Rideshare drivers in Toronto earn below minimum wage in 2024

In 2024, a report from the City of Toronto revealed concerning statistics regarding rideshare drivers who work on digital platforms like Uber and Lyft. The researchers, from the University of Toronto and Université de l’Ontario Français, uncovered that the net median hourly wage for these drivers was just $5.97, significantly lower than the established minimum wage. This finding highlighted the precarious financial situation faced by these workers, most of whom are young, male, and racialized newcomers. Despite their autonomy as independent contractors, they navigate a highly unpredictable earnings landscape, largely due to the substantial amount of idle time spent awaiting rides. The report broke down the financial realities for the drivers, showing that while they could potentially earn $33.52 per hour in 2023 and $33.18 in 2024 when only engaged time is considered, the reality of their earnings shifts dramatically when considering the complete time spent logged on the platform. When idle periods are included, their median earnings plummeted to $25.23 and $22.46 per hour, respectively, painting a sobering picture of earnings. Ultimately, when all time on the road is computed, the real median earnings for these drivers took a sharp downturn to $7.94 per hour in 2023 and further depressed to $5.97 in 2024. The analysis further underscored challenges faced by independent contractors in this sector, where they are responsible for their own vehicle expenses, including fuel, insurance, and maintenance costs. After these expenses are tallied, the net median earnings fell to approximately $15.31 and $15.35 per engaged hour for 2023 and 2024, respectively. The report also indicated that nearly 58 percent of drivers earned below the Ontario minimum wage even while accounting for engaged time, which rose to $16.55 during the reporting period. The findings prompted discussions on the working conditions of digital platform workers and calls for reform in labor regulations. Calls for better classification of these rideshare drivers as employees have surged from labor advocates who argue that their independent contractor status allows companies to undermine fair wage practices. In response to public outcry, Ontario's Digital Platform Workers’ Rights Act was introduced, mandating minimum wage payment only for the time actively engaged in rides. Even with this legislation, the adjustments have seen little impact on the actual wages received by drivers. The ongoing situation emphasizes the need for further protections and fair treatment for a workforce that, despite its degree of flexibility, remains vulnerable to exploitation.