When Does Grubhub Pay In 2024? Answering Driver and Restaurant Payment Questions

As an increasingly popular food delivery platform, Grubhub offers drivers the flexibility to earn income on their own schedules. Meanwhile, Grubhub provides restaurants a way to increase orders and revenue through delivery.

Understanding when you will receive your hard-earned money is an important piece of budgeting as a driver or restaurant. Grubhub uses different payment schedules depending on your role.

Grubhub Driver Payment Schedules

According to Grubhub‘s website, drivers get paid every Thursday via direct deposit for the earnings accrued Monday-Sunday the previous week.

However, Grubhub also provides an Instant Cash Out feature allowing drivers to withdraw earnings immediately for a 50 cent fee per transaction.

  • Many drivers take advantage of Instant Cash Out. A 2021 JPMorgan Chase Institute analysis found nearly 80% of transactions on delivery platforms were instant transfers rather than weekly payouts. Drivers may rely more heavily on instant earnings in between other jobs or when budgeting week-to-week.

  • Grubhub sets a $500 daily withdrawal limit for Instant Cash Out. So theoretically, a Grubhub driver could earn $3,500 per week ($500 x 7 days) by cashing out daily before the Thursday payout. According to Indeed, average Grubhub driver earnings range from $13-$16 per hour, making $3,500 weekly difficult to achieve for most.

The Impact of Bank Processing Times

While Instant Cash Out offers access to your funds immediately, some banks can experience delays processing the instant transfers.

If your bank account does not support real-time payments, it may take 1-3 business days for Instant Cash Out transfers to finalize. Smaller local banks and credit unions are less likely to offer real-time payment capabilities currently.

Restaurant Payment Schedules

As a restaurant, Grubhub pays you based on whether you select:

  • Direct deposit
  • Check

Direct Deposit Schedule

With direct deposit, Grubhub lets restaurants choose between:

  • Once a week
  • Twice a week
  • Every other week payments

Direct deposit funding typically appears in your account within 1-3 days after Grubhub processes the payment. So a Monday payout would reach your bank account around Wednesday or Thursday.

Check Payment Schedule

  • If you opt for check payments, Grubhub sends one check on the 5th business day each month containing all your prior month earnings. This gives restaurants less frequent but larger lump sum payments.

According to a 2019 Restaurant Business Online survey, around 65% of restaurants on delivery platforms use direct deposit payments, while 35% take checks from Grubhub and competitors. So direct depositing tends to be more popular among restaurants seeking quicker transfers.

The Impact of Prop 22 on Driver Payments

California‘s Prop 22 requires app-based companies to provide minimum pay rates, healthcare contributions, and other benefits for drivers.

While this stands to increase overall compensation, Prop 22 does NOT change how frequently Grubhub pays its drivers (e.g. weekly or instant transfers).

However, Prop 22 is currently unconstitutional after an August 2022 ruling. Unless reversed, companies like Grubhub won‘t have to abide by Prop 22 protections for California drivers.

Key Takeaways

When should you expect Grubhub payments as a driver or restaurant?

  • Grubhub Drivers: Get paid every Thursday for the prior week‘s earnings. Can withdraw instantly anytime for 50 cents per transaction.
  • Restaurants: Paid weekly, biweekly or every 2 weeks through direct deposit. Monthly via check.
  • Prop 22: Does not determine driver payment frequency. Currently ruled unconstitutional.

Understanding exact payout schedules lets drivers and restaurants plan budgets around Grubhub income or transfers. While instant earnings provide added flexibility for drivers, bank delays can occasionally slow processing times.

Similar Posts