Investment and Financial Markets

Grubhub vs DoorDash Pay: How Do Fees and Earnings Compare?

Compare Grubhub and DoorDash pay structures, fees, and earning potential to understand which platform offers better financial opportunities for drivers.

Food delivery drivers looking to maximize earnings often compare Grubhub and DoorDash, two major platforms with differing pay structures. Base pay, tips, bonuses, and fees all impact a driver’s take-home pay. Understanding these differences helps drivers choose the best platform for their needs.

While both services provide similar opportunities, their pay calculations and incentives vary.

Rate Calculation Methods

Driver earnings depend on upfront pay, mileage, and estimated delivery time. Each platform uses a different formula, resulting in varying rates for similar trips.

Base Pay

Both platforms guarantee a minimum payment per order but calculate it differently. DoorDash’s base pay ranges from $2 to $10, influenced by distance, time, and demand. This amount is displayed upfront, helping drivers decide whether to accept an order.

Grubhub does not disclose a fixed base pay range but considers similar factors. It often pays more for longer or complex deliveries, whereas DoorDash supplements lower base rates with incentives. Drivers preferring stable earnings may favor Grubhub, while those who maximize promotions may find DoorDash more profitable.

Distance Pay

DoorDash includes distance in its base pay calculation but does not offer a separate mileage-based payment. Grubhub explicitly pays per mile, making it more appealing for longer trips.

Drivers should weigh fuel costs and vehicle wear. While longer trips may pay more, frequent long-distance deliveries increase expenses, affecting overall profitability.

Time Pay

Neither platform directly compensates for time spent on deliveries, but both factor estimated duration into pay. DoorDash adjusts base pay for slow or complex orders, while Grubhub includes time in its payout formula, though less transparently.

Orders with long wait times or traffic may offer slightly higher pay, but increases are often minimal. Drivers benefit most by selecting orders that balance distance and time, allowing for more deliveries per hour.

Tips

Customer tips significantly impact earnings. Both platforms allow in-app tipping but differ in approach. DoorDash suggests preset tip amounts at checkout, while Grubhub emphasizes tipping more prominently, often leading to higher gratuities.

Tip transparency also varies. DoorDash includes tips in its upfront earnings estimate, making it harder to distinguish between base pay and gratuities. Grubhub separates the two, helping drivers assess order value more clearly.

Providing excellent service—timely deliveries, clear communication, and careful food handling—can increase tips. Delivering in higher-income areas often results in better gratuities. Grubhub allows customers to adjust tips post-delivery, which can be beneficial for drivers who exceed expectations but also introduces the risk of tip reductions. DoorDash does not permit post-delivery tip changes, ensuring drivers receive the originally set amount.

Extra Earning Options

Both platforms offer incentives to boost earnings. DoorDash’s Peak Pay and Grubhub’s Mission Bonuses reward drivers for working during busy periods or completing a set number of orders. Tracking peak hours helps maximize earnings.

Stacked and batched orders improve efficiency. DoorDash frequently offers batched orders in high-density areas, while Grubhub provides more stacked orders where restaurant partnerships are concentrated. Drivers familiar with local hotspots can complete more deliveries in less time.

Referral programs provide another income stream. Both platforms offer cash bonuses for referring new drivers, with amounts and eligibility requirements varying. Bonuses can range from $50 to several hundred dollars, depending on market conditions and the referred driver’s completed deliveries.

Platform Fees

Drivers are independent contractors and must cover expenses like gas, maintenance, insurance, and vehicle depreciation. These costs significantly impact profitability. The IRS allows self-employed individuals to deduct mileage at a standard rate of $0.67 per mile for 2024, but detailed records are required to claim this deduction.

Self-employment taxes are another factor. Independent contractors must pay both the employer and employee portions of Social Security and Medicare taxes, totaling 15.3% of net earnings. Setting aside funds for quarterly estimated tax payments helps avoid penalties. Some states also impose additional taxes or licensing requirements for gig workers.

Payment Cycles

Both platforms offer multiple payout options.

Grubhub processes payments weekly, with direct deposits arriving on Thursdays for deliveries completed the prior Monday through Sunday. Instant Cash Out allows faster access for a $0.50 fee when withdrawing to a bank account or $1.99 for a debit card withdrawal. Grubhub+ members can use this feature for free.

DoorDash issues weekly direct deposits on Wednesdays, covering the previous Monday through Sunday. Fast Pay enables same-day withdrawals for a $1.99 fee, available to drivers with at least 25 lifetime deliveries and two weeks of activity. DasherDirect, a prepaid debit card service, offers free instant deposits after each completed order, providing a convenient option for frequent payouts.

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