Which food delivery services are best? As you consider your options, Postmates and Grubhub are two companies to consider. Whether you are interested in choosing between GrubHub vs Postmates as a driver or customer, you have many things to consider.
In this article, we will conduct an objective comparison of Postmates And GrubHub. This will include details about each as a food delivery provider, pricing, and a review of both delivery apps. We’ll also consider the GrubHub vs PostMates driver experience.
Postmates Vs GrubHub Overview
Let’s take a closer look at Postmates and Grubhub. Both provide food delivery, but are they the same?
GrubHub vs Postmates: Background And Business Model
Let’s start with some background on Postmates.
Postmates was founded in San Francisco in 2011. The founder wanted to provide people with the ability to order food delivery and other services. Interestingly enough, this idea came about before smartphones. Of course, it is clear that Postmates would not have thrived the way it has without the development of the app.
It’s important to note that Postmates doesn’t just provide food delivery. Postmates also delivers items from liquor stores, pharmacies, a selection of grocery stores, even electronics stores. However, availability can vary depending on location. Postmates customers can use the app to find out which options are available to them.
Now, a bit of information on GrubHub
GrubHub was founded in Chicago in 2004. It eventually merged with Seamless to gain a major market share among food delivery providers. They have also acquired several, regional food delivery companies including Restaurants on The Run, and Delivered Dish. GrubHub and Postmates have slightly different business models in that GrubHub focuses entirely on food delivery, not other commodities.
Finally, the company has entered into several partnerships with online brands including Yelp, Amazon Alexa, Trip Advisor, and Groupon. They are also the only app that has formed an alliance with Yum! Brands, a major corporation that owns fast food brands including Pizza Hut, Taco Bell, and KFC.
Postmates Vs GrubHub: Pricing
Postmates and GrubHub both charge a fee for delivering food to your door. Then again, so does Uber Eats, and any other delivery service. However, the two companies have some clear differences in terms of what they charge, and how they collect their delivery fee. Here’s the down low on pricing for these two, popular food delivery apps.
Delivery And Service Fees
PostMates has partner merchants. If customers order from those restaurants and stores, they will pay a lower delivery fee than if they order from non-partnered establishments. The app will indicate if a restaurant is a partner. They also offer Postmates unlimited, a subscription that lets Postmates app users avoid these fees. GrubHub does charge a fee for delivering. That’s about 7 dollars per order. However, customers can buy a subscription for 9.99 per month to avoid this.
Busy Time Pricing
Postmates charges blitz pricing. Essentially, they charge a premium during times of the day when order demand is high, and there aren’t enough drivers to meet that demand. GrubHub does not charge a fee like this per order.
Postmates and GrubHub both reserve the right to set menu prices. These prices can vary from restaurant to restaurant. One delivery market may also have higher or lower prices overall. Anyone can verify these prices by saving their receipts from GrubHub or Postmates, and checking the price against the app.
It is always a courtesy to tip delivery service drivers. However, neither service demands it. Postmates customers are free to tip if they choose to. GrubHub used to set a default tip of 20 percent. The company recently angered gig economy workers by setting that default to 0%.
Grubhub And Postmates: Driver Pay
Does PostMates or GrubHub pay more? Drivers should discern which service will allow them to earn more money. In some cases, drivers find it best to break down the pay they receive to calculate exactly what they make per hour.
Let’s start with a comparison of those average hourly wages. For Postmates, median driver pay is just under 20 dollars an hour. That can be as low as around 12 dollars an hour or as high as nearly 38 dollars each hour. Check with sites like Indeed or Glassdoor to get current amounts.
For GrubHub, average pay is closer to 12 dollars per hour. The range tends to be between 3 and 28 dollars hourly.
Before you decide that you only want to deliver for Postmates, keep a few things in mind. Your pay may be impacted by demand, customer tips, and your ability to get deliveries done quickly and cheaply. Also, there is no reason that you cannot sign up for both GrubHub as well as Postmates. Drive for both for a week, then evaluate your overall experiences.
What is it Like to be a Delivery Driver For Postmates or GrubHub
No matter which service you choose, you have to go through an application process. This would be true if you wanted to work for Uber or DoorDash as well. This includes verifying that you have a driver’s license, and access to a reliable vehicle. Of course, car insurance is a must. Depending on your market, you may be able to earn money with Postmates with a bicycle or electric scooter. Double-check the requirements for this with customer service. The application process will also include a background check that will include criminal history and your driving record. Neither Postmates nor GrubHub specify what you need to pass that background check, but your chances are better if you have a clean record on both counts.
