One of the most popular ways to make extra money in the gig economy is delivering with food delivery services.
If you’re considering making a living through a food delivery service, GrubHub is one of the topmost apps to consider. But how much does GrubHub pay per delivery, and how much can you earn a year with this job? GrubHub’s payment model differs from Door Dash and other services, so it helps to know everything beforehand.
So, how much does a GrubHub driver make? Below, we discuss this in detail.
As a reminder, Seamless and Grubhub are almost the same. Since Seamless deliveries are provided by GH drivers, in this article you will also earn how much you will learn as a Seamless delivery driver.
GrubHub is a food delivery app. The company has a certain payment model that it uses to calculate the payment for each order. Moreover, the GrubHub income differs across states. Here are the factors the company considers when determining how much a driver gets paid:
All these factors impact the GrubHub pay for drivers in the following ways:
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Since the amount drivers make depends on the number of orders they fulfill and the times of day, there isn’t exactly a Grubhub hourly wage. However, on average, GrubHub drivers make $26 an hour, according to Glassdoor, and there are no additional GrubHub incentives, such as profit sharing or commission sharing.
Glassdoor further reports that a driver can expect to make $9 - $42 per hour on average.
Interestingly, women earned $17 per hour on average as compared to $26 made by men. However, this difference is most probably due to a lower number of salaries submitted by women - only three as compared to 246 by men.
Meanwhile, Indeed shows that the average hourly rate for GrubHub drivers is $14.16.
USA Today reports that a driver can make anywhere between $22,894 and $24,960 by working 40 hours a week.
Keep in mind that these estimates of Grubhub hourly pay are taxable income.
So, the amount a driver makes through GrubHub depends on a number of factors and each website calculates it differently.
The app shows the calculated pay to GH drivers and seamless drivers along with the distance they will have to travel, and the estimated time it will take. These calculations depend on a base rate for each metric, depending on the state.
Here’s how it works:
For example, if a driver has to drive a mile to get from their current location to a nearby restaurant to pick up an order and then drive another three miles to drop off the order, they will earn 88 cents for this.
Let’s say it takes them 15 minutes driving and five minutes waiting for the order to be ready at the restaurant. This will earn them $2.60.
Now, let’s assume the customer tips them $5. So, the driver will earn $9.48 for this delivery, which took them 20 minutes. Obviously, the total can differ since a customer might not always tip this much.
But if we consider this the average, a driver can earn up to $30 per hour.
Besides the standard pay rates for GrubHub, here are some considerations drivers need to keep in mind:
GrubHub drivers do not only make money through their deliveries. You can deliver alcohol and food. You can deliver during breakfast , lunch or dinner time. Grubhub is a delivery app working even on Christmas Day.
These are the ways GrubHub drivers make money delivering orders:
Delivery Pay refers to the amount GrubHub drivers make while delivering orders. It is calculated using the time and mileage the driver spends on the road.
Drivers see this amount on the app when they get an offer. So, they can know beforehand how much they are expected to make from order before accepting it.
If an order takes longer, GrubHub uses the ‘time spent on the road’ factor to compensate the driver for it.
GrubHub drivers also get tipped by the customers. Typically, customers should top 20% of their order or $5, whichever is the better option.
Drivers keep 100% of their tips. If you choose the default tipping option on the app, it will come to 20%. GrubHub recommends paying more if the driver had to put in extra effort for your order, such as driving during extreme weather.
If drivers make less than the guaranteed minimum wage during a market block, GrubHub will contribute the rest to make up a specified amount, provided the driver has a high order acceptance rate. It’s called the GH contribution.
For instance, if a driver schedules a four-hour block and the app shows they will make $20 per hour, the total should be $80 by the end of the block.
However, if the driver is unable to make that amount from Delivery Pay and tips, GrubHub will pay the difference to bring the total earnings to $80.
The best drivers can opt for GrubHub Recognition Program, which gives them GrubHub incentives after they complete certain tasks. The levels are updated every week based on your delivery stats over the last 30 days. Here is a breakdown of the Grubhub program levels:
Grubhub delivery drivers get paid in one of the two ways:
GrubHub pays its drivers every Thursday through direct deposits. However, drivers can also choose to use the Cashout feature to get up to $500 every day through the app.
An average GrubHub salary can be affected by a few factors, as discussed below:
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California has implemented Proposition 22 on companies that use delivery partners or drivers as contractors. As per the Protect App-Based Drivers and Services Act, there’s a GrubHub price increase in the state, which translates to drivers earning more.
According to a Grubhub media press release, their drivers in California will have the following benefits:
Additionally, every driver will be able to keep the GrubHub tip they receive through their order. GrubHub announced that they will roll out a feature for diners to tip the drivers through the app once the order has been delivered.
Also, California drivers will get mandatory safety training for their job. It will include the following:
All drivers will also get information about preventing sexual harassment and learning how they can recognize sexual assault or misconduct and report it to the right people.
Proposition 22 took effect in 2021 and is expected to expand more to offer protection to the public and delivery drivers. Some upcoming features include:
As more protections are added to the legislation, the information will be updated on GrubHub’s website for drivers and the public to see.
Now that you clearly know how much a GrubHub driver can potentially earn every day or hour, it’s important to note that drivers have expenses too. The net income is calculated after subtracting these expenses.
GrubHub drivers are independent contractors, so they have to pay the taxes themselves. Since the company does not withhold any taxes when it makes the payments every Thursday, drivers have to save up for the taxes themselves.
Additionally, they have to take out 15.3% of their income to pay self-employment taxes, which includes the Social Security and Medicare taxes. Traditionally, employers pay half of this amount, so the employee only has to pay the remaining half.
However, as a GrubHub driver, you will be an independent contractor; you have to pay both halves.
GrubHub delivery partners are expected to use their own transport. Since they drive long hours every day, the vehicles undergo extensive wear and tear, for which the drivers have to pay on their own.
The maintenance charges can add up at the end of the month. If a repair is required, that could hike up the bill at the mechanic.Here are some tips to minimize wear and tears on your vehicle:
Wrapping up, GrubHub drivers can earn a decent amount if they work full time and try to make their way up the ladder in the Recognition Program. But it’s not an ideal job if you are not regular or lack the discipline to comply with the company’s guidelines.
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