This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.
The Food Delivery Driver: Should You Pick GrubHub, Uber Eats or Postmates?
The value and convenience of food delivery really came into their own after 2019, with the onset of the COVID-19 pandemic and the need for social distancing requiring many to look to food delivery services. Likewise, those who lost their jobs or found their hours cut back due to the pandemic were also looking for a means of income, and saw that the demand for food delivery was a lucrative option. Nearly overnight, there was a boom in food delivery services such as GrubHub and Uber Eats, as some existing side gig services like Uber started to see the potential in offering food delivery as well. The following three services are worth considering for the new driver looking to make some extra money delivering food orders.
- The Food Delivery Driver
The Food Delivery Driver
Most side gig services like the ones showcased below require an individual to provide their own means of transportation when delivering orders. While most make use of personal vehicles, some services such as Uber Eats and GrubHub allow for delivery on foot or by bicycle, so long as the food is delivered within a certain time-frame.
GrubHub, one of the first delivery services in the industry, has a loyal customer base despite not operating in as many areas as competitors like Uber Eats. Even restaurants that don’t offer in-house delivery can be ordered and delivered by GrubHub, which pioneered the idea of someone else picking up the order and delivering it to the customer. An hourly wage of $15 is standard for GrubHub drivers. They must be at least 18 years old, and those who drive for the company in their own vehicles must pass a driving check and show proof of insurance. In addition to passing a criminal background check and supplying their Social Security number and proof of residency, all delivery personnel are required to go through worker training. GrubHub does not withhold taxes from contract workers, who must instead file an annual self-employment tax return. Gas, parking, and maintenance costs are all the responsibility of the driver. Comparing Grubhub vs Uber Eats shows that GrubHub is one of few services that guarantees and hourly income.
Most people would recognize the name Uber, even if they have never utilized their ride-sharing services, but fewer people realize that Uber now offers food delivery as well. For food delivery, Uber Eats drivers must also pass Uber’s criminal background and driving checks, but they are not restricted to using a four-door vehicle, as is the case for passenger transport. The average hourly wage for Uber Eats drivers is $15. They report higher tips than other drivers, and Uber pays for tolls. Uber Eats drivers are responsible for their own gas and vehicle maintenance. They must also file as independent contractors on their taxes because they are contract workers. When directly compared to some competitors, Uber vs Doordash pay for drivers, for example, Uber tends to provide more simply because they have a greater presence in more urban areas.
Postmates, a delivery service recently acquired by Uber, claims to be able to deliver virtually anything. Drivers for Postmates can deliver food and restaurant orders, but they can also deliver goods from a wide variety of retailers. Drivers must be US residents, be at least 18 years of age, pass a criminal background and driving record check, carry proof of insurance on the vehicle being used, and present a valid driver’s license. Dependent on the nature of the order, Postmates drivers may make slightly more than Uber Eats or GrubHub food delivery drivers, on an average of $15–$17 an hour. Articles comparing Uber Eats vs Postmates show that Postmates tends to earn more due to its flexibility in delivering all kinds of goods, not just food.
There is a lot of potential for growth in the side gig market of food delivery services in the coming years. The need for food delivery is something that almost everyone experiences, whether it’s due to illness, the need to look after a loved one, or any other reason that prevents them from cooking a meal or going grocery shopping. Even though the opportunity to earn is lower by delivering food, many drivers find food delivery to be a more comfortable option than dealing directly with clients in their cars because it is safer and more convenient for them, even if they don’t get as much money. Hopefully this articles has helped the new driver understand the differences between Grubhub vs Uber Eats and Uber Eats vs Postmates, to best choose the delivery service to work for.
Which service pays the most to its drivers? How does Uber compare to another service like Uber vs Doordash pay opportunities?
Comparisons of several delivery services show that Uber services tend to earn more than others, due to the fact that Uber is more widespread than its competitors. However, GrubHub is the only service reviewed here that guarantees an hourly wage to its drivers. Other competitors like DoorDash claim their drivers can make around $25 an hour, but in practice, this is rare.
Will any of these three services reimburse drivers for any expenses?
Drivers will not be reimbursed for gas, parking, or maintenance costs, but all three services will reimburse clients for tolls and vehicle damage.
Can drivers work for more than one service at a time?
Yes, drivers can work for any number of delivery services at once, indeed many drivers claim this is the best and most sensible way to make a living doing delivery.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.