How Much Do Uber Drivers Make? Down to the Nitty-Gritty
Did you know that the average salary for fully employed Canadians amounted to $54,630 in 2020? But how much do Uber drivers make?
If you’re low on cash, it might be time to consider getting a side hustle. But instead of learning a new skill or hunching over a computer screen for long periods, why not drive an Uber? You can monetize your vehicle and create your schedule.
In this article, we’ll discuss the average Uber driver’s income, what affects these earnings and what requirements it takes to become an Uber driver in Canada.
Let’s get right into it!
How Much Do Uber Drivers Make in Canada?
The average annual salary of an Uber driver in Canada is $38,025 a year, or $19.50 an hour according to Talent. Entry-level drivers average about $37,323 in yearly earnings, while experienced drivers make a little more, totalling an average of $40,151 annually ($20.59 per hour). These figures include tips.
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We’ve broken down the average Uber driver income for entry-level and experienced drivers in this table:
|Average salary||Entry-level drivers||Experienced drivers|
Other estimates for the average Uber driver salary include $39,019.50 annually ($20.01 per hour) from Indeed and $34,433 annually ($17.66 per hour) from Glassdoor.
How much do Uber drivers make in each province? We compared Uber earnings in the provinces compared to Indeed’s national average:
|Province||Annual salary||Hourly salary||National average|
|British Columbia (Uber Vancouver)||$50,041||$25.66||28% above|
|New Brunswick||$30,459||$15.62||28% below|
|Newfound and Labrador||N/A||N/A||N/A|
|Nova Scotia (Uber Halifax area)||$44,243||$22.69||13% above|
|Prince Edward Island||N/A||N/A||N/A|
|Quebec (Uber Montreal area)||$46,432||$23.81||19% above|
As you can see, the pay range differs greatly. So what contributes to these vastly different payment averages? We will now discuss what causes these earning differences.
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What Factors Affect Uber Driver Earnings?
Several other factors can affect Uber driver earnings. They are:
As we’ve mentioned in the table above, different provinces have varying salaries. Additionally, a city driver will experience higher demand than someone who drives in rural regions, which drives up the price.
Time of Day or Week
Some days will be slower than others, and some time of day will experience a lull. Shoot for the busiest times on weekdays, which is typically when people get off work between 3 PM and 6 PM in the cities.
For night owls, the best hours to drive an Uber are between 11 PM and 2 AM when people need a ride home from clubs, bars, and casinos. All in all, the best times to drive an Uber are Thursday evening, Friday evening, all day Saturday, and Sunday afternoon.
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How Often You Drive
One of the great things about driving an Uber is that you can make your own schedule. The best thing about this job is the flexibility it offers, given how up to 3.7 million Canadians feel significant levels of stress due to work. However, note that the amount you earn greatly depends on how much you actually drive.
All Uber drivers are required to have valid insurance protection, either through a commercial or personal policy. Insurance rates will vary depending on things like your age, your driving record, your car, demographic factors, and the coverages, deductibles and limits you choose. Make sure to do your research because rates can vary, for instance, if you live in British Columbia, you will be subject to insurance rates of approximately $1680.
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Operational costs are the driver’s expense. This includes things like car payments, gas, repairs, maintenance, car wash, and interior cleaning fees.
The kind of vehicle your drive will determine your vehicle type for the Uber service. For instance, standard vehicles are used for UberX and UberXL, which charge lower rates than more luxury vehicles like Uber Lux and Uber Black vehicles.
Uber drivers are required to report and file their earnings to the Canada Revenue Agency. For 2022, taxes for Independent contractors are 15% on the first $50,197 of taxable income (the rate goes up from there).
To calculate a driver’s earnings, Uber first adds together trip fares, cancellation fees, referral rewards, incentives, promos, reimbursement for tolls, and other payments. Uber then takes the sum and subtracts fees for cash and non-cash trips, device subscriptions, booking fees, vehicle leasing fees, and other corrections. The total is how much the Uber driver is paid.
How to Become an Uber Driver in Canada?
So now you have an idea of how much an Uber driver earns, are you ready to get behind the wheel? That’s great! But first, it may be a good idea to see if you are qualified to become an Uber driver in Canada.
Here are the Uber driver requirements for Canada, including some differences in the provinces:
- Age: In all of the provinces that offer Uber, the minimum age requirement is 21 years old.
- Driving experience: You should have at least 3 years of driving experience and a clean record. In Quebec, you’re required to undergo a 15-hour training program.
- Driver’s license: Alberta and B.C. require a 1, 2, or 4 driver’s license. In Manitoba, a Class 1 to 5, 5F or equivalent is required. In New Brunswick, driver requirements are still a little vague, but it seems a Class 4 license is required. Nova Scotia requires a Class 1, 2, 4, or 4A license. Ontario requires a valid G driver’s license. In Quebec, drivers need Class 5 or lower, and in Saskatchewan a Class 5 or equivalent license.
- Proof of residency: To prove your right to work in Canada, you must provide things like Canadian passports, birth certificates, citizenship cards, residency cards, and work permits.
- Insurance policy: You must have a valid vehicle insurance policy.
- Background check information: A background screening may be required, depending on the city. This can include a Driver’s Abstract, Police Information Check with Vulnerable Sector Check and a Child Abuse Registry application.
- Vehicle registration: Your vehicle must have up-to-date registration documents.
- Eligible vehicles: Most provinces require vehicles that are under 10 years of age, 4-door, 5 seatbelts, no commercial branding, and be able to pass an inspection to receive a safety standards certificate (SSC). In B.C., the vehicle must be under 9 years old. Another exception is in the City of Toronto where vehicles have to be seven years or newer. In Quebec, vehicles 4 years old or newer (or less than 80,000 kilometres) are exempt from vehicle inspection.
How to Increase Your Uber Driver Earnings?
If you aren’t quite satisfied with the standard fare of an Uber driver, there are things you can do to ensure a few more dollars in your pocket.
Here are some tips and tricks to earn a little extra:
- Take advantage of surge pricing. Ignore hot spots and find places with fewer drivers so you can earn more. If you anticipate an increase in surge fares, log out of the driver app, and then into the passenger app right beforehand to help drive the price up.
- Plan places for breaks. If you plan when the predicted demand is low, you can find a more enjoyable place to take a break. You will be more well-rested and it will make the rest of your day more enjoyable.
- Be clean and polite. Everyone appreciates a comfortable ride, which will make them more likely to use the service again in the future. You will also get a better rating, which will make you more appealing to riders.
- Get to know city roads. Understanding rush hours and alternative routes can help you save time and money.
- As well as the driver app, get to know the Uber app for passengers. This will allow you to see where other drivers are, so you can find less congested areas.
- Schedule your time to work on weekends and holidays. The demand is higher, thus more money to earn.
- Get a suitable vehicle. If you want to make more money, consider purchasing a more luxurious vehicle to qualify for UberLUX.
If you have a reliable vehicle and a good driving record, becoming an Uber driver can be just the right job to be a side hustle. If the pay suits your needs, get started today!
UberX is a standard-sized sedan that can fit up to four passengers.
If you aren’t satisfied with how much Uber drivers make, Uber Eats is another option for Uber Canada careers. Drivers for Uber Eats in Canada averaged a salary of $54,368 per year ($27.88 per hour) according to Glassdoor.