When I started looking into the world of food delivery services, Grubhub quickly emerged as one of the major players. 

With over 300,000 restaurant partners across 4,000 U.S. cities, it's clear that this platform has established itself as a significant force in how we order and receive our favorite foods.

But is Grubhub really the best choice for you? 

That depends on whether you're ordering dinner, delivering it, or serving it up. 

This guide breaks down the good, the bad, and everything in between about Grubhub – from all three perspectives.

Let's dig into the real benefits and drawbacks of using Grubhub, whether you're a hungry customer, a driver looking for gig work, or a restaurant owner considering a new sales channel.

Grubhub Overview and Recent Updates

Founded in Chicago in 2004, Grubhub merged with Seamless and was later acquired by Just Eat Takeaway in 2021. 

The company was recently sold again to startup Wonder in late 2023, signaling some turbulence in the food delivery industry.

One of the biggest developments for Grubhub users is the Grubhub+ (GH+) subscription. 

For $9.99/month, subscribers get free delivery and various perks. 

And the biggest pro is that Amazon Prime members now get Grubhub+ for free as a permanent benefit as of 2024, according to Doctor of Credit. 

This means unlimited $0 delivery fees for Prime subscribers – a significant advantage for frequent users.

Prime members also often receive exclusive promo codes, like percentage discounts off orders. 

For example, as of this writing, Prime members can get additional discounts like $5 off $25 with specific promotional codes.

The Grubhub app continues to evolve with features like contact-free delivery (now standard since 2020), the ability to schedule orders up to 5 days in advance, real-time order tracking, and new partnerships such as Grubhub Goods with 7-Eleven.

Now, let's break down Grubhub's pros and cons for each group involved: customers, drivers, and restaurants.

Pros and Cons for Customers (Grubhub as a Food Delivery User)

Customer Pros – Convenience, Choice & Perks

Wide Restaurant Selection

Grubhub offers an extensive variety of restaurants, especially in large cities. 

In major urban areas like NYC, Grubhub's network includes many local favorites and national chains – with over 375,000 restaurant partners nationwide.

This variety gives diners plenty of cuisine options right at their fingertips.

Ease of Use & Ordering Experience 

The Grubhub app and website provide a user-friendly experience. 

Features include easy menu browsing, saved past orders, and multiple payment options (credit cards, PayPal, etc.). 

The convenience and accessibility of ordering food with just a few taps and having it delivered to your door is perfect for busy days or when you just don't feel like cooking.

Ability to Schedule Orders 

A standout feature is the option to schedule deliveries up to a week ahead. 

This proves useful for planning meals – like scheduling lunch to arrive right at noon during a workday or making sure dinner is delivered at a specific time when you know you'll be home.

Real-Time Tracking and Communication 

Grubhub provides live order tracking, so you can see when your meal is being prepared, picked up, and on its way. 

This transparency adds peace of mind, while in-app communication keeps you informed throughout the process.

Promotions and Discounts

Grubhub frequently offers promo codes, discounts, and loyalty perks. 

They often provide percentage discounts on certain orders or targeted deals for GH+ members. 

The Grubhub+ subscription is particularly valuable for frequent users, especially now that many can get it free through Amazon Prime.

Tipping Flexibility

Customers can tip within the app, and 100% of tips go directly to the driver, according to Grubhub's driver information. 

The app suggests tip amounts but lets users choose their preferred amount, ensuring drivers are fairly compensated.

Contact-Free Delivery

Grubhub offers contact-free delivery options as a standard feature, allowing food to be left at your door, porch, lobby, or anywhere else you specify. 

This convenient option became essential during the pandemic and remains popular for its convenience and safety.

Price Transparency

Unlike some competitors, Grubhub historically pushed for price parity, meaning restaurants often maintain the same menu prices on Grubhub as in their stores. 

In my comparison on Doordash vs Grubhub, I mentioned this can be a significant advantage for cost-conscious customers, as rivals like DoorDash may allow restaurants to set higher menu prices on their platform.

