The Impact of Uber in Canada
Key Facts
Uber is driven by the mission to help people go anywhere, get anything and earn their way. Uber has helped people save time while moving around safely and conveniently, it has created new business opportunities for restaurants, tourism and other local businesses, and provided flexible earning opportunities for drivers and delivery people wherever Uber operates in Canada.
For this report, Uber Canada commissioned Public First to help them better understand and quantify the impact of Uber for consumers, communities and drivers and delivery people who use the Uber platform across the country. The report focuses on the specific impacts of Uber and Uber Eats in Canada. Using data from newly commissioned nationally representative consumer surveys, anonymous surveys of riders, drivers and delivery people on Uber, and new economic modelling, we explore the economic impact and value Uber and Uber Eats has created for Canadians in a year of inflation and rising costs.
Public First is an independent consultancy that works to help companies and organisations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society, and all the modelling for this report was independently peer reviewed.
Economy
Uber’s technology helps people go anywhere and get anything safely and conveniently, providing flexible earning opportunities to over 140,000 drivers and delivery people who use Uber, and offering merchants another way to reach their customers.
In 2022, Uber unlocked an estimated $8.8bn in economic value for the Canadian economy. This includes both the impact of the earnings of drivers, delivery people and merchants on the Uber platform, and the wider indirect and induced multiplier effect created throughout the company’s wider supply chain
Canadians are feeling the pinch. A third of the population reported feeling less well off than they did a year ago and a fifth (21%) told us that the rising cost would lead them to consider taking on a gig-economy role like driving or delivering with Uber
Consumers
Ridesharing platforms like Uber have made life easier for Canadians. When time is tight, Uber can be trusted to get riders from A to B quickly and safely while Uber Eats can free up time spent cooking and clearing up by helping deliver good quality food right to Eaters’ doors.
We estimate that Uber saves riders 13 million hours a year. That is the equivalent of making the journey from Vancouver to Ottawa over 300,000 times
of Uber Eats users agreed that food delivery apps are a lot more convenient than other forms of takeout
Taken together, we estimate that Uber and Uber Eats produced $35 billion in consumer surplus in 2022, that’s equivalent to 1.4% GDP
For Uber Canada we looked at the consumer surplus generated by both Rides and Eats – this is the amount you would have to pay for someone to voluntarily give a good or service up. We found that:
In 2022, Uber produced $24 billion in consumer surplus for Canadian riders
In 2022, Uber Eats produced another $11 billion in consumer surplus
Drivers and Delivery People
In the last quarter of 2022 Uber saw the highest number of signups ever seen on the Platform in Canada. Our own survey found that 21% of drivers and delivery people told us they started driving or delivering with Uber in the last 12 months.
reported that their work with Uber or Uber Eats has become more important in the last year as a result of the rising cost of living
said that if they did not work with Uber or Uber Eats they would have struggled to cover their costs
told us that the rising cost of living was the main reason behind their decision to work with Uber or Uber Eats
We also know that drivers and delivery people overwhelmingly
choose the Uber platform for the flexibility it offers:
92% of drivers and delivery people who use Uber told us that schedule flexibility was important to them when choosing work
While a quarter of respondents to our survey told us that they only work with rideshare or delivery apps, a third (33%) combine this with full-time employment, 17% with part-time work, and 12% with study
Supporting the
Night-time Economy
The pandemic inflicted hardship on restaurants and local businesses across Canada. It has been a long road to recovery with Uber supporting a return to normality. Whether it’s getting home late at night, exploring a new part of town or travelling alone – Uber gives Canadians the confidence to make the most of what’s on offer in their towns and cities.
of female riders say safety is an important factor in choosing to ride with Uber
of riders agree that having options like Uber helps reduce impaired driving in an area
of riders told us that without ridesharing services like Uber it would be very or somewhat difficult to find a safe way to travel at night
Sustainability
By 2030 Uber aims to be operating as a fully-electric zero-emission platform. One way it is doing this is supporting drivers and riders using the Uber platform to ‘go green’. Uber has extended its commitment through the Zero Emissions Incentive and increased the eligible amount to a total of $10,000 per driver. Drivers will now have additional confidence if making the transition into an electric vehicle.
