Toronto is once again considering capping the number of licensed ride-share drivers in the city as a report from staff says some drivers are making less than $6 per hour when their expenses are factored in.
A city staff report recommends limiting the number of ride-share licences for drivers working for companies like Uber and Lyft in Toronto to 80,429 — the number of licenses as of Dec. 1 — with an exemption for zero-emission and wheelchair-accessible vehicles.
The report found that about 14 of every 100 vehicles in downtown Toronto are driving for ride-share companies.
On average, about a third of those vehicles are driving around empty while waiting for another trip request, the report says.
The city tried to introduce a cap on ride-share drivers last October, but backed off following a legal challenge from Uber.
‘We don’t want vehicles driving around empty’
Carleton Grant, the head of the city’s licensing and standards division, said city staff believe they now have the right number for the cap after conducting extensive analysis of the industry in the city.
“What we are doing with the cap is stemming the growth of this industry while recognizing that they are being less efficient. We don’t want vehicles driving around empty,” Grant said.
Toronto city staff are recommending a cap on the number of drivers who work for ride-share companies in the city, including Uber and Lyft. CBC’s Chris Glover details other key takeaways from the new report.
The city’s report also says the number of licensed ride-share drivers in Toronto has increased by nearly 19,000 since last year.
A separate analysis of drivers’ wages, which looked at close to 84 million trips over a 16-month period, found the median wage for drivers was less than $6 an hour when their expenses were taken into account.
Ride-share drivers say cap is too high
But some ride-share drivers say the proposed cap is way too high and won’t do anything to address concerns about low wages.
“It’s not going to improve an already bad situation. It’s just going to continue to erode the industry,” said Earla Phillips, president of the Rideshare Drivers Association of Ontario.
Uber driver Ejaz Butt said he’s feeling the impacts of the high number of drivers competing for rides.
A decade ago, he says he made roughly $300 a day. On Tuesday, he said he drove for five to six hours and only picked up one passenger with a fare just under $30 — something he says is not uncommon.
Butt said he worries the proposed cap won’t do anything to help drivers like him.
“Who will get the jobs? Nobody!”
A spokesperson for Uber argued the city is using incorrect data and failed to properly consult with the industry.
The proposed cap would put “affordability, reliability and safety of an important transportation option at risk,” said Keerthana Rang.
Rang said the report on earnings doesn’t take into account drivers who work on multiple apps. It also doesn’t acknowledge that ride-share drivers can claim their expenses when doing their taxes, she said.
The mayor’s executive committee will consider the proposed cap at its next meeting on Dec. 10.
If approved, city council will vote on it on Dec. 17.