# GrubHub pay structure



## Grubhubflub (Jun 16, 2018)

GrubHub rolled out a new set of payment terms in my market where apparently they only pay twenty cents a mile and the delivery fee has been dropped to three dollars. Have they done this anywhere else?


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## amazinghl (Oct 31, 2018)

Of course. 
Is it going to get better? No, it's going to get worse, much worse.
Should you look for a new job? Yes.


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## WAHN (May 6, 2019)

Grubhubflub said:


> GrubHub rolled out a new set of payment terms in my market where apparently they only pay twenty cents a mile and the delivery fee has been dropped to three dollars. Have they done this anywhere else?


https://uberpeople.net/threads/grubhub-for-drivers-we’re-improving-your-grubhub-pay.334134/


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## Emp9 (Apr 9, 2015)

WAHN said:


> these companies are so full of it, yeah they talked to drivers and they want to be paid less. lol smfh


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## Uberdriver2710 (Jul 15, 2015)

They frame it as an 'improvement' so the quality of service stays the same.

More pandering to keep you from jumping ship.


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## andaas (May 19, 2015)

Grubhub seems to be destroying their brand.

Over-billing restaurants through their redirected phone numbers.
The newly uncovered cyber-squatting system where they stage websites for restaurants to pull in more "commissioned" orders (via online and above phone numbers).
Asking restaurants to pay for search/placement in the app. (I can see the effects of this as there are restaurants listed in the app when I "search" by name, but the same restaurants are not found easily when sorting by distance/price/rating).
Widening delivery radius to unreasonable distances (10 miles or more). This is resulting in terrible customer experiences (drivers are not accepting these orders due to distances; when order is accepted, delivery takes 30 minutes from pickup - end result, cold food).
"Improved" pay model - further reducing driver pay, will make drivers reject more offers. This will create further negative customer experiences.
One year ago, Grubhub commanded the market share in food delivery. Restaurants seemed to like the level of service. Drivers were satisfied with the pay.

Today, Grubhub is second in market share in food delivery. Restaurants are being charged more for a declining level of service. Drivers are paid less and will not stick around.

"Service industry" companies need to remember the key word "service". When you start failing to provide quality service to your customers (Restaurants, Diners, *and* Drivers), those customers will find another provider who does provide quality.


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## Prius13 (Mar 29, 2017)

I didn't realize either they were playing around with delivery fees now (sliding scale), mileage now 25 cents per mile (wasn't it 50 cents before?). Chicagoland market.


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## uberboy1212 (Jan 10, 2017)

Prius13 said:


> I didn't realize either they were playing around with delivery fees now (sliding scale), mileage now 25 cents per mile (wasn't it 50 cents before?). Chicagoland market.
> View attachment 333493


$.50/mile was garbage and they have the nerve to cut that in half? That's unreal


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## Prius13 (Mar 29, 2017)

Looks to me it is best that customers tip in cash. At least for GH.



uberboy1212 said:


> $.50/mile was garbage and they have the nerve to cut that in half? That's unreal


Well, that $. 50 per mile was decent as that was the prevailing Uber and Lyft pay rate. However, the GH pay for mileage seems to include trip to the restaurant.


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## uberboy1212 (Jan 10, 2017)

Prius13 said:


> Looks to me it is best that customers tip in cash. At least for GH.
> 
> 
> Well, that $. 50 per mile was decent as that was the prevailing Uber and Lyft pay rate. However, the GH pay for mileage seems to include trip to the restaurant.


Sorry I'm comparing it to PM here in DC is $1.29/mile. $.25/mile is def the lowest ever


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## dlearl476 (Oct 3, 2017)

I'm at a loss. AFAIK, I'm still working on the old pay structure. (No email. No new TOS to sign)

Our fee is (was?) $3.50/trip.

















Someone posted that they think GH adjust pay scale for tips, but neither that nor the new pay structure I've heard about explain these discrepancies.

(And if so, FU to GH, that zero tip Litlle Ceasers customer tipped me $3 cash!)


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## Uber1111uber (Oct 21, 2017)

Improving drivers pay? ?


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## oicu812 (Aug 29, 2016)

Saw on Reddit that someone got one for $3 even.