of drivers and riders who use an electric vehicle reported that Uber programs and initiatives motivated this decision
In a recent survey, two-thirds of all Canadian drivers on the Uber app said they are open to getting an EV as their next vehicle1
Uber also supports Candians make more sustainable choices every day:
of Canadians who have a licence but who don’t have access to a car told us that having rideshare services like Uber was a very or somewhat important reason why they did not own a car
of Uber riders had used it to connect with public transit in the last year
We estimate that 8% of all rides connect with public transit
Communities
Keeping communities safe, helping businesses prosper, and driving equity are three core areas that have guided Uber’s social impact work. Uber is committed to working with diverse local partners that are making a big impact on communities across the country.
Impaired Driving
Uber continues to be the Official Designated Ride of MADD Canada. Together, Uber encourages Canadians to choose a sober ride home rather than taking the risk of driving impaired by alcohol, cannabis, or other drugs
Women's safety
Sexual assault and gender-based violence don’t belong anywhere in our communities. Which is why Uber has extended ongoing partnerships with YWCA Canada, WomanACT, EVA BC and Le Chainon with $450,000 over the next two years to help stop incidents before they happen.
Black-owned Businesses
Uber has renewed our commitment to the Canadian Black Chamber of Commerce and Black Business Direct for another two years to help even more Black-owned businesses be discovered with the national digital directory.
Indigenous-owned Businesses
Uber has partnered with the Canadian Council for Aboriginal Business to support programming designed to help foster the next generation of Indigenous entrepreneurs.
Introduction
Creating Connections
Uber is Canada’s leading rideshare and delivery platform. Across Uber and Uber Eats, the platform supports better mobility and connections between places and people. Newer innovations such as shared rides and grocery delivery help Canadians get where they want or what they need, when they need it.
There are clear benefits in terms of time saved and greater convenience but creating new and better connections has a far wider impact on Canada’s towns and cities.
Growth
Uber goes where public transportation stops. By addressing first- and last-mile challenges, Uber can support the extension of the public transit network. Similarly, filling in gaps, for example, in the hours where public transit is unavailable or sparse, rideshare apps can slowly support the eradication of transport deserts. This can help cities and towns to expand, creating new hubs for businesses to operate from.
Curiosity & exploration
Whether you want to check out that new bar or gallery on the other side of town, explore new cuisines or take advantage of all the cultural amenities on your doorstep from music concerts to the theatre, Uber can help you do that while minimizing fuss and maximizing safety. Having good mobility options helps our towns and cities come to life, particularly at night. Research shows that a thriving city with good nightlife options attracts tourists, acting as a lever for attractiveness and competitiveness alike.2 Ridesharing apps like Uber support towns and cities to unlock their potential by making these places accessible to all. By making it easier to get home, Uber makes it easier to go out.
Economic Value
Uber creates economic value through multiple channels:
Facilitating the income of thousands of drivers and delivery people who use the Uber platform.
Thousands of drivers and delivery people earn or supplement their income through Uber’s platform.
Encouraging higher demand for restaurants and the tourism industry.
By making it easier and safer to travel late, the Uber app encourages more spending in the economy in bars, restaurants, movie theatres, city attractions, and clubs.
Helping merchants reach new customers.
The reviews and rating system on Uber Eats give customers the confidence to try and order from somewhere new – whether takeout or groceries. Uber Eats can help local businesses attract and reach new customers.
Saving time for businesses.
Just like a new runway, highway or rail link, Uber saves significant time for businesses – directly boosting productivity. Uber for Business has helped enterprises large and small cater to new working patterns post-pandemic. From tracking business travel, administering meal plans and programmes for employees and providing exclusive experiences, all from one dashboard, Uber for Business simplifies and streamlines.
Indirectly supporting the jobs of thousands more through the wider supply chain.
The spending of drivers and delivery people on their cars and motorcycles in turn supports a wider supply chain of jobs in other companies such as car manufacturing, garages, and insurance companies.
In total, we estimate that Uber unlocked $8.8 billion in economic value for Canada in 2022. This includes both the direct impact of earnings of drivers, delivery people and merchants who use Uber, and the wider indirect and induced multiplier effect created throughout the wider supply chain of drivers, delivery people and merchants.
