CommonCentsMom.com is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. The contents of the CommonCentsMom.com website, such as text, graphics, images, and other material contained on this site (“Content”) are for informational purposes only. The Content is not intended to be a substitute for professional financial or legal advice. Always seek the advice of your Financial Advisor, CPA and Lawyer with any questions you may have regarding your situation. Never disregard professional advice or delay in seeking it because of something you have read on this website!
The rise in demand for food delivery services has recently opened up new opportunities for people looking to earn some extra cash. Signing up to be a delivery driver for apps like DoorDash and Grubhub allows you to work flexible hours, and make a decent side income that can go towards paying off debt or even taking that vacation you always wanted.
These apps operate in a number of cities, allowing you to find employment hassle-free regardless of where you live. The sign-up process is simple and quick, allowing you to get started within 1-2 weeks of applying. However, with the number of food delivery businesses available on the App Store today, it can be hard to pick the right one for you. If you are wondering which app is the best suited for your needs, scroll below to learn all about two of the most popular food delivery apps to exist today – DoorDash and Grubhub.
DoorDash At A Glance
Founded by 4 Stanford students in Palo Alto, California, DoorDash is an online food delivery business. The service started back in 2013 and has grown to operate in over 4,000 cities across the United States, Australia, and Canada today.
The DoorDash app allows customers to either place real-time orders or schedule deliveries at a later time. The DoorDash network offers customers a list of over 450,000 merchants to choose from. These merchants include everyone’s favorite restaurants, grocery stores, and convenience stores.
DoorDash is one of the best apps for people who are looking to earn some extra cash on the side. The pay rate for DoorDash delivery drivers varies based on their area of employment. In addition to the income you receive from delivering food, you can also get tips from customers.
In terms of driver pay, DoorDash Drivers are reported to get an average wage of a little under $25/hour. Of course, this is only if they’re doing pick-ups and drop-offs throughout this entire time instead of lazing around.
Grubhub At A Glance
Originally founded as an alternative to paper menus, Grubhub was established back in 2004 in Chicago. This makes them a much older and more mature company than DoorDash. The app offers a list of over 200,000 restaurants based in all 50 states for customers to choose from.
One of the oldest food delivery services to exist today, Grubhub drivers have earned over $3 billion in tips collectively over the years. Since February 2020, the app also offers a monthly subscription service for users, allowing them to enjoy free deliveries.
Grubhub is a strong contender against DoorDash. Users can order from the places that are in partnerships with Grubhub by either selecting their favorites directly from the app or by searching for them based on their location. Once they have chosen their menu items, they can schedule deliveries at a later time.
Signing Up To Be A Delivery Driver
The sign up requirement and process for both DoorDash and Grubhub are relatively similar.
You can apply for both companies online or through the application itself. You need to provide information such as your social security number, consent to a background check, and then wait for your results before getting started with your very first delivery.
Driver sign up requirements for DoorDash:
1. Be 18 years or older
2. Have an active driver’s license
3. Have auto insurance
4. Have an Apple or Android smartphone to download the DoorDash application
5. Pass a background test
6. Have access to a vehicle
7. Pass a driving background check
8. Complete an online or in-person orientation
Driver sign up requirements for Grubhub:
1. Be 19 years or older (minimum age in Chicago and Las Vegas is 21)
2. Have a valid driver’s license
3. Have auto insurance
4. Have an Apple or Android smartphone
5. Pass a background test
6. Provide a checking account to receive money.
7. Pass a driving background check
If you fulfill these requirements, you will be accepted and therefore considered one of their independent contractors. You can then begin making deliveries for your chosen company immediately.
Delivery Hours
Another thing you should consider is the options for delivery hours. After all, the delivery fee that is charged when customers order food is a major pricing point in both of these apps. You want to see if the amount of time you spend on the road will actually be accounted for properly.
So, here’s what you need to know about their policies for delivery hours.
