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New drivers looking to get into the gig economy as contract drivers for app-based services like Uber and GrubHub often face the conundrum of deciding which service to work for. Many drivers work for several services, but for new drivers just starting out, focusing on one service is the best way to ease into the profession.
Depending on the area, and the demand for one kind of service over another, drivers for Uber Eats, GrubHub, and DoorDash tend to make roughly the same amount per hour. With this in mind, and assuming all three services see roughly the same amount of business in an area, the decision often comes down to what benefits the companies provide for drivers. In the early days, drivers, as contract employees, were mostly on their own when it came to driver safety, reimbursement for expenses, or other aspects of the job that are not usually given to independent contractors.
These days, however, many app-based companies that rely on self-employed drivers have since learned the benefits of providing drivers with some minor insurance coverage, promotions that increase earning potential, and a variety of other benefits, which entice drivers to stay on and promotes loyalty. Let’s examine some of the benefits of these three companies mentioned above, and examine the DoorDash vs Grubhub vs Uber Eats for drivers benefits.
Grocery and takeout delivery service DoorDash is one of the most forward-thinking companies in dealing with its workers, called “Dashers.” Some of the benefits offered to drivers are:
- Partnership with Stride Health to provide ACA medical insurance, dental and vision plans for drivers who wish to participate.
- A Rewards program for drivers who wish to enroll, which provides higher pay, gas cards, and other benefits for completing a certain number of deliveries.
- Financial Assistance Programs for drivers impacted by the COVID19 pandemic that provides financial assistance, PPE, and other benefits for drivers who test positive for COVID and enroll in the program.
- Access to 401K plans.
- Driver safety and emergency assistance help are built into the driver app.
Like DoorDash, GrubHub specializes in grocery and takeout delivery and employs drivers as independent contractors. GrubHub’s driver benefits are:
- Discounts on products and services such as Quickbooks, JiffyLube, and vehicle equipment.
- Access to an ACA insurance plan through Stride.
- Up to 25% gas reimbursement through Gasbuddy and Car Advise programs.
- Two weeks’ sick leave pay for drivers who test positive for COVID19.
- Free PPE for drivers who need it
As a division of Uber Technologies, which provides a variety of services such as food delivery and ride hailing, Uber Eats is also the service that provides the highest level of driver safety features and benefits. These include:
- Drivers who qualify for Uber Pro earn points and rewards for completing deliveries. Some rewards include tuition reimbursement, car maintenance discounts, 5% cash back on gas, and discounts at some retailers.
- Uber’s driver safety features in its driver app are some of the best in the industry.
- Uber offers a limited vehicle insurance program for drivers, although it only covers damage incurred while working on an active delivery.
- Discounts on phone plans.
- In some states, drivers can get family medical leave, sick leave, and vacation leave.
- ACA health insurance plans are offered.
- Retirement 401K plans are offered.
Drivers looking into the gig industry have many options to choose from, and employee benefits are still an emerging area of this industry. Companies every day add new benefits to their lineup of perks for contract workers, moving towards a day when these workers are classified as employees outright. Many factors go into the decision of which company to work for, but potential new drivers should also take into account that some services have a higher share of the market in one area than others, and that another service might be more popular in another area. Drivers should be familiar with their area of work, know which services see the most business, and take into account driver perks and benefits when making a choice.
1. Which of these services sees the most business in general?
For the food delivery industry, DoorDash tends to hold the highest percentage of the market, closely followed by GrubHub. Uber Eats sees the least amount of such work. This means that working for DoorDash might be more lucrative, but Uber tends to have a wider range of benefits. GrubHub sees the second highest number of jobs, but has the lowest number of driver benefits.
2. How much do drivers for these services average per hour?
Uber Eats drivers average $18 per hour, GrubHub averages $17 per hour, and DoorDash averages $16 per hour.
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