Beyond pure economic value, Uber adds value in areas that are harder to quantify but no less important:
Enabling more flexible work for drivers and delivery people on the Uber platform.
Overwhelmingly, drivers and delivery people who use Uber told us they valued the freedom to be their own boss, letting them balance work with other responsibilities, jobs or interests.
Increasing the safety of cities.
Uber helps plug the inevitable gaps in public transport, especially when public transportation options become limited further into the evening, making it safer to get home. There is clear evidence that the presence of the service improves safety and reduces impaired driving.2
Freeing up leisure time for riders and eaters.
Much of the time saved by Uber is in riders’ or eaters’ personal lives – this is extra time spent with family, enjoying sports, socialising or resting rather than travelling or cooking.
How we measured impact
In this report, Uber Canada commissioned Public First to better understand and quantify the impact they were making for riders and eaters, drivers and delivery people, and communities in Canada.
We used a mixture of methods to explore Uber’s impact:
- An in-depth nationally-representative poll to explore Canadian travel and food ordering habits.
- A new anonymous survey of over 3,000 drivers and delivery people on Uber, asking them about their experience and the reasons why they chose the Uber platform.
- Building off the data from Public First’s poll, data provided by Uber and official statistics from Statistics Canada, we created new quantitative models of the economic impact, time saved, consumer surplus and driver value created by Uber.
- We performed a new literature review of the extensive independent academic research, looking at the latest evidence on Uber’s impact on Canadians.
Consumers
How do people use Uber?
Uber has become increasingly integrated into the Canadian economy and the lives of Canadians, with convenience being cited as the most important reason for use of both Uber and Uber Eats.
Whether it is getting home from work, getting to the airport or discovering a new restaurant, consumers know they are able to rely on Uber across the board.
When we asked Canadians why they use Uber, the equivalent of:
Canadians used Uber when visiting a restaurant or bar
Canadians used Uber when they were going shopping
Canadians used Uber to connect with public transport
Canadians used Uber to travel somewhere in an emergency
Canadians used Uber to travel to or from a doctor or hospital
Canadians used Uber to travel to or from work
Canadians used Uber to transport heavy furniture or bulky items
We found that:
of our survey respondents – representing 9.2 million Canadians – had used Uber to get from A to B in the last two years. This rises to just over half (58%) of those under the age of 35
Uber use is highest among younger Canadians with 18 – 24 years olds three times more likely to have used Uber in the last two years than those aged 45 – 54 (62% and 21% respectively).
How riders use Uber
As Uber is integrated into everyday life, it continues to provide a broad range of support to Canadians, transporting them to and from the movies, parties, family events and more…
of riders used Uber at least once a year when visiting a restaurant or bar
of riders used Uber at least once a year to get to a party or festival
of riders used Uber at least once a year to see a film, show, sport or performance
of riders used Uber at least once a year to get to a birthday party or wedding
In addition to leisure activities, Uber supports riders carrying out their day-to-day chores and activities…
of riders used Uber in the last year to get to an airport
of riders used Uber in the last year when commuting to or from work
riders used Uber in the last year to transport heavy furniture or bulky items
riders used Uber in the last year when picking up children
But Uber is also there when riders most need it…
of riders used Uber at least once in the last year to ensure they got somewhere on time
of riders used Uber at least once in the last year when they needed to get somewhere fast
of riders used Uber at least once in the last year to get somewhere in an emergency
of riders used Uber at least once in the last year for friends and family who struggle with mobility
Uber is an important facilitator of transportation for riders when they need to get somewhere fast. On average riders say Uber saves them 6 minutes per trip compared to their next fastest alternative. Thus, we estimate that Uber saves riders a total of 13 million hours per year.
Uber also provides support to Canadians who have a driver’s licence but do not own or have access to a car; of this group 33% reported that the ability to use rideshare services like Uber was an important reason why. This percentage rose to 50% among 18-24 year olds.
Why do riders choose Uber?
Why do you use Uber?
Case study: UberX Share
As we turned the corner on the pandemic, Uber officially brought back shared rides with the launch of UberX Share in Toronto, Vancouver and Montreal.
