Grubhub is a popular online food ordering and delivery service. In 2013, the company was valued at over $2 billion. According to a study by economists at Cornell and Stanford Universities, drivers working for Grubhub and similar companies make an average of $11.31 an hour. Nearly half of drivers earn less than $8 an hour.
Grubhub argues that its drivers are compensated fairly, and that the company provides benefits such as health insurance and 401(k) plans. However, the study finds that drivers are more likely to earn less than minimum wage in states where Grubhub does not have a presence. Grubhub has made efforts to increase driver wages in states where it does have a presence, but the company has not yet achieved uniform pay rates across all jurisdictions. Given the high rates of pay and the low rates of pay in some states, it is likely that Grubhub eats drivers make a significant amount of money.