DoorDash:
Dashers can choose their delivery hours in 2 ways
1. Schedule Hours: DoorDash allows drivers to schedule their working hours up to a week in advance. This allows dashers to plan their week ahead of time and enjoy a more structured work experience.
2. Dash Now: This feature allows dashers to open the app whenever they have free time and check if there are any busy areas that require additional unscheduled drivers for delivery.
Grubhub:
Similar to DoorDash, Grubhub allows drivers to plan their work hours ahead of time. The app offers block scheduling, letting drivers pick blocks of hours they want to work for each week.
Grubhub monitors how many times drivers drop their scheduled blocks within 72 hours of delivery. This affects the driver’s future ability to be able to choose more blocks. Therefore the app urges drivers to drop blocks as soon as they can if they know they won’t be able to work for a scheduled delivery.
Delivery Pay For Drivers
Both DoorDash and Grubhub use a relatively similar pay model and pay an average of $12 to $15 per hour (excluding tips) to drivers. Drivers also get to keep a 100% of the tips they make for each delivery, bringing the total average close to $20 per hour.
It is impossible to say which app pays more, as they both pay fairly the same and use a similar method of determining the pay for each delivery. How much you earn for different orders fluctuates depending on factors such as your location, the time taken to complete each delivery, and the distance you need to travel.
Market Availability
One thing to keep in mind is that DoorDash lets you deliver in any markets at a time, while Grubhub restricts you a little bit. What we mean by this is that DoorDash is available in all of the US states as of now, from New York all the way to Puerto Rico. This is because DoorDash has the largest market share in terms of services for food and grocery delivery.
What this means is that DoorDash excels in terms of market availability. In terms of how that affect you, it means you don’t have to worry about not getting a lot of orders based on where you’re located.
DoorDash Pay Model
DoorDash calculates the fee for each order by adding your base pay, any promotions that apply to the delivery, and all the tips garnered from the customers.
Base Pay covers 3 features:
1. The time taken to complete the delivery
2. The distance traveled
3. The desirability of the order (how popular it was with other dashers)
The base pay usually ranges between $2 to $10 per delivery
Promotions cover 2 features:
1. Peak Pay: Dashers earn a higher income for completing deliveries during busier times. They can make up to $4 more for each peak delivery.
2. Challenges: DoorDash allows dashers to complete challenges by making a set number of deliveries in a specified time period to earn more.
Grubhub Pay Model
Grubhub adds up ‘delivery pay’ along with 100% of the tips drivers make to determine the final pay for each order. The delivery payment is made up of a number of components such as the time spent waiting for the order to get ready and delivering the food, as well as the mileage required.
Drivers are notified of the ‘delivery pay’ for each order on the app before they choose to deliver it, allowing them to make an informed decision and pick orders that pay the best.
Getting Paid
DoorDash: Dashers can choose from 2 payments methods
1. Direct Deposit: Dashers can get paid weekly through direct deposits. Payments through direct deposits are usually received by Wednesday or Thursday each week from DoorDash.
2. Fast Pay: Dashers with debit cards can choose to get paid via Fast Pay if they want instant cash. Fast Pay allows you to cash out once a day and charges a $1.99 fee for each transaction.
Grubhub: Grubhub drivers can also choose from 2 payments methods
1. Direct Deposit: Grubhub deposits your pay for each week by Thursday into your checking account.
2. Instant Cash Out: This option allows drivers to instantly withdraw funds into their checking account from their Grubhub account by paying a $0.05 fee.
Driver Rewards
Apart from the money you make from deliveries, there are additional benefits you can earn from working at both DoorDash and Grubhub.
DoorDash: Dashers can earn a bonus referral fee on DoorDash after they complete a certain number of deliveries. The bonus amount depends on your location and can change depending on the time you make the referral.
Grubhub: Grubhub offers its drivers a number of rewards and discounts from their partners. Currently, Grubhub drivers can benefit form the following rewards:
1. Stride Health: Get discounts on healthcare including dental and vision plans
2. Stash: Get $10 free on Stash to start investing
3. Jiffy Lube: Save up to 15% of certain vehicle services such as oil change
4. Quickbooks: Receive up to 50% discount on Quickbooks
5. Tidal: Get 3 months of free music streaming
DoorDash vs. Grubhub: Which one is better?
