As the gig economy continues to boom while remote work becomes the norm, with an increase expected in 2023 (via Forbes), food delivery services have never been more vital in 2022. Companies like DoorDash, Uber Eats, and GrubHub have led the way by providing convenient options for shoppers to cut down on time by sending food and beverages directly to consumers' doorstep, all but revolutionizing how people get groceries and fresh meals alike.
Of course, not all food delivery apps are created equal. Based on a variety of factors, some are far more favorable to work for by offering more competitive pay and long-term benefits.
GrubHub - $12-15 Per Hour
One of the first major players to corner the food delivery market, GrubHub remains as popular as ever in 2022. Launched in 2004, the useful app for college students in particular is a quick and easy way of ordering meals directly from restaurants or fast food chains. Like most food delivery gigs, drivers set their own schedules, get paid weekly, and earn money based on how much they work.
According to Frugal Rules, GrubHub pays drivers $3.25 per delivery, plus $0.50 per mile driven. While GrubHub's website claims those figures equate to roughly $15-19 earned per hour, Millennial Money Man claims the national average is closer to $12-15 per hour depending on a driver's region.
Uber Eats/Postmates - $15-16 Per Hour
After launching Uber Eats in 2014 and becoming a major contender in the food delivery space, the ride-sharing behemoth acquired Postmates in 2020 for $2.65 billion (via The New York Times). With two companies under one umbrella, it's difficult to say exactly how much Uber Eats/Postmates drivers earn, as it's entirely dependable on location, hours logged, and the number of deliveries. Uber Eats and Postmates are pretty addictive, so it's wise to keep the best free workout apps handy as well.
For instance, a driver in New York earns $1.80 per pick-up, $0.70 per drop-off, $0.07 per minute, and $1.05 per mile (according to Frugal Rules). In Los Angeles, a driver earns $1.40 per pick-up, $0.70 per drop-off, $0.07 per minute, and $0.69 per mile. While Uber Eats has been known for its confusing driver pay reconfiguration, drivers are paid weekly, can earn tips, and are able to use Instant Pay at $0.50 to cash out early. All added up, Uber Eats drivers earn roughly $15.84 per hour in 2022 (via Gridwise).
Shipt - $15-22 Per Hour
Launched in 2014, Shipt is an on-demand grocery delivery app partnered with over 250 stores across the U.S. The company still uses a membership-based service for its customers but is now open for non-members to order food as well. Unlike most food delivery services, Shipt allows drivers to stockpile more than one order at a time to maximize time spent and corresponding pay, which occurs every Friday.
Prior to a payment model restructure in 2020, Shipt drivers were paid a commission of $5 plus $0.75 of the order amount (via Millennial Money Man). While the new payment is far more nebulous and harder for drivers to calculate the exact figures, on average, Shipt drivers earn roughly $15-20 per hour. According to Frugal Rules, Shipt drivers can earn up to $22 after completing 100 deliveries as well as a free Shipt membership.
Caviar - $15-25 Per Hour
Initially promoted as a higher-end food delivery service, Caviar was bought by DoorDash in 2019. Prominent on the East Coast, California, and larger Midwestern cities, Caviar is beginning to expand and allows drivers to set their own schedules and earn as much as they can. As a DoorDash subsidiary, Caviar uses the Base Pay + Promotions + Tips = Total Pay formula which makes it ideal to work for.
According to Millennial Money Man, Caviar drivers earn a base pay of $2-10 per order. But it's the extra incentives like delivering during peak pay hours or completing various challenges, such as achieving a certain amount of deliveries in a certain time frame, that award drivers extra money. While Caviar claims drivers earn up to $25 per hour plus tips, the national average is closer to $15-20 per hour.
Favor - $18-20 Per Hour
Although Favor is currently limited to serving greater Texas, the fast-growing food delivery service plans to expand to the Midwest soon. Similar to Postmates, Favor allows full or part-time drivers, called Runners, to deliver restaurant meals as well as groceries, dry cleaning, and other non-perishable items. The best part is that runners are paid daily.
Whether delivering on a bike or in a car, Favor Runners earn 35% of the delivery plus 100% percent of tips, which guarantees a pay range of $18-20 per hour (per Millennial Money Man). Even with the daily payment plan, Favor Runners can withdraw cash instantly for a $0.99 fee.
Amazon Flex - $18-25 Per Hour
Owned by the mammoth digital retailer, Amazon Flex is a food delivery service that utilizes drivers across Prime Now, AmazonFresh, and Amazon Restaurant Delivery. Since package delivery is also part of the equation, drivers are afforded the opportunity to earn even more money than strict food delivery.
While the service requires 3-6 hour timeframes per shift rather than setting one's own flexible schedule, the rewards are worth it. Using a more-orders-equals-more-money formula, having a larger vehicle will benefit Amazon Flex drivers most en route to earning anywhere from $18-25 per hour (via Millennial Money Man). Along with the best free nutrition apps, Amazon Flex is a must-have.
Instacart - $20 Per Hour
Founded in 2012, Instacart is one of the most prominent grocery delivery services on the market. Similar to most food delivery apps, drivers have tremendous leeway by setting their own schedules. Instacart drivers accept an order, go shopping for the items on the list, and drop the groceries directly on the customer's doorstep. The more difficult the order and the busier the app is at the time, the more money drivers will be rewarded.
Using a commission-based payment system that awards drivers more money the higher the price of an item, drivers add to their income by earning tips as well. As such, full-time Instacart drivers reportedly earn $20 per hour (via Frugal Rules and Millennial Money Man). In addition to the best free cooking apps, Instacart is an ideal download.
DoorDash - $23 Per Hour
Hands down, the most lucrative food delivery service to work for is DoorDash, a company that has earned a sterling reputation among its drivers and customers alike since its launch in 2013. Drivers, called Dashers, earn a base pay of $2 at minimum and $10 maximum per order plus 100% of the customer's tips (via Frugal Rules). When tallied, drivers take home $23 per hour on average (via Millennial Money Man).
With the ability to schedule their hours in advance and see how much the base pay will be before accepting an order, DoorDash gives much more freedom to its employee than most food delivery apps. It even comes with a default 15% tip option to ensure Dashers are paid what they rightfully deserve. Using the Dasher Pay Model that combines Base Pay + Promotions + Tips = Total Pay formula, DoorDash offers even greater perks with its Fast Pay, DasherDirect, Peak Pay, and time-sensitive delivery Challenges.