Toronto’s gig economy could soon see a major shift, as a recent city staff report highlights the need for increased wages for gig workers, particularly those in the vehicle-for-hire industry.
On Tuesday, the city’s Executive Committee issued a series of recommendations that could raise the floor for gig worker earnings if approved by City council. The recommendations come after a review of driver wages in the vehicle-for-hire industry, which includes taxicabs, limos, and private transportation companies.
Back in February, a team of researchers — consisting of Dr. Mischa Young from the Université de l’Ontario Français and Dr. Steven Farber and Dr. Mashrur Rahman from the University of Toronto — completed an assessment of the vehicle-for-hire industry to inform City council about the current state of driver wages.
The study was supplemented by information about wages and incomes received during public consultations from drivers, companies, and other stakeholders.
Researchers found that the median private transportation company (PTC) driver’s gross earnings were $33.52 per hour in 2024 and $33.18 in 2024 for every hour of “engaged” work — which includes the time between when a driver accepts a trip request and drops the passenger off.
When accounting for all the time spent logged onto a platform (including times where there is no passenger), the study found that the median driver gross earnings were $25.23 per hour in 2023 and $22.46 in 2024.
After calculating driver expenses, including fuel, insurance, depreciation, maintenance, repairs, financing, fees, and taxes, the study found that the median driver’s net earnings were $15.31 per hour in 2023 and $15.34 in 2024 when accounting only for engaged time, and $7.94 per hour in 2023 and $5.97 per hour in 2024 when accounting for all time spent on the platform.
Researchers were unable to conduct a study of taxicab and limousine driver wages due to “a lack of taxicab trip data provided to the City.”
As a result, City council is requesting the city manager to initiate a campaign focusing on “raising the floor for gig workers,” including vehicle-for-hire drivers to ensure they are able to make a living wage.
The recommendations are set to be considered by City council on Tuesday.
