DoorDash is rolling out temporary payments aimed at helping its delivery drivers offset higher gas costs as fuel prices rise in the United States and Canada. The San Francisco-based company said the program, announced Monday, will run through April 26 and is designed to respond to soaring prices in energy markets that it linked to the Iran war and disruptions around major oil shipping routes.
DoorDash said the U.S. national average gas price hit $3.96 per gallon, according to the American Automobile Association, and was 35% higher than one month earlier. The company pointed to global oil price increases since the Iran war began on Feb. 28, saying Brent crude briefly rose above $119 per barrel last week, compared with roughly $70 before the war started.
For U.S. drivers, DoorDash said those who use a DoorDash debit card will earn 10% cash back on any gas purchase, compared with the usual 2% rate. The company said more than half of its U.S. drivers have that card.
DoorDash also said U.S. drivers who travel 125 miles or more while making deliveries will receive a weekly fuel payment. The amount starts at $5 and can rise to $15, according to the program terms DoorDash laid out.
In Canada, DoorDash said drivers will receive up to C$36 per week, based on the miles they travel while making deliveries. DoorDash said the company expects the Canadian and U.S. programs to operate together during the same window, ending April 26.
DoorDash’s announcement came as rivals weighed whether to match similar incentives. The company said its relief program is intended to help drivers cope with higher fuel costs, while messages seeking comment were left with Uber and Lyft and GrubHub said it is keeping a close eye on gas prices.
DoorDash said it has used gas-price relief programs before, including in 2022 when U.S. gas prices topped $4 per gallon. At the time, Uber and Lyft also put in place temporary gas surcharges for customers, according to DoorDash.