Tech

DoorDash offers gas rewards program for drivers, says customers won't bear the costs

Key Points
  • DoorDash said it's starting a gas rewards program to offset rising prices at the pump.
  • The food delivery company is taking a different approach than Lyft and Uber, which are raising consumer costs to assist drivers.
  • All U.S. delivery drivers will be eligible for 10% cash back on gas through a prepaid business Visa debit card.

In this article

A DoorDash Inc. delivery person arranges an order in the back of a vehicle outside of a DoorDash Kitchens location in Redwood City, California, U.S., on Friday, Nov. 29, 2019.
David Paul Morris | Bloomberg | Getty Images

Food delivery company DoorDash is taking steps to try and help drivers offset rising gas prices, though unlike ride-share apps Uber and Lyft, it says the added costs won't be passed on to consumers.

DoorDash said on Tuesday that all U.S. delivery drivers will be eligible for 10% cash back on gas through a prepaid business Visa debit card. They'll earn cash back any time they use the card, even when they're not working, the online delivery service said.

"Over the last few weeks, prices at the pump have increased all across the world, and for Dashers who deliver by car, this economic reality presents unique and unprecedented challenges," the company said in a statement.

Oil prices hit $130 a barrel last week, lifting retail gasoline prices across the country. The average cost of regular, unleaded gas in the U.S. is $4.32 per gallon, according to the American Automobile Association, with the price in DoorDash's home state of California surging to $5.75 a gallon.

Uber and Lyft recently announced that they're adding a temporary rider surcharge. Uber trips will come with a fee of 45 cents to 55 cents, and Uber Eats deliveries will include a charge of 35 cents to 45 cents, the company said last week. Lyft didn't specify the amount of its rider surcharge.

A DoorDash spokesperson told CNBC that the company is taking a different approach.

"We know Dashers aren't the only ones facing pain at the pump, and we're not passing the cost of these programs on to consumers at this time," the spokesperson said in a statement.

DoorDash also announced a weekly gas bonus for those who drive more frequently in their job, saying, "Dashers who accept and complete orders totaling 100 miles in a motor vehicle will earn an extra $5."

The cash back reward program will begin March 17, and relief will stay in place "at least through April," the company said.

"We'll continue to monitor gas prices, listen to the Dasher community, and seek feedback as we evolve these programs and explore additional resources in the coming weeks and months," it said.

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