As Uber’s most affordable option, riders receive an upfront discount of up to 20% if they choose UberX Share. With an Uber One membership, riders get an additional 5% discount. Uber knows affordability is important to making transportation more accessible for people—especially with the rise in inflation and the cost of living.
UberX Share also provides a greener way to get from A to B, by moving more people with fewer cars to help cities avoid extra emissions and car travel by sharing a ride. Uber is committed to providing sustainable, shared alternatives to the personal car and UberX Share is Uber’s newest way for people to be part of the climate solution
How much value does Uber create for consumers?
How much is the increased convenience, safety and reliability enabled by Uber worth to riders?
One of the most important measures of economic welfare is the “consumer surplus” —the amount you would have to pay someone for them to voluntarily give a good or service up. If a good has a zero consumer surplus, that implies we can take or leave it – whereas goods with a high consumer surplus are playing an important role in our lives.
We asked riders how much they would have to be compensated to lose access to the Uber app for the next month.
In total, in 2022 we estimate that rides with Uber are producing $24 billion in consumer surplus for Canadian riders, the equivalent of 0.9% of Canadian GDP.
Uber Eats
Canada has a thriving food scene and food delivery platforms like Uber Eats helps regular Canadians access good quality, local food regardless of unpredictable weather or busy lives.
The equivalent of almost half (44%) of Canadians reported using delivery apps to order food or essential item and the majority of these individuals said that they have used Uber Eats.
Again, convenience was listed as the most important reason people used Uber Eats, with 76% of food delivery service users citing this. Following convenience, users highlighted that they ordered when they were tired of cooking or doing the dishes (39%) and liked the quick delivery times (41%).
Which of the following, if any, are important reasons why you order using food delivery apps?
However, food delivery apps continue to enable consumers to discover new food, new restaurants and new favourites:
of eaters have ordered from a restaurant they have never dined at before via a delivery app
of eaters agreed that food delivery apps are a lot more convenient than other forms of takeout
However, Uber Eats also supports consumers to enjoy a range of products beyond meal-times. Our polling found that:
of Uber Eats users used the app to order groceries in the last year
of Uber Eats users used the app to order alcohol at least once in the last year
of Uber Eats users used the app to deliver pet food or supplies at least once in the last year
In total, in 2022 we estimate that orders with Uber Eats are producing $11 billion in consumer surplus for Canadian users, the equivalent of 0.4% of Canadian GDP. This includes both the direct impact of earnings of grocery stores and the wider indirect and induced multiplier effect created through the supply chain and employee spending.
Case study: Growth of selection
Uber Eats has grown quickly from a platform to get your favourite meals delivered to a one-stop-shop for anything you need. Over the last few years, Uber has invested heavily in its delivery business and selection has expanded tremendously. Uber Eats’ offerings now span grocery, alcohol, convenience, flowers, retail and more. Uber Eats is also the first third-party platform in the world to offer the delivery of safe and legal cannabis. Uber is continuously bringing new merchants onto the delivery platform to deliver Canadians their favourite items.
In the last 6 months, Dollarama, Metro, Walmart, Costco and Food Basics joined the app for more people to get the essential groceries and household items they need delivered directly to their doors. This expansion means more cities now have grocery delivery available too including cities like Trois-Rivières, Sherbrooke, Belleville, Cambridge, Orillia, Sarnia, Sudbury, and the Niagara Region. Just like ordering a ride or a meal with Uber, customers can follow their grocery delivery at each step of the process.
Drivers &
Delivery People
Who drives and delivers with Uber?
In our polling, we found that drivers and delivery people who use the Uber platform represent a wide range of diverse backgrounds, with a majority coming from a racialized background and a wide distribution of ages represented:
of drivers on Uber reported identifying with a racialized group
of drivers on Uber are over 45 years old and 24% are over 50
of drivers on Uber are university or college graduates, 14% have achieved high school education
Case study: UFCW Agreement
In January 2022, Uber Canada and UFCW Canada entered an historic agreement that provides drivers and delivery persons on the Uber platform across Canada access to UFCW Canada representation. Through the first year, nearly 800 workers have had their deactivation or account-related issue case filed. Of these cases, 201 had a positive resolution.
