DoorDash Partners With Payfare To Launch Banking Solution For Drivers

DoorDash and Payfare are collaborating to launch the DasherDirect banking solution for delivery drivers (Dashers), which aims to give them greater flexibility over earnings.

“This is a major step forward in introducing new tools to empower Dashers who count on DoorDash for reliable, independent and flexible work,” Tony Xu, co-founder and chief executive officer of DoorDash, said in a press release on Monday (Dec. 14).

DasherDirect is issued by Stride Bank and powered by Payfare. The platform offers drivers a mobile banking app and a business Prepaid Visa Card, along with new rewards. Dashers can choose to have earnings automatically added to the card every day at no cost. Users can also check their balance, pay bills, transfer money and set savings goals. 

“We are committed to providing innovative solutions for gig workers that drive financial inclusion,” 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 new tool is available to Dashers in select regions across the East Coast. A nationwide launch is planned for early next year. 

The rollout of this new tool is part of DoorDash’s Main Street Strong Pledge, which is designed to give Dashers financial empowerment while also empowering local communities. The pledge includes the start of a $12 million Dasher rewards program that will run through May 2021.

“This is one of the best ideas DoorDash has had,” said Dasher Roland Pelletier. “The biggest thing I like is that there’s no fee for daily direct deposits, and with the DasherDirect program, I have total control of the app and my experience with it, so I know what’s in the bank.”

The Washington, D.C. Attorney General Karl Racine mandated in October that DoorDash had to stop the 30 percent restaurant surcharge on orders through the DashPass subscription. DoorDash earlier reached a $2.5 million settlement for reportedly misrepresenting the distribution of tips.

DoorDash’s first day of trading on the New York Stock Exchange last week escalated to close at $189.51, some 85 percent more than its initial public offering (IPO) price of $102.