Is it profitable to drive an Uber in Canada: salaries, taxes, requirements, and how to get started
If you're thinking about becoming an Uber driver in Canada, you should check out our detailed guide.
In this article, we'll look at:
- the pros and cons of working for Uber;
- Uber indicators;
- an Uber driver's salary;
- how to choose a car;
- requirements for an Uber driver;
- stages of driver registration;
- what taxes Canadian Uber drivers pay;
- types of insurance for Uber driving.
Uber can be an ideal choice for people looking for both additional and primary income in Canada. We've gathered a lot of information, tips and tricks on the topic of whether it's profitable to drive an Uber in Canada.
But first, a quick overview of whether working for Uber is right for you:
Working for Uber — pros and cons
➕ You can work in your spare time without a supervisor telling you what to do.
➕ Uber claims drivers earn an average of $25 Canadian dollars an hour.
➕ You get the opportunity to meet people from all over the world.
➕ You will become a mobility expert in your city.
➕ You'll get reviews from real people about restaurants, clubs, and tourist attractions.
➖ Dealing with a lot of people means dealing with a spoon of tar in a barrel of honey.
➖ If you choose the wrong vehicle, it can cost a lot of money to maintain.
➖ You'll have to sit through a lot of paperwork to pay your taxes.
A little about Uber
Uber was launched in 2009. Since then, it has served more than 674 cities in 83 countries, and hundreds of thousands of Uber drivers make more than 40 million trips per month!
The statistics today are as follows:
97% of Uber drivers are happy with the flexibility of their schedule;
91% are satisfied with work-life balance;
74.9% of passengers prefer Uber to a traditional taxi, while 71% feel unsafe in a traditional taxi;
60% of passengers aged 34 to 55 choose Uber every time, regardless of price.
Uber driver salary: is it worth it?
Uber officially states: "On average, Uber partner drivers earn $25 an hour, or about $50,000 a year for a 40-hour work week, but you can earn even more. Start driving today and earn what you deserve."
The figure of $25 per hour is an approximate wage for an Uber driver, which can vary greatly depending on the region and how efficient you are as a driver.
And what do Uber drivers themselves say about their wages?
"Driving in Toronto I usually make $80-100 by driving from 3pm to 6pm during rush hour, and if I go out from 10pm to 2pm, I can usually make another $80-100. That's before deducting the 20% commission from Uber. And when it rains and fares go up, you can earn even more".
"In Calgary there may not be much work during the day, I make an average of $15-20 an hour, but on Thursday and Saturday I can easily make $40 an hour. The Stampede Festival is crazy, I've made thousands of dollars in two weeks."
While it can be difficult to track down exact salaries on Uber, you can find a wide range of salaries in articles. Here's what the CBC writes:
"We've been very successful in attracting drivers in Ottawa because we see Uber as a good earning opportunity," Uber Canada spokeswoman Susie Heath wrote in an email to CBC. — On average, Uber partners earn $25 an hour in Ottawa, and we consistently provide partners with information that enables them to increase their income by working in busy areas and at different times."
Choice of vehicle
However, you should consider the cost of fuel, insurance, and maintenance costs for your car when calculating your paycheck. Choosing the right type of fuel-efficient car can make a real difference to your net salary.
Uber usually requires that you have a new or relatively new vehicle that has the ability to obtain a safety standards certificate after passing a detailed inspection. The vehicle also needs regular maintenance, so choosing a vehicle that is reliable, inexpensive to maintain and runs well on fuel (or no fuel at all) is key to maximizing your earnings.
Driving a fuel-powered vehicle will increase costs compared to electric vehicles (EVs) or hybrid vehicles (PHEVs), so it is important for drivers to use a fuel-efficient vehicle. Most often, taxi drivers choose Toyota Prius, Honda Civic, Ford Fusion, Toyota Corolla and various hybrid or electric vehicles such as Nissan Leaf.
Annual vehicle operating costs will vary by vehicle make and model. The Canadian Automobile Association (CAA) has created a online calculator that can provide estimates of annual operating costs for almost all makes and models of vehicles.
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