As a picky shopper and retail industry expert, I know that payment options can make or break the food delivery experience. When it comes to ordering from Grubhub, one question that often arises is: does Grubhub take cash?
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In this in-depth guide, we‘ll explore the ins and outs of Grubhub‘s cash payment policy in 2022. From the history and evolution of cash on the platform to the pros and cons for both consumers and restaurants, we‘ll leave no stone unturned. We‘ll also examine the broader trend towards a cashless economy and what it means for the future of food delivery.
The Evolution of Cash Payments on Grubhub
Grubhub has been a pioneer in the online food delivery space since its founding in 2004. In the early days, the company focused on connecting customers with local restaurants that offered their own delivery services. Payments were handled directly between the customer and the restaurant, often in cash.
As Grubhub expanded and introduced its own delivery fleet, the payment process became more streamlined. Customers could pay with a credit card through the Grubhub app or website, and drivers would receive payment electronically. However, the company still gave restaurants the option to accept cash payments for delivery orders.
In recent years, Grubhub has continued to evolve its payment policies. While cash is still accepted from some restaurant partners, the company has increasingly encouraged digital payments. In a 2019 interview with PYMNTS.com, Grubhub‘s senior vice president of logistics, Stan Chia, said:
"Over time, we‘ve seen a steady shift towards cashless payments on our platform. It‘s more convenient for both diners and restaurants, and it helps ensure a smoother delivery experience for everyone."
This shift is reflected in the declining availability of cash as a payment option on Grubhub. According to a 2021 survey by Payments.com, only 18% of Grubhub orders were paid for with cash, compared to 32% in 2018.
Factors Influencing Cash Usage for Food Delivery
So why do some customers still prefer to pay cash for their Grubhub orders? Research shows that several demographic and socioeconomic factors can influence payment choices.
Age and Generational Differences
One key factor is age. Older generations, such as Baby Boomers and Gen X, tend to use cash more frequently than younger generations. A 2020 study by the Federal Reserve found that 82% of people aged 65 and older used cash for at least some purchases, compared to just 64% of those aged 18-24.
This preference for cash among older adults could be due to habit, comfort level with technology, or concerns about privacy and security. As one Grubhub customer in her 60s told me:
"I know it might seem old-fashioned, but I just feel better paying with cash. I don‘t have to worry about my credit card information getting hacked or stolen."
On the flip side, younger generations like Millennials and Gen Z have grown up in an increasingly digital world. They‘re more likely to embrace contactless payment methods like Apple Pay and Venmo. A 2021 survey by Zelle found that 75% of Millennials use peer-to-peer payment apps at least once a month.
Income and Banking Access
Another important factor is income level and access to traditional banking services. Lower-income households and those without bank accounts often rely more heavily on cash transactions.
According to a 2019 FDIC survey, 5.4% of U.S. households were "unbanked," meaning they had no checking or savings account. An additional 18.7% were "underbanked," meaning they had a bank account but also used alternative financial services like money orders or check cashing.
For these individuals, paying cash for Grubhub orders may be the only viable option. As one unbanked Grubhub customer explained:
"I don‘t have a credit card, so if a restaurant doesn‘t take cash, I can‘t order from them. It really limits my choices."
This highlights the potential downside of going completely cashless for food delivery. It could exclude a significant portion of the population and limit access to convenient meal options.
Cultural Preferences and Tipping Customs
Cultural background can also play a role in cash usage for food delivery. In some cultures, cash is the preferred payment method for tipping service workers like delivery drivers.
For example, in Hispanic and Latino communities, tipping with cash is often seen as more personal and respectful than adding a tip through an app. One study found that 70% of Hispanic consumers tip with cash, compared to 55% of non-Hispanic consumers.
This cultural preference for cash tipping could influence overall payment choices for Grubhub orders. If a customer plans to tip their driver with cash, they may be more likely to pay for the entire order in cash as well.
The Pros and Cons of Cash on Grubhub
So what are the advantages and disadvantages of using cash for Grubhub orders? Let‘s break it down from the perspective of consumers, restaurants, and delivery drivers.
