Rideshare driver Alin Posmag is facing a significant drop in his earnings. Nearly five months after Ontario implemented new regulations aimed at improving pay for gig workers, Posmag claims his income has reached its lowest level. He has been driving for companies like Uber, Lyft, and Hopp for almost two years. Posmag reports that he is receiving fewer trip offers and earning less per trip. He estimates that he is making about 35% of what he earned last year, despite his continued commitment to working long hours.

The former engineer from Burlington, who left his job due to stress, turned to rideshare driving to make ends meet. He often works extensive hours, even logging a record 139 hours in one week. However, he states that the oversupply of drivers and long waiting times for trips mean he barely earns minimum wage after accounting for expenses like gas and car maintenance. "The law that was implemented is very superficial and fundamentally wrong," Posmag said. "It feels like manipulation at every level."

The surge in delivery app usage during the pandemic has led to a rapid increase in the rideshare and food courier workforce, which is largely composed of newcomers and workers with limited job options. In response, Ontario introduced the Digital Platform Workers’ Rights Act on July 1, which aims to establish minimum wage standards for gig workers. This legislation follows similar measures in British Columbia, where drivers have also reported stagnant pay.

Critics, including labor experts and advocates, argue that the new regulations do not adequately protect workers or ensure fair wages. The Ontario law guarantees a minimum wage of $17.20 per hour for "engaged time," which refers to the hours drivers spend actively completing trips. However, it does not account for the time drivers spend waiting for work, which many say constitutes a significant portion of their day. Experts warn that without compensation for all hours worked, gig workers will continue to face financial challenges while companies benefit from reduced labor costs.

A city hall report from last year indicated that after expenses such as insurance, fuel, and repairs, app-based drivers earned only $5.97 per hour when considering all time spent on the app. This figure has been disputed by Uber. Labor relations lawyer Ryan White described the legislation as ineffective, stating it shifts the burden of waiting costs onto workers. He compared the situation to a firefighter being paid only when actively fighting fires, highlighting the unfairness of the current model in gig work.

In a statement, the provincial Labour Ministry emphasized Ontario's role as the first jurisdiction in Canada to introduce enforceable rights for digital platform workers but did not address concerns regarding unpaid waiting time. An investigation revealed that Uber Eats delivery workers often spend hours seeking work without any guarantee of receiving a job.

Uber Canada spokesperson Keerthana Rang stated that the company complies with the new law, ensuring that workers' earnings are compared to the guaranteed minimum for their active time. If a worker earns less than this minimum, Uber tops up their pay. Rang noted that drivers manage their own expenses and may use multiple platforms.

SkipTheDishes expressed its commitment to collaborating with policymakers and couriers to maintain the flexibility of platform work. Lyft and DoorDash did not respond to requests for comment.

Labor advocates have long criticized app companies for misclassifying gig workers as independent contractors, which excludes them from the full range of employee rights and benefits. Muhammad Nawaz, who has worked in rideshare and food delivery since 2019, reported that securing trips has become increasingly difficult due to the high number of drivers. He has shifted to primarily using Uber and Lyft but still spends hours waiting for work without pay. Nawaz estimates his earnings have dropped by 20% to 30% compared to last year, despite dedicating up to 10 hours a day to the apps. He described the experience as "excruciatingly painful" and deemed the new law "completely useless for drivers."

J.J. Fueser, a researcher with the advocacy group RideFair TO, criticized the per-kilometer pay minimums as ineffective in an oversaturated market, calling the law a form of wage suppression. Statistics Canada reported that nearly 700,000 Canadians worked for digital platform apps in 2024, an increase from 468,000 in 2023. In December, Toronto city staff recommended capping rideshare licenses to mitigate the industry's negative effects on traffic and public transit. However, the city's executive committee decided to revisit the proposal. The city stated that while a specific timeline for a future report has not been established, staff are working on operational improvements and data reporting to meet the objectives of the vehicles-for-hire by-law.