As part of the agreement, Uber and UFCW Canada are working together to press the provincial government to enact reforms that provide new benefits and preserve worker choice on when, where, and if to work. The package includes 120% minimum earning standard, a benefits fund, and access to workers’ rights.
In our poll, we found that when we explained what the agreement encompassed to drivers and delivery people on Uber, 80% were supportive of the agreement.
“I came to Canada from Pakistan in 2003 and I live in Mississauga with my family. I’ve been driving with Uber for the last six years. I like driving with Uber because I get to work for myself and on a not fixed schedule. In the summer of 2022, I got a new vehicle and was trying to upload my insurance papers in the app. However, there was some issue with my papers and the app kept declining and then eventually blocked me. I was without earnings for seven weeks. I turned to UFCW Canada and they helped me resolve the issue by working with my insurance company and with Uber. Now I’m back on Uber with my new vehicle and happy to be back on the road.” – Waseem Tipu
Uber offers drivers and delivery people the ability to set their own hours, fit work around other commitments and priorities and make or save additional income.
of drivers and delivery people on Uber are satisfied with their work on the platform
of drivers and delivery people on Uber said that they expected to continue to use the platform for the foreseeable future, and 18% until their family or caring circumstances changed
Flexibility
In January 2023, The Canadian Labour Force survey reported on the prevalence of digital platform employment for the first time, recognising its growing importance in the economy.
Data from December 2022 showed that 79,000 Canadians had provided taxi or rideshare services through an application or digital platform in the previous 12 months, while 207,000 had provided delivery services for food or other goods.3 As Canada’s leading rideshare and delivery platform, Uber has also seen this trend strengthen with higher value being placed on flexibility and autonomy post-pandemic.
As Uber Eats expands into a grocery and retail delivery platform, this brings about a new flexible earning opportunity—being a shopper. When a grocery or retail order is placed, the delivery person would go inside the store, shop for these items, and then deliver it to the customer. For someone who doesn’t want to only earn while driving but wants or needs a flexible earning opportunity, this is another option.
Drivers and delivery people who use Uber overwhelmingly (72%) chose to do so for the schedule flexibility it offered.
Thinking back to your initial decision, which of the following were important reasons why you chose to drive or deliver with Uber as opposed to other earning opportunities? Please select all that apply.
In order to test its importance, we asked drivers and delivery people whether they would prefer a hypothetical situation in which they received higher earnings, but had to work fixed hours. A majority of drivers said that they would rather retain the right to choose their own hours, even if the alternative was a 20% increase in earnings. In total, in 2022 we estimate that this increased flexibility is worth $727 million to drivers and delivery people.
Schedule flexibility allows drivers and delivery people who use Uber to combine app-based work with other responsibilities. 66% of drivers and delivery people on Uber said that they earn income from other sources, as well as via the Uber app and it is only a small minority of drivers and delivery people who use the platform more than 40 hours a week.
A third (33%) of drivers and delivery people who use Uber work full-time in addition to their work with the app, 17% work part-time and 12% study. 15% of drivers and delivery people on Uber with children are stay-at-home parents who use Uber to top up their incomes, while 20% of drivers and delivery people on Uber, majority female identifying, combine this work with other caring responsibilities.
In total, in 2022, we estimate that drivers and delivery people earn an additional $677 million a year in higher income through Uber, or an average of 31% more than their next best alternative.
Economic Resilience
During the pandemic many turned to Uber to supplement or replace their income. This lifeline is apparent once again as Canadians respond to inflation and rising costs. Uber has seen a rise in the number of registrations from drivers and delivery people on their platform. Our survey suggested 21% of drivers first started using Uber in the last year and 43% of delivery people first started delivering with Uber Eats in the last year and 62% of all those we spoke to said that the rising cost of living was the main reason behind their decision to work with Uber or Uber Eats.
Just as with the general population, drivers and delivery people felt the pinch. 27% of drivers and delivery people said they felt a little or much worse off than a year ago and a fifth (20%) felt pessimistic about their personal finances over the next 6 months.
said that their work with Uber or Uber Eats has become more important in the last year as a result of the rising cost of living
said additional income provided by apps allowed them to save more money
said app-based work helped them to make money in an emergency situation
Apps like Uber can act as a lifeline:
reported that app-based work helped them to pay bills after they lost a more traditional job
told us that app-based work has served as a ‘bridge’ between losing one job and gaining another
Beyond this, app based work overwhelmingly (82%) gives driver and delivery people a feel of independence.
