On-demand food delivery services like Grubhub have brought convenience but also confusion regarding tipping etiquette. Determining the appropriate gratuity involves navigating a system where driver pay structures are not always transparent to the customer. This guide clarifies the standards and factors that should inform your decision, ensuring you can confidently compensate the person who brings your order to your door.
Standard Tipping Guidelines for Delivery
For a typical Grubhub order, the recommended baseline gratuity is 15% to 20% of the total food cost. This percentage mirrors the standard practice for sit-down restaurant service.
A strict percentage calculation can result in a very small tip for a low-cost order, which may not adequately compensate the driver for their time and vehicle expenses. Therefore, it is advised to establish a minimum dollar threshold. Regardless of the order size, a base tip of at least $5 is a widely accepted practice to cover the driver’s effort in traveling to the restaurant and then to your location.
Understanding Grubhub Driver Compensation
Grubhub delivery partners operate as independent contractors, meaning they are responsible for their own operating expenses, including fuel, vehicle maintenance, and insurance. The company’s base pay structure is often low, typically $2.50 to $3.50 per order, with additional compensation based on mileage and estimated time. This low base rate means the platform’s contribution alone rarely covers the full cost of the driver’s labor and vehicle usage.
The compensation model is heavily reliant on customer gratuities to create a sustainable income for the driver. Tips routinely account for a substantial majority of a driver’s total earnings, often comprising 50% to 70% of their take-home pay. Since the driver’s earnings are tied directly to the tip, a fair gratuity is necessary to make the delivery financially viable.
Key Factors That Should Influence Your Tip
While the 15% to 20% guideline provides a solid foundation, several situational variables warrant adjusting the final amount upward.
Distance and Time
The distance between the restaurant and your delivery address is a primary consideration, as longer routes increase a driver’s fuel consumption and time commitment. Deliveries placed during poor weather conditions, such as heavy rain or snow, also justify a higher tip due to the increased difficulty and hazard involved in driving.
Order Complexity
The complexity of the order itself should factor into your calculation. This includes large group orders or catering-sized deliveries that require multiple bags and a longer loading time. Orders that include numerous drinks or fragile items that require extra careful handling should also be acknowledged with an increased tip.
Delivery Difficulty
If your drop-off location involves a difficult delivery, such as an apartment building with a long walk or a high-floor unit without elevator access, it is appropriate to raise the tip. Conversely, if a driver provides notably poor service, such as extreme or unexplained tardiness, that may be a reason to reduce the tip from the initial pre-set amount.
Tipping Mechanics in the Grubhub App
The Grubhub platform integrates the tipping process directly into the checkout flow, prompting the customer to input a gratuity before the order is finalized. This pre-delivery tipping mechanism is standard practice, allowing the driver to see the total estimated payout, including the tip, before accepting the order. Drivers use this upfront information to determine if the trip is worth their time and effort.
During checkout, the app offers suggested tip percentages based on the food subtotal, but it also includes an option to input a custom dollar amount. This custom field allows you to apply the minimum dollar amount or upward adjustments based on your specific delivery factors. Although the tip is finalized upon placing the order, limited options may exist to add an extra tip after delivery if the service was exceptional.
Delivery Fees vs. Driver Tips
A common point of confusion for customers involves the distinction between the “Delivery Fee” and the driver’s tip entered at checkout. The Delivery Fee is a separate charge retained by Grubhub to cover the platform’s operational expenses, technology infrastructure, and marketing costs.
The delivery fee does not directly contribute to the driver’s earnings, and it is not a substitute for a personal gratuity. Your tip is a voluntary payment that goes directly and entirely to the driver as compensation for their service. Grubhub drivers receive 100% of the tip amount entered by the customer.