As with other contract gigs, Grubhub is flexible and can pay well. However, you don’t have a set hourly rate like a traditional employee.
That means you could make very little money during some of your shifts. Grubhub offers an hourly guarantee to make up for that.
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What Is the Grubhub Hourly Guarantee?
Grubhub offers an hourly minimum pay guarantee in some cities. The specific amount varies by market, and you might need to meet certain requirements to qualify. Fortunately, drivers in California will always have a guarantee.
Be sure to review your account to check your payment terms. Then, you’ll know how much you can expect to make as a Grubhub driver.
How Grubhub Calculates Pay
Grubhub considers a variety of factors when calculating pay for an order. The pay depends on the mileage, delivery time, and current special offers. Of course, you can also earn tips from customers.
Because Grubhub pays per order, you might make more during some hours than others. This can be true even if you exclude earnings from tips, which can vary significantly.
So some orders will pay more than others. Keep an eye on your Grubhub account to watch for special offers to increase your earnings. You can also be more selective and avoid lower-paying orders to increase your hourly rate.
Grubhub Contribution Guarantee
In some markets, Grubhub offers a contribution guarantee. That way, you can make at least a specific amount per hour, even if you don’t get many orders.
The bonus isn’t available in every market, and the guaranteed amount can vary. Some markets will pay more as the base rate. Also, you’ll need to meet certain criteria to even qualify for the contribution payments.
You need to be scheduled for a block, and you can’t decline too many orders during that block. That keeps drivers from just sitting on the road doing nothing.
California Prop 22 and Grubhub Pay
If you live and work in California, you should know about Prop 22. The bill classifies app-based workers as contractors. However, it also guarantees some protections for drivers during their shifts.
During your active time, you’re guaranteed to make at least 20% more than the local minimum wage. You’ll also earn $0.30 per mile that you drive for Grubhub. All of the tip money you earn will go to you as well, but it won’t count toward calculating minimum pay.
So if you work for one hour and the minimum wage is $15, you’d be guaranteed $15. Assuming you drive 10 miles, you’d earn an extra $3. That means you’d earn at least $18 plus any tips customers give you.
Why Doesn’t Everyone Qualify for an Hourly Guarantee?
Not everyone qualifies for an hourly guarantee for a couple of reasons. First, you might not live in a market with an active guarantee.
Even if you can get a bonus, you might not meet the requirements. If you don’t schedule your shifts (and you live outside of California), you won’t qualify for the bonus. You also might not qualify if you don’t maintain a high acceptance rate.
Consider accepting more orders and scheduling blocks to work. Then, you might realize you can qualify for a minimum hourly rate.
Do Tips Count Toward Your Hourly Guarantee?
Fortunately, tips don’t count toward the hourly guarantee in California or elsewhere. That means you don’t have to worry about a large tip disqualifying you from the hourly minimum or contribution pay.
Of course, Grubhub can’t know about all the tips anyway. Some customers might leave a cash tip, so you can take the cash for yourself.
Keep all of that in mind when accepting Grubhub orders. Grubhub probably wants to provide great service to those customers, so it makes sense for the company to let you keep all of your tips regardless of other pay rates.
Can You Earn More Than the Hourly Guarantee?
When you drive for Grubhub, you can theoretically make as much as possible. If you get enough high-paying orders with excellent tips, you could earn double the minimum guarantee or even more.
However, you shouldn’t count on earning a lot more than the guarantee. It all depends on the orders you receive. That can vary based on the day, time, and neighborhood where you work.
Of course, even if you don’t get many orders, you can still earn more. You’ll get the hourly guarantee from Grubhub, and you can keep your tips in addition to that rate.
How Does the Grubhub Hourly Guarantee Work?
The Grubhub hourly guarantee provides drivers with a minimum hourly rate. However, drivers have to meet certain requirements, such as scheduling their shifts and accepting most orders. If you’re in California, you have more leeway to decline orders or drive when you want. You’ll still make a certain amount per hour.