DoorDash to give some couriers extra cash to help with soaring gas prices

Some food delivery couriers grappling with high fuel costs are about to get a little help.

DoorDash Canada announced Monday that it will give couriers who drop off orders in their own vehicles up to $36 extra a week to help cover high gas prices.

The extra cash will be structured as a $1.50 payment for every 50 kilometres driven between March 23 and April 26. 

The DoorDash offer comes as gas prices have been increasing since war broke out in the Middle East, stymying the flow of fuel through the Strait of Hormuz.

Couriers who transport food from restaurants to customers have been among the most affected by the gas price increases because their earnings are greatly shaped by how much it costs to fill up their tanks.

DoorDash estimates the relief it is offering equates to savings of roughly 36 cents per litre based on average vehicle gas efficiency.

Spokesperson Trent Hodson conceded in a statement to The Canadian Press that the cash "may not fully cover fuel expenses given ongoing volatility," but maintains it still "delivers meaningful, incremental relief."

He pointed out the food delivery service will fund the program entirely and will not introduce additional fees for consumers or merchants to amass the extra cash it's giving couriers.

Jim Stanford, an economist and director at the Centre for Future Work, saw the gas price relief as largely a "symbolic" move meant to "sweeten the pot," so drivers stay on the road for DoorDash even while their couriering expenses climb.

"DoorDash is not doing this out of charity," he said. "DoorDash is doing this because they have to keep their drivers a bit above water, if they want them to keep working."

While Uber and Skip did not say whether they'd offer their workers similar relief, Stanford expects them to follow suit so they can stay competitive.

He said the DoorDash offer "looks like a nice gesture, but it's not enough money, it's not going to last long enough and it doesn't fix the fundamental problems in the business model for drivers."

Those problems include low earnings, opaqueness around how much workers earn for deliveries and the fact that most apps do not pay couriers for time they're logged into their apps awaiting orders, Stanford said.