For high schoolers and university freshmen, it’s hard to find a part-time job that isn’t low-paying, long hours in retail, or service industries. But what if you could be your own boss and make your own hours? A third of Canadians aged 15-29 are in temporary jobs, and a G2 license opens your options for jobs.
Technology is changing the way we live and work. Having a G2 license gives you some freedoms, but there are some restrictions.
Let’s break down the smartphone apps you can use to earn money with a G2 license.
Skip The Dishes with a G2 license
You can deliver food for Skip the Dishes (Skip) with a g2 license, but understand your limitations.
Skip isn’t rigorous either. You need a “reliable” vehicle, a valid driver’s license, Ontario car insurance, and they’ll perform your background check after you fill in the application. You’ll also need a smartphone with a data plan to use the app. Finally, only because they specify it on the site – have documentation ready proving you’re legally allowed to work in Canada. That includes your citizenship or visitor VISA, and a SIN number to name a few.
DoorDash and a G2 License
Yes, you can drive with DoorDash if you’re 18+ and have 1 year of driving experience (which if you’re in the graduated licensing program in Ontario, you’ve got it).
You’ll need a smartphone and Toronto car insurance. You download the app and, after your application is approved to become a “dasher,” you can start accepting orders. The app sends you notifications of opportunities and what money you’ll make as a result of delivery. On notification, the app provides you with a map of where to go to pick up the food and where to drop it off. Each week, the money you earned is deposited into your account which you can track in the app.
Can I drive for Uber with a G2?
To drive for Uber, they want you to be 21 or older and with a valid G driver’s license. There are many reasons, but the most significant being the passenger restrictions and limitations with your G2 license. And when you do meet the requirements, you should look into rideshare insurance beforehand to make sure you're adequately covered.
But, if you want to drive for Uber Eats, you don’t have to worry about passenger restrictions since you’re only sharing a seat with Ronald McDonald or Wendy (to name a few).
However, Uber Eats is just an extension of Uber, and they still want that full G, and to be at least 21 years old.
Essentially, your G2 simply doesn’t work for Uber. But, if you love Uber – you may still be in luck.
In some major cities like Toronto or Ottawa, you can choose cycling as a method to courier food for Uber Eats. One caveat, you only need to be 18. However, since your bicycle becomes your lifeblood, know that it’s your tenant or Ontario home insurance that will protect your bicycle should it be stolen. You might want to check how much your insurance provider would pay if your bike were to disappear.
Once you’re on the platform, are 21, and have a full G license – you can drive people and food with the seamless integration between their two apps.
Can I drive Lyft with a G2 license?
No, you need a full G license and must be 21 years of age or older. Your vehicle is also essential. In Toronto, you need a 2012 (or newer) model of car, 4 doors, and either all-season or snow tires fitted to your car. You’ll also need personal car insurance. You can view the full list of rules and regulations to become a Lyft driver here.
Things to consider with g2 license jobs in Toronto
Yes, you can drive on the 401 with your g2, but you can’t be impaired. There is zero tolerance for the consumption of alcohol or cannabis. If you disobey the law and are caught, prepare for severe consequences, including suspensions, fines,, and other possible penalties including jail time.
Also, before jumping in, it’s essential to understand your costs.
With Skip the dishes, you get no salary or benefits and are paid $4-$7 + tip per delivery. Let’s say you make 3 deliveries, earning an average of $20 per hour when you’re out delivering. I used CAA’s car costs calculator to figure out what it would take to break even.
In this scenario, we’ll say you’re driving a used 3-year-old Hyundai Elantra. CAA tells me it’ll be about $400 per month for the total cost of owning a car. There’s more wear and tear on your vehicle with all the driving you'll be doing.
So, it's best to plan ahead and to set aside $100-$150 a month in maintenance. Then there’s licensing, registration, maybe even parking fees and insurance. Let’s say you’re spending at least $400 to run and maintain your vehicle all told. You’ll need to work at least 20 hours, earning $20 per hour, just to break even.
Tax implications of being an entrepreneur
Yes, there are tax rebates as an entrepreneur, so keep any receipts related to when you’re driving, including gas, service, tires, and insurance. Also, because you'll likely do paperwork at home, you can write off a (small) portion of your home office expenses, including rent, electricity, and gas for heat. If you buy a laptop and pay for accounting software, those are business expenses.
The simplest way to understand your taxes is to subtract the cost of the receipts, from how much money you made – that’s your taxable personal income. From there, enter the money left over into an online income tax calculator to see how much you’ll need to pay in taxes based on the paycheques you’re earning. It's more complex than that, but it should give you a rough guideline.
As a rule of thumb, set aside 20% of your income for taxes. That’s oversimplified, so do your research. For instance, If you make more than $30,000 you’ll need an HST number.
Set whatever money aside in a high-interest savings account for when you need to pay it back. That way, it may have accrued some interest – make your money work for you.
Are you paying the best price for car insurance?
How much is insurance for a G2 driver?
If you’re under 25, you pay more for insurance since you’re viewed as a higher risk, statistically speaking. Many factors go into insurance, and a young driver on their own could pay anywhere from $200-$500 per month based on your age, type of car, where you live, and type of car insurance.
If you’re fortunate enough to use your parents’ car and be added to their insurance as an occasional driver, take advantage – it’ll save you a lot of money. However, be transparent and honest with them, and their insurer, and let them know your intentions. A policy change may be required to go from a personal plan to one that involves more of a commercial element because you’re running a business from your car. That’s up to the insurer.
If it’s just too much, consider shopping around for car insurance quotes from providers more open to the idea such as Economical (who insures Uber) or Aviva (who insures Lyft).
Alternatively, many insurers are starting to offer telematics, pay-as-you-go, or usage-based insurance. This might be your cheapest option, especially as a younger driver.
Visit our student personal finance guide.
The bottom line
Whatever job you choose, understand it’s likely a side hustle – not a career.
If you’re looking at g2 driver jobs, do it as best you can, take pride in your work because it has lasting effects on wherever you land next. One small tip is to listen to podcasts to educate yourself on your planned career while you’re driving around earning money for savings and living expenses.