Postmates vs. DoorDash | Best Side Hustle & Pay for Drivers?

DoorDash vs. Postmates – these two delivery heavyweights offer consumers new ways to get food fast, and they’re also great options for side hustlers. But is one better than the other?

We now live in a world of on-demand everything. There are streaming services for any show or movie you could ever want to watch, same-day delivery from Amazon, and apps that deliver food right to your door. 

Consumers love immediate access, and it’s opened the door for side hustlers to make extra cash. This is great news if you want to destroy your debt, save more for retirement, or set aside cash for emergencies. 

Today, I’m taking a deep dive into two of the most popular food delivery services, Postmates and DoorDash, to tell you which one is better to earn money with. Enjoy!

DoorDash Disclaimer: Actual earnings may differ and depend on factors like number of deliveries completed, time of day, location, and expenses. Hourly pay is calculated using average Dasher payouts while on a delivery (from the time you accept an order until the time you drop it off) over a 90 day period and includes compensation from peak pay, tips, and other incentives.

Postmates vs Doordash: Which is a Better Side Hustle?

About Postmates

Since 2011, Postmates has been delivering “anything, anytime, anywhere.” Customers can place orders with Postmates 24/7 for everything from ping pong balls, Taco Bell, toilet paper, or Chinese takeout.

Postmates has been the go-to delivery app for celebrities. Chance the Rapper has used Postmates for an iPad and adult coloring books. Post Malone spent over $40,000 on Postmate deliveries in just over a year. And in 2017, Seth Rogen had his wife’s birthday dinner delivered by Postmates.

The point is, that customers can use Postmates for anything, and that is probably the most important thing to know about becoming a Postmates courier. Orders of anything, anytime, anywhere.

Uber purchased Postmates in July of 2020, so it’s now part of the Uber/UberEats family.

About DoorDash

Founded in 2013, DoorDash is now delivering food in over 4,000 cities across the U.S. Customers place an order in the DoorDash app, and a Dasher accepts the order and fulfills it.

DoorDash delivers all kinds of food, from your favorite chain restaurants to local spots, and there are currently over 300,000 restaurants that have partnered with DoorDash for deliveries. Dashers pick up pre-paid orders from restaurants or place the order and wait, and then deliver them to customers.

One of the more notable things about driving for DoorDash is that you can schedule your hours in advance. You can still open the app and deliver when you want, but scheduling gives you the option to plan for work in advance. DoorDash will also use scheduling to limit the number of Dashers working at a certain time, which means less competition over available orders.

Postmates vs. Doordash:  Driver pay

Let’s just start with what you probably came for… does Postmates pay better than Doordash? Or is it the other way around?

Well, drivers for both apps report fairly similar earnings, but the services differ in the way your pay is calculated.

Postmates pays delivery drivers separate rates based on pickup, dropoff, minutes spent in-store, and rate per mile. Pay varies by area, but here are a few examples of what you can earn across the U.S.:

DoorDash uses the Dasher Pay Model, which is base pay + promotions + tips, and that total is your take-home pay.

Your base pay is the amount you keep no matter what, and it ranges from $2-$10 and varies by order.

Promotions include Peak Pay, which is when certain areas are in high need of delivery drivers. These areas light up red in the driver app, and you’ll see the additional dollar amount you’ll earn for each delivery you make in a Peak Pay area.

DoorDash also has Challenges, which is currently in beta mode. Challenges give drivers additional pay for completing a certain number of deliveries in a set amount of time.

New Postmates drivers can earn sign-on bonuses after completing a certain number of deliveries by a specific date. You can earn referral bonuses too when you get others to start driving for Postmates.

Postmates also offers Blitz Pricing, orders with higher payouts, and Hot Spots, very in-demand delivery areas. There are also Crushers, which are bonuses for completing a set number of deliveries in a certain time period.

Both Postmates and DoorDash let drivers keep 100% of tips.

