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Calculating gratuity on meals has become more intricate with the expansion of the gig and convenience economies, particularly with the increase in food delivery apps and grocery delivery services. These platforms make various goods accessible 24/7, which raises questions about how much to tip with additional charges like delivery or service fees factored in. Who receives these fees? And what should the tip amount be on top of these surcharges?
Uncertainty Surrounds Delivery Tipping
Concerns regarding gratuity are valid. A 2023 report from Pew Research Center indicates that only approximately one-third of people are assured about when and how much to tip. The same report reveals that 76% generally tip on food delivery, while only about 25% are likely tipping appropriately due to incorrect or outdated information.
To clarify, we examined top food delivery services to understand compensation structures. Whether ordering meals, catering lunch, or grocery shopping, the ideal tip varies across scenarios and platforms. Here’s a breakdown of various services and expert advice on tipping.
Compensation for Restaurant Delivery Drivers
While some eateries have always offered food delivery—think pizza chains—most restaurants now rely on apps such as DoorDash, GrubHub, and UberEats. Even if you order from the restaurant directly, your delivery might still be handled by a third-party service.
To save money, consider asking eateries if they have in-house delivery staff. Online platforms share lists of restaurants that operate independent delivery services. For most cases involving third-party services, we consolidated information fromDoorDash, GrubHub, and UberEats detailing driver pay structures.
Key Points on Driver Compensation
- Delivery or service charges typically go to the platform or the restaurant, not the driver, though they may support driver earnings.
- Drivers receive a variable fee per delivery based on distance, time, and job desirability, instead of an hourly rate.
- Peak hour and batch completion incentives are available.
- Some markets offer a guaranteed minimum pay for slow periods.
- Drivers cover their own vehicle-related expenses, including fuel.
- All customer tips go directly to the driver, but the payout doesn’t always distinguish between the base rate and the tip.
Recommended Tipping for Food Delivery
The exact earnings of a delivery driver may be uncertain, but gratuity is essential for their income. Toast, a point-of-sale resource, recommends tipping 15% to 20% for third-party delivery services.
Additional Considerations
Exercising good judgment and courtesy is crucial when determining a tip. While a $2 gratuity might seem sufficient for a small order, factors such as adverse weather, large orders, or complex delivery logistics warrant higher tips.
- Increase tips during poor weather. Drivers face more challenges and risks during rain or snow (e.g., tipping at least 25% for a $10 order).
- For large orders, an additional 3% to 5% is merited due to the added effort and vehicle space required.
- Consider your location. Hardware or elevators make deliveries harder, so tip a bit more when necessary.
- For small orders, considering a higher percentage rate as 15% to 20% of a minimal total may not reflect the true effort and time committed by the driver.
Compensation for Grocery Shoppers/Delivery Drivers
In contrast to restaurant deliveries, grocery deliveries require added effort from shoppers, who must also gather and prepare the order. The service and delivery fees on platforms like Instacart do not go to the shopper/driver. Like restaurant delivery services, grocers earn based on specific deliveries, not hourly rates, and tips are crucial to complement their earnings.
Grocery Delivery Pay Structures
- Grocery shoppers are compensated per batch, which may include multiple deliveries. They decide whether to accept based on the task’s description.
- Shoppers view full payment offers, including expected customer tips, before accepting a batch.
- Batch pay factors in item count, weight, shopping time, and driving distance.
- Shoppers can reject batches without penalty.
Recommended Grocery Delivery Tipping
Grocery delivery gratuity protocols have considerable gray areas since grocery stores lack the tipping culture associated with restaurants. Grocery shoppers, however, expend more time and effort.
Tipping Guidelines for Grocery Delivery
Amenify, a residential service provider, suggests tipping between 10% and 20% for grocery delivery, and more during challenging situations like bad weather or complex logistics. However, not all platforms allow tip selection at checkout. While tips can usually be added afterward, shoppers do not know this beforehand.
Instacart, for example, offers preset tip amounts (2.5%, 5%, 10%, and 15%), but they do not favor generosity out-of-the-box.