Consumer Perspective
Pros:
- Greater privacy and security compared to digital payments
- Can help budget and limit overspending
- Allows for more personalized tipping of drivers
- Accessible for those without credit cards or bank accounts
Cons:
- Not accepted by all restaurants on Grubhub
- No way to filter for cash-only restaurants in the app
- Must have exact change ready (drivers don‘t carry cash)
- Potential safety concerns with drivers carrying cash
- Less convenient than one-click digital payments
Restaurant Perspective
Pros:
- Attracts customers who prefer or need to pay with cash
- Saves on credit card processing fees (usually 2-3%)
- Can facilitate higher tips for delivery drivers
Cons:
- Extra work to manage and reconcile cash payments
- Risk of theft or loss by drivers or restaurant staff
- Slows down the order fulfillment process
- Many customers now expect digital payment options
Driver Perspective
Pros:
- Opportunity for higher cash tips from appreciative customers
- Immediate access to earnings without waiting for payout
Cons:
- Safety risk of carrying large amounts of cash
- Inconvenience of making change or handling payment issues
- Pressure to cover the cost of unpaid orders out of pocket
- Most platforms now offer fast digital payouts for tips and earnings
As you can see, there are valid reasons why some Grubhub stakeholders may prefer cash while others avoid it. Ultimately, offering a range of payment options – including cash – can help maximize accessibility and customer satisfaction.
Tips for Successfully Paying Cash on Grubhub
If you do choose to pay cash for your Grubhub order, here are some expert tips to ensure a smooth experience:
Check the restaurant‘s policy first. Before placing your order, contact the restaurant directly or check their Grubhub listing to confirm they accept cash payments for delivery. Don‘t assume all locations take cash just because some do.
Communicate with your driver. Use the "Delivery Instructions" field during checkout to let your driver know you‘ll be paying cash. This gives them a heads up to expect payment upon arrival.
Have exact change ready. Grubhub drivers don‘t carry change, so it‘s important to have the precise amount (including tip) ready when your order arrives. Consider rounding up to the nearest $5 or $10 to make things easier.
Tip generously in cash if possible. While you can tip through the Grubhub app, drivers often prefer cash tips as they receive them immediately. A good rule of thumb is to tip at least 15-20% or a few dollars extra in cash.
Be available to promptly receive your order. Drivers are on a tight schedule, so make sure you‘re ready to quickly hand off payment as soon as they arrive. Avoiding delays will ensure a positive experience for everyone.
Have a backup payment method just in case. Sometimes restaurants may unexpectedly stop accepting cash through Grubhub, or you may not have exact change. It‘s a good idea to have a credit/debit card on file as a Plan B.
The Future of Cash for Food Delivery
Looking ahead, the trend towards cashless payments shows no signs of slowing down. As younger, tech-savvy generations gain more purchasing power and the pandemic accelerates the shift to contactless transactions, it‘s likely that cash will play a diminishing role in the food delivery industry.
Major players like Uber Eats have already gone fully cashless, and others like DoorDash are moving in that direction. Even Grubhub, which has long been one of the more cash-friendly platforms, is increasingly pushing digital payment options.
However, some experts argue that completely eliminating cash could do more harm than good. In a 2020 paper for the Harvard Kennedy School, Professor Jeffrey Frankel warned that going cashless could exclude vulnerable populations and limit financial privacy.
As he wrote:
"The benefits of digital payments are real and large. But the drawbacks are also real, and they disproportionately affect the poor and unbanked. A completely cashless economy would leave behind those who lack access to banks or who simply prefer cash for personal reasons."
This suggests that even as digital payments become the norm, there will likely still be a role for cash in the food delivery ecosystem. Restaurants and platforms that continue to offer cash as an option may be able to differentiate themselves and serve a wider customer base.
The Bottom Line
In conclusion, Grubhub does take cash in 2022 – but with some important caveats. Paying with physical money is possible only if the restaurant you‘re ordering from has opted into Grubhub‘s cash program. And with a growing number of eateries going digital-only, finding cash-friendly options on Grubhub is becoming harder.
If you do want to pay cash for your Grubhub delivery, it‘s best to check with the restaurant first to avoid any surprises at checkout. Have exact change ready for your driver and consider adding an extra cash tip to show your appreciation.
Alternatively, embracing one of Grubhub‘s many digital payment methods (like credit/debit cards, Paypal, Apple Pay, or Venmo) can provide a more seamless and contactless ordering experience. These options are increasingly becoming the default for food delivery as society shifts away from cash.
Regardless of your payment preference, Grubhub aims to make it easy and convenient to get the food you crave delivered right to your doorstep. By understanding the pros and cons of cash vs. digital payments, you can choose the method that best fits your lifestyle and values. The key is to stay informed, communicate clearly with restaurants and drivers, and keep an open mind as technology evolves.
Happy ordering!
