Base Pay Structure
The base pay for Grubhub drivers is the foundational component of their earnings, typically ranging from $2.50 to $3.50 per delivery. It is calculated based on several factors:
- Mileage: Compensation for distance from restaurant to delivery location (usually $0.20 to $0.50 per mile)
- Time: Estimated time to complete the delivery
- Order Type: Larger or complex orders may offer higher base pay
- Market-specific minimums
Tips and Their Impact
Tips make up a significant portion of driver earnings, often accounting for 50-70% of total income. Key aspects of tipping include:
- Pre-Delivery Tips: Visible to drivers before accepting orders
- Post-Delivery Tips: Can be added after delivery completion
- Cash or app-based tipping options
- Ability to modify tips within a certain timeframe
Incentives and Bonus Programs
Mission Rewards
Grubhub offers various incentives to motivate drivers:
- Peak Pay: Additional earnings during busy times
- Completion Bonuses: Rewards for accepting certain number of orders
- Special Event Bonuses: Extra pay during specific events
- Regional Promotions: Market-specific opportunities
Recognition Program
The Grubhub Recognition Program includes three tiers:
- Premier
- Pro
- Partner
Higher levels receive priority scheduling and additional earning opportunities.
Earnings Example
| Component | Percentage |
|---|---|
| Base Pay | 30-40% |
| Tips | 50-70% |
| Bonuses | 5-15% |
"Most Grubhub drivers report earning between $12-25 per hour before expenses, depending on market and strategy." - According to Indeed.com salary data
Maximizing Earnings
To optimize their income, drivers should:
- Work During Peak Hours
- Focus on lunch and dinner rushes
- Take advantage of higher peak pay
- Optimize Routes
- Learn efficient local routes
- Minimize dead miles
- Provide Excellent Service
- Communicate clearly with customers
- Handle issues promptly
- Follow delivery instructions carefully
Common Expenses to Consider
Fuel costs
Vehicle maintenance
Insurance
Phone plan
Vehicle depreciation
Tax Considerations
As independent contractors, drivers must:
- Track all business-related expenses
- Set aside 25-30% for taxes
- Consider quarterly tax payments
- Maintain detailed mileage logs
Deductible Expenses
- Mileage (standard IRS rate)
- Phone expenses
- Hot bags and delivery equipment
- Portion of car insurance
- Vehicle maintenance
For more detailed information about driver opportunities and pay structures, visit the Grubhub for Drivers website.