Is Gig Driving Worth it? 

Becoming a gig driver is one of the most popular ways to join the gig economy in Canada. Whether it’s driving passengers or delivering food to customers, you have different options to choose from. Read on to learn the types of gig driving platforms, and the pros and cons of ridesharing and delivery. 

What it means to be a gig driver

If you’re able to manage the business side, such as your ongoing costs (fuel, maintenance, and setting aside taxes), then you can have a profitable side hustle as a gig driver. Also, if you’re willing to do the same repetitive tasks, have excellent customer service skills, and remain calm in all types of driving conditions, then this type of role could be suitable for you.

Making the commitment to become a gig driver comes with many perks. These benefits include:

• Earning extra money (how much you can actually earn will depend on a lot of factors - consider reading our gig driver earnings guide to find out more) 
• Creating your own schedule
• Being self-employed
• Learning new skills

As a gig driver, you are self-employed

As an independent contractor, you’re the one who’s responsible for managing business expenses and understanding what’s tax deductible. Plus, you’re required to report your earnings in your tax return. Don’t worry, you can learn how to do these things along the way. Plus, you can seek professional advice from an accountant or tax advisor. 

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Ridesharing vs. delivery: which one should you choose?

There are various factors to consider, such as customer service, interaction with riders or businesses, and wait times at establishments or when picking up passengers.However, one of the most critical considerations is whether you enjoy interacting with passengers in your car or prefer to pick up packages, groceries or food orders and deliver them to customers.

If you’re working on a grocery order, you’ll likely need to learn to navigate different grocery stores and find efficient ways to hand-pick items as quickly as possible. If you have a large order, you will need the physical ability to lift heavy items. So, be prepared to be on your feet compared to the other gig driving jobs.

It’s important to reflect on your skill sets as ridesharing's learning curve may be steeper than making deliveries. As such, expect lower earnings early on, but if you keep at it, it could lead to higher earnings. 

Getting the best of both worlds

Also, you may be ambitious to try both ridesharing and delivery driving at the same time (multi-apping). That depends on how quickly you can learn two different platforms simultaneously and juggle two different types of gigs. Some people may be up for that challenge, while others may prefer to start with one platform and then add or switch to the next type of gig driving. 

Pros and cons of ridesharing 

Currently, there are two main ridesharing companies in Canada: Uber and Lyft. Here are the advantages and disadvantages you can come across when driving with them. 

Pros

• You can optimize your earnings by driving during rush hour.
• If you’re able to achieve a high rating, you may be eligible for additional perks.

Cons

• You are charged a service fee for using the app which gets deducted from your earnings.
• Your passenger may cancel on you and the compensation for your time will vary.
• Customer demand will vary depending on the time of day, day of the week, or region.
• Because ride demand can fluctuate, you may experience inconsistent earnings and tips.

Pros and cons of food & groceries delivery driving

Canadian gig drivers have a variety of food and grocery delivery platforms to choose from. Keep in mind choosing the actual company you sign up for will largely depend on location - some apps are simply more popular than others. 

Pros

• Supplemental income: As a part-time gig driver, you can earn extra cash on top of your regular job whenever you feel like it. It makes a great side hustle.
• Flexible schedule: The expert gig driver we interviewed highlighted the flexibility of being able to choose your own hours as one of the biggest perks of gig work.You can clock in and out at will and work around other commitments like family, school, or scheduled work. 

Cons

• Unreliable support from the apps: it might be challenging and time-consuming to contact support, as the chat options are limited or not available at all. Many gig workers turn to forums and YouTube videos for advice and community.
• Income variability: Gig driving can be risky because income is not guaranteed. Unlike a traditional job with an hourly wage, gig work pays based on deliveries completed, which can fluctuate widely depending on the time of day and number of orders.
• Burnout and delivery fatigue: If you don’t go out to do gig work at certain times, you risk not making money. That pressure can lead to fatigue and eventually burnout, especially if you’re doing it full-time as your main source of income. 
• You may need to wait for your order if the restaurant staff is still preparing the meal.
• With grocery delivery, you need to factor in extra time to hand pick the items from the grocery store.

Gig driving apps in Canada

Here are the top gig driving platforms available in Canada. We’ve also included links to our helpful driver requirements and tax guides.

Note: If viewing on mobile, turn your phone to the side to view the entire table. 

How to become successful in gig driving 

There are a few specific strategies to increase your ratings and earnings. Here are a few common tactics to implement:

Understanding how to run your business is important when you’re self-employed. For example, you can control your costs (fuel, insurance, maintenance), plan your time wisely, and pay taxes to the Canada Revenue Agency (CRA). 

Not all rides or deliveries are equal. So, it’s not in your best interest to accept all rides or orders given to you. Analyzing which trips are worth your time and effort will help you to be selective of which ones you accept, which could help boost your earnings. Thinks of the distance and the tip involved - those will help you estimate whether the order is worth your time. According to delivery driver experts, it’s also worth looking at the place you’re picking up from - a fast food joint will often result in poorer tips than a higher-end restaurant. 

You should be comfortable navigating around town, especially during rush hour traffic or construction sites. Living in Canada means you’ll need to adapt to various weather conditions throughout the year. Being able to drive in snowy or icy, rainy or foggy weather is essential. Getting lost or taking a longer route might affect customer satisfaction, equally for delivery and rideshare.

Keep the interior and exterior of your car clean to earn positive ratings from your rideshare passengers. So, consider cleaning your car inside and out on a regular basis.

With ridesharing, gauge how much your passengers want to interact with you. Some people want to socialize, while others prefer a quiet environment during the ride.