Last Updated: September 19, 2022
Food delivery service continues to be a huge trend in 2022. The demand for leading platforms such as Grubhub is still on the rise, making delivery job opportunities an attractive alternative for a side gig.
As a Grubhub driver, you can make money in your free time and under your conditions. The job offers flexibility without any obligation to schedule your hours in advance, and you can cash out anytime. But how much does Grubhub pay?
In this article, you can find answers to the following questions:
- What is Grubhub, and how does it work?
- What is the drivers’ employment status?
- Are there additional expenses for drivers?
- How to increase earnings?
- What are the pros and cons of becoming a Grubhub driver?
What Is Grubhub and How Does It Work for Drivers?
Launched in 2004, Grubhub is a Chicago-based platform created to enable and improve the efficiency of the food delivery service. Ever since its launch, the number of Grubhub drivers has constantly been on the rise.
Becoming a Grubhub driver is actually quite easy; all you need is to:
- Have a smartphone
- Be at least 19 years old
- Have a car, driver’s license, and car insurance (for car drivers)
- Have a bike and valid state I.D./driver’s license (for bike riders)
Grubhub partners use the Drivers app during deliveries. This app requires them to tap certain buttons at the right time to signal to the restaurant, diner, and Grubhub at what stage an order is at a given moment. That way, everyone can keep track of the whole delivery process.
Employment Status Options & Benefits
Grubhub offers job opportunities that come with competitive pay and an option for drivers to create a flexible schedule depending on their availability. However, Grubhub’s drivers are by law recognized not as salaried employees but as independent contractors.
Unlike salaried employees, independent contractors don’t get paid a fixed wage or receive employee benefits. They might also miss out on severance, workers’ compensation, and anti-discrimination protection.
The IRS sees independent contractors as self-employed, so they have to pay self-employment taxes. However, unlike salaried employees, independent contractors usually have flexible work hours.
How Much Do Grubhub Drivers Make?
Since Grubhub offers its services in 25 countries and is one of the biggest online food ordering and delivery platforms, it doesn’t come as a surprise that many drivers choose Grubhub as their alternative source of income. But how much does Grubhub pay its drivers?
While Grubhub base pay differs depending on the region and state, the delivery drivers’ total pay is calculated via the following formula:
Total pay = Mileage per order + Time spent on the road + Tips + Special offers.
Mileage per order
Mileage per order is a payment you get for the distance traveled for each order.
If a customer tips a driver after delivery, they get to keep 100% of the received tips.
Time spent on the road
Grubhub calculates the total amount of time drivers spend on the road. For a multiple-order offer, the fee is calculated as the estimated total time and mileage for all orders. Should drivers receive an offer before completing the current one, Grubhub will calculate the estimated time and mileage for the new offer starting from where the driver completes the current one.
Drivers can boost Grubhub minimum pay by reaching goals in a set amount of time, earning in-offer bonuses, and participating in fun sweepstakes (these special offers are limited to specific locations and periods).
Total daily pay for mileage, time, and any applicable promotions or bonuses will be shown as Delivery Pay at the top of your payment summary. Time and mileage estimates are set once you receive the offer.
Grubhub average pay
According to Glassdoor, Grubhub drivers typically make $26 per hour, while the estimated base pay is $34,29 per hour. Drivers can make an additional $9 per hour via cash bonuses, commissions, tips, and profit-sharing.
Drivers approximately earn 22 cents for each mile they cross and 13 cents for each minute they spend waiting or driving. The distance they travel to go to the pick-up location is included.
The typical annual Grubhub Delivery Driver salary is $57,751. However, depending on the working hours and the city you operate in, the annual earnings can range between $20,708-$119,847. Needless to say, it seems that the bigger city you live in, the more you can expect to earn.
Note: Grubhub base pay doesn’t cover additional drivers’ expenses (e.g., vehicle upkeep) or taxes.
Grubhub Recognition Program
With the Grubhub Recognition Program, the best drivers have the opportunity to build levels and get Grubhub incentives by completing specific tasks. The results are updated every week and reflect delivery stats over the last 30 days. Here is the Grubhub Recognition Program driver pay structure:
- Partner level – the basic program level; drivers don’t get any perks.
- Pro level – drivers can easily upgrade from the basic level once reaching 100% attendance for scheduled blocks, less than 20% block drop rate, and 85% order acceptance rate. With the Pro level, drivers get larger orders and early access to block scheduling and referral programs.
- Premier level – once you reach 100% order attendance, less than 10% block drop, and 95% acceptance, you become a Premier driver and get priority for delivery blocks.
