Pros and Cons of GrubHub

GrubHub is a leading online food delivery service worldwide, with over 320,000 restaurant partners in over 4,000 cities throughout the United States. Owned by the parent company just eat, GrubHub generated over $2.1 billion in 2021. The company not only delivers food to its hungry customers but also offers employment to many people, such as drivers and restaurants, through its platform. According to a recent Grubhub survey, about 60% of consumers are satisfied with their online order experience on the platform. But what about the rest? It’s time to jump into the pros and cons of GrubHub and find out.

Overview of GrubHub

Before going through the pros and cons of GrubHub, let's find out about its background. GrubHub was founded in 2004 by two college students, Matt Maloney and Mike Evans, looking for a way to make money while in school. The pair soon realized that there was an ample opportunity in the food delivery market, and they set out to create a company that would make it easy for people to order food from their favorite restaurants.

GrubHub has come a long way since its humble beginnings, and it is now one of the world's most popular food delivery services. In addition to its massive scale, GrubHub is also known for its innovation, such as its partnership with Yelp to provide restaurant ratings and reviews on its platform.

There are plenty of benefits of GrubHub including a convenient way for diners to find and order food from their favorite local restaurants. The company's website and mobile app allow users to search for restaurants by location, cuisine, or keyword. Once a user finds a restaurant they're interested in, they can view the menu, read reviews, and place an order. Orders are typically delivered within 45 minutes to an hour.

GrubHub offers various payment options, including credit cards, debit cards, PayPal, and Apple Pay. The company also offers gift cards and promotional codes that can be used for future orders. The GrubHub website and mobile app are available in English and Spanish.

What are the Pros of GrubHub for Drivers?

If you are working with the GrubHub food delivery network, you must know the rewarding pros of GrubHub.

1. Guaranteed Income

As a GrubHub driver, you are guaranteed to earn a minimum of $12 per hour. This is regardless of how many food orders you deliver within that hour. And if you deliver during the "peak hours" (lunch and dinner times), you can easily make $18-$20 per hour. So if you commit to driving for GrubHub full-time, you can expect to make a good living – especially in larger cities.

2. Keep 100% of Your Tips

GrubHub drivers keep 100% of their tips, unlike other food delivery services. So if you provide excellent service, you can significantly increase your earnings.

3. Get Paid Daily

One of the great advantages of GrubHub is that like any other food delivery service, you get paid daily – directly into your bank account. So you don't have to wait weeks or even months to receive your earnings.

4. Flexibility

Since GrubHub is an "on-demand" food delivery service, you can essentially work whenever you want. Of course, there will be times when orders are slow. But if you log in during the lunch and dinner hours, you should always have plenty of work available.

5. No Car Required

If you don't have a car, no problem! You can still deliver food for GrubHub using your bike or scooter. However, ensure your vehicle is large enough to fit all the food orders. These are just a few of the many pros of driving for GrubHub. So if you're looking for a flexible, well-paying job, GrubHub is worth considering.

What are the Cons of GrubHub for Drivers?

Of course, like any job, there are also some downsides of GrubHub for drivers. Here are a few of the cons:

1. Low Pay per Order

Although GrubHub drivers earn a guaranteed hourly wage, the pay per order is quite low. So, for example, if you deliver an order that's only $10, you'll only earn $3-$4 for your efforts. So if you want to make good money with GrubHub, you must deliver many orders.

2. No Insurance is among the cons of GrubHub for Drivers

Unlike other food delivery services, GrubHub does not provide Insurance for its drivers. So if you get into an accident while delivering food, you're on your own. This is something to consider before driving for GrubHub.

3. 1099

The drawbacks of being a 1099 contractor are that you are an independent contractor rather than an employee and that all expenditures, insurance coverage, medical Insurance, and other expenses come from your income. As a result, you must submit end-of-year tax reports after allocating all the costs.

So while you make $12 per hour, remember to include the taxes and other expenses and be ready to pay up to 30% of your net income if necessary. This is why you should lease a fuel-efficient automobile, which is the most affordable option for financing your services and all costs are tax deductible. It also implies that you can include expenses such as eating, gasoline, oil, and maintenance while on the job.