What do you like most about driving or delivering?
Case study: Women Rider Preference
Accessible via the Uber Driver app, the Women Rider Preference feature allows women and non-binary drivers to indicate a preference for picking up women riders. Drivers who identify as women or non-binary will automatically gain access to the feature and can turn it on or off whenever they choose, giving them more confidence to choose to drive.
With the Women Rider Preference feature, Uber hopes to support women and non-binary drivers by offering new features to help improve access to flexible earnings that support their ambitions.
This product is now live in all rideshare markets in Canada with drivers in Toronto, Montreal and London using the feature the most. 25% of drivers using the product are highly engaged and turn Women Rider Preference on for over 90% of their trips.
“I immigrated to Canada with my family in 2017. I am a law student and support my family. Uber helps me earn money on my own time while I juggle studying and helping my parents. With this new feature, I hope more women join the platform so they can earn money while they pursue their dreams,” said Yasmin, who has completed over 2,400 trips with a 4.99 rating.
Communities
Keeping communities safe, helping merchants prosper, and driving equity are three core areas that have guided Uber’s social impact work. Uber is committed to working with diverse local partners that are making a big impact on communities across the country.
Women's safety
Sexual assault and gender-based violence don’t belong anywhere in our communities. Which is why Uber remains committed to help stop incidents before they happen—by partnering with and learning from women’s safety groups, building tools and policies, promoting awareness, and empowering our community of users. Uber is proud to extend ongoing partnerships with YWCA Canada, WomanACT, EVA BC and Le Chainon with $450,000 (CAD) over the next two years to help stop incidents before they happen.
Black-owned Businesses
Uber has renewed our commitment to the Canadian Black Chamber of Commerce and Black Business Direct for another two years to help even more Black-owned businesses be discovered. Black Business Direct is a free, easy-to-access resource for Canadians to search and support local Black-owned businesses across the country. Over the last two years, Black Business Direct has grown to over 1000 listings with new additions every day. CBCC has also made the directory bilingual, introducing a French version of the site.
Indigenous-owned Businesses
Uber has partnered with the Canadian Council for Aboriginal Business to support programming designed to help foster the next generation of Indigenous entrepreneurs.
Road Safety
Uber has renewed its collaboration with Operation Red Nose for a second year to improve road safety in Quebec. The two organizations have aligned missions of offering additional options to get a safe ride home.
Supporting the Night-time Economy
Uber supports the night-time economy, helping people come together to try new hotspots, new cuisine or new entertainment. This has grown in importance post-pandemic as businesses rebuild.
Helping get people home safe at the end of the night is core to this:
of riders who rode with Uber in the last year said Uber was the safest way to get home late at night
of riders say safety is an important reason why they choose to ride with Uber (this rises to 89% amongst women)
of riders told us that without ridesharing services like Uber it would be very or somewhat difficult to find a safe way to travel at night
Independent research also shows that having Uber available in a city reduces impaired driving, traffic collisions, and the number of physical and sexual assault arrests.4 Our polling showed that 77% of Uber users believe that having options like Uber helps reduce impaired driving in an area.
Alcohol delivery via Uber also supports sensible consumption. 27% of those who have used Uber Eats for alcohol told us they did so to avoid drinking and driving.
20% of Canadians who had ridden with Uber in the last year reported using Uber after consuming alcohol. This number rises to 23% of males and then to 43% among 18 – 24 year olds, a point of particular salience following Mothers against Drunk Driving Canada’s 2022 survey finding that young males aged 18 to 34 have shown consistently higher rates of driving while they believed that they are impaired by alcohol.5
Why do you choose to ride with Uber?
Case study: MADD Canada
As the Official Designated Ride of MADD Canada, an Organizational Sponsor and an Official Sponsor of our Project Red Ribbon holiday campaign, Uber is committed to helping MADD Canada promote the use of sober ride options. Together, Uber encourages Canadians to choose a sober ride home rather than taking the risk of driving impaired by alcohol, cannabis or other drugs.
