Working as a delivery driver can be a lucrative side gig.
Over the years, I’ve worked as a Grubhub driver during my free time and earned a healthy paycheck.
Grubhub hires delivery drivers and partners with restaurants to offer food delivery services.
If you have a restaurant and want to partner with Grubhub or work as its driver, you may first want to answer the question, “when does Grubhub pay?”
I’ll explain how Grubhub payments work to help you discover how often you’ll get paid.
Table Of Contents
When Does Grubhub Pay?
Grubhub has different payment dates for restaurants and drivers.
In this section, I’ll take you through these payment dates.
When Does Grubhub Pay Restaurants?
As a restaurateur working with Grubhub, you can opt for direct deposit or check payments.
Grubhub will pay you once, twice a week, or biweekly if you prefer direct deposit payments.
Grubhub will mail your check on the 5th business day of every month if you opt for check payment.
If you’re getting paid via checks, expect to receive all your previous month’s earnings, minus Grubhub’s commission fee.
When Does Grubhub Pay Drivers?
Like restaurants, drivers working for Grubhub have two payment options, direct deposit and Instant Cash Out.
If you opt for direct deposit, Grubhub will pay you every Thursday.
What if you want to withdraw your earnings instantly to meet some financial needs?
Opting for Instant Cash Out allows you to cash out your earnings to your bank account instantly.
However, this payment option comes with a reasonable fee.
When Does Grubhub Pay Bonuses?
Grubhub has two pay periods for bonuses, completed within two weeks.
After completing various special missions, you’ll receive your first bonus offer in the first week.
The second bonus offer comes in the second week.
How Often Do You Get Paid on Grubhub?
Restaurants that opt for direct deposit can get paid weekly, twice a week, or fortnightly.
Restaurants get paid once a month if they opt for check payments.
With check payment, the company will mail your check every month on the 5th business day.
If you’re working as a Grubhub driver, you get paid once weekly after choosing the direct deposit payment.
The Instant Cash Out option allows you to withdraw your earnings anytime.
Read More: How much does Grubhub pay?
What Day of the Week Does Grubhub Pay?
If you can’t use the Instant Cash Out feature, you may wonder, “What day of the week will I get paid?”
Drivers who use the direct deposit feature get paid on Thursdays.
The amount you get paid is for the earnings made from Monday to Sunday in the previous week.
After requesting a withdrawal, you’ll receive the money in your account within 3-5 days.
The time Grubhub processes withdrawal requests vary depending on the bank used.
Does Prop 22 Affect When Grubhub Pays?
Prop 22 will only affect how much a driver receives from Grubhub.
During active deliveries, drivers get 120% of the local minimum wage and an additional 30 cents per mile compensation.
You still receive 100% of the tips.
How Grubhub Payments Work
Now you know the various payment features and when Grubhub should pay you.
But how do the company’s payments work?
Grubhub does not have a base pay, set delivery fee, or commission fee for its delivery workers.
Instead, payment follows a formula that makes one driver’s earnings vary from another.
The Payment Formula
The formula is mileage per order + time spent + tips + special offers.
Let’s find out what each means.
Mileage per order
This is the base pay rate a delivery worker receives per mile when delivering food from a restaurant to the customer.
Currently, Grubhub is paying 22 cents per mile for food delivery services.
Tips
Customers can offer tips based on how they perceive the food delivery service and the driver’s performance. Delivery workers keep 100% of tips, free of any delivery fees.
Time spent
This is the total time drivers spend on the road.
Grubhub understands that mileage might not account for the total time spent on the road.
Sometimes, I may spend over half an hour in traffic when delivering food over a short distance.
As compensation, the company will pay the total time I’ve spent on the road.
Currently, Grubhub is paying 13 cents per minute spent on the road.
Special offers
Drivers can earn special offers in the form of bonuses after meeting various goals.
Grubhub’s special offers are market and time specific.
Which Banks Are Accepted?
Restaurateurs and drivers opting for direct deposit can get paid via any major bank accepting direct deposit.
Examples of such banks include:
- Chase Bank
- Citizens Bank
- Citibank
- Fidelity Bank
- Pen Fed Credit Union
How to Set It Up
After applying for Grubhub food delivery services, follow these steps to set up direct deposits:
- Download the Grubhub for Drivers app
- Under the menu tab of your app, select your account, personal information tab, and bank information tab.
- Re-enter your password
- Update your information in each section selected
- Confirm to save the changes made
How Does Instant Pay Work?
Access the “Earnings” section of your Grubhub for Drivers app to cash out your earnings to your bank account.
Click the cash out button, and you’ll have your money in your favorite bank supporting Real-Time Payments.
Luckily, Grubhub works with most banks that support real-time payments.
Drivers opting for Instant Pay can cash out their earnings in banks such as:
- Chase Bank
- Capital One
- PNC Bank
- Bancorp and
- Wells Fargo Bank National Association
Drivers using this feature can only cash out up to $500 daily.
Grubhub charges 50 cents every time you use the Instant Pay feature.
Does Grubhub’s Instant Pay Take Long?
If your bank doesn’t support the real-time payment feature, processing your withdrawal can take a while.
Grubhub will send you a notification message and inform you that you’ll receive your funds in 1-2 business days.
How to Set Up Grubhub Instant Pay
If you want to use the Instant Pay feature, follow these steps to set it up:
- After making a successful application, head to the personal information tab
- Select bank information
- Enter your accurate bank account details, such as the name on the account, account number, and routing number.
- Verify your bank information
Grubhub Driver Payment Issues
Here are the payment issues you’ll experience working as a Grubhub driver.
1. Inconsistent pay
Grubhub’s pay fluctuates from time to time.
Fluctuation depends on how busy the company is, how many drivers are available, or the current weather.
There are slow times when you’ll earn less, while busy weeks will see you earning a healthy paycheck.
2. Delayed payments
You can’t use Instant Pay for 72 hours after changing your bank account information.
While this is an excellent way to prevent fraud, it can deny you the chance to access your funds when you’re in need during the 72-hour waiting period.
Some smaller banks don’t support real-time payments.
Drivers who want to withdraw their earnings instantly can cash out their funds to banks supporting real-time payments.
If you’re working with a small bank, it might not support the feature, and as a result, you will have to wait up to three days to receive your funds.
How to Deal With Payment Issues
Drivers don’t control how busy the company should be to help them enjoy consistent pay.
However, you can apply for other delivery gigs from other companies to ensure you have consistent workflow and earnings.
Before changing your bank account information, ensure you have enough funds to see you through the 72-hour waiting period.
You don’t want to encounter emergencies requiring cash and cannot use your Instant Pay Feature.
So you don’t want issues with smaller banks when making instant withdrawals?
Join bigger banks such as Chase Bank and withdraw your earnings in real-time.
Conclusion: When Does Grubhub Pay?
Grubhub pays restaurants once or twice a week or once a fortnight if they choose direct deposit.
They can also switch to checks and get paid monthly.
Drivers opting for direct deposit receive payments on Thursdays.
They can also choose to withdraw their earnings whenever they want with Instant Cash Out.
Let me know your views about Grubhub’s payments.