Customer Cons – Fees, Wait Times & Coverage Gaps

High Fees and Extra Costs

The most common complaint about Grubhub involves the fees.

Orders can get expensive between delivery fees, service fees, small order fees, and more. Even with Grubhub+ eliminating delivery fees, you still pay service fees and tip. 

These additional fees can add 20-30%+ to your bill, making delivery costlier than dining out or pickup.

A $20 meal might end up costing $30 after fees and tip – the convenience definitely comes at a price. 

User reviews often mention this markup, with one noting that Grubhub is great for convenience "though it is certainly more expensive than ordering directly from restaurants.”

Slow or Unreliable Deliveries

While generally smooth, there are times when orders arrive late or cold. 

Factors like busy restaurant kitchens or driver shortages can lead to long waits. 

According to ConsumerAffairs, while 91% of customers in one survey were satisfied with delivery times overall, Grubhub trailed competitors (87% satisfaction vs. DoorDash's 94%), suggesting it can be slower in some cases.

Customer Service and Refunds

Resolving issues can sometimes be a hassle. 

Grubhub's policy on refunds for order problems can be restrictive – they often issue credits instead of refunds, which can frustrate users. 

If a meal is extremely late or never arrives, customers might have to navigate customer support to get compensation, which isn't always guaranteed. 

The lack of a clear refund policy for delays or cancellations is a definite downside.

Limited Coverage in Some Areas

Grubhub's strength lies in urban areas; in smaller towns or certain regions, there may be fewer restaurants or even no delivery service available. 

In rural areas, Grubhub might only offer a handful of local spots for pickup – or none at all for delivery. 

Competition and Exclusivity

Some restaurants partner exclusively with certain apps. 

You might find that not all your favorite restaurants are on Grubhub – a drawback if a competitor has a restaurant that Grubhub doesn't.

Tipping Expectations

While tipping is technically optional, it's expected – and low tips might affect service. 

Drivers can see the tip before accepting, and many drivers may decline low-tip orders, potentially causing delays for customers who don't tip well.

Tipping generously leads to better service (though this is common across all food delivery apps).

App Glitches or "Paused" Orders

Occasionally, orders get "paused" or delayed if a restaurant is too busy or the app faces technical issues. 

Grubhub sometimes shows "delivery paused" when restaurants temporarily stop taking orders to catch up due to high demand or because of weather/demand spikes. 

While usually resolved quickly, it can be confusing and frustrating when you're hungry and waiting.

Pros and Cons for Drivers (Grubhub from a Driver's Perspective)

Driver Pros – Flexible Work & Fair Policies

Flexible Scheduling and Independence

Like other delivery gigs, Grubhub allows drivers to work on their own schedule. 

Drivers can "toggle on" whenever they want to drive or schedule delivery blocks in advance. 

This flexibility is a major advantage for those looking for side income or gig work that fits around their other commitments.

Transparent Pay Model 

Grubhub has a relatively transparent pay structure. 

They pay a calculated per-order amount (based on time, distance, and other factors) plus 100% of tips earned by drivers. 

It's important to note that Grubhub drivers keep all their tips, and tipping is encouraged in the app, which can significantly boost driver earnings on good orders.

Decent Earnings Potential

While actual pay varies, experienced drivers often report reasonable earnings on Grubhub. 

Estimates put Grubhub driver pay around $17-$20 per hour on average before expenses – comparable to or slightly higher than some competitors. 

For instance, Grubhub's average was ~$17/hr vs DoorDash ~$14 and Uber Eats ~$18 in one comparison. 

Grubhub has also historically offered an hourly minimum guarantee in some markets for scheduled shifts.

Driver Support and Incentives

Grubhub has a driver recognition program and occasionally offers missions or bonuses. 

For example, "Missions" might provide extra pay for completing a certain number of orders in a specific timeframe. 

They also offer referral bonuses for bringing in new drivers.

