Do you want to become an Uber driver? Do you want to earn extra money driving for Uber in your spare time? Or are you here just to find out how much you can earn as an Uber driver in Canada? If so, I have you covered with this article. Uber driving has many reasons for getting behind the wheel, perhaps to pay for a vacation abroad or to pay for that pretty dress they saw through the window, or some just want to have some extra cash on hand.
Whatever the reason, people are getting behind the wheel and Uber continues to recruit drivers year after year. The question on everyone’s mind reading this is “How much can I make as an Uber driver in Canada?” »
In recent years, the lifestyle of side hustles, self-employment and self-employment has become fashionable. With the introduction of many online platforms that support this, it seems like almost everyone has at least one side or another. One of the most popular side hustles is working as an Uber driver.
Well, I’m here to provide what I believe to be a sufficient answer to that question, so let’s get started.
How much does an Uber driver earn in Canada?
Indeed estimates that Canadian Uber drivers can earn approximately $26.28 per hour of work. (Check here for more information.) Independent contractors earn approximately $34,926 each year, drivers can earn approximately $18.72 per hour spent behind the wheel, and delivery drivers earn approximately $17.73 per hour.
By that estimate, Uber drivers earn slightly above the national minimum wage of $11.06 an hour.
Uber’s recruiting page tells new drivers they can earn around $2,600 on their first 400 trips over 90 days. This includes a a little something extra of Uber itself but it is still a significant income. Meeting this standard is not impossible but it is certainly difficult.
At first glance, it might seem like getting behind the wheel of an Uber isn’t such a bad idea, but as with any business, there are several things you need to consider before getting behind the wheel, then you’ll know if working as an Uber driver is the right job for you.
What are these things you need to consider then? Well, let’s talk about some of them.
Days of the week: Uber driver earnings
Like any business, there are tough days and there are great days. On some busy days, you may end up earning high numbers. Some drivers report that on some Fridays and most weekends they can earn up to $30 an hour, including tips.
That’s a particularly encouraging number, but there are days when you can also finish at $10 an hour. Some drivers even report that they earn less than that on some days.
If you’re considering working as an Uber driver full-time or perhaps as a side hustle, you need to keep in mind that not every day is going to be great. You will have good days and there will definitely be bad days.
Uber Driver Vehicle Costs
Another notable factor that could affect how much you earn with Uber is the type of car you drive. It is common knowledge that different cars operate to different standards. A used car and a new car will not cost the same, because a hybrid car will not cost as much as a regular car.
Some Uber drivers claim that a hybrid car is the cheapest car to use on Uber because it will cost less to charge an electric battery than to keep refueling a gas car. If you have a new hybrid car and primarily use electric fuel, you can potentially maximize Uber’s driving business as a side hustle.
If you’re new to the Uber driving business, then a car that’s relatively new, reliable, and gets good gas mileage, or preferably uses very little gas, is your best bet. This way, you can expect your income to be slightly above average, given that all other things on this list remain equal.
Uber driver: annual car maintenance costs
How much should an Uber driver spend on vehicle maintenance? Let’s look at that in this section.
Besides the car model, the annual maintenance or operating costs are also very important. The expectation is that a new car is your best bet, but not everyone has a new car lying around solely for Uber purposes.
It is therefore important that the costs of maintaining your car do not exceed what you earn, otherwise the costs of running the business will far exceed the profits, especially after adding in the cost of gasoline.
If you need help calculating the annual operating costs of your car, you can use the calculating the cost of a car onliner provided by the Canadian Automobile Association. This will help you have a rough estimate of how much you would spend each year to keep your car running.
For example, as an Uber driver, it is estimated that a used 2018 Audi A3 Plug-In Hybrid Progressive 5D Hatchback e-Tron that travels 30,000 miles each year would cost approximately $12,207.18 per year, while a 2018 Ford Focus Electric 5D Hatchback would cost approximately $9,192.89 per year.
That puts the Ford about $3,000 less than the Audi in annual operating costs. The calculator has a wide selection of cars and you can use it to determine a rough value for how much you would spend each year to put your car on the road.
Other operating costs when driving for Uber
Every Uber driver wants a great review on the app and so the battle for 5-star reviews takes place with vehicles as the battleground. This means that you want to provide your passengers with the best type of service possible. You will end up having to provide extra things that you will use to win your date’s heart, this means extra water bottles, snacks, chargers, etc.
All of these things cost a lot of money, even though they cost very little individually. And that’s just for equestrians, when you start adding up your daily feed costs, you may find that you’re spending hundreds of dollars more each week. This is especially true for drivers who are unable to stop by home for meals or breaks and are on the road most of the time.
Before you start your life as an Uber driver, this is something you should seriously consider.
Auto Insurance for Uber Drivers
You cannot drive a car in Canada without insurance.
Once you add a ride-sharing service like Uber to the mix, regular car insurance isn’t enough. You will need to adopt a policy that takes ride-sharing services into account.
This is because using your car for a ride-sharing service makes it a business and this means that a business policy will be necessary for you to start working as a service provider.
Uber intervenes on behalf of its Uber drivers in Ontario, Alberta and Quebec. It now offers comprehensive coverage to drivers in these provinces while working for Uber, although you would still need a personal policy otherwise.
Saskatchewan drivers also enjoy such a benefit thanks to Uber’s partnership with SGI Canada.
Uber Driver: Financial Reporting and Bookkeeping
The last thing, and certainly not the last, to consider before you start driving Uber is its impact on your financial accounts.
Uber considers most, if not all, of its drivers to be independent contractors. Therefore, if you work for them, you are considered self-employed. This means your tax returns will become a different book than they were.
Thanks to the 2017 CRA ruling, Uber and other ride-hailing apps must collect GST/HST, then the taxes are collected by the company and then sent to each driver with their earnings.
This taxes you for everything related to paying GST/HST and any other related expenses. You will need good accounting skills or perhaps hire an accountant to effectively help you determine how much you are expected to pay etc.
If you hire an accountant, you can expect to spend an extra $300 or at least $100 each month. This is an additional cost for Uber drivers that many don’t expect to spend at all.
Conclusion
Is life as an Uber driver right for you?
Is this the side hustle or self-employment you’ve been looking for all this time? This is the initial question that started us on this long quest.
Well, truth be told, like any side hustle, Uber driving is a profitable job given the right conditions. Some of these conditions are within your control, but others are completely beyond your control. So, as with any concert or idea that
is out there, there is money to be made and if the conditions are favorable you can get a lump sum from it.
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