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## 1776abe (Apr 8, 2019)

Does anyone actually accept those for 3.00 . I decline them all.


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## Launchpad McQuack (Jan 8, 2019)

dlearl476 said:


> Our fee is (was?) $3.50/trip.
> 
> Someone posted that they think GH adjust pay scale for tips, but neither that nor the new pay structure I've heard about explain these discrepancies.


I don't see any pattern in that data. Nothing that jumps out at me. In my case, whenever they adjusted the flat base pay it was always to compensate for a low tipping offer. That's not the case in your data. Also, they never decreased the flat base pay below my established market rate ($4.50). They only increased it.

If the contract that you agreed to says that you will be paid a flat base rate per delivery and that published rate still says $3.50, then they are breaching contract with some of those delivery payments.


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## uberboy1212 (Jan 10, 2017)

It’s $3.00 here


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## dlearl476 (Oct 3, 2017)

Launchpad McQuack said:


> I don't see any pattern in that data. Nothing that jumps out at me. In my case, whenever they adjusted the flat base pay it was always to compensate for a low tipping offer. That's not the case in your data. Also, they never decreased the flat base pay below my established market rate ($4.50). They only increased it.
> 
> If the contract that you agreed to says that you will be paid a flat base rate per delivery and that published rate still says $3.50, then they are breaching contract with some of those delivery payments.


Yeah, I, likewise couldn't see any discernible pattern. Although, except for one delivery, it kind of fits with the supposed new pay structure. The oddball is that little Ceasers last night at 7:00. That location is two blocks from my storage unit (where I was working on my car at the time) and the delivery was right across the street from it. No way was that 2.5 miles.


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## Prius13 (Mar 29, 2017)

uberboy1212 said:


> Sorry I'm comparing it to PM here in DC is $1.29/mile. $.25/mile is def the lowest ever


Maybe I need to check on postmates here in Suburban Chicagoland.

Am so will be swiping for Amazon regardless that my warehouse has a lot less blocks to offer, they've brought back last mile deliveries to their own gray Amazon vans and white van Dsp's. Cc @Chicago-uber cc @WestBurbsMac.


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## uberboy1212 (Jan 10, 2017)

Prius13 said:


> Maybe I need to check on postmates here in Suburban Chicagoland.


Honestly I think all delivery drivers should have PM at least as a side gig. You can deliver in any PM area, no scheduling plus the most potential for tips. Definitely couldn't do it as my main gig but its perfect to run together with UE


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## Launchpad McQuack (Jan 8, 2019)

dlearl476 said:


> Although, except for one delivery, it kind of fits with the supposed new pay structure. The oddball is that little Ceasers last night at 7:00. That location is two blocks from my storage unit (where I was working on my car at the time) and the delivery was right across the street from it. No way was that 2.5 miles.


Yeah, they are paying you about 23¢/mile......which is very low if it is not for total mileage. If the first number is the time pay, though, they should be telling you how much time they are paying you for.

At the end of the day, though, the formula doesn't really matter. The only thing that matters is that bottom-line number when you decide whether or not to accept the ping.


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## kevin92009 (Sep 11, 2016)

uberboy1212 said:


> It's $3.00 here


not worth it


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## dlearl476 (Oct 3, 2017)

Launchpad McQuack said:


> Yeah, they are paying you about 23¢/mile......which is very low if it is not for total mileage. If the first number is the time pay, though, they should be telling you how much time they are paying you for.
> 
> At the end of the day, though, the formula doesn't really matter. The only thing that matters is that bottom-line number when you decide whether or not to accept the ping.


True. And they got me good last night. I was nearing the end of a block, yet didn't realize I was already over the minimum. Didn't want to lose it, so I accepted s friggin $3.18 five mile delivery with no tip. Had I realized accepting or not didn't matter guarantee-wise, I'd have cancelled after I saw the location.

Re: time pay. I think if they ever do that to me again, it might just take me two hours to make the delivery.


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## oicu812 (Aug 29, 2016)

dlearl476 said:


> Re: time pay. I think if they ever do that to me again, it might just take me two hours to make the delivery.


How much is your time worth?


