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Which Food Delivery Service Pays The Most In 2023?

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Key Takeaways

  • Uber Eats drivers can earn as much as $20/hour, making it the highest paying food delivery service.
  • Instacart offers best-in-class benefits, including working without a car, and access to discounts via Perkspot.
  • Delivery drivers’ income varies across platforms – GrubHub ($15/hour), Uber Eats ($20/hour), DoorDash ($23/hour), and Postmates (varies by order).
  • Most of a driver’s income comes from tips, and ideally, customers should tip at least 20% on their orders.

Which Food Delivery Service Pays the Most?

The food delivery service that pays the most is Uber Eats, with drivers reporting earning as much as $20 an hour. Before you quit your day job to deliver food, you need to consider the responsibilities of a delivery job.

Which Food Delivery Service Has the Best Perks?

While Uber Eats pays the most, Instacart has the best perks.

You can work for the food delivery app whether you have a car or not. Since it’s a grocery delivery service as well, you don’t have to be a driver. The company also gives workers access to Perkspot to get discounts on travel, hobbies, and more.

What Does Each Food Delivery Service Pay?

Based on data that we analyzed from Solo’s Marketplace Insights, this is what we found:

Service NameAverage Hourly PayBase Pay RangeAverage Tips per HourAverage Additional Incentives
Instacart$18.95/hr$7.07 – 13.68/hr$9.90/hr$0.40/hr
GrubHub$15.00/hrN/AN/AN/A
Uber Eats$19.77/hr$5.50 – 11.55/hr$7.70/hr$0.31/hr
DoorDash$15.03/hr$6.00 – 10.67/hr$7.53/hr$0.04/hr
Postmates$18.78/hrN/AN/AN/A
Averages$17.51/hr$6.19 – 11.97/hr$8.38/hr$0.25/hr

Generally, these services operate on a standard model. However, each service has its nuances. While the age and condition of your car might be a crucial criterion for one, another might prioritize something else.

And remember, your earnings could swing based on your location. Big cities with high populations often have a steady stream of orders, ensuring a better income.

1. How Much Does Instacart Pay?

Instacart pays its drivers an average of $18.95 an hour.

They’ve built a reputable name in the food delivery sector, ensuring competitive compensation for their drivers. The base pay varies between $7.07 to $13.68 per hour, while tips add an average of $9.90 per hour.

Additionally, drivers can expect to earn around $0.40 per hour in extra incentives. This may not reach some of the higher estimates of $30 an hour, but it remains impressive compared to industry standards.

2. How Much Does GrubHub Pay?

GrubHub pays its drivers an average hourly rate of $15.00.

As an early entrant into the food delivery space, they continue to be a reliable option for many drivers. Though specific details on the base pay range, tips, and extra incentives aren’t available, the consistent pay showcases the stability that GrubHub promises.

The platform also provides features like a recommended 15% tip, allowing for some earnings predictability. Moreover, drivers appreciate the ability to view the estimated payout before accepting orders.

3. How Much Does Uber Eats Pay?

Uber Eats drivers earn an average of $19.77 per hour.

Known to many as a prime choice for food delivery, the pay structure is quite detailed. Drivers receive a base pay that spans from $5.50 to $11.55 an hour, and they can also expect about $7.70 per hour in tips.

Other incentives chip in approximately $0.31 per hour. This comprehensive pay scheme makes Uber Eats an attractive option for drivers in various locations.

4. How Much Does DoorDash Pay?

DoorDash compensates its drivers with an average of $15.03 per hour.

Being a key player in the food delivery market, they’ve established a solid pay structure. The base pay oscillates between $6.00 to $10.67 an hour. Tips contribute an average of $7.53 per hour, and other incentives amount to roughly $0.04 per hour.

One of DoorDash’s prime features is the ability to schedule orders in advance, enabling drivers to streamline their deliveries, which in turn can enhance their earnings and overall efficiency.

5. How Much Does Postmates Pay?

Drivers working with Postmates receive an average hourly pay of $18.78.

Due to the variety of delivery items on the platform, the pay model is unique and diverse. While specific details about base pay, tips, and additional bonuses aren’t readily available, the average earnings highlight Postmates’ dedication to fair compensation.

Additionally, drivers have opportunities to increase their income through various driving bonuses.

What Percentage of Delivery Income Is Tips?

Analyzing various food delivery platforms gives us a clearer picture of a driver’s income structure:

  • Instacart: Drivers earn an average of $18.95 per hour, out of which approximately $9.90 comes from tips. This means that roughly 52% of their earnings are from tips.
  • GrubHub: The average hourly pay for GrubHub drivers is $15.00. Specific details regarding the tips aren’t available, but it’s safe to say tips form a significant portion of their earnings.
  • Uber Eats: Drivers make an average of $19.77 per hour, with $7.70 attributed to tips. This indicates that about 39% of their income is tips.
  • DoorDash: Drivers earn an average of $15.03 per hour, of which approximately $7.53 is from tips. This means that nearly 50% of their earnings are tips.
  • Postmates: Postmates drivers have an average hourly pay of $18.78. Detailed breakdowns related to tips aren’t provided, but, like GrubHub, tips undoubtedly form a significant chunk of their income.

On average, drivers across these platforms earn about $17.51 per hour. Approximately $8.38 of this comes from tips, translating to almost 48% of their total income being tip-based.

This reinforces the fact that a significant portion of a driver’s earnings come from tips. If a customer chooses not to tip, it can notably impact a driver’s earnings, especially when considering time and fuel costs.

How Tips Work

When you provide a delivery service, it’s reasonable to expect a tip, similar to how customers tip waitstaff in restaurants. Unfortunately, not every customer tips.

Some might assume that the delivery fee they paid includes a tip, or they might simply forget to add a tip when paying with a credit card. However, it’s standard for customers to tip around 20% of their order total. Generous customers might even tip more for prompt or exceptional service.

We suggest tipping delivery drivers at least 15-25%. For standard orders, this usually comes out to be around $3-5, but can become much higher if you add a bigger tip because they went above and beyond for you.

Is It Worth It To Deliver Food for Work?

There are many pros and cons to driving for a food delivery service. Before applying for the job, consider the items on these lists to see if they’re worth your time.

vector graphic showing a man holding a food bag and wondering to himself "which food delivery service pays the most"
Pros of Food Delivery

The flexible schedule lets you pick up orders as you have time.

The car requirements are lax since you’re not driving people.

You can pick up a lot of orders during peak meal times.

Most apps have Fast Pay options so you can get an instant cash out.

Cons Food Delivery

You’re an independent contractor, so you’re on the hook for self-employment taxes.

You’re putting a lot of extra miles on your car, leading to accelerated wear and tear.

You have to pay for gas to keep your tank full.

Wrapping Up

Food delivery is a flexible way to earn extra income, allowing you to choose your work hours. However, to ensure it’s worth the time and wear on your vehicle, it’s crucial to choose the best-paying delivery service, maximizing the returns on your effort.

1 thought on “Which Food Delivery Service Pays The Most In 2023?”

  1. Instacart does not always let the customer know who will be delivering their items. Or, the picture on the app isn’t always the person who delivers the items. Safety is a concern for all customers. So, if one person packs the items, but another person delivers the same items, how is the tip distributed?

    Reply

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