Item - 2024.EX19.3

The Executive Director, Municipal Licensing and Standards recommends that:  

1. Executive Committee receive this report for information.

On February 29th, 2024, Executive Committee adopted EX12.1 - Vehicle-for-Hire and Private Transportation Industries Update Request, requesting staff to analyze driver wages in the vehicle-for-hire industry, which includes taxicabs, limousines and private transportation companies.

A team of researchers specializing in research and analysis of the vehicle-for-hire industry in Toronto and internationally, consisting of Dr. Mischa Young from the Université de l’Ontario Français and Dr. Steven Farber and Dr. Mashrur Rahman from the University of Toronto, were retained to complete an assessment of the vehicle-for-hire industry to inform Council about the current state of driver wages. This academic study is supplemented by information about wages and incomes received during public consultations directly from drivers, companies and other stakeholders.

The researchers found that the median PTC driver gross earnings was $33.52 per hour in 2023 and $33.18 per hour in 2024 for every engaged hour of work, which includes the time between when a driver accepts a trip request and drops the passenger off. When accounting for all time spent logged onto a platform, including times where there is no passenger, the median driver gross earnings were $25.23 per hour in 2023 and $22.46 per hour in 2024.

The researchers also calculated driver expenses, including fuel, insurance, depreciation, maintenance, repairs, financing, fees and taxes and found that after expenses are accounted for, the median driver net earnings were $15.31 per hour in 2023 and $15.34 per hour in 2024 when accounting only for engaged time, and $7.94 per hour in 2023 and $5.97 per hour in 2024 when accounting for all time spent on the platform. Due to a lack of taxicab trip data provided to the City, the researchers were unable to conduct a similar data-driven study of taxicab and limousine driver wages.

Wages and employment standards are regulated by the Ontario government through legislation such as the Employment Standards Act and the Digital Platform Workers' Rights Act. This report summarizes this legislation and provides context about their applicability to drivers in the vehicle for hire industry.

There are no financial impacts arising from the recommendation in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The City Solicitor recommends that:  

1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains advice which is subject to solicitor-client privilege.

This report is supplementary to the report from the Executive Director of Municipal Licensing and Standards entitled "Analysis of Drivers Wages in the Vehicle-for-Hire Industry" dated November 26, 2024 (the "Drivers Wages Report"). This report provides legal advice that is subject to solicitor-client privilege.

There is no financial impact resulting from the adoption of the recommendations in this report.