Their collaborations have included public service announcements, billboards, social media, coupon and ride promotions, and messaging through Uber Eats. Uber also works together to encourage municipalities, regions and provinces to implement the necessary regulatory reforms and frameworks to ensure ridesharing services are available in more communities across the country.
Sustainability
Uber has set 2030 as its target to be operating as a zero-emission mobility platform in Canada, Europe and the US. Since our last report for Uber there has been a lot of change. In the third quarter of 2022 in the US, Canada and Europe there were more than 37,700 Zero Emissions Vehicle drivers a month, on average, actively using Uber’s app. That’s a 4-fold increase over the same period a year ago.
Polling by Ipsos Mori in 2022 found that 34% of Canadians worry a great deal or a fair amount about climate change. Our survey showed that for young people in particular there was an expectation that ridesharing should be part of the solution – 41% of young people (aged 18 – 24) in Canada said it was essential or important that when ridesharing the vehicle was electric.
Independent research suggests that three times more greenhouse gas emissions can be avoided by electrifying a ride hail driver’s vehicle compared to the average private car making it even more important to support the transition to electric vehicles.6 Our polling found that drivers on Uber are now four times more likely to drive an electric vehicle than the general public, with 16% of drivers reporting that they own one or more electric vehicles in comparison to just 6% of the general population in Canada who own a car.
Case study - Supporting drivers go green
In a recent survey, two third of all Canadian drivers on the Uber platform said they are open to getting an EV as their next vehicle. This is significant as Uber knows that these drivers drive more than the average person, meaning every one that switches to an EV has an outsized impact on putting green kilometres on our streets. But Uber also knows that it can be challenging for drivers to make a big decision like transitioning to EV.
That’s why Uber has partnered with Plug’n Drive, a non-profit committed to accelerating EV adoption. Over the last year, Plug’n Drive has hosted 11 webinars and 3 in-person EV test drive events in Toronto and Vancouver with over 1200 drivers attending. These webinars and in-person events are great opportunities for drivers to learn about the total cost of owning an EV and the benefits of making the switch from gas to electric.
Beyond its direct action to become more sustainable, Uber also supports the broader drive to Net Zero by supporting connections with public transport options.
of riders with Uber had used it to connect with public transit in the last year
We estimate that in 2022, 9.5 million rides connected with public transit
of riders say that Uber has made it easier to get around their city
Uber’s Impact in Ontario
Population: 15,386,407
Uber’s arrival: 2012
Uber Eats arrival: 2015
Impact
Total economic impact: $5.0 billion
Additional revenue to restaurants from Eats: $581 million
Total consumer surplus: $19.9 billion
Time saved: 8.7 million hours
Insights
Ontarian riders are most likely to use Uber when visiting a restaurant or bar.
of Ontarian riders say convenience is an important reason why they use Uber
of Ontarian riders agreed that Uber has made it easier for them to get to bars and restaurants
of Ontarian riders agree that Uber is an important transport innovation
In your own words, what do you like most about driving or delivering?
Uber’s Impact in British Columbia
Population: 5,399,118
Uber’s arrival: 2020
Uber Eats arrival: 2017
Impact
Total economic impact: $1.1 billion
Additional revenue to restaurants from Eats: $123 million
Total consumer surplus: $6.2 billion
Time saved: 2.4 million hours
Insights
British Columbians are most likely to use Uber to ensure they get somewhere on time
of respondents in British Columbia agree that food delivery apps have made it easier to discover new restaurants
of riders in British Columbia agree that riding with Uber is often the quickest way for them to get to their destination
In your own words, what do you like most about driving or delivering?
Uber’s Impact in Quebec
Population: 8,787,554
Uber’s arrival: 2013
Uber Eats arrival: 2017
Impact
Total economic impact: $1.6 billion
Additional revenue to restaurants from Eats: $201 million
Total consumer surplus: $7.1 billion
Time saved: 1 million hours
Insights
of Quebecois riders would not mind paying a little more for a ride from an electric/environmentally friendly vehicle, second in the country, marginally less than British Columbia
of Quebecois agree that Uber has made it easier for them to try new bars and restaurants further away from their house
of Quebecois users highlighted convenience as an important reason for using food delivery apps
In your own words, what do you like most about driving or delivering?
