Uber first raised controversy over their compensation system in 2016 when they cut partner pay by almost 30%. At the end of May 2018, Uber began to roll out a new Ubereats pay rate in Toronto for its drivers. Time will tell if this begins to spread to other cities across Canada.
According to Uber, it is now taking time into consideration when calculating fares. Though that may sound great to those who have to deal with Toronto traffic it comes with some bad news.
Here is how the Toronto UberEats pay rate has changed and how to calculate it.
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Old UberEats Pay Rate
Prior to the new Ubereats pay rate in Toronto being introduced, drivers were paid a flat rate for the pickup. They were also paid a flat rate for dropping off the food to the customer and a rate for each kilometre driven from the restaurant to the customer. The kilometres were calculated based on what Uber estimated to be the most efficient route, not what route you actually took.
Uber then takes a commission, the “Uber Fee”, from your fare which can be anywhere from 5% – 35%, depending on your location and if you drive UberX or another passenger transport service with them. In that case, they will typically take a lower fee from you than a driver who only does Ubereats.
The delivery pay rates below were from the old method of calculating fares.
Uber offers a boost rate or a surge rate when demand is hight. This is a bonus multiplier, for instance 1.5, which in this case would give you an additional 50% of your total fare.
If you drive UberX as well, you may not get boosts that are as high as an Ubereats only driver, which is why the Uber Fee may be lower for you.
The Uber Fee does not affect your boost earnings. It also does not affect your tips.
The following was the old formula using the Ubereats pay rates in Toronto with the 35% commission for Ubereats only drivers. For the Ubereats pay rates in your area, head to our courier and delivery page to find your city in Canada.
Old Pay Rate Calculations
For Example: You pick up an order and deliver it 2.7 km away from the restaurant to the customer. The boost at the time you pick up the order is 1.5 and the customer tips you $2.00. You would make…
- Fare: $2.90 + $2.50 + ($1.05 x 2.7) = $8.24
- Commission: $8.24 x 0.35 = $2.88Step 3 (Net Fare): $8.24 – $2.88 = $5.36
- Boost: $8.24 x 0.5 = $4.12
- Total Pay: $5.36 + $4.12 + $2.00 = $11.48
Want to learn more about delivering for Uber in Toronto? Check out our guide to get started!
New UberEats Pay Rate
A time factor included in the calculations shows how the UberEats pay rate in Toronto has changed.
This means that you will be paid per minute of waiting at the restaurant and delivery time to the customer. According to the e-mail blast to drivers:
You’ll now get paid for expected travel time, time waiting at a restaurant, in addition to the fees for pickups and dropoffs.
This may sound like great news, however with this additional time-based pay rate incentive, they have lowered the pay rates for pickup, dropoff and the per kilometre amount. Here are the new rates effective May 29, 2018:
As you can see, the rates have been essentially cut in half!
Thought about trying a different delivery service? Learn more about driving for Foodora.
New Pay Rate Calculations
Let’s use the same scenario as outlined above, so a 2.7 km delivery, 1.5 boost, $2 tip and let’s suppose it takes 16 minutes. Remember this does not include your travel time to the restaurant.
- Fare: $1.50 + $1.00 + ($0.49 x 2.7) + ($0.28 x 16) = $8.30
- Commission: $8.30 x 0.35 = $2.91Step 3 (Net Fare): $8.30 – $2.91 = $5.39
- Boost: $8.30 x 0.5 = $4.15
- Total Pay: $5.39 + $4.15 + $2.00 = $11.54
New Pay Rate Results
Uber used the figures we used in our calculations (excluding the commission and tip factors) in their e-mail to drivers.
The result is that drivers in Toronto would actually make $0.06 more with the new UberEats pay rate.
However, like the fee for kilometres traveled, the per minute fee is estimated, not reflective of your actual time. Also, the time and kilometres traveled provided in the example are completely arbitrary and will vary per trip.
Uber said the new delivery pay rates in Toronto were introduced as a result of driver feedback. Many drivers complained that a 3km trip that took 10 minutes was not paid as fairly as a trip taking 20 minutes due to traffic.
Will the new UberEats pat rates work to the benefit of drivers? We will have to wait and see. Feel free to comment below or contact us with your experience.
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