DoorDash Launches New Banking Platform for Drivers

Need to Know 

• DoorDash has teamed up with Payfare and Stride Bank to launch a new banking solution for DoorDash delivery drivers.
• The new tool lets drivers deposit earnings directly to their Visa card, allowing them to pay bills, transfer money, and earn rewards.
• The solution removes one more boundary for Dashers to deposit and access earnings in a timely manner.

Analysis

In partnership with Payfare and Stride Bank, food delivery app DoorDash has announced the launch of the new DasherDirect platform. The new tool is a banking solution for DoorDash delivery drivers that will offer them a Business Prepaid Visa Card and mobile banking app, as well as exclusive rewards. 

Using DasherDirect, DoorDash drivers can check their balance, pay bills, transfer money, set savings goals, and find ATMs. Their earnings are added automatically to the DasherDirect Visa Card. Dashers can also earn 2% cashback on fuel at any station, at any time. 

To use it, DoorDash drivers simply apply under the Earnings tab of their Dasher app. Once approved, they can download the DasherDirect app and set up direct deposits to their new account. They can then begin to use their new card and start earning rewards. 

Payfare is a global fintech company that provides payout solutions for the modern workforce. The collaboration with DoorDash is designed to offer drivers, who work as gig workers, greater economic freedom.

“We are committed to providing innovative solutions for gig workers that drive financial inclusion, which is why we are thrilled to partner with DoorDash and announce this major initiative,” said Marco Margiotta, CEO of Payfare. “Since the inception of Payfare, we have quickly become a name synonymous with digital banking and instant payout solutions for the on-demand gig economy.”

The launch of DasherDirect coincides with DoorDash’s Main Street Strong Pledge, a commitment by the delivery app to empower its drivers financially.  The pledge includes a $12 million Dasher rewards program that will launch early next year. 

Earlier this year, DoorDash also launched a new tool to help participating restaurants build their own websites. 

In the first nine months of 2020, DoorDash placed over 543 million orders, and says that, amid the pandemic, it has “saved restaurants in the US, Canada and Australia at least $120 million in commission fees.”