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When Does Grubhub Pay Drivers? 2 Different Methods To Know

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If a food delivery driver is willing to hustle, they can earn a healthy paycheck as a Grubhub delivery driver.

If you’re a driver for Grubhub, you may be wondering when and how you can withdraw your earnings.

Understanding the payment process and what method works best can be very confusing.

In this blog post, we’ll discuss two different methods to find out when Grubhub pays drivers.

The following is a quick summary of the Grubhub food delivery payment options, how each works and what a Grubhub driver can expect in terms of payments.

When Does Grubhub Pay?

Delivery workers for Grubhub choose the payment method that works best for them:

  • Direct Deposit
  • Grubhub Instant Pay

The payment method chosen determines when a delivery person gets paid and whether it is a fast pay process or a more traditional payment process.

There are fees associated with each payment method.

Some bank fees might apply to the total amount of money remitted.

These are separate from fees associated with the Grubhub payment system.

Regardless of what type of payment arrangement each one chooses, opening an account with Chase Bank ensures the least expensive payment option.

For Chase customers, neither the fast pay option nor direct deposit has a charge.

Direct Deposit

Payment is flows via the direct deposit payment option to the Grubhub delivery person’s bank account every Thursday.

They must provide all the required information and it must be accurate.

They should set it up as early as possible as it can take a few days to take effect.

They should not wait until the day before payday to set up a direct deposit account.

Grubhub submits direct deposit payments on Thursday, but a bank’s processing policy will affect when the money is available.

Bank delays can take one to two business days in most cases.

Some banks, however, reserve a clearance period of 3 to 5 days before funds are available.

Grubhub Instant Pay

With the Instant Pay payment option (also called the Instant Cash Out feature,) a delivery person can cash out up to $500 a day.

The service is instant and free to Chase Bank Customers.

Account-holders at other banks get charged $.50 a transaction.

How Grubhub Payments Work

Grubhub delivery pay does not have a base pay per independent contractor, commission fee, or a set delivery fee.

Payments are formula-driven.

The delivery workers’ pay formula is as follows:

Mileage per food delivery service order + the amount of time spent on the road + 100% of customer tips + Special Offers (which usually mean extra money).

vector graphic showing a clock, a calendar, and a payment screen to illustrate when does grubhub pay

1. Mileage Per Order

Mileage per order is the base pay rate paid per mile traveled by the independent contractor for food delivery service from a restaurant to the customer’s location.

The mileage fee gets calculated for each order a food delivery driver for Grubhub completes.

2. Tips

Customer tips are voluntary and based on how the customer perceives the performance of the driver and the food delivery service.

The independent contractor keeps 100 percent of customer tips.

The tips are separate from any other delivery fee.

3. Time Spent

This is the time spent delivering an order.

It is different from the mileage delivery fee.

Sometimes, for example, transporting food from a restaurant to the customer may be a short distance away, but the driver can end up sitting in traffic.

Delivering food in an urban setting is one scenario that can happen regularly.

4. Special Offers

Special orders are a way to increase base pay by providing superb delivery performance.

Grubhub has a specific set of incentives to earn an extra cash payment when the incentives get met.

There are also in-offer bonuses that are goal-driven and function almost like a commission fee.

All special offers are market and time-driven.

These types of extra money options may not be available to every Grubhub driver.

5. Pay Period

The answer to the question of “when does Grubhub pay” is two-fold: Every week if the Grubhub delivery driver opts for direct deposit and once a day if the driver opts for the instant cash-out feature.

Direct deposit provides a structure for when Grubhub submits the payment to the driver.

Opting for the instant cash-out feature means a Grubhub delivery driver can get fast pay almost immediately but it also means delivery workers can cash out of instant pay only one time per day.

Here are a few points to keep in mind regarding Grubhub pay methods.

  • Grubhub calculates the time and mileage if a driver takes on multiple orders at once starting when they leave the restaurant.
  • If a driver receives an offer while delivering one, Grubhub will start the calculations for mileage from the point the driver completes the current delivery.
  • All components of pay – mileage, time, and promotions or bonuses show up as Delivery Pay in the pay summary in the drivers app.
  • Time and mileage are set in the drivers app when the driver receives an offer.

Grubhub Direct Deposit

One payment method, transmitted every Thursday, is direct deposit.

Here are the steps in that process.

vector graphic showing money going into a smartphone to indicate a grubhub refund is getting added to a customer order

Which Banks Are Accepted?

Any major bank that accepts direct deposit (which is almost all banks) is eligible to receive direct deposits from Grubhub.

How to Set it Up – Step by Step Instructions

Setting up direct deposits is easy.

Follow these simple steps:

Once your Grubhub application to drive goes through, download the Grubhub for Drivers food delivery app.

Under the menu tab of the food delivery app, select the appropriate account, then select the personal information tab, and then select the bank information tab.

Once selected, you will have several options to input information.

Each must be input in the appropriate space and the information must be accurate for the system to work.

You will need to fill in the following information:

  • Bank routing number
  • Your Bank Account Number
  • Name on the Account

Once they verify your direct deposit arrangement, save the information.

When Payments Arrive

You will receive an email stating they submitted your cash payment to your bank account.

After that, check your bank account periodically for the deposit to clear.

In most cases, this will happen in one to two days.

Some banks state that transfer of direct deposit funds will take up to three business days.

Business days typically mean Monday through Friday, excluding holidays.

Grubhub Instant Pay

The Grubhub Instant Pay cash payment feature is easy to use.

Follow these steps.

How to Set it Up

Once your application goes through, access the personal information tab and then bank information.

Enter in your bank account information (Routing number, account number, name on the account.)

Once they verify your bank information, you are good to go from a technical standpoint.

Practically, you will not be able to use Instant Cash Out for 72 hours after your bank account information is verified or updated.

Step by Step Instructions

To use Instant Cash Out:

Go to the “Earnings” tab on the menu of your Grubhub for Drivers app.

You will see a screen that shows your Total Earnings and a graph that shows the pay for each day of the week.

The graph shows you how much money you earned on each of those days.

You can see more detailed information by selecting “View Earnings Activity,” which is a button at the bottom of the summary of your pay.

Review the total and daily total for the money you have earned delivering for Grubhub.

If your payment amount looks accurate, scroll to the end of the page.

Select the Cash Out button.

Once selected, if you are a Chase customer, you will see a screen that indicates transferring the amount of money you can cash out.

If you are not a Chase customer, you will see the amount of money you can cash out, minus $.50 as a transaction fee.

When you have started the cashout process, you will see a screen at the top of the earnings page that states “Cash out successfully processed.’

After that, funds will be available in moments for most account holders.

Some banks, however, will not make the cash available until after 1 – 2 business days.

Is There a Fee?

There is no fee for Chase Bank customers.

Drivers who do not have an account with Chase Bank must pay a 50 cent fee per transaction.

How Quick is Instant Pay?

This depends on your bank. In most cases, transferred funds are available in moments.

Some banks, however, will hold an instant transfer until the next day.

A few banks will make the cash available anywhere from one to three business days.

Weekend days, for most banks, do not count as business days.

If a transfer happens Thursday or Friday with a bank that has a delay, your funds may not be available until the following Monday or Tuesday.

Understanding that schedule can help you from running into a cash crunch.

Final Thoughts

To get your payment quickly, you must know how the Grubhub system works.

This guide can help you choose the option that works best for you, calculate any applicable fees, and the payment schedule that applies to your bank and your payment choices.

Once you review your options and make your choice, it is up to you to maximize your income potential.

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