Methodology
Consumers
Consumer Surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked riders and Uber Eats users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [Uber for rideshare/Uber Eats] or go without access to [Uber for rideshare/Uber Eats] for one month and get paid $X?”
The price offered was randomised between $1.25, $2.50, $5, $10, $20, $50, $100, $200, and $500.
We then computed both a linear and logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure.
This was scaled by the number of Uber users in each province.
Time Saved
As part of our polling, we asked riders for the duration of their most recent trip with Uber, and how long the next best alternative would have taken.
We then used the difference to estimate the relative time saved per trip and applied this to data provided by Uber on the average trip duration. We then multiplied by the total number of annual trips by region to estimate total time saved per year.
We calculated the monetary value of this using GDP per hour for working time and 30% of GDP per hour for non-working time, accounting for the number of trips used for work in accordance with our nationally representative poll.
Drivers and delivery people
Increase in Driver Income
The increase in driver income compared to the next best alternative is calculated from proprietary data provided by Uber on total driver and delivery people payouts and the number of drivers and delivery people partnering with Uber by region. The calculation takes into consideration earnings and next best alternative earnings by driver type.
The percentage increase in Income is taken from the driver survey, and the average response to:
“If Uber did not exist, how much do you think you would be likely to earn per week with your next best alternative?”
Value of Flexibility
As part of the driver survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options for your driving or delivery:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now
Which would you prefer?”
X was randomised between 1%, 5%, 10%, 20% and 50%.
We then used a linear and logarithmic regression to derive a demand curve, and the total driver surplus per user, averaging the results of the two models. This model was conditional on driver type and then scaled up to a national level using data provided by Uber on driver numbers.
Economic Impact
Impact on Restaurants
The model utilizes Uber’s internal data on the national and provincial total payout to restaurants via Uber Eats. We estimate the proportion that which is additional using the average of:
- The self-reported estimate from consumer polling on how much spend is additional, and would not have been ordered if food delivery apps did not exist.
- The mid-point of Collison (2020)’s estimated range of the proportion of dollars spent on food delivery apps that are incremental.7
Following standard input-output methodology, we used the latest Statistics Canada detailed multipliers (2019 detailed), to calculate Type 1 and Type 2 output multipliers for restaurants for Canada and the Provinces. These multipliers are used to show the total impact via restaurants Uber Eats has on the economy.
Total Economic Impact
Total economic impact is calculated as the sum of:
- Driver payouts.
- Indirect and induced impact of driver spending on vehicles.
- Induced impact of additional driver income.
- Indirect and induced impact of restaurant spending via Uber Eats.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Canada. It does not attempt to measure what would happen in a hypothetical where Uber no longer existed.
Our modelling does not include the impact of Uber’s direct investment or employment footprint as a company, or any spillover effect this has on the wider tech ecosystem.
- https://www.uber.com/en-CA/newsroom/earth-month-canada-2023/
- https://www.uber.com/en-CA/newsroom/earth-month-canada-2023/
- https://www.uber.com/en-CA/newsroom/earth-month-canada-2023/
- Driving Safety : An Empirical Analysis of Ridesharing’s Impact on Drunk Driving and Alcohol-Related Crime, Frank Martin-Buck, 2016, https://pdfs.semanticscholar.org/3f1e/b273fcee888441147105882dd12ca811fd35.pdf; Ride-Sharing, Fatal Crashes, and Crime, Angela K. Dills and Sean E. Mullholland, 2016, https://onlinelibrary.wiley.com/doi/abs/10.1002/soej.12255; Assessing the Impact of Ridesharing Services on Public Health and Safety Outcomes, Marlon Graf, 2017, https://milkeninstitute.org/sites/default/files/reports-pdf/110117-Ridesharing-and-Public-Health.pdf
- https://madd.ca/pages/young-males-continue-to-have-elevated-rates-of-driving-after-alcohol-cannabis-and-drug-use/
- https://www.nature.com/articles/s41560-020-0632-7
- https://web.stanford.edu/~leinav/teaching/Collison.pdf