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As gas prices continue to skyrocket, particularly in California, DoorDash is stepping up to assist its drivers by allocating over $50 million this quarter. This initiative is part of an effort to mitigate the financial strain on drivers as fuel costs continue to rise, affecting both consumers and businesses across the nation.
This San Francisco-based delivery company announced on Wednesday that it will provide temporary financial relief to drivers in the US and Canada. This decision is part of a broader strategy to cushion the impact of volatile fuel prices on its workforce.
The relief program was first unveiled in March, a response to the sharp increase in gas prices that followed the escalation of the conflict in Iran. With the global energy market in turmoil, DoorDash recognized the urgent need to support its drivers during these challenging times.
California is feeling the brunt of this crisis more acutely than other states. Officials in the Golden State are increasingly alarmed about the potential for a full-fledged gasoline crisis, as recent developments hint at possible disruptions in supply.
Adding to these concerns, the arrival of the last oil tanker from the Middle East to California this week has heightened tensions. Lawmakers are closely monitoring the situation as the ongoing conflict poses significant threats to global energy supplies.
Democratic and Republican assemblymembers grilled the California Energy Commission on Tuesday as officials scrambled to determine how the state will replace the roughly 30% of its oil supply that typically comes from the Persian Gulf.
America’s war with Iran has effectively shut down the Strait of Hormuz, and the tanker that arrived this week was the last known shipment to leave the region for California before the conflict erupted.
The situation is especially precarious for California because the state lacks interstate gasoline pipelines and depends heavily on imported crude to keep refineries operating.
According to AAA, the national average price for a gallon of gas hit $4.53 on Wednesday, a staggering 44% jump from the same time last year, in California the average sits at $6.16.
California also has more DoorDash drivers than any other state in the country.
As of 2024, hundreds of thousands of Dashers were operating statewide, giving California an outsized stake in the company’s fuel-relief effort.
Unlike some companies that tack on extra customer fees, DoorDash said it plans to pay for the relief effort by redirecting money from other parts of its business.
That distinction carries particular weight in California, where app-based delivery drivers already operate under some of the strongest worker-pay protections in the country.
Under Proposition 22, gig companies are legally required to provide minimum earnings guarantees for drivers during “active time,” the period from when a Dasher accepts an order until it’s delivered.
California drivers are guaranteed at least 120% of the local minimum wage, while the state’s mandatory mileage reimbursement rate is set at 37 cents per mile for 2026.
That means California Dashers are effectively getting two layers of protection against soaring fuel costs, DoorDash’s temporary nationwide gas-relief initiative and the state’s permanent pay guarantees tied to miles driven.
Even with drivers feeling the squeeze at the pump, DoorDash said delivery demand remained resilient during the first three months of the year.
Orders climbed 27% to 933 million from January through March.
The company said it plans to absorb the cost of fuel assistance by scaling back spending elsewhere.
In November, DoorDash said it intended to ramp up investment in new features and services this year, including restaurant reservation tools inside the app and robot-powered deliveries.