If you have extra time, you must have thought of a way to boost your income. With the gig economy becoming more popular, you have infinite choices to be your own boss. GrubHub is one of those opportunities. Nevertheless, before we go on and start budgeting for money, you should understand how GrubHub works.
In this guide, we discuss GrubHub and how you can earn money from it. By the end, you will know if the opportunity is worth investing in or not. So, let us get started.
What is GrubHub?
Grubhub is a mobile application and website that services on-demand food delivery. It is part of the Just Eat Takeaway.com family, a global online food delivery marketplace. Over its years of operation, GrubHub has delivered food to more than 32 million diners.
The platform features over 300,000 restaurants across 4,000 cities in the US. Whenever customers are craving food from their local restaurant, GrubHub connects them. The platform’s innovative restaurant technology is easy-to-use and revolutionizes the food delivery experience.
GrubHub operates in the US, where it processes an average of 745,000 orders daily. Since it started operations, GrubHub drivers have received over $4 billion in tips. In 2020, GrubHub was the medium through which local takeout restaurants made over $9 billion in gross food sales.
Within 10 years of operation, GrubHub attained IPO status in 2014. The platform targets the ‘tired people’ who do not have the time to make reservations or queue for their food. It has made it possible for people across 900 locations in the US to access meals in simple, fast, and convenient ways.
How does GrubHub work?
GrubHub connects diners with a bunch of restaurants near them. Customers browse the various food joints available on the platform. Once they find something they want, they place an order and wait.
The restaurant receives an order and confirms it, based on the availability of the same. The chefs then proceed to prepare the meal and package it for transportation.
Couriers stationed near the restaurant get notifications that the meal is ready. They then accept the delivery request and directly pick up the food from the restaurant. The order can be ready or in the process of being prepared.
Once the food is ready and packaged, the courier transports the food to the customer’s location. Customers pay for their food on the website or the mobile app. But, they can also give the drivers tips for offering excellent customer service.
GrubHub makes it super simple to order meals 24/7. It also includes a large variety for its customers, making it now a hotspot for people looking to order in.
GrubHub requirements, how do you sign up?
As simple as it is to order food on GrubHub, it is also simple to join. There are minimal but mandatory requirements. To get started, you would need:
- A car or bike in select cities
- A valid driver’s license
- A valid auto insurance
- A valid state ID or driver’s license for bikers
- A smartphone and data plans
- To be over 19 years old (21 in Las Vegas)
- A checking account for payment
You do not need any delivery experience. You sign up to drive and start earning.
After applying to make deliveries with GrubHub and getting the approval, drivers download the GrubHub Courier’s Application. The app is simple to use to save time making deliveries. It also ensures efficiency because drivers receive orders closest to them.
The app includes features like:
- A personal account for couriers to create individual profiles on the applications. The drivers can also manage orders, ratings, and preferences
- Push notifications are sent to drivers whenever a restaurant near them receives an order. This allows the drivers to accept orders faster
- Accurate GPS tracking– the GrubHub courier’s app uses an accurate GPS service for easier deliveries. Customers have fewer chances of missing their orders because couriers went to the wrong address
- Contact information– the app passes on the contact of the restaurant and the customer to the driver servicing the order.
- Couriers can also complete orders on the app, which allows the customer to review the driver. Drivers also become available for other orders
To sign up
Proceed to fill out the online form, where you include your state and city. You will also need to submit proof of your driver’s license and insurance. Usually, you submit photo evidence of the documents for verification within the form.
Once you get the delivery approval, you have to wait for the GrubHub driver card via snail mail. Drivers use this card to pay for orders on the app. Drivers also receive thermal bags at no cost.
You have no interviews, no human interactions, and no official training period. You just sign up, get approval and start earning money. However, you must take a few onboarding tutorials to learn the ropes of the job.
How to make money with GrubHub
GrubHub drivers earn depending on where they are, and the hours they spend working. Drivers have the choice to accept or reject offers. So, to maximize your earnings, you can take orders above a specific price point, say $12.
GrubHub drivers can also sign up for blocks of time. This means that drivers have mini-schedules. Sometimes when orders are slow, you may fail to get deliveries unless scheduled on a block.
Being selective is a choice. However, if you decline orders sent your way by GrubHub, your acceptance rate drops. And if you leave your time block early, your attendance rate also drops.
These performance metrics determine how many orders you will receive within the month. So, if you are performing well in terms of acceptance and availability, you rank better and earn driver rewards.
You can also make money with GrubHub by delivering food during very busy hours. Over the weekend and dinner hours are the best.
Overall, drivers can improve their earnings by being selective of their orders. However, they need to be keen, not to affect their performance rates.
How much do GrubHub drivers make?
