factors in each state: weekly earnings, schedule flexibility, platform market share, gas prices, and living costs. The news comes just shortly after Wisconsin was ranked the worst state for Uber drivers.
The determination of weekly earnings relied on the typical hourly wage earned by DoorDash drivers in each state, as reported by ZipRecruiter. Multiplying this sum across the four hours that each driver reportedly works each week, the study found that drivers make an average of $138 weekly through the DoorDash platform.
Schedule flexibility was gauged by examining the number of hours individuals typically spend at their primary jobs each week, as reported by the Bureau of Labor Statistics. This analysis aimed to identify states where individuals have more spare time to dedicate to DoorDash as a secondary job or side hustle.
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The platform market share metric assessed the prominence of DoorDash compared to other delivery apps in each state. Gas prices were derived from the AAA Gas Price Finder, while living costs were analyzed to evaluate how far the average weekly earnings stretch in comparison to each state's living wage.
Based on the comprehensive evaluation of these factors, the results revealed that DoorDash drivers in Wyoming have a better chance of finding sufficient time to fulfill orders and generate substantial profits compared to drivers in any other state. Wyoming scored an impressive overall rating of 8.9 out of 10, with DoorDash being the preferred food delivery app for approximately 71% of adults in the state. In terms of earning potential, New York claimed the top spot, with DoorDash drivers typically making $172.60 per week for four hours of work.
Rising gas prices present a significant concern for food delivery drivers, as DoorDash reportedly does not cover gas fares for its employees. As a result, drivers must bear this cost independently, which becomes increasingly challenging with soaring prices. Furthermore, DoorDash drivers work as contractors and are compensated on a per-delivery basis, leading to inconsistent rates. These factors contribute to a substantial discrepancy in earning potential between states.
States that provide less financial security to DoorDash drivers or face intense competition are more likely to witness drivers avoiding time off to mitigate lost earnings. Data reveals that the average driver had to take 14 days off last year to recover from injuries, resulting in $277 in lost earnings (excluding tips), based on the national average hourly wage for drivers ($34.57) and reported four hours worked per week.
Commenting on the findings, a spokesperson for High Rise Financial highlighted the challenges faced by employees in highly competitive jobs like food delivery. The spokesperson stated, "Workers are more likely to avoid taking time off or rush back to work before they are fully ready to reduce their losses. Without a fixed number of sick leave days per year, many workers, especially part-time or self-employed individuals, may choose to ignore an injury to avoid taking time off, which can have legal implications for employers."
If you’re looking for a side hustle of your own, driving for DoorDash is proving to be a profitable endeavor.