How Much Do Grubhub Drivers Make: What to Expect

Dane Panes

Updated: October 18, 2021
How Much Do Grubhub Drivers Make

 

Key Takeaways

  • Grubhub drivers typically earn $12 per hour. The Grubhub rate is calculated using a formula that includes mileage, time spent driving, tips, and special promotions.
  • Factors like the number of orders, schedule blocks, mode of transportation, and the market will affect the total hourly rate of Grubhub drivers.
  • As Grubhub drivers accept more orders, they can move up a level on the Recognition Program and will have the chance to earn more and take advantage of certain benefits.
  • Grubhub drivers can withdraw their earnings either through direct deposit (every Thursday) or instant cash out (comes with fees).

Whether you’re working a 9-to-5 job or running a startup, working as a Grubhub driver can be a viable way to earn an extra income. As a Grubhub driver, you’ll have full control of your working hours, so you can work whenever you’re available. Plus, Grubhub offers a variety of ways for their drivers to earn more, like participating in special promotions.

Additionally, drivers that go above and beyond can eventually land large orders from customers (i.e., catering) and priority access to schedule blocks. These perks let them earn more as they go.

But with that much benefits, many may ask the question, “How much do Grubhub drivers make?”. In this article, we’ll give you an answer to that question and offer more information about working and getting paid as a Grubhub driver.

 

What is Grubhub?

Grubhub is an American online food ordering and delivery platform. Initially, the company was designed as a digital menu as an alternative to the paper menu that restaurants distribute. Now, it connects people to nearby diners or restaurants. Once an order comes in, nearby Grubhub drivers are then alerted to pick it up and deliver it to the address.

 

At the start of 2020, Grubhub’s revenue and subscribers grew by 39%. With the app, Americans can conveniently order food from any of the 300,000 restaurants on Grubhub.

How Does Being a Grubhub Driver Work?

Now that you have a general overview of what the pay is like as a Grubhub driver, you might already be thinking of joining the gig economy. But you might be wondering what the job will look like.

As mentioned, Grabhub drivers are basically independent contractors. As such, you get to take advantage of the same benefits that other independent contractors enjoy, including flexible working hours and the freedom to choose which orders to take or reject. However, since you’re not employed, you would have to pay for the expenses incurred while working (i.e., gas, oil, auto insurance) and you’ll be using your own vehicle for deliveries.

Once you start being a Grabhub driver, everything will be pretty straightforward. You’ll accept offers, drive to the restaurant to pick up the order, follow special instructions that may come with the order, head to the address, and drop the food. You’ll often need to place the customer’s order yourself and pay for it using the Grubhub card. Make sure that you don’t use your cash, as Grubhub will not reimburse you for it.

Breakdown of the Grubhub Pay Model

The amount drivers earn per hour by working with Grubhub isn’t fixed. Since every order is unique – e.g., time spent waiting for the order at the restaurant, distance of the restaurant to the drop-off point, etc. – Grabhub drivers can expect different rates.

According to their website,

Here’s what each of them means.

Mileage

Grubhub calculates a portion of your total pay based on the miles you traveled for pick-up and delivery. At present, Grubhub drivers earn 22 cents per mile when picking up or dropping off food.

Time Spent on the Road

Some orders may take longer than usual to prepare, especially if the orders are placed during peak hours. With that, Grubhub also compensates the drivers for the time it takes to complete the orders. The time starts as the driver accepts the order until they drop the food off at the address. As a driver, you’ll make about 13 cents per minute.

Tips

On top of their primary rate, Grubhub drivers also get to keep 100% of their tips with no deductions. Sometimes, customers will indicate the amount before placing the order. There are also times where customers may give more than what they indicated on the app.

Special Offers

Grubhub also holds special promos periodically wherein drivers can participate and earn bonuses. However, their special promotions usually last for a limited time and may only be subject to specific markets. Still, it could be an excellent opportunity to earn more than what you typically get in a day.

How Much do Grubhub Drivers Make?

In general, Grubhub drivers typically make around $12 per hour. The rate can go higher as the drivers become more proficient in driving and maintain high performance ratings.

However, it’s worth noting that there are a lot of factors that come into play when determining the exact amount Grubhub drivers make in a day. For instance, if you’re working a day job, you’ll probably miss the peak order hours and earn less than what other Grubhub drivers. Or, you may live in an area where people don’t use Grubhub that much.

Other factors that may influence your total pay as a Grubhub driver include the following:

  • The number of deliveries per hour. Grubhub does allow delivery drivers to take multiple orders at a time. Essentially, the more deliveries the drivers make, the higher their hourly pay will be. The App for drivers will automatically create a sequence for your pick-up and delivery orders so that you can make use of your time efficiently. Grubhub will automatically calculate the estimated earnings – mileage, time spent, etc. – for these orders together.
  • Schedule blocks.Schedule blocks allow Grubhub drivers to indicate the time during which they will operate. Those with scheduled blocks close to lunch or dinner typically earn more as people tend to use the service more frequently during these times.
  • Transportation.Grubhub drivers that use their bikes are more likely to keep more of their earnings since they’ll incur lesser expenses. Although drivers who use their car to deliver are more likely to accept multiple orders, they tend to have higher costs since Grabhub doesn’t cover any costs associated with their vehicle (i.e., gas, maintenance, insurance, etc.).
  • Markets.The location at which the driver operates can also affect their earnings. For instance, those that deliver in large cities, like Chicago or New York, may earn more since the cost of living in those cities is much higher compared to the others.