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## kevin92009 (Sep 11, 2016)

I think all of our time is worth more than pay us , But the way these companies think is that they’re just paying us for gas and car wear but our labor should be free


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## Launchpad McQuack (Jan 8, 2019)

kevin92009 said:


> But the way these companies think is that they're just paying us for gas and car wear but our labor should be free


They're not thinking that they're just paying you for gas and car wear. Their goal is to pay you as little as you will accept, regardless of whether or not it covers your costs. They don't care about your gas and car wear costs one bit.


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## kevin92009 (Sep 11, 2016)

Launchpad McQuack said:


> They're not thinking that they're just paying you for gas and car wear. Their goal is to pay you as little as you will accept, regardless of whether or not it covers your costs. They don't care about your gas and car wear costs one bit.


you are correct and to be honest it's disgusting when companies think ... oh what's the least we could pay people without them jumping ship . makes me very angry how they think about us .I hope they don't try to expand this business model to other industries in this country and wipe away years of hard caught labor rights


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## Solid 5 (Aug 24, 2018)

Just rolled out the new pay structure in Charlotte today, $.22 a mile


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## dlearl476 (Oct 3, 2017)

oicu812 said:


> How much is your time worth?


Invaluable. But I can certainly pick an order, got to my storage unit and work on my car for an hour, then deliver the order.

If a customer ever gives me grief about it taking so long, I'll mention
Tipping
Insures
Prompt
Service


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## kevin92009 (Sep 11, 2016)

Solid 5 said:


> Just rolled out the new pay structure in Charlotte today, $.22 a mile


That is way too low to make it worthwhile


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## amazinghl (Oct 31, 2018)

kevin92009 said:


> That is way too low to make it worthwhile


The amount of tip literally detemine if the drive will make the driver earn money or lose money.


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## kevin92009 (Sep 11, 2016)

amazinghl said:


> The amount of tip literally detemine if the drive will make the driver earn money or lose money.


That's very discouraging and I was thinking about signing up for blocks


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## Toby2 (Jun 16, 2018)

I’ve been picking up random blocks lately and its been slow. Barely making over guarantee. $10 an hour.


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## kevin92009 (Sep 11, 2016)

Toby2 said:


> I've been picking up random blocks lately and its been slow. Barely making over guarantee. $10 an hour.


around minimum wage ?


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## Uberdriver2710 (Jul 15, 2015)

We're all getting crushed, no surprise. Thank God for investments.


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## Launchpad McQuack (Jan 8, 2019)

Solid 5 said:


> Just rolled out the new pay structure in Charlotte today, $.22 a mile


Same here. Yesterday I was on the old pay model, but I immediately noticed it was different when I started inputting my data in the spreadsheet for today's deliveries. I calculated 23¢/mile, so in the same ball park that everybody else has been saying. I never got any notification from GrubHub at all that this would be happening. The only reason that I know anything about it is because of this forum.

I have some thoughts on it, but I can barely keep my eyes open right now and don't feel like typing.


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## oicu812 (Aug 29, 2016)

dlearl476 said:


> Invaluable. But I can certainly pick an order, got to my storage unit and work on my car for an hour, then deliver the order.
> 
> If a customer ever gives me grief about it taking so long, I'll mention
> Tipping
> ...


If it's invaluable, then you should find something that pays you for your invaluable time.


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## amazinghl (Oct 31, 2018)

Launchpad McQuack said:


> Their goal is to pay you as little as you will accept, regardless of whether or not it covers your costs. They don't care about your gas and car wear costs one bit.


This, nothing but this. 
If only all the drivers of the share ride companies gets it.


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## Solid 5 (Aug 24, 2018)

amazinghl said:


> This, nothing but this.
> If only all the drivers of the share ride companies gets it.


Because the vast majority are immigrants and will work for next to nothing which is what gig economy companies pay, or they cannot understand how the game works.

The members here for the most part are unicorns and gig economies hate us and want to get rid of us.


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## oicu812 (Aug 29, 2016)

I made $90 for 7 deliveries on the new pay structure for 4 hrs on block. I have 50% acceptance rate.


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## kevin92009 (Sep 11, 2016)

that’s quite good for food delivery.


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## Solid 5 (Aug 24, 2018)

oicu812 said:


> I made $90 for 7 deliveries on the new pay structure for 4 hrs on block. I have 50% acceptance rate.