Postmates vs. Doordash: Requirements and availability

DoorDash and Postmates are available in nearly every major U.S. city and suburb, but DoorDash has a significantly larger market share. According to Bloomberg Second Measure, DoorDash holds 58% of the food delivery market share compared to Postmates’ 3%. Even when you add in Uber Eats 24% market share (Uber Eats is Postmates’ sister company), that’s still less than half of the business DoorDash does.

That data means customers overwhelmingly choose to order their food through DoorDash, and that’s worth thinking about if you want to sign up and drive.

Both have very similar driver requirements, and the requirements are nearly identical to other best food delivery services.

DoorDash requirements:

• Must be 18 or older
• Have access to a car, scooter, or bicycle in some cities
• Have a driver’s license number
• Have auto insurance
• Complete a background check

Postmates requirements: 

• Be at least 18 years old
• Have a smartphone so you can download Postmates Fleet, the courier app you’ll use to complete deliveries
• If you plan on driving, you’ll also need to pass a DMV background check and have access to an insured vehicle
• Pass a Postmates criminal background check

Both apps require you to have a Social Security number if working in the U.S.

Postmates vs. Doordash: Signing up to deliver

If you’re eligible to work for Posmates or DoorDash and they offer deliveries in your area, it’s time to sign up. Both apps have a very similar sign-up process:

• Apply to deliver online – sign up for DoorDash here
• Complete a background check
• Receive an activation packet, which includes a prepaid card and insulated bag for deliveries
• Download the app

It can take between 1-2 weeks after you apply for either to start delivering.

Postmates vs. DoorDash: Delivery hours

Remember when I said that Postmates delivered anytime? That means you can make money driving for Postmates 24/7. Now, you’re not going to earn as much at certain times of the day (lunch and dinner hours, plus Friday-Sunday are the busiest times), but the idea is that you can use any of your spare time to make some cash.

DoorDash has a Dash Now option if you’re in an area that lights up red or pink in the app. Those areas have a high number of orders coming in for new Dashers. But you can also schedule your hours in advance with DoorDash.

Side hustling is all about flexibility, but some people are going to want something they can plan out and count on. You can schedule time blocks anywhere from a week in advance to day-of with DoorDash.

Postmates vs. Doordash: Making deliveries

When you’re ready to start delivering, you’ll log in to either app and see what orders are available.

With Postmates, you’ll see the order plus any additional offers, then accept.

In the DoorDash app, you will see orders plus your guaranteed pay, which is unique to DoorDash. You click “Accept” if you want to take an order. Note that not accepting orders can affect your overall DoorDash driver rating, but that’s not the case for Postmates. More on driver ratings further down.

Both apps send you a prepaid card and an insulated bag after you sign up to deliver. You use the card to pay for any orders that aren’t pre-paid for in the app. The bag is used to keep food hot or cold while you’re on route.

Postmates vs. Doordash: How and when you’re paid

Both delivery services pay drivers weekly via direct deposit, so you’ll need a bank account to get paid. Deposits take around 2-3 days to show up, and most drivers see the funds in their accounts by Wednesday evening.

If you don’t want to wait for direct deposit, both apps have an option to cash out quickly

• DoorDash: If you’ve made at least 25 deliveries and have dashed for at least two weeks, you’re eligible for Fast Pay. It costs $1.99 to cash out your earnings instantly.
• Postmates: You can sign up for Instant Deposit by linking your debit card to the Postmates Fleet App and pay $0.50 to cash out instantly.

Read more at Work Online and Get Paid Instantly (More Than Just Survey Sites!)

Postmates vs. Doordash: Driver ratings

Both companies have a rating system for drivers, but Postmates ditched it’s five-star rating system for simple thumbs or thumbs down.

Here’s what Postmates says about the change to its rating system:

“Postmates does not use a star rating system. We believe that this helps you avoid being held responsible for circumstances outside of your control (for instance, if an item was prepared incorrectly). Instead, customers rate their delivery as a whole with a thumbs up or thumbs down. The customer’s choice will never affect you, your standing, or your ability to stay on the platform.”