Ability to See Full Order Details 

Many drivers appreciate that Grubhub typically shows the full payout (including tip) and destination upfront before accepting an order. 

This transparency lets drivers make informed decisions about which orders are worth taking – some other apps hide the tip or destination until after delivery.

Less Saturation in Some Areas

In markets where Grubhub is less dominant, there might be fewer drivers competing compared to DoorDash, potentially meaning more orders available per driver.

Cash Out Options

Grubhub offers quick pay (Instant Cash Out) for a $0.50 fee, and free weekly direct deposit. 

The $0.50 instant payout fee is relatively low (DoorDash charges $1.99 unless using their card), making it easy to access earnings quickly when needed.

Driver Cons – Slowing Demand & Costs

Lower Market Share = Fewer Orders 

Grubhub's smaller market share (around 8% in the U.S. according to Second Measure) means drivers may get fewer order requests compared to working on DoorDash or Uber Eats, especially outside major cities. 

This can result in more downtime. 

Some drivers note that in regions where Grubhub isn't as popular, they have to multi-app (run multiple delivery apps) to stay busy.

Driver Pay Variability and Expenses

While you can earn $15-$20/hr, earnings greatly depend on tips, time of day, and location. Some drivers report earnings dropping in recent years as competition increases. 

Also, drivers bear expenses – gas, car maintenance – which eat into profits. 

After expenses, real income might be significantly lower (a Massachusetts study found many app delivery workers made less than $16/hour after expenses).

Scheduling System and Program Levels

Grubhub has a scheduling system with driver tiers (Partner, Pro, Premier) that rewards high acceptance rates with early access to scheduling blocks. 

This can be a disadvantage because new drivers or those who reject many low-paying offers might find it hard to schedule lucrative shifts. 

If you're not in the top tier, you may get fewer orders or less priority during busy times. 

Some drivers dislike feeling pressured to accept every order to maintain status.

Restaurant Wait Times

A common complaint is that drivers often have to wait at restaurants for orders to be prepared. 

Grubhub doesn't penalize drivers for being late (since they can't control restaurant speed), but the downside is time wasted, which reduces effective hourly pay. 

During peak times, drivers might encounter long waits at popular restaurants.

App Navigation and Support

Some drivers find the Grubhub driver app less polished, with occasional navigation issues like wrong GPS pins. 

If a driver goes to a wrong location due to app error or outdated restaurant info, it's frustrating and time-consuming to resolve.

Safety and Liability

Like all delivery gigs, drivers assume risk (driving in bad weather, wear and tear on vehicle, etc.). 

Grubhub provides some insurance for when you're on an active delivery, but drivers should be aware of these costs and risks.

Competition from Other Drivers

During slow times, many Grubhub drivers also run DoorDash/Uber simultaneously. 

The gig economy can be competitive, and new drivers might find it hard to achieve high earnings without also leveraging other apps.

Pros and Cons for Restaurants (Partnering with Grubhub as a Restaurant Owner)

Restaurant Pros – Increased Reach & Convenience

Access to New Customers

The primary benefit for restaurants joining Grubhub is exposure to a large customer base. Grubhub's marketplace can bring in orders from customers who might not have found the restaurant otherwise, according to Grubhub's partner page. 

This can especially help small or new restaurants gain visibility. 

During the pandemic, delivery platforms became a "lifeline" for restaurants to reach customers when dine-in traffic vanished. 

Grubhub generated $9 billion in takeout sales for restaurants in 2020, showcasing how these platforms can drive volume.

Convenience and Logistics

Grubhub handles the ordering process, payment processing, and can manage delivery logistics via their driver fleet if the restaurant doesn't have its own drivers. 

This is a significant advantage for restaurants that don't want the hassle of running their own delivery service. 

It outsources delivery and technology – the restaurant just prepares the food. 

As Grubhub markets it, it "eliminates the challenges of in-house delivery.”

Incremental Sales

Even though commission fees cut into margins, orders via Grubhub can still provide incremental revenue the restaurant wouldn't otherwise get. 

