Recent years have seen an acceleration in the popularity of food delivery services via apps, much like ride-sharing services such as Uber and Lyft. In the past decade, we could not have imagined that the world today would be as instant and mobile.
When compared to traditional restaurants, fast food offers both convenience and affordability. Third-party food delivery apps aim to change the perception that convenience decades ago is now an inconvenience.
DoorDash: An Overview
The DoorDash app has been delivered to more than 300,000 businesses in the U.S., Canada, and Australia since 2013. Using DoorDash, customers can shop at convenience stores and restaurants to get food delivered.
DoorDash drivers are called Dashers and they can use their cars, bikes, scooters, or motorcycles to deliver. In addition, DoorDash Dashers can simultaneously work for partners such as Uber Eats, Grubhub, and Instacart.
I agree with you 100 percent, and that is entirely true when it comes to driving for rideshare companies. Several apps will open simultaneously, and you can select the orders you wish to place.
The DoorDash sign-up process is as follows:
- Click here to join Doordash
- Orientation for new drivers must be completed online or in-person
- Be screened for drivers
- Upon approval (approval can take up to 10 days), you can download the app and begin driving.
- A paperless menu alternative was founded by GrubHub in 2004. With the combination of Grubhub and Seamless in 2013, more than 200,000 restaurants are now delivering food on Grubhub.
- Over $3 billion in tips have been awarded by Rubbhub to over 516,000 drivers every day. Deliveries from restaurants are made on-demand.
To become a Grubhub driver, follow these steps:
- You can apply for Drive by clicking here.
- Driver eligibility and requirements questions.
- Creating a driver profile includes providing your driver’s license information, your insurance details, and authorization to check your background.
- Complete the online onboarding process or attend an in-person onboarding (it can take 5-7 days) when you’re approved.
- Start delivering.
The first thing I’m going to do is explain how each of these food delivery services pays its drivers, and both of them have made significant changes in recent years to improve their pay models and allow drivers to earn more.
Grubhub pays you based on the following:
- Estimated mileage between pickup and dropoff
- Distance covered in total
- Time spent driving and waiting
There are a variety of variables depending on the markets – drivers, location, and ease of delivery. A 100 percent commission is also yours every time you make a tip.
Below you’ll find a comparison of Grubhub’s new pay model with its old model.
According to DoorDash’s Dasher Pay Model, drivers receive Base Pay + Promotions + Tips.
All tips are also kept by DoorDash drivers.
Earnings and time are factors in determining Base Pay, which ranges from $2 to $10. You can increase your earnings through promotions in a few different ways, including:
- Peak Pay: When you drive during busier hours, you can earn $1-$4 more per delivery. An alert will appear on your phone when it’s peak pay time.
- Drivers are incentivized by DoorDash based on the number of orders they complete in a set amount of time. The app offers challenges that can be combined with Peak Pay.
- There’s also the option to complete larger orders for more money.
Drivers on DoorDash make between $12 and $15 per hour before tips, while those on GrubHub make more like $12 to $13.
Driving for either company is considered independent contracting, so you’re responsible for withholding your own tax.
DoorDash vs GrubHub: Where You Can Drive?
It holds roughly 30% of the market share for on-demand food delivery services. Grubhub is now one of the largest on-demand food delivery services in the world. Since it is widely available, Just Eat Takeaway, a food delivery service based in Amsterdam, acquired it in order to create what is now the largest food delivery service outside of China.
There are now more than 4,000 Grubhub locations in the U.S. as the company’s U.S. presence has grown.
In 2020, DoorDash expects to expand from 850 US markets in 2018 to 3,300 markets. Canadians and Australians can also use DoorDash.
The companies both make their home in smaller cities in the U.S., so there’s a good chance that they’re available in your town, too.
Compared with DoorDash, GrubHub has more requirements for drivers
There are similar qualifications for drivers for both companies, but let’s look at the qualifications for each company separately.
