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There’s no doubt that the COVID-19 pandemic changed the world. This is especially true for the labor market – many people were laid off from their jobs, resulting in the need to find a new one pretty quickly. Several of them joined food delivery services, working as independent delivery drivers for Grubhub and other food delivery apps – and there are a few reasons for that.
First of all, Grubhub delivery drivers can actually make decent money (more on that below). Being an independent delivery driver also provides them with flexible hours and allows them to work whenever is convenient instead of having established shifts. Lastly, food delivery services are something that is and will always be in demand – and in times where nothing is certain, having at least that bit of stability is really important.
However, how much exactly does a Grubhub delivery driver make? What about the tips – are they going to the driver, or does something else happen with them? You can find the answers to these questions and more below.
How Much Does an Average Grubhub Driver Make?
The base hourly wage for Grubhub drivers is about $4 – however, this may vary depending on your location. Aside from this, the drivers also receive ‘mileage per order,’ which is compensation for the distance they have to make to complete each order (on average, this is 22 cents per mile), as well as ‘time spent on the road’ – the drivers earn about 13 cents for every minute they spend delivering an order, including the driving and waiting times.
All this totals up to an average hourly rate of $13, although you can make more depending on the deliveries you get. Is it more or less than minimum wage? Well, that depends on your location. It’s important to mention that no matter how much the customer pays – we’re talking about the order total, delivery fee, and service fee – it does not influence how much you make as a driver.
Now, you might be thinking – What about the tips? Well, we have good news for you and anyone who is considering joining Grubhub – there are no deductions on them, which means that their drivers get to keep 100% of the tips they receive from the customers.
So, let’s say that you just received an order. The restaurant is located 3 miles from your location, and the customer lives 2 miles from the restaurant. You’ll get $1.10 for the mileage. Considering the drive, as well as the waiting time total of 30 minutes – you’ll get $3.90. Finally, the customer decides to give you a $10 tip. This means that for this whole trip, you’ll get $15 plus the base pay.
How Do Grubhub Delivery Drivers Get Paid?
When it comes to how Grubhub drivers receive their earnings, they have two options – they can either choose weekly direct deposit, in which case their Grubhub balance gets sent to their bank account once a week, on a Thursday. The other option is instant cash out, which comes with a $0.50 fee for each transfer you make. Keep in mind that instant cash out has a limit of $500 a day.
Grubhub Driver FAQ
Do Grubhub drivers pay taxes?
Yes, Grubhub drivers have to pay taxes. What’s more, as an independent contractor, a Grubhub delivery driver is responsible for filling the right documents and their own tax payments. That’s because when having a delivery job like this, you are seen by the IRS and their counterparts in other countries as self-employed, which means that you have to pay the self-employment tax (about 15% in the United States) as well as federal and state income taxes.
However, while this might sound discouraging for some, there’s one significant advantage that many people with a day job do not have – tax deductions, which are the expenses you make to work on your business. As independent contractors for Grubhub, drivers can deduct things such as:
- gas expense
- parking fees
- part of auto insurance
- accessories needed for work, e.g., charger
- a bike (if you make bicycle deliveries)
- part of your phone bill
- and more.
Just keep in mind that in order to be able to deduct the expenses, the delivery partners need to keep a detailed record of all of them.
Can Grubhub drivers earn extra money?
Yes, every once in a while, Grubhub drivers are provided with special offers that allow them to make some extra cash aside from what they usually make.
Is the pay different when you have to make multiple stops?
The regular pay model applies even when you have to complete multiple orders in one go. The benefit of multiple orders, however, is the fact that you have more opportunities to be tipped, which usually means more money in less time.
Can Grubhub delivery partners work on a fixed schedule?
Technically, yes – in the form of scheduling delivery blocks. Scheduled blocks are usually available when a food delivery app, in this case, Grubhub, expects a significant increase in orders and therefore needs more delivery partners to be available. By working a scheduled block instead of a flexible schedule, you can increase earnings.
Additionally, if you’re working scheduled blocks and during one of the blocks you earn less than the average hourly pay for that day, Grubhub will compensate you for the difference. However, there’s a condition as you have to accept a specified percentage of offers to be eligible for the Grubhub Contribution.
What is the Grubhub Recognition Program?
The Grubhub Recognition Program is a way of rewarding the best Grubhub drivers. After your first 20 requests, you’ll be assigned one of the levels:
- Partner – this is the default level. Delivery partners have no special benefits.
- Pro – the Pro level is given to those with 100% attendance for delivery blocks, at least 85% request acceptance rate, and a block drop rate lower than 20%. This comes with early access to sign up for scheduled blocks, as well as access to referral programs and large catering orders.
- Premier – to get the Premier level, you have to have a 100% attendance rate for delivery blocks, at least 95% request acceptance rate, and a block drop rate lower than 10%. This level comes with all the perks that come with the Pro level, but you also get first dibs on scheduled blocks.
How to Become a Grubhub Driver
Becoming a Grubhub driver is very easy. There are only a few things you need, which include:
- a car or a bike
- driver’s license and auto insurance (if you choose a car)
- driver’s license or a valid ID if you choose bike deliveries
- smartphone (requires iOS 11/Android 5.0 or later)
All delivery partners need to be at least 19 years old, but there’s no need for previous experience as a delivery driver. You can apply on the Grubhub website – once you get approved, you’ll get access to the Grubhub driver app, where you’ll see all the available requests in your area, as well as the total pay and earning opportunities.
The Bottom Line
Due to the pandemic and the flourishing of the gig economy, more and more people are deciding to work with gigs like Uber Eats, Grubhub, and other food delivery apps. The reasons behind it are simple – flexibility and extra cash. Even people who have a regular day job pick up some Grubhub deliveries for some extra money – especially since becoming a Grubhub driver is extremely easy.
However, this might lead to a question – How much do Grubhub drivers make? After all, it must be enough to make them want to work, right? Well, the base pay is about $4, but you receive more than that as Grubhub takes into account mileage estimates and estimated time for delivery and pays you for them. Plus, you get to keep all the tips for yourself.
Are there any cons to being a food delivery app driver? Sure – just like most things, it also has some disadvantages. However, it’s still worth giving it a try – but ultimately, the decision is only up to you.