There are case studies of restaurants boosting sales significantly by joining delivery apps. 

For example, Pearl Express, a family restaurant in Utah, saw a 195% increase in sales and double the new customers after implementing Grubhub Direct online ordering.

Marketing and Data

Grubhub provides marketing exposure – such as featured placement in the app if you opt into higher commission or sponsored listings. 

This can boost a restaurant's visibility in search results. Additionally, Grubhub has begun sharing more data with restaurants.

A notable example: Grubhub wooed Shake Shack by offering access to consumer data insights so the chain could jointly market to those customers.

Tech Integration and Tools

Grubhub provides tablets, POS integrations, and order management tools to restaurants. These can simplify operations by integrating online orders with the kitchen workflow. 

They also offer services like Grubhub Direct (a commission-free ordering platform restaurants can embed on their own website) and Virtual Restaurants concepts to help restaurants expand virtually.

Payments and Cash Flow

Grubhub collects payment from customers, so restaurants don't have to worry about fraud or chasing payments – they receive regular payouts from Grubhub (usually within a week). 

This smooth cash flow can be considered a convenience for busy restaurant operators.

Restaurant Cons – Commissions, Control & Challenges

High Commission Fees Hurt Margins

The biggest con for restaurants are the commission fees. 

Grubhub typically charges 15% to 30% commission on orders, plus additional processing or delivery fees. 

For example, Grubhub's basic plan starts at 15% (pickup) or effectively ~25% if using their drivers. 

Higher visibility plans go 20-25% (or more with optional advertising). 

These fees take a significant bite out of a restaurant's profit, which in the industry might only be 5-10% on an order. 

Many restaurant owners feel the cost is steep: One business article noted restaurants in dense areas might pay 20% just for a basic listing in NYC and up to 30%+ for sponsored placement. 

During COVID, some local governments even implemented temporary fee caps (often ~15%) because the normal commissions were unsustainable for restaurants under lockdown, according to Reuters.

Impact on Pricing

To compensate for commissions, some restaurants raise menu prices on Grubhub. 

This keeps their margin but can make them less competitive to customers (and can upset customers who notice price differences). 

Grubhub historically required price parity in contracts, but enforcement varies – some eateries do mark up. 

Either way, the restaurant is in a tough spot: eat the fee or pass it to customers.

Loss of Direct Customer Relationship

When a customer orders via Grubhub, the restaurant doesn't always get full access to that customer's information or ability to market to them (though Grubhub has improved data sharing for some). 

Traditionally, the delivery app intermediates the relationship – the customer might think of "ordering via Grubhub" rather than directly from the restaurant. 

If something goes wrong, the restaurant may still get blamed in reviews, but they don't control the delivery experience.

Operational Strains

Handling a surge of delivery orders can tax a restaurant's kitchen and staff, potentially impacting dine-in service. 

If not managed well, it can lead to mistakes or slower service for on-site patrons – an operational challenge of taking on high-volume app orders.

Potential for Order Issues and Blame 

If Grubhub drivers are late or mishandle food, the restaurant's reputation can still suffer in the eyes of the customer. 

This loss of quality control is a risk. 

Also, listing inaccuracies (out-of-date menus on the app, or the app accepting orders when a restaurant is closed) can happen and cause customer frustration, yet the restaurant has to deal with the fallout.

Contract and Dependence

Some restaurants feel "locked in" once a large share of their orders come from Grubhub – it can be hard to break away even if fees are burdensome, because they risk losing a chunk of sales. 

And if Grubhub changes terms or algorithms (e.g., giving advantage to those who pay more), it can pressure restaurants to increase commissions to maintain visibility.

Listing Without Consent

An interesting historical issue – Grubhub (and others) have scraped menus and listed restaurants without explicit permission, leading to potential problems with incorrect prices and unwanted orders. 

The FTC alleged Grubhub added "thousands of restaurants" without consent, causing confusion. While Grubhub has since stopped this practice under settlement, it was a contentious issue.

