Gas prices have gotten so high that DoorDash is offering some delivery workers a subsidy.
Gig workers who drive at least 125 miles a week for the delivery service will get “relief payments,” DoorDash said on Monday. The payments start at $5 a week, which DoorDash said equates to about $1 off each gallon of gas that its delivery workers purchase.
The relief payments increase as workers drive more miles. DoorDash will pay $15 to drivers who cover at least 250 miles a week, for example. It’s the first time since the US and Israel started a war with Iran that a major delivery app has offered gig workers extra money for gas.
Delivery workers who use DoorDash’s Crimson debit card will get an extra 10% cash back on gas purchases, the company said.
With the payments and cash back, drivers could save up to $1.90 a gallon, DoorDash said. The program is temporary and is currently scheduled to run through April 26.
“Rising gas prices have a real impact on Dashers, especially those who are delivering the most,” said Cody Aughney, DoorDash’s vice president of dashers and logistics. “This program is about giving Dashers real savings at the pump.”
Gas prices have spiked since the war with Iran began. On Monday, the national average for regular gas was just under $3.96 a gallon, more than $1 above the average from just one month ago, according to AAA.
DoorDash’s program is similar to one it offered four years ago when gas prices spiked after Russia’s invasion of Ukraine. Other delivery and ride-hailing services, such as Uber, also offered additional gas payments to drivers at the time.
Gas represented a major cost for delivery and ride-hailing drivers even before the war with Iran. Unlike full-time workers, gig workers are usually responsible for their own expenses, including gas, car maintenance, and insurance.
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