4. Schedules

The only way to get the best schedules is by being a top-rated driver, which means accepting all requests and getting good reviews. The schedule is released on Thursday nights for Premier drivers, while those at the lowest level have to wait until Saturday morning.

5. Bad Customers

One of the most frustrating cons of GrubHub is the customers that refuse to tip. These people will place an order and then call you to say they will give you a cash tip when you deliver their food. Since tips are how many drivers earn income through the app, you try to persuade them, but they always come up with some excuse in the end. So you make the delivery only to be stiffed out of your hard-earned money.

The only perk you receive is the delivery fee; nothing else. However, with GrubHub, you are guaranteed a minimum hourly income- meaning that if it's a slow time, you don't miss out on anything. Also, now you know which customers can't be trusted and refuse service. Finally, if anyone gives trouble anonymously, let everyone know, so they get blocked.

6. Late Requests

One of the downfalls is when you receive a late request for an order that was cancelled or not delivered on time by another driver. You're already running behind, have to drive fifteen minutes to pick it up, and usually call the customer to apologize and explain that it will take longer than expected. Often, they cancel the order anyway--and then you get blamed. Plus, you wasted gas getting there plus time waiting and missed out on an opportunity to deliver an actual order.

What are the Pros of GrubHub for Customers?

There are several advantages of GrubHub, including.

  • A convenient way to order food from your favorite restaurants.
  • Can view menus and reviews before placing an order.
  • Orders are typically delivered within 45 minutes to an hour.
  • Various payment options are available.
  • Gift cards and promotional codes can be used for future orders.
  • The website and mobile app are available in English and Spanish.

What are the Cons of GrubHub for Customers?

While GrubHub offers many conveniences for customers, there are also some drawbacks, including:

  • Some restaurants may not be listed on the platform.
  • Some restaurants may charge delivery fees.
  • Minimum order requirements may apply at some restaurants.

What are the Pros of GrubHub for Restaurants?

GrubHub offers several benefits for restaurants, including:

  • A convenient way for customers to order food from your restaurant.
  • No upfront costs or monthly fees – restaurants only pay a commission on orders placed through the GrubHub platform.
  • Access to millions of potential customers.
  • Ability to track orders and manage customer information.

What are the Cons of GrubHub for Restaurants?

As a start-up or growing business, you should also consider some cons of GrubHub for restaurants, including:

  • Restaurants may be required to pay a commission on orders placed through the GrubHub platform.
  • Some customers may prefer to order directly from the restaurant’s website or mobile app.

Conclusion on the pros and cons of GrubHub

GrubHub is a food delivery service with pros and cons for customers, drivers, and restaurants. The service offers customers the convenience of online ordering and delivery from local restaurants. Drivers can make money by delivering orders through GrubHub. Restaurants receive orders from GrubHub and can track their performance using its analytics tools. However, there are also some drawbacks to using GrubHub.

Customers may be unable to find all their favorite dishes on menus offered through the service. Restaurants may experience longer wait times for orders placed through their app than those placed directly. And drivers may face competition from other drivers working for competing services or in-house employees tasked with food delivery duties. In conclusion, it is up to individuals to decide whether the pros of using GrubHub outweigh the cons.

Pros and Cons of GrubHub

Frequently Asked Questions

Is Grubhub worth doing?

Grubhub is a fantastic method to earn some money on the side. Some drivers would want to work full-time and others part-time. It's entirely up to you. If you just want to make some extra money on the side, a Grubhub payment is an excellent side business that can help supplement your income.

What is the benefit of Grubhub?

Grubhub+ is the perfect solution for those who frequently order food delivery. With Grubhub+, you get unlimited FREE delivery on orders of $12 or more from restaurants in their network, access to elite customer service, and so much more.

Can you make a living off Grubhub?

Yes, you may earn a lot of money with Grubhub. Grubhub drivers get paid $18 per hour on average. However, the amount is not set in stone, and improving your order acceptance rate might increase your earnings. During peak hours, you can quickly improve your hourly wage by offering tips, bonuses, and scheduling.

Does Grubhub have a monthly fee?

If you are not subject to a free trial, Grubhub will automatically charge you $9.99 per month plus tax when you become a Grubhub+ member. You will be charged each month at the then-current rate until you cancel your subscription.

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