How Much Do GrubHib Drivers Make (Pay, Expenses, Taxes)

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how much do grubhub drivers make

If you’re considering making a living through food delivery, 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.

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How Does GrubHub Pay?

GrubHub 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:

  • Mileage per order
  • Time spent on the road
  • Tips
  • Special offers

All these factors impact the GrubHub pay for drivers in the following ways:

  • Mileage per Order: The mileage per order is the compensation drivers get for every order.
  • Tips: If a driver is tipped by the customer, they get to keep 100% of the amount.
  • Time Spent on the Road: In some cases, the mileage is not the true representative of the time it takes a driver to deliver in order. Therefore, GrubHub uses a ‘time spent on the road’ factor to make sure the driver is compensated for the total time they spent on the road.
  • Special Offers: Drivers can also earn by participating in challenges, getting bonuses, and sweepstakes. The more they win, the higher they get paid. However, the special offers are subject to certain time periods and specific markets.

GrubHub Hourly Rate

Since the amount drivers make depends on the number of orders they fulfill, 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.

How is GrubHub Pay Calculated?

The app shows the calculated pay to the 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:

  • Time Spent: Drivers earn 13 cents, on average, for each minute they spend waiting or driving.
  • Miles: Drivers earn 22 cents for each mile they drive. It also includes the distance they have to travel to go to the pick-up location.
  • Tips: Tips from customers go directly to the drivers, and GrubHub does not take a share of it.

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.

Other Considerations

Besides the standard pay rates for GrubHub, here are some considerations drivers need to keep in mind:

  • If a driver receives an offer with more than one order, GrubHub will calculate the estimated mileage and time for all the orders together.
  • The drivers will see the time, daily pay for mileage, and bonuses or promotions on the top of the payment summary as Delivery Pay.
  • GrubHub sets the mileage and time when the driver receives an offer.
  • If a driver receives a new offer before they have completed their previous order, GrubHub estimates the mileage and time for this new offer from the time and distance the driver completes their existing journey.

How Do GrubHub Drivers Make Money?

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

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.

Tips

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.

GH Contribution

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.

GrubHub Recognition Program

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:

  • Partner: At the partner program level, drivers do not get any perks.
  • Pro: Drivers are upgraded to Pro level if they have 100% attendance for scheduled blocks, less than 20% block drop rate, and 85% order acceptance rate. The perks include getting larger orders, referral programs, and early access to block scheduling.
  • Premier: Drivers with 100% attendance, less than 10% block drop, and 95% acceptance rate become Premier drivers. They get priority for delivery blocks.

How Do GrubHub Drivers Get Paid?

Grubhub delivery drivers get paid in one of the two ways:

  • Direct Deposit: They can have the company send their balance directly to the bank account each Thursday.
  • Instant Cash Out: Drivers can also get paid daily with grubhub and cash their money from the GrubHub app whenever they want. If they are Chase Bank customers, there are no fees for cashouts. However, customers of all other banks have to pay $5 for each cash out when they use this service.

When Does GrubHub Pay?

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.

Factors Affecting GrubHub Driver Pay

An average GrubHub salary can be affected by a few factors, as discussed below:

  • Number of Delivers an Hour: It’s quite obvious that drivers delivering more orders an hour earn more. Some drivers even deliver multiple orders at once to increase their earnings per hour. However, taking on multiple orders simultaneously can be a bit risky since GrubHub also takes the time into consideration.
  • Schedule Blocks: Drivers on GrubHub can schedule blocks that are periods of time during which they deliver orders. Drivers whose schedule blocks that are close to dinner or lunchtime tend to earn more. Also, more orders are received during this time since people order more frequently.
  • Transportation: The mode of transport a driver uses also determines how much they earn. Drivers who use their bicycles for deliveries can keep more profits since they have fewer business expenses. Indeed, Grubhub doesn’t pay for gas. On the other hand, drivers who use their cars can deliver more orders at once but have higher expenses.
  • Markets: The amount drivers earn also differs based on their location. For instance, Proposition 22 in California means that drivers get paid 120% of a minimum wage along with 30 cents for each mile they drive for the order. Drivers who deliver orders in larger cities, such as Chicago or New York, earn more since the cost of living is higher in these areas.
  • Related Article: How to Find Cheap Gas

GrubHub Earnings in California

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:

  • Guaranteed Minimum Earning: Drivers will earn at least 120% of the minimum wage in California for delivery, excluding the time. On top of that, drivers will get 30 cents for each mile they drive to deliver the order.
  • Drivers will also get a GrubHub healthcare subsidy if they drive a minimum of 15 hours every week. Meanwhile, drivers who have more than 25 hours of driving time a week will have a higher subsidy. The subsidy amount is determined by how much a Covered California healthcare plan costs.
  • In a 24-hour period, drivers will have six hours of rest after they actively drive for 12 hours.

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:

  • Techniques to avoid collisions
  • Defensive driving
  • Food safety

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:

  • Coverage for medical expenses
  • Coverage for lost income
  • Occupational accident insurance

As more protections are added to the legislation, the information will be updated on GrubHub’s website for drivers and the public to see.

GrubHub Driver Expenses

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 Taxes

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.

Driving Expenses

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:

However, most of these expenses including drivers gears are tax-deductible. Drivers just need to keep receipts and track their mileage.

Start To Make Money With Grubhub

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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