Grubhub is an American-based online food order and delivery service. The company is headquartered at Chicago, Illinois and was founded in 2004 by Matt Maloney. A Dutch company by the name of Just Eat Takeaway owns Grubhub. Let us know about “How Does Grubhub Drivers Get Paid?”
How Does Grubhub Drivers Get Paid?
It ties up with local diners to provide a wide range of options to its customers. It has around 31.5 million users and more than 65,000 drivers on its platform. The drivers receive payment every single week. The money is directly deposited. Grubhub sends out these payments on Thursday. It is inclusive of the earnings of the preceding week, that is, from Monday to Sunday. The money is accessible within five days. Drivers can also get paid daily by using the “Instant Cash Out” feature on the drivers’ application.
Calculating Driver’s Pay
It’s hard to determine the average pay per delivery because the company does not have a base pay.
Three main factors influence the earnings per ride.
1. Based on Distance- On average, a driver will earn around 22 cents per mile. This is inclusive of the distance covered to get to the pickup location as well as to get to the drop-off location.
2. Based on Time taken- For driving and waiting, the driver earns approximately 13 cents per minute.
3. Based on Customer Tips- 100% of the tips go straight to the drive and no amount is deducted.
The delivery and service fees and the price of the meal do not affect the earnings of the driver.
The Drivers App for the delivery services provider has a feature called the “Instant Cash Out” feature in case someone wants to be paid more instantaneously. Grubhub Drivers can find this option on the Earnings tab of the App curated for drivers. It charges a 50-cent fee to access this feature. If a driver uses a Chase checking account then their fees are waived. A drawback is that the payment might still take 3 days to process if the linked bank account does not support real-time payments.
Ideally, a Grubhub driver will earn somewhere around $12 per hour, plus the tips that they receive. Food delivery workers earn similar amounts and the wages are certainly above the national minimum wage. Exceptions do exist, as the metropolitan cities of New York and Los Angeles would consider $12 below minimum wage because rates are not similar in every market. Also, the frequency of rides matters. Gig workers working in cities with higher demand will earn better wages than in cities where the demand is slow.
Grubhub earns money from the commission fees paid by the restaurant and also the difference between what the gig workers earn and the customer’s payment. The drivers are not directly charged for anything. The earnings of the driver belong solely to him.
1. Driving Expenses. A vehicle belonging to a gig worker is bound to go under rough treatment and higher use which requires the vehicles to go under constant maintenance checks. The cost of adding fuel regularly is one such expense. It should be noted that these costs are fully tax-deductible, as long as the driver keeps track of mileage and receipts. The driver still needs to take care of the initial cost. For gig workers involved in the four-wheeler cab business, they will incur more expenses, like insurance payments. It is unfortunate to note that most personal car insurance policies do not cover driving for earning a livelihood.
2. Taxes– Grubhub players have to figure out tax payments themselves as the company does not deduct taxes from earnings. Drivers have to save 15% for self-employment taxes too, which consists of Medical and Social Security taxes.
Features To Help Earn More
•Scheduling Delivery Blocks. Delivery blocks are simply delivery shifts for the anticipated increase in courier demand. Drivers can access this feature to earn more. The advantage to scheduling these shifts is that one has a higher chance of getting requests which convert to better earnings.
•Recognition Program. This is a performance-based perk that awards drivers with exceptional records and deliveries. It is based on the driver’s most recent 30 days activity. There are three levels;
1.Partner– This is the default setting with no added benefits.
2.Pro– to be assigned to a Pro level, you have to have a 100% attendance rate, 85% order acceptance rate, and drop rate of less than 20%. Grubhub gives preference to delivery partners with a protag in delivery block scheduling.
3.Premier– To achieve this tag, one has to have a 100% attendance rate, a minimum of 95% acceptance rate, and a below 10 block drop rate. The benefit associated with this is that the driver gets a first choice preference on delivery blocks.
Now we have learnt “How Does Grubhub Drivers Get Paid?”, It is possible to calculate the average hourly rates of a Grubhub driver but it also varies according to region, distance, time, and frequency of requests. It is possible to earn a decent livelihood through this medium although it does require a lot of hard work. Working as a gig for Grubhub can seem like an appealing opportunity for some, but the prospective worker needs to make sure that the earnings are also enough to satisfy a person’s financial needs. One of the main perks is that you get to be your boss, set the pace for your work, and have flexible working hours!
Frequently Asked Questions-
Que- Are annual car inspections required by Grubhub?
Ans- No, nothing to this effect is required.
Que. Are gig workers eligible for benefits?
Ans. No, Grubhub does not offer benefits like health insurance, paid time off, maternity leave, etc. This is the same for full-time or part-time employees.
Que. Is it mandatory to leave tips?
Ans. No, it is entirely up to the user to leave tips. Grubhub supports workers by suggesting tips of 20-25% tips on the checkout screens.
Que. How Much Grubhub Drivers Get Paid in a week?
Ans. On average, GrubHub drivers can earn around 85-90$ in a week.