DoorDash has a five-star rating system based on four factors:

• Customer rating: This is a 1-5 scale calculated from your 100 most recent ratings (old ratings are replaced as new ones come in). You need to maintain a 4.2 average rating on DoorDash can deactivate your account.
• Completion rate: The percent of deliveries you’ve completed out of your 100 most recent deliveries. But if an order is canceled by the customer or merchant, those won’t count against your completion rate. You need to maintain a completion rate of at least 80% to stay on the app.
• Acceptance rate: This is the percentage of deliveries you accept. There’s no minimum acceptance rate to stay on the platform.
• On-time/Early rate: This is how many orders have been delivered on time or early out of your 100 most recent deliveries. While there are no minimums, DoorDash says that repeated lateness may result in deactivation.

It’s worth mentioning that both of these delivery services have made changes to their rating systems so drivers aren’t unfairly rated based on events outside of their control. For example, DoorDash removes low ratings resulting from long waiting times at restaurants, missing or incorrect items, extreme weather, and so on.

Can you do Postmates AND Doordash?

Yes! Just like rideshare companies Uber and Lyft, you can deliver with both DoorDash and Postmates, and many drivers do.

The benefit of driving for both is that you open yourself to more delivery options, which equals more cash. Many drivers run the apps at the same time, and find orders in either app that are close to where they’re delivering. And if orders slow down in one app, you can always check the other.

Keep in mind what I said about DoorDash’s acceptance ratings, so it’s better to accept those orders than decline them for an order with Postmates.

Alternatives to Postmates and DoorDash

Postmates and DoorDash are only two of a handful of popular delivery services out there. You can drive for multiple services at a time, and most drivers settle on one or two that they like the best.

The nice thing about all of these options is that the driver requirements are virtually the same. If you’re eligible for one, then you should have no problem signing up for others.

Here are two top alternatives to Postmates and DoorDash:

The reality of what you’ll earn with Postmates and DoorDash

With both Postmates and DoorDash, you’re going to make the most money as a driver in a high-traffic area of a large city. You’ll also need to drive during the busiest times, which are lunch and dinner hours and Friday through Sunday. 

Busier times mean less downtime as a driver, and too much downtime will only cut into your pay. Think about it like this: your first delivery took you 20 minutes, then you sat for 20 minutes waiting for your next delivery. You’re not being paid for that downtime between orders. This is why many drivers sign up for both companies.

Another reality for drivers is the cost of gas and more frequent car maintenance, plus the overall wear and tear on your car. It’s hard to nail down an exact figure per driver or delivery, but any amount of car expenses will eat into your take-home pay. 

Couriers for both DoorDash and Postmates are considered independent contractors, meaning neither company withholds taxes — you are responsible for this. Both companies will send out 1099-MISC forms for drivers that make $600 or more throughout the year, but you’ll still need to report earnings under that amount, especially if your combined earnings for both companies are $600 or more.

There are a few eligible deductions that you can take on your taxes with either delivery service, including:

• Mileage
• Car insurance
• Tolls and parking
• Your phone and phone plan
• Accounting costs

Learn more about tax time at How to Handle Taxes for Your Side Hustle.

Final word: Postmates vs. Doordash

Both of these are 100% legit side hustles, and there are unique features to each that make them worth checking out — DoorDash shows your guaranteed pay and lets you schedule time, while Postmates offers more flexibility and doesn’t have a rating system that affects drivers.

If you’re looking for a good side hustle that pays well, DoorDash and Postmates are both great options.

Overall, Postmates and DoorDash give you flexible side hustles that will help you money in your spare time with pay that’s comparable to what you would make driving for Instacart, Uber, or Lyft. 

So, if you can find the time and want to make more money, check out both apps and see how they work for you.