In my region it's mostly TB and Subway and places like that so you gotta bank in the guarantee which means no dropped orders


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## oicu812 (Aug 29, 2016)

Solid 5 said:


> In my region it's mostly TB and Subway and places like that so you gotta bank in the guarantee which means no dropped orders


Part of my 7 deliveries included a Del Taco and a Burger King order. Paid $9 & $7. Only 1 of the 7 restaurants isn't part of a chain and only 3 of 7 are fast food.


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## Solid 5 (Aug 24, 2018)

oicu812 said:


> Part of my 7 deliveries included a Del Taco and a Burger King order. Paid $9 & $7. Only 1 of the 7 restaurants isn't part of a chain and only 3 of 7 are fast food.


LA right?


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## oicu812 (Aug 29, 2016)

Solid 5 said:


> LA right?


Orange county.


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## Solid 5 (Aug 24, 2018)

oicu812 said:


> Orange county.


I assume you rarely if ever have deliveries that are $5 or less?

I ask because that is now the new norm here in Charlotte.

Now the saver here, is our guarantee is quite high. Probably highest in the country. So signing onto blocks is IMPERATIVE, as is maintaining 100% acceptance (well, 95% actually, but of course you dump an order, you dump your guarantee).


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## oicu812 (Aug 29, 2016)

Solid 5 said:


> I assume you rarely if ever have deliveries that are $5 or less?


Not true. I just don't accept any. Even the non-tip orders I do accept, I know there's a high probability that there will be cash tip involved especially knowing the destination by looking at the map.


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## Solid 5 (Aug 24, 2018)

oicu812 said:


> Not true.* I just don't accept any*. Even the non-tip orders I do accept, I know there's a high probability that there will be cash tip involved especially knowing the destination by looking at the map.


I didn't figure you did.

My point/comment is based on the guarantee in my area versus the payouts for each order in my area.

My guess is in your area, your guarantee is low enough that you can cancel orders freely, yet still get plenty of VERY good paying orders ($20+...well, "very good" in relation to my area which I am assuming is far less expensive to live in then your area) to negate having to work "on blocks". In my area, you may go 3 hours without a delivery, therefore working blocks is IMPERATIVE to making money with GH, because you cannot do it by accepting orders alone.

And further....people in my area RARELY IF EVER tip in cash. In fact MANY in my area (on GH) don't even tip via the app. So that GREATLY intensifies the NEED to work "on blocks" versus randomly taking/declining orders with GH.

DISCLAIMER: Even though my location here on the site is "Charlotte", I actually live/deliver north of the city proper, which for this exercise is "my area". I cannot say one way or the other how the drivers in Charlotte proper fare.


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## oicu812 (Aug 29, 2016)

If I didn't work on blocks, I would be getting the leftovers from people working on blocks all day long. $4-7 orders, but I don't bother taking those unless I'm headed in the direction of delivery in the first place.


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## Solid 5 (Aug 24, 2018)

oicu812 said:


> *If I didn't work on blocks, I would be getting the leftovers from people working on blocks all day long*. $4-7 orders, but I don't bother taking those unless I'm headed in the direction of delivery in the first place.


My guess is your guarantee is $12 at most?.....and you generally have orders flowing fairly continually, enough to usually beat the hourly guarantee most days (or come damn close)?


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## oicu812 (Aug 29, 2016)

Solid 5 said:


> My guess is your guarantee is $12 at most?.....and you generally have orders flowing fairly continually, enough to usually beat the hourly guarantee most days (or come damn close)?


$12 is the guarantee.


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## Launchpad McQuack (Jan 8, 2019)

Solid 5 said:


> Now the saver here, is our guarantee is quite high. Probably highest in the country.


What is your guarantee? Mine is $15/hour, and from what I've read, that seems to be higher than most. Well....it _was_ $15/hour before they banned me from blocks and made me ineligible for the guarantee.


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## Solid 5 (Aug 24, 2018)

Launchpad McQuack said:


> What is your guarantee? Mine is $15/hour, and from what I've read, that seems to be higher than most. Well....it _was_ $15/hour before they banned me from blocks and made me ineligible for the guarantee.


PM sent


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