If a driver earns less than the guaranteed minimum wage during a market block, Grubhub will pay the difference to them. That way, a driver is guaranteed their minimum wage no matter what.
By now, you may be aware of how much Grubhub drivers earn in total. However, you should also consider additional expenses, as the net income is calculated after deducting all the costs.
As Grubhub drivers use their own vehicles for deliveries and pay for their upkeep, additional costs might be significant. Here are the most common expenses Grubhub drivers can expect:
As already mentioned, Grubhub drivers pay taxes on self-employment (since they are seen as independent contractors). The self-employment tax rate is 15.3%, and it consists of two parts: 12.4% is paid for social security and 2.9% for Medicare.
What would that look like if your worked 25 hours per week for an hourly wage of $28? If that were the case, your gross income would amount to $36,400. To get to the amount you’d be left with after paying the taxes, just calculate 15.3% of your salary (in this case, 15.3% of $36,400 = $5.569.2) and subtract it from your gross salary.
So, if your worked 25 hours per week for an hourly wage of $28, your net income would be about $30,831, and you’d have to pay $5,569.2 for self-employment taxes (of which $4,513.6 would be paid for social security and $1,055.6 for Medicare).
Driving Expenses are many when you continually use your vehicle for work purposes. Here are the major ones you need to be aware of:
- Gas – with a major rise in gas prices in 2022, this undoubtedly greatly impacts people’s income; you could save a lot of money by delivering by bike.
- Regular vehicle maintenance and registration – aside from any possible repair needs, regular oil and brake fluid changes, new tires, and the necessary replacement of worn-out parts are yours to cover.
- Car insurance and loans – you should have your insurance in place when you use your car for work; and if you have a car loan, it is an additional expense you have to cover each month.
How Can Drivers Increase Their Earnings?
Being a delivery driver has many perks, one of them being that you can maximize your Grubhub delivery partner pay. Let’s see how you can maximize your earnings with Grubhub.
- Keep track of your expenses – when you know exactly where your money goes, you have a chance to reduce the cost by making some operational changes.
- Consider the area of delivery – if you can expand your area of operation or start delivering in a highly-populated area, you will improve your chances of earning a higher income.
- Use bonuses – use referral codes and focus on boosting your Grubhub levels. Additionally, Grubhub bonus pay is available to drivers who complete a specific number of orders during a scheduled block.
- Be strategic – before accepting the order, you can always check the earning fee and location and decide if it suits you. You can also reject an inconvenient order or accept multiple orders at once to increase your pay.
- Boost your rates – advancing your customers’ skills will not only improve your chances of receiving bigger tips but will also earn you more money.
Grubhub Payment Methods
There are two ways of getting paid as a Grubhub driver: using the Instant Cash Out feature or receiving payments via direct deposit on Thursdays. However, we should mention that the Instant Cash Out feature has a $500 daily withdrawal limit.
Pros and Cons of Working for Grubhub
Is being a Grubhub driver worth it? Let’s look at the Pros and Cons of being a Grubhub driver:
- No previous experience needed
- Side gig with a flexible working schedule
- Weekly payment
- Bonuses and incentives
- Driving expenses
- Certain benefits depend on the operating location
As a Grubhub partner, you can accept a close-by order and get paid for its delivery. All in all, it is a flexible side gig with a weekly payout and a working schedule that depends on your convenience.
Being a delivery driver comes with many benefits but expenses that might affect your overall earnings. Grubhub driver levels and bonus options are just one of many reasons why this job can be a great alternative to similar part-time delivery driver jobs.
On the other hand, if Grubhub is the single source of your income, you might need a good strategy to make a decent amount of money. If you minimize your expenses and use all the benefits, there is no reason why you wouldn’t make good bucks for yourself or your family. It is up to you to decide whether being a Grubhub partner is the best choice for you.
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Grubhub drivers are currently paid $4 per order. However, it depends on the location you operate on, the mileage, and the time it takes you to pick up and deliver the order.
Yes, Grubhub pays its drivers an hourly wage. However, this wage differs depending on the volume of orders you take, how many hours a week you deliver, and if you participate in any special offers. Drivers can withdraw this money using the Instant Cash Out feature or wait for direct bank deposits Grubhub makes every Thursday.
No, Grubhub doesn’t pay for gas. However, Grubhub considers the mileage per order when calculating payments.
If not via Instant Cash Out, Grubhub will deposit your balance directly to your bank account every Thursday.
You can become a Grubhub driver if you are 19 or over, own an insured car (or a bike), and have a valid driver’s license.