Another feature that makes Grubhub a great company is that they offer a minimum hourly rate for their drivers. When that minimum isn’t met (i.e., there aren’t many orders coming in), Grubhub will fill in the difference, so you’ll reach the hourly minimum.

For instance, if Grubhub offers a $12 hourly minimum and you only earned an average of $8 an hour during your 4-hour shift, Grubhub will fill in the $4 difference, so your hourly earnings will go up to $12. However, to be eligible for this, you must reach a specific minimum acceptance rate during your scheduled blocks.

Grubhub Recognition Programs

Grubhub also holds a program called Recognition Program that allows the drivers to earn an incentive every time they pass a particular achievement. The program is composed of three levels: Partner, Pro, and Premier.

Here’s what to expect on each tier of Grubhub’s Recognition Program:

  • Partner.All Grubhub drivers start at the partner level. Therefore, they do not get incentives. However, after 20 orders, their status could change, depending on other stats.
  • Pro.Drivers upgraded to Pro can enjoy incentives like early access to block scheduling, larger customer orders, and may become eligible for the company’s referral programs. To become a Grubhub Pro, drivers must have 100% attendance on their scheduled blocks, less than 20% block drop rate, and more than 85% acceptance rate.
  • Premier.At the Premier level, drivers can enjoy the same incentive as drivers in Pro, plus they get priority for the scheduling blocks.

Another feature that makes Grubhub a great company is that they offer a minimum hourly rate for their drivers. When that minimum isn’t met (i.e., there aren’t many orders coming in), Grubhub will fill in the difference, so you’ll reach the hourly minimum.

For instance, if Grubhub offers a $12 hourly minimum and you only earned an average of $8 an hour during your 4-hour shift, Grubhub will fill in the $4 difference, so your hourly earnings will go up to $12. However, to be eligible for this, you must reach a specific minimum acceptance rate during your scheduled blocks.

The levels are updated every week, and Grubhub’s system evaluates your delivery states in the last 30 days. The better your stats are, the better your chances are of earning more.

Withdrawing Earnings

Grubhub offers drivers two methods of withdrawing payments: direct deposit or instant cash out.

  • Direct Deposit. With direct deposit, the Grubhub team will deposit your Grubhub earnings directly to your linked bank account every Thursday. The amount you’ll receive will be the total amount you earned within the week.
  • Instant cash out. If you prefer to receive the money as soon as the order has been delivered, Grubhub also allows you to withdraw your money instantly. Know that if you choose this option, you will have to pay a fee of $0.50. However, drivers with Chase accounts may get their payments through instantly without paying for the additional fee.

How to Maximize Your Grubhub Earnings

You can certainly earn more with Grubhub. We’ve outlined the top tips and hacks to maximize your earnings as a partner:

1.    Use a reliable map app

Map apps like Waze can be an excellent tool to use when delivering. Waze typically selects the route with lesser traffic, so you can make efficient use of your time and save gas. This is especially useful if you’re delivering multiple orders at once.

2.    Take note of your expenses while working

Since you’re working as an independent contractor, you will be eligible for 1099 write-offs. As a Grubhub driver, you can deduct your mileage from your taxable income. You can also write off your phone bill, fuel, repairs and maintenance, gas, car insurance, interest on business loans (i.e., if you took out a loan to buy work-related equipment, like cars or phones), etc. since you’re using your vehicle to make money.

That said, be sure to track your expenses and keep the receipts. This will come in handy when you file your tax return during the tax season.

3.    Bad weather = better tips

It can be tempting to stay in when the weather is bad (e.g., heavy snow/rain). But it’s actually during these times that people tend to order in. And since you went through the trouble of getting their food despite the current weather conditions, they may feel like you deserve more. With that, they’re more likely to tip more than usual.  However, if the weather is too unsafe for deliveries, don’t push it. Always put your safety first.

4.    Get to know the restaurants and how they usually operate

The key to maximizing your time while earning more is to get to know how restaurants work. Other restaurants may take longer to prepare the food, or some may have a reputation for messing up orders a lot. If you receive an order that falls under one (or both) of those categories, you’re better off rejecting the offer so that you can accept a more reasonable order request based on your time. Plus, late deliveries and incomplete orders can hurt your rating.

Working as a Grubhub Driver is an Excellent Way to Earn Extra Cash

Overall, Grubhub can be a good start if you’re looking to dip your toes into the Gig economy. If you’re looking for a side gig and you have a car with updated insurance and you want to earn an extra income by completing deliveries in exchange for per-delivery pay and tips, Grubhub can be an excellent start. Plus, it offers its drivers incentives for accomplishing milestones, allowing them to earn more cash in the future.

Dane Panes
Dane Panes started freelance writing in 2017. Since then, she has written about a lot of topics for different businesses. She started writing for SMB Compass in March 2020 and has been a full-time content writer ever since. Now, she focuses mostly on topics related to entrepreneurship and business financing.

Related Articles

What is the Gig Economy?

What is the Gig Economy?

Key Takeaways Gig Economy Defined The Advantages and Disadvantages of Being a Gig Worker What are the Most Common Gig...