Grubhub is one of America’s famous online food ordering and delivery platforms, with 31 million active users and 70,000 delivery drivers serving across 4000 cities in the US. How Much Do Grubhub Delivery Drivers Make?
Grubhub delivery drivers are independent contractors who deliver food orders from restaurants to customers. Delivery partners can make a minimum of $10 per hour to $18 per hour, depending upon the number of orders they complete and tips that they receive from customers. Grubhub pays its driver a minimum of $8-$10 per hour, complying with the federal minimum wage guidelines across the US states.
The Pay structure of a Grubhub delivery driver
GrubHub delivery drivers earn more in cities like Newyork and LA when compared with less crowded cities. A good location provides a delivery driver with more orders, customers, and thus more tips. 75% of GrubHub driver’s income comes from customers’ tips and the remaining from Grubhub. The wage of a grub hub delivery driver depends upon four factors. They are the base pay, time spent waiting for the order, mileage per order, and customer tips.
- Base Pay: Grubhub pays a base salary of $4 per order to the delivery drivers. The delivery driver receives a base pay on every order they deliver.
- Mileage per order: Grubhub drivers receive a minimum of $0.22 per mile that they drive while picking and dropping off the food.
- Time spent on the road: Grubhub pays around $0.13 per minute for time spent on the road and time spent while waiting for the food.
- Customer Tips: Customer tips form the main chunk of the income of a GrubHub delivery driver. Drivers receive 100% of customer tips. On average, a customer’s tip can be anywhere between $3-5$. A customer doesn’t need to pay tips as they are optional, but you can expect to receive tips on 95% of your deliveries.
Hence the pay structure of a GrubHub delivery driver consists of: Base pay+Mileage per order+Time spent on the road+Customer tips=Total pay.
The average wage of a GrubHub delivery driver
Grubhub delivery drivers earn anywhere between $15-$18 on a good business day. However, the pay can be as low as $10 on a slow day. Still, delivery partners can earn up to $50 a day as part-time workers and up to $23,000 per annum, working as full-time Grubhub delivery partners.
The job as a delivery partner is more of a gig worker employment. So, one cannot depend on a Grubhub delivery job to pay all their bills. Many factors determine the salary of delivery partners. Such as:
- Location: A good locality will always pay you more. Thus Grubhub delivery drivers make more money in areas with more people and restaurants.
- Peak hours: Drivers who deliver during peak hours of lunch and dinner earn a stable wage, while those who work during odd hours receive fewer orders and hence less money.
- Vehicle maintenance and Gas charges: A part of your salary will be spent on vehicle maintenance and gas charges. So, if you are making $100 a day, you can only send $80 after deducting gas and other charges.
Some drivers even earn up to $20 per hour, and these are experienced drivers familiar with the Grubhub business model. They know when to accept offers, and they make sure that their deliveries remain profitable.
How can Grubhub drivers make more money?
Grubhub delivery drivers can earn more with its Driver recognition program, which awards drivers who accept more orders and make regular deliveries. There are three recognition levels for delivery partners, which ensures more offers hence, more money.
- Partner: Delivery drivers with a 90% attendance rate and who accept more than 85% of their orders and also maintain a block drop rate of less than 20% are recognized as partner level in the Grubhub delivery driver app. These drivers are eligible for receiving early orders.
- Pro: delivery drivers who maintain their partner levels by working consistently with 90% attendance and 85% rate are Pro drivers who receive early access to schedule shifts and receive customer orders.
- Premier: Drivers at the Premier level earn up to $20 per hour. A delivery driver with more than 95% of attendance and 95% of order acceptance rate reaches premier level and can have access to early order pickup, schedule blocks for delivery, receive large catering orders, and receive bonus pay for maintaining your level.
A driver has to maintain their stats to maintain their recognition level. Initially, a delivery driver is awarded partner-level after completing their first 20 deliveries, and your levels change every week depending upon your attendance and acceptance rate.
To Summarize
Working as a Grubhub delivery driver is a good opportunity to make some extra money apart from your regular job. But if you want to work as a full-time delivery driver then, do not depend only on Grubhub. Instead, sign up for other delivery gigs with Uber, Doordash, Postmates, etc to maximize your income avenues.
Frequently asked questions
1. Do Grubhub delivery drivers receive any employment benefits?
A. No. As a delivery driver, you are considered self-employed hence, there are no employment benefits for Grubhub delivery drivers.
2. How are Grubhub delivery drivers paid?
A. Delivery drivers receive their payments every Thursday in their bank accounts, or they can use the instant cash-out option and withdraw $500 a day. Remember you have to pay a fee of $0.50 while using the instant cash-out feature if you are not a customer of Chase bank.