How do You Get Paid?
Postmates pays its drivers via direct deposit, and GrubHub does as well. Postmates also offers weekly pay. Drivers may also connect a debit card to be paid instantly through the app. This does cost a 50 cent service fee. GrubHub has an identical setup. However, they do drop the instant payment fee for drivers who have a chase account.
Can You Work Full Time For Postmates or GrubHub?
Some gig drivers prefer to work for GrubHub or Postmates as their primary source of employment. In some cities, this is quite possible. In other cities in the U.S. there just isn’t as much local demand. With GrubHub, workers must schedule blocks of times when they will be available to do deliveries. Postmates drivers simply open up the app and start working. There are no requirements to pick only one app.
Do Postmates or GrubHub Offer Perks?
Drivers for both Postmates, GrubHub, and other services are generally considered to be independent contractors. Because of this, they aren’t qualified for insurance or unemployment in many cases. Still, there are some benefits to consider. Here they are:
- Each driver can choose their own schedule to make deliveries.
- There are no requirements to reveal employment history or check in with a boss.
- GrubHub drivers can schedule work ahead of time to treat it more like a part-time job
- Postmates offers a bonus per delivery for deliveries completed in a set time period.
- Postmates also pays a crusher bonus for completing a minimum number of periods in a given time frame.
- GrubHub has an employee recognition program that offers first pick for time slots for drivers who show up, complete deliveries, and don’t drop their scheduled hours.
How Does COVID-19 Impact Earnings: Is Delivering Safe?
As with other delivery platforms, Postmates as well as GrubHub have been scheduling more shifts, and earnings are up. Much of this is due to COVID-19. However, there are some precautions to take. Fortunately, both companies have created good policies that guide workers to be as safe as possible. Each platform also allows diners and shoppers to order no contact delivery. Delivery staff is also advised against scheduling a shift if they show symptoms. A guide or statement can be found that gives more information on this.
Ease of Use: Which of Two Delivery Apps is Best?
Each service has an app for customers, and an app for drivers. Here is a comparison of the customer apps first.
Diners will definitely find similarities between both apps. They can download the app to either iPhone or Android devices. They can search out restaurants, pick the food they want, place their orders and pay. There’s also a way to leave a tip, even rate the quality of the driver. They can also schedule orders in the future.
The difference is that Postmates puts each step of the order process on its own page. This can make it easier for people to navigate the order process. However, both apps are quite easy to use overall.
GrubHub And Postmates: Customer Service
The majority of orders come through as intended, and the driver is able to deliver them without issue. However, there are times when the restaurant or delivery contractor may have made a mistake. If that is the case, both companies offer customer service. However, GrubHub customer support is open 24 hours per day. Postmates has limited hours.
Now, let’s talk about the app for drivers. In both cases, drivers who pass the requirements must download the app to earn money. Again, the app is available on both the Android and iPhone platform. Here are some other notes about the Postmates driver app:
- Allows drivers to find busy areas.
- Delivery agents can accept or reject orders.
- Manage and track payments using the app.
- Find information about deliveries.
- Accept and complete orders.
- Provides directions to the restaurant and elsewhere.
- Review payments
Now for Grubhub:
- Easy to tap buttons to tell the restaurant, diner, and Grubhub when the driver has arrived to pick up the order, when they have left to deliver the order to the customer.
- Heat map to show busy areas.
- Accept or reject each order.
- Organize and review earning
- Sends order notifications
Conclusion: Which is Better Postmates or GrubHub?
While both apps are great choices for earning money on the side or as a main job, If we had to choose our favourite of the two apps, Postmates definitely has the edge. The higher average wages, bonus incentives and the more flexible working schedule are key differences that just can’t be beaten. GrubHub may be a slightly better platform for the customer, but when it comes to benefits for the drivers, Postmates comes out on top.
Take your time to consider both options, and review all the points we’ve mentioned in this article to pick the service that suits you best. Then if you do decide to begin driving for either company and find yourself needing a vehicle, check out the cars we have to offer. We will help you to find a car to rent that meets your requirements, so you can begin your food delivery hustle.
Actual earnings may differ and depend on factors like number of deliveries completed, time of day, location, and expenses. Hourly pay is calculated using average Dasher payouts while on a delivery (from the time you accept an order until the time you drop it off) over a 90 day period and includes compensation from peak pay, tips, and other incentives.