DoorDash (DASH) Launches Emergency Relief Program for Drivers as U.S.-Iran War Sends Gas Prices Soaring

DoorDash DASH -3.05% ▼ has announced a temporary relief program for its delivery drivers in the United States and Canada as gas prices continue rising in the wake of the ongoing U.S.-Iran conflict. The surge in fuel costs has significantly increased operating expenses for delivery drivers, prompting the company to introduce support measures to ease the financial burdens.

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DoorDash Introduces Driver Relief Program

DoorDash’s relief program will provide weekly payments to eligible delivery drivers. Dashers who drive at least 125 miles per week can receive payments starting at $5, with higher amounts based on distance covered.

Additionally, drivers using the DoorDash Crimson card will receive a 10% cash back on gas purchases. Combined with the weekly payments, the company estimates that total savings could reach up to $1.90 per gallon.

This new support program is significant because DoorDash drivers are normally responsible for covering their own fuel costs. Unlike traditional employees, gig workers must handle their own operating expenses, including gas, vehicle maintenance, and insurance.

Rising Gas Prices Hit Drivers Hard

Gas prices have climbed above $3.9 per gallon, according to American Automobile Association (AAA) data, representing more than $1 above levels seen just a month ago. As fuel costs continue to rise, drivers are facing higher expenses while delivery pay has remained unchanged.

As a result, profit per delivery has declined as a large share of drivers’ earnings is being spent on fuel. With earnings under pressure, some drivers are choosing to work longer hours to maintain their income and standard of living. At the same time, others are cutting back on deliveries or leaving the work entirely.

Similar Moves Seen in Past Crises

DoorDash introduced a similar fuel support program in 2022 when gas prices rose during the Russia–Ukraine conflict. The company used that program to help drivers manage higher fuel costs at the time.

Other delivery platforms took similar steps during that period. For instance, Uber Technologies UBER -1.42% ▼ introduced a temporary fuel surcharge, while Grubhub increased pay for its drivers amid rising gas prices. However, it is not yet clear whether these companies and others will introduce similar support measures in response to the current rise in fuel costs.

Can DoorDash Stock Benefit From Driver Support Moves?

According to TipRanks analysts’ forecast data, DoorDash (DASH) currently has a “Strong Buy” consensus, with an average price target of $255, reflecting 63% upside potential. DoorDash’s average 12-month price target implies consistent growth potential, especially as it continues to expand its delivery network and support its drivers. Investors can use TipRanks’ Stocks Comparison Tool to check ratings, price targets, and performance for DASH and other delivery stocks.

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