Legal and Fee Cap Challenges 

Many restaurants and even city governments have fought against high commissions. 

Cities like San Francisco and NYC attempted to cap delivery commissions at 15% permanently, leading Grubhub (and others) to sue or adapt.

This ongoing battle suggests the standard fees are widely viewed as excessive by restaurateurs.

Many restaurants do a cost-benefit analysis: Is the extra revenue worth the lower margin? 

Some find it worthwhile for the expanded reach (especially for growth or during slow times), while others feel the benefits may not outweigh the costs. 

It might depend on the restaurant's type (high margin items vs low margin).

"It's a double-edged sword," says one restaurant owner. "We get more orders, but our profit on those orders is slim to none after Grubhub's cut."

Tips for Making the Most of Grubhub (for Each Audience)

For Customers:

• Use Grubhub+ free trials (or the Amazon Prime benefit) to save on fees

• Compare final costs with other apps to find the best deal

• Look for restaurant pickup deals on Grubhub (some offer discounts for pickup orders)

• Check for promo codes (Grubhub often has them – check the app's "Perks" section)

Is Grubhub+ worth it? If you order more than 2-3 times a month, likely yes (saves on fees), especially now many can get it free via Prime. If not, stick with free use and just watch the fees.

For Drivers:

• Multi-app to fill downtime (many drivers run DoorDash/Uber Eats alongside to maximize orders)

• Focus on hotspots/times (dinner rush, etc.)

• Maintain a high acceptance rate only if it benefits you (for scheduling priority)

• Don't be afraid to decline unprofitable orders (Grubhub won't fire you for low acceptance)

• Track expenses for taxes (mileage, etc.) to get the full picture of earnings

• Be communicative with customers for better ratings and possibly higher tips

For Restaurants:

• Negotiate your commission if possible (rates can be negotiable based on your restaurant's popularity)

• Start with a basic listing to test the waters, then consider Sponsored Listing if you need more volume

• Monitor your menu prices and adjust if needed to maintain margin

• Use the tools Grubhub offers: add enticing photos, utilize the free photoshoot, create promotions

• Encourage repeat customers to order directly via your own channels to avoid commissions on repeat orders

FAQ - Frequently Asked Questions

Is Grubhub or DoorDash cheaper? 

It depends on the order; Grubhub has menu price parity but you should compare fees on a sample order. Check our full comparison piece for more details.

Do you tip Grubhub drivers? 

Yes, absolutely – drivers rely on tips and 100% of it goes to them. 15-20% of the food cost is a typical tip, similar to restaurant service.

How does Grubhub make money? 

Mainly through service/delivery fees from customers and commissions from restaurants (plus the Grubhub+ subscription fee).

Can I use EBT or other payment methods on Grubhub? 

Currently no, EBT is not accepted on Grubhub (due to federal restrictions on hot food purchases), but accepted payment methods include credit/debit, PayPal, Venmo, and sometimes cash.

What areas does Grubhub serve?

It's nationwide in the U.S., concentrated in urban areas. You can enter your ZIP code on the app to see availability.

How does Grubhub handle issues like missing items? 

Through customer support; often they'll provide a refund or credit for the inconvenience, but policies can favor credits. Always report issues through the app to get compensation.

Conclusion

Grubhub has both advantages and disadvantages, and the experience differs whether you're a customer enjoying the convenience, a driver earning extra cash, or a restaurant expanding reach. 

It's not a one-size-fits-all answer if Grubhub is "good" or "bad" – it truly depends on what you need.

If you value convenience and variety as a customer, Grubhub delivers (literally), but be aware of the costs. 

If you're a driver, it can be a flexible gig, though it works best combined with other apps. For restaurants, it can open new sales channels, but mind the commission fees.

Grubhub isn't perfect, but armed with the above knowledge, you can make it work for you – whether that means enjoying late-night food with zero hassle, earning side income on your own terms, or boosting your restaurant's reach in a digital age.