There is no saying which app is actually better as both DoorDash and Grubhub offer their own sets of benefits. Choosing which delivery apps works best really depends on each individual and their needs.
You can even work for both apps together, and receive double the chances of taking delivery orders to make even more cash. Regardless of which app you choose, you are sure to make a good sum of money that can go towards your retirement fund, help you pay off debt, or even spruce up your weekly budget.
What to Prepare and Consider When Joining Food Delivery Companies
In this digital age, the rise of gig economy is a reality that we all need to consider. This is because the new and upcoming economy has transformed the world into a dynamic place. We now have an increasing number of gig economy businesses that provide services in various fields, from food delivery to car cleaning, from healthcare to repair services.
The gig economy is different from other types of employment because it is temporary and involves flexible hours, making it ideal for students and young adults who are just starting out in their careers. If you’re someone living in U.S. cities who is looking for a side hustle to get some extra money, becoming a Grubhub or DoorDash driver can be a great choice.
You can work on your own schedule, which is especially important for those of you who are just interested in using this as a side hustle. It’s a good way to make extra money on top of your full-time job, though that doesn’t mean making food delivery your full-time job isn’t an option, either.
Either way, if you’re a new driver or someone who’s considering to become one, here’s some things to prepare and consider:
1. Have the right data plan
In order to be able to access the app, you’ll need a data plan. This is especially important if you’re a full-time driver. A good data plan on your smartphone ensures that you can work without any problems.
This is because you need your smartphone to always be available so you get any info on new orders and get a response to them as soon as possible. If you run out of cellphone data midway, it can be really inconvenient.
2. Figure out the app before you start driving
The apps themselves can be quite complicated, so it’s important to get to know them before you start working. Even if you don’t want to be a full-time driver, knowing the app is crucial so you can effectively manage your deliveries.
You’ll need to get familiar with the way it works, how to make your own schedule, and how the system works in general. You’ll also need to figure out how much tips you can expect and how often they come in so you can manage your money properly.
Making sure the onboarding process is smooth as possible is key. This way, you can focus on optimizing your delivery time and navigating through peak hours. This’ll lead to a seamless work performance.
3. Compare each fees
When you’re still weighing the pros and cons of food delivery companies, you should also consider their fees. Which one gives you a higher percentage of tips? Which one pays you more for the same distance crossed for a single delivery order?
Compare how much their delivery fees and service fees are. When you know the answer to these questions, you can compare each company and choose the one that’s better for you.
4. Figure out if customer memberships and discounts affect your pay
A great thing about food delivery apps is that they allow you to access restaurants that you’d never be able to access on your own. This is why there are many companies that offer membership programs.
These programs can offer discounts and other perks for the customers who sign up for them. This can lead to more customers for the company, which in turn leads to more deliveries and tips.
For example, DoorDash offers a subscription plan in the form of Dashpass. This lets customers get discounts on their favorite restaurants. It can be helpful to know if these discounts will affect your own pay.
5. Check if acceptance rate matters
Another thing to consider is the acceptance rate. There are certain times where you may feel it’s better to cancel an order or reject it in the first place. This may be due to peak hours, for example.
You need to know if the time it takes to complete a delivery matters, as well. If the acceptance rate is low, this may indicate that your work performance is not optimized. If it’s high, you can focus on optimizing your delivery time to get better tips.
Final Thoughts
Hopefully, the above information can help you in deciding whether to choose to become a driver for Grubhub or DoorDash. If these information do not satisfy you, there are still many options out there.
You can always try out some of the other popular choices for rideshare companies, food delivery companies, and everything in between. Among the top options for you include Uber Eats, Postmates, Instacart, Lyft, and much more.
The most important thing is that you find a workflow that optimizes your comfort without sacrificing your pay.