You need to do the following to drive with GrubHub:
- The age of majority is 19 years of age (21 years of age in Las Vegas and Chicago)
- Have a smartphone with a data plan – iPhones and Android phones with iOS versions 11 or higher
- Direct deposit into a checking account
- Ensure your driver’s license and auto insurance are valid
You must also pass a background check and a driving test before applying for GrubHub. Felons and drivers with serious driving violations are ineligible to drive. The same standards apply to DoorDash drivers. In their guidelines, they explicitly state that you will be disqualified if you have more than three minor driving violations in the past three years.
DoorDash drivers must also meet the following requirements:
- Minimum age of 18 is required
- Ensure your driver’s license and auto insurance are valid
- Are you using a smartphone from Apple or Android
Before you can work for either company, you must also complete an orientation. In addition to online options, there are in-person sessions covering how to use the app, use payment methods, and fill out tax forms.
Grubhub vs DoorDash: How to Get Paid?
Every Friday, DoorDash uses direct deposit to pay its Dashers. On Wednesdays, money usually reaches drivers’ bank accounts. You can cash out instantly with Fast Pay for $1.99 if you need your money right away.
GrubHub pays its drivers the day after they work by direct deposit, and the money reaches their accounts 3 to 5 days later. Pay yourself early by using Instant Cash Out. When you use a Chase checking account, it’s free. Otherwise, it costs $0.50 per cashout.
The Difference Between DoorDash and GrubHub when it comes to payment
Every Friday, DoorDash uses direct deposit to pay its Dashers. On Wednesdays, money usually reaches drivers’ bank accounts. With Fast Pay, you can cash out immediately for $1.99 if you want your cash ASAP.
In GrubHub, payments are sent out by direct deposit on Thursdays, and they are deposited into drivers’ accounts three to five days later. Alternatively, you can get paid early with Instant Cash Out. Using a Chase checking account provides free cashouts; otherwise, it costs $0.50 for each cashout.
What kind of treatment do these companies give to their drivers?
Since drivers have various options these days (more on this in a moment), you may be able to be pickier when it comes to companies.
DoorDash’s driver support is available through the app through a chat function, though it can sometimes be slow. GrubHub, on the other hand, provides live phone support during delivery.
It was reported in 2019 that DoorDash used tips to make up the guaranteed minimum payment due to a tipping scandal. In addition to earning tips, DoorDash now pays its drivers a higher base salary and 100% of tips.
Several lawsuits and controversies have been filed against GrubHub, including accusations of cybersquatting.
What does all of this alleged wrongdoing do to you personally as a driver?
The public perception of some of these brands may directly influence their drivers, while others can influence consumers’ choices between one or more companies. The decline in orders means fewer driving opportunities.
The companies are improving the working environment for their drivers by actively making changes. As a matter of fact, all of these on-demand services have come under fire in the past few years.
Making Extra Money Through Alternative Methods
You may be more interested in these on-demand food delivery services if neither Grubhub nor DoorDash sounds appealing to you:
Among the most popular delivery services is Instacart, which specializes in grocery deliveries. A full-service shopper shops and delivers or you can shop in-store. If you include tips, Instagram shoppers earn about $20/hour.
Shoppers make between $15 and $20 an hour through Shipt, delivery service from Target.
You can get almost anything delivered by Postmates, including PlayStations and gum. Delivery Men earn an average base salary of $11/hour before tips with the company acquired recently by Uber Eats.
You can get groceries, takeout meals, and even essential items from convenience stores through Uber Eats drivers. On average, twelve to fifteen dollars an hour are paid.
Running Facebook ads for small businesses is my favorite side hustle. You can make $1,000-$2,000 per client every month if you find a client and run and maintain their ads for them for a few hours each week.
Interesting Read: How Late Does USPS Deliver Packages
The Final Verdict – GrubHub or DoorDash?
Both companies offer the possibility of earning extra income in your spare time while remaining flexible. You can use that to pay off your consumer debt, save up for a house downpayment, plan for retirement, and more.
The reason I prefer DoorDash over the other is that it pays more per hour, which is what matters most about side hustles.
Don’t forget, however, that you can do both to increase your earnings potential. Keeping both apps open is also recommended, as is signing up for Instacart. If you receive a payment from them, you can choose which deliveries you would like.