As a Grubhub driver or restaurant partner, one of the most important things to understand is when and how you‘ll get paid. Having a reliable and consistent income is crucial, so we‘ve put together this comprehensive guide covering everything you need to know about Grubhub‘s payment schedules and methods. Whether you‘re a new Grubhub driver or a restaurant considering partnering with the platform, read on for all the details on deposits, Instant Cash Out, and more.
How Grubhub Pays Drivers
Let‘s start with the driver side of things. As a Grubhub delivery driver or bike/scooter courier, you are paid a delivery fee for each order you successfully complete, plus 100% of any tips the customer includes. Grubhub offers two payment options for drivers:
1. Weekly Direct Deposit
With this default payment method, Grubhub will deposit your earnings from the previous Monday through Sunday into your linked bank account every Thursday via direct deposit. Most major banks will make these funds available on Thursday or Friday.
One important thing to note is that Grubhub calculates your weekly pay on Monday at midnight and initiates the transfer then. So any deliveries completed on Monday will count towards the following week‘s paycheck, not the one coming that Thursday. Keep this in mind when budgeting and anticipating your earnings.
2. Instant Cash Out
If you need your earnings faster than the weekly deposit schedule, Grubhub offers an Instant Cash Out option. This allows you to withdraw your available earnings to your debit card at any time, with a few caveats:
• There is a $0.50 fee for each Instant Cash Out transfer
• You can cash out up to $500 per day
• All of your available earnings are withdrawn each time, you cannot specify a smaller amount
• Instant Cash Out is not available for 72 hours if you update your banking information
For most major banks, Instant Cash Out transfers are indeed instant. The money will be available in your account within minutes of initiating the cashout in the Grubhub driver app. However, some smaller banks and credit unions may not support instant transfers, in which case the funds can take up to 3 business days to post to your account.
It‘s also important to know that if you initiate an Instant Cash Out but the funds are not in your account by the following Monday, you should contact Grubhub support. Waiting more than 5 business days for an Instant Cash Out is not normal.
When Bonuses and Incentives Get Paid
In addition to your regular delivery pay and tips, Grubhub occasionally offers bonus opportunities and incentives for drivers. These are usually based on completing a certain number of deliveries in a set period of time or maintaining a high acceptance rate.
When you earn a bonus, it does NOT get paid out immediately or on-demand with Instant Cash Out. Instead, Grubhub will add any bonus pay you‘ve earned to your account within 2 pay periods after the bonus timeframe has ended.
So for example, if you unlock a $100 bonus for completing 50 deliveries in a week, and the bonus period ends on a Sunday, that $100 will be added to your account sometime before the second Thursday after that Sunday. The exact day can vary, but rest assured that if you met the terms for a bonus, it will get added to your earnings within that 2-week window.
Grubhub‘s Restaurant Payout Process
Now let‘s look at how Grubhub handles paying their restaurant partners. It‘s a bit different than the system for drivers. Restaurants have two payment options:
1. Direct Deposit
Restaurants that opt for direct deposit can choose to be paid on one of three schedules:
• Weekly on Fridays
• Twice per week on Tuesdays and Fridays
• Every other week on Fridays
With the weekly option, Grubhub will initiate a transfer every Friday for the restaurant‘s earnings from the previous Friday through Thursday. The twice weekly option splits this up, so the Tuesday payment covers Friday through Monday, and the Friday payment covers Tuesday through Thursday.
And with the every other week schedule, payments are sent on Friday for the previous two full weeks (Monday through Sunday).
Depending on the restaurant‘s bank, these direct deposit transfers typically take 2-3 business days to be available in the account.
2. Monthly Check
If a restaurant prefers to be paid by mailed check instead of direct deposit, Grubhub offers a monthly check option. With this schedule, the restaurant receives one payment per month that covers their Grubhub earnings for the entire previous month (ex. June‘s earnings are paid in early July).
These checks are mailed out on the 5th business day of each month. So a restaurant paid on this schedule for June can expect their check to arrive in the mail around July 10th, depending on postal service delays.
How Prop 22 Comes Into Play
You may have heard about the effects of Proposition 22 on gig workers for apps like Grubhub, Uber, and DoorDash. This California law, which passed in 2020, relates to driver classifications and minimum pay.
The important thing to understand is that Prop 22 does NOT have any impact on WHEN Grubhub pays drivers. The weekly deposit and Instant Cash Out options remain exactly the same for California drivers as for drivers in other states.
What Prop 22 does impact is HOW MUCH drivers in California are paid. It guarantees a minimum earnings floor of 120% of the local minimum wage plus 30 cents per mile. If a driver‘s earnings for a time period don‘t meet that minimum, Grubhub has to make up the difference with an additional payment.
These Prop 22 payments are added to drivers‘ earnings for the relevant time period and paid out on the normal weekly deposit schedule. They do not affect the payment frequency or cause any extra delays.
Tips for Managing Your Grubhub Income
Regardless of whether you‘re a Grubhub driver or restaurant partner, there are a few best practices you can follow to make the most of your Grubhub earnings:
1. Choose the best payment method for your needs
Think about whether you prefer a larger lump sum once a week (direct deposit) or smaller, more frequent transfers (Instant Cash Out). The latter can help with short-term cash flow but comes with fees that can add up over time.
Restaurants should weigh the convenience of direct deposit against the potential delays compared to getting a physical check. If you need a paper trail for accounting, the monthly check may be better.
2. Keep track of your earnings
Use the reporting tools in the Grubhub app and your bank statements to monitor your earnings over time. This will help you spot any discrepancies and forecast your income more accurately.
3. Don‘t rely on Instant Cash Out for critical expenses
While Instant Cash Out is a great feature for drivers, it‘s not infallible. Transfers can be delayed, and the daily limit could prevent you from withdrawing all your money in an emergency. Try to build up some savings so you‘re not dependent on instant transfers to make ends meet.
4. Set aside money for taxes
Remember that Grubhub payments are gross earnings before taxes. As an independent contractor or business owner, you are responsible for setting aside the appropriate amount for income taxes. Consult a tax professional to determine what percentage of your Grubhub earnings you should be saving.
The Future of Grubhub Payments
Grubhub‘s payment system works relatively well as-is, but there‘s always room for improvement. In the future, we could see Grubhub take cues from competitors like DoorDash and Uber Eats by offering drivers more control over their Instant Cash Out transfers.
For example, DoorDash allows drivers to cash out a specific amount instead of their entire balance, and Uber Eats offers Instant Pay up to 5 times per day with no fees. Adopting similar policies would make Grubhub a more attractive option for drivers.
On the restaurant side, an Instant Cash Out equivalent could be hugely beneficial. Many restaurants operate on slim margins and struggle with cash flow, so faster access to their Grubhub earnings could be a game-changer.
Final Thoughts
We hope this guide has given you a clearer picture of how and when Grubhub pays its drivers and restaurant partners. While the system isn‘t perfect, it does offer a good degree of flexibility and speed, especially for drivers.
As the food delivery industry continues to grow and evolve, we expect to see further improvements and innovations in payment processes that will benefit everyone involved. In the meantime, understanding the current Grubhub payment schedule is key to maximizing your earnings potential and making the platform work for you.
