Grubhub Boosts Driver Pay as High Gas Prices Squeeze Earnings

(Bloomberg) -- Just Eat Takeaway.com NV’s U.S.-based food-delivery arm Grubhub increased pay for its drivers as record-high gas prices take a toll on gig workers’ take-home wages. 

The Just Eat subsidiary increased per mile distance pay nationwide beginning March 9, according to an email sent to drivers this past Friday. Grubhub didn’t specify the amount it would boost wages, but said the adjustment will account for the average per-mile cost increases for gas in a driver’s region.

“We’re committed to offering competitive rates for our drivers and are constantly making adjustments on a market-by-market basis to ensure we have enough drivers to meet diner demand,” a Grubhub spokesperson said in an email. “This includes increasing driver pay given current gas prices and continuing to monitor the situation.” 

Grubhub didn’t indicate whether the pay increase would be passed along to customers, adding that the food-delivery giant adjusts diner fees “based on a number of factors including distance from the restaurant to the diner.”

Lyft Inc. added a surcharge to rides on Monday in a bid to help drivers, following a similar move by rival Uber Technology Inc. last week in response to the rising fuel costs across the U.S.

©2022 Bloomberg L.P.