Do Delivery Drivers Get Paid for Gas Money?

Curious about whether your hard-earned miles are compensated for with gas money? This article explores the complexities of delivery driver compensation, especially in relation to gas and whether companies reimburse their contractors for this crucial expense.

The Dynamics of Delivery Driver Compensation

When you work for a food delivery service like DoorDash, Uber Eats, or Uber Rideshare, you are classified as an independent contractor. This means:

You pay for your own vehicle and associated expenses. You are paid per trip and per minute, often with the added benefit of tips. You yourself log your miles for tax deductions to cover vehicle expenses like gas.

Employee vs. Independent Contractor

The way delivery drivers are compensated can vary significantly based on their employment status. Here's a breakdown:

Employee Drivers

The company pays for all costs, including fuel. Drivers are paid for their labor only, with no additional expenses. The relationship is similar to that of a conventional employee-employer model.

Independent Contractor Drivers

You are responsible for your own car maintenance and gas. You are paid an all-inclusive rate, covering both labor and expenses. You log miles for tax deductions to cover these expenses.

Specific Company Policies on Gas Reimbursement

Depending on the specific company, policies on gas reimbursement can vary. Here's a look at some major players:

Doordash, Uber Eats, GrubHub, Amazon Flex

These are all independent contractor jobs. Drivers are responsible for their own car maintenance, including gas. No additional reimbursement is provided.

Jimmy Johns

Jimmy Johns drivers generally receive a small reimbursement for gas, known as DMR (Driver Mile Reimbursement). However, this amount is usually quite minimal and can vary significantly.

Domino's and Papa Johns

At Domino's, the average reimbursement is 24 cents per mile, which is significantly lower than the AAA and Edmunds estimate of 54 cents per mile. Papa Johns offers even less at 14 cents per mile.

Jimmy Johns was notably different, providing a much better DMR, but it's still far from covering the actual costs of gas and maintenance. Drivers often have to rely on tips to make up for the shortfall.

Legal Considerations and Setbacks

Due to the widespread issue of underpaying reimbursement, many pizza chains have faced legal challenges. The costs of running a car, as estimated by AAA and Edmunds, are around 54 cents per mile. However, these companies often settle out of court to avoid larger payouts in lawsuits.

While payment for gas might seem trivial, it's a critical factor in the financial health of delivery drivers, providing them with some much-needed relief from the high costs associated with their job.

Conclusion

The compensation structure for delivery drivers can be challenging, particularly when it comes to gas money. While some companies offer minimal reimbursement, many drivers must rely on tips and typically log miles for tax deductions to cover the cost of running their vehicles. Understanding these dynamics can help you better manage your expectations and make informed decisions about your career in the delivery industry.