Make Money

Driving For DoorDash vs Driving For Grubhub

July 12, 2021 by
doordash vs grubhub

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 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 restaurants, grocery stores, and convenience stores.

Grubhub At A Glance

Originally founded as an alternative to paper menus, Grubhub was established back in 2004 in Chicago. 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.

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 Uber Eats:
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

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.

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.