Twenty years ago, Grubhub set out to revolutionize the way people connect with their favorite local restaurants. Born from the frustration of sifting through countless paper takeout menus, our founders had a clear vision: to create a seamless online platform where customers could easily explore and order from a variety of local dining options. What started as a simple solution to a common problem has evolved into a platform that millions of people use every day.
As we celebrate two decades of innovation, one thing has remained constant: our unwavering commitment to a great user experience. We believe that clear, straightforward communication is key to that, whether it’s ensuring our customers see all applicable fees upfront, empowering merchants to manage their own menus, or providing delivery partners with transparent delivery opportunities and earnings information.
Let’s take a closer look at how Grubhub’s dedication to transparency benefits everyone involved in the food delivery process—from consumers to drivers to merchant partners.
What do customers see when ordering on Grubhub?
Making the ordering process simple and straightforward has always been a top priority. To achieve this, we ensure that key information is clearly communicated to customers every step of the way. When customers search for what they’re craving and scroll through the search results, they’ll see essential information clearly laid out: each merchant’s distance from their location, estimated delivery time, and the delivery fee (which is always $0 from Grubhub+ merchants for Grubhub+ subscribers).
Delivery Fees
When the merchant uses Grubhub delivery partners to deliver, the delivery fee goes toward Grubhub’s delivery-related costs, including compensating the driver fairly. If the merchant uses their own delivery drivers, then the delivery fee goes to the merchant. Delivery fees are typically a fixed dollar amount and change based on a customer’s distance from the merchant.
Service Fees
Customers will also see a service fee at checkout, which helps cover Grubhub’s operating costs. Operating costs include everything associated with running a complex, three-sided marketplace, like making sure our customer-, driver-, and merchant-facing apps are running efficiently and having dedicated staff available 24/7 to support our customers, drivers, and merchant partners.
Creating a group order with friends? Craving extra, EXTRA cheese today? Want fries with that? Building the perfect order is part of the fun of ordering with Grubhub. Our service fee is calculated as a percentage of the total value of items in a customer’s basket, which is why it’s disclosed during the checkout process, once a customer has finished adding their items.
Other fees
In some cases, customers may see a Small Order Fee if the total value of the order is low. This fee helps make delivery more sustainable for all involved, including our delivery and merchant partners. The fee goes away once a minimum order value is reached.
In some jurisdictions, like California, there may be additional fees to account for things like driver benefits. These are always clearly disclosed during the checkout process.
Tipping
Finally, customers have the option to tip their delivery partner at checkout. Delivery partners always keep 100% of their tips for completed deliveries, and we strongly encourage tipping to reward good service!
What information is visible to Grubhub delivery partners?
When a delivery partner receives a delivery offer, they see the merchant’s name, address, the number of orders that are in the offer, estimated miles, and total pay. In some jurisdictions, where the law mandates, more details may be available to our delivery partners. Based on this information, delivery partners can decide to accept or reject an offer.
Earnings from completed deliveries are reflected in real time in the Earnings tab of the Grubhub for Drivers app. Delivery partners will be able to see a list of all completed orders including the merchant’s name, earnings from the order, and a breakdown of their pay including base, tips, and any bonuses received.
Our delivery partners are typically paid once a week. This payment encompasses the amount they earned during the previous week. They also have access to our “Instant Cashout” feature, which allows them to deposit up to $500 a day, almost instantly, for a small fee. As always, our delivery partners can learn more about ways to earn on the Grubhub for Drivers webpage.
What do Grubhub merchant partners see?
When it comes to our merchant partners like restaurants and retailers, Grubhub discloses the marketing fee, delivery fee, promotions, baseline costs of the food order, taxes, and other transaction costs in their statements. The fees charged by Grubhub and our offerings are clearly disclosed on our website. Merchants can choose the package that works for them, with each offering a slew of benefits to our partners, and with rates starting as low as 5%. They’re also welcome to change their package at any time.
At Grubhub, we are committed to transparency. For the past twenty years, we’ve stayed true to our roots, striving for clarity and simplicity for our customers, delivery partners, and merchant partners. By offering straightforward pricing, clear information, and no surprises at checkout, we ensure that everyone involved in the delivery experience knows exactly what to expect. As we continue to grow and innovate, our commitment remains the same: to make every interaction with Grubhub as transparent, reliable, and rewarding as possible. Here’s to many more years of serving our communities with honesty and care.