GrubHub has an average hourly rate of $12. This is similar to most food delivery platforms. GrubHub drivers also get to keep 100% of the tips received from customers. However, the hourly rates are not constant across the nation.
Some cities have higher hourly rates, while others have lower. Most importantly, GrubHub does not limit how much its drivers can earn. So, if you have excellent ratings and your customers keep ordering, you can make more from getting more tips.
The amount drivers earn when delivering for GrubHub depends on:
- Mileage- Drivers earn about 22 cents per mile. GrubHub keeps track of the miles covered and compensates accordingly. The distance in question is where you need to travel to pick the order and drop it off.
- Time-GrubHub adds 13 cents for every minute drivers spend waiting or driving to make deliveries.
- Tips– Drivers keep 100% of the tips they receive from their customers.
Note: GrubHub does not charge commission on drivers. Instead, it makes a profit by charging commission fees to restaurants. However, it charges a small percentage of the delivery fee on the drivers.
Pros and Cons of Using GrubHub
Some of the benefits of working with GrubHub include:
- You get to keep 100% of your tips
- Drivers set their schedules
- Weekly payments paid via direct deposits
- A recognition program that motivates you to work and enjoy perks like larger catering orders
Some of the drawbacks of working as a GrubHub driver include:
- There are no pay guarantees for the drivers
- Drivers have a poor support system within the organization
Alternatives to GrubHub
Of course, nothing about GrubHub is unique. It is part of the gig economy, which has many players. You can use other alternative platforms to earn some cash by delivering food to customers.
Unlike GrubHub, DoorDash includes a $2-$10 base payment for their drivers. The couriers also receive an extra $4 for every delivery during peak hours. Totaling all the payments, DoorDash drivers can earn up to $25 per hour.
You also get $150 for referring a friend who joined the network. Like GrubHub, DoorDash drivers get to choose their working hours and keep 100% of their tips.
Postmates is another alternative to GrubHub. Drivers choose their working hours since they are independent contractors. The amount these drivers earn depends on the waiting time, miles covered, and several deliveries.
On average, Postmates drivers earn $15 per hour. Postmates has many incentives, with about 20% per order on average. Drivers also get at least $4 per order as base pay.
Another good alternative to GrubHub is Uber Eats. Unlike GrubHub, Uber Eats has wider delivery zones, making it more expensive. You spend more between picking orders and driving to deliver.
Do GrubHub drivers get tips?
Yes, GrubHub drivers can receive tips from customers. They also get to keep 100% of these tips. GrubHub drivers can also view their tips after accepting an order.
When does GrubHub pay?
GrubHub sends out payment via direct deposit every Thursday. These payments can take up to 3 days to process.
After partnering with Chase, drivers now have access to GrubHub Instant Cash Out. Drivers can access their money by connecting to a Chase checking account. It is also free to get cash from Chase. However, when you use a different bank, you pay a 0.50 fee for instant transactions.
Does GrubHub pay for gas?
You may not receive money to pay for gas specifically, but when calculating how much drivers earn, GrubHub includes an aspect of mileage.
Is GrubHub in my area?
GrubHub services over 4,000 cities in 900 locations. To find out if the service is in your area, you can start by checking your location on driver.grubhub.com.
You can also find the information on the GrubHub homepage. Search for your address in the Search field to find your answer.
Does GrubHub run a background check?
GrubHub does conduct a background check on its drivers. However, it is not comprehensive. Also, it does not matter if you have a good credit score or not.
Can I drive for other apps while working with GrubHub?
While the company is unhappy with the idea, you can sign up with other delivery apps. GrubHub drivers are independent contractors, so there will be no rule-breaking. To increase your income base, you can juggle between Uber Eats, Postmates, and GrubHub.
Is GrubHub legit?
If you want to boost your income base and you enjoy driving, GrubHub is an excellent place to start. You get paid for every mile you travel, every minute you spend on the road, and any tips you receive from your customers.
Participating in challenges can help you earn more. GrubHub drivers also receive their payment weekly, and scheduling your deliveries makes you famous.
So, if you already have all the tricks to make it, you can try to work and be your own boss, GrubHub might be the place for you. You can work part or full-time on the job.
The introduction of the gig economy made it easier to earn more to boost your paycheck. You can now take up food delivery jobs through platforms like GrubHub and earn money.
If you are not happy with the average pay of $12 per hour, you can improve your services, schedule blocks, and maintain excellent customer service. Drivers choose the hours they work, the food they deliver, and when they will be working. What better screams work freedom than that?
Join GrubHub today and learn more about the food delivery business today. As a driver, you do not pay any commission fees to the company. Alternatively, try other good business opportunities that might be available for you.