This article was originally published on August 23, 2021, and was updated on September 18, 2023.
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 within the service industry. But what if you could be your own boss and make your own hours? Roughly 30% of Canadians aged 15-24 are in temporary jobs, and a G2 license opens your options for work.
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 – and even with a bicycle or on foot.
According to Skip’s contractor agreement, all you need to drive for them is a “reliable” vehicle, a valid driver’s license, and auto insurance. You’ll also need to provide a background check and documentation proving you’re legally allowed to work in Canada.
Keep in mind that if you’re borrowing a vehicle to drive for Skip The Dishes, there are some insurance concerns to be aware of. You’ll want to make sure you’re a named insured on the policy, and be sure that it covers you to use the vehicle to earn money. If not, you run the risk of future claims being denied or the cancellation of your policy if something were to happen while you were out driving for delivery.
DoorDash and a G2 License
Like Skip, DoorDash uses an independent contractor agreement that makes it your sole responsibility to manage the equipment you use to deliver for them. Whether it’s a thermal bag or your vehicle, it’s up to you to make sure you have what you need and are operating within the law.
Because of this, there are no specific rules as to what kind of car you drive, what kind of license you hold, or what insurance you have. You can deliver for DoorDash with a G2 license, but be sure you are properly insured before heading out on your first delivery.
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Can I drive for Uber with a G2?
Whether you can drive for Uber with a G2 license depends on which line of business you want to work in. You can deliver food for UberEats with a G2 license as long as you meet their age and vehicle requirements, but to drive passengers you will need to have a full G license and at least three years of driving experience.
Can I drive for Uber Eats with a G2 license?
Yes, you can drive for Uber Eats with a G2 license as long as you meet a few other requirements. In Ontario, UberEats requires you to be at least 19 years old and have a car no more than 20 years old. You may also need to show that you have at least one year of driving experience.
You’ll also need to give Uber Eats a copy of your car insurance policy that names you as insured. Other requirements include proof of work eligibility and a background check.
Can I drive for Uber rideshare with a G2 license?
You must have a full G-class license to drive passengers for Uber in Ontario. Additionally, you will need to be at least 21 years of age, have three years of driving experience, and pass a background check.
Uber also requires drivers to show proof of valid Ontario car insurance. Uber does provide some car insurance coverage for its drivers, but you will need to have your own policy and be sure your insurance company is okay with you driving for Uber.
In the Greater Toronto Area, there are also rules for what kind of car you drive. In the City of Toronto and Peel Region your car must be no older than seven years old. In the rest of the GTA, your car must be no older than 10 years old. Your car will also need to pass a safety inspection. If you wish to rent a car to drive for Uber, you’ll need to meet the rental company’s age and licensing requirements, plus you will want to opt-into the company’s rental car insurance.
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Can I drive Lyft with a G2 license?
Just like Uber, Lyft requires you to have a full G-class license to drive in Ontario. You’ll also need to be 25 or older, and have between one and three years of driving experience depending on where you want to work. If you want to drive in the City of Toronto, you’ll also need to complete an approved driver training program.
Your car will also need to meet some conditions to drive for Lyft. The service requires your car to be no more than seven years old and rental vehicles aren’t permitted.
Things to consider with G2 license jobs in Toronto
The most important things to keep in mind when driving for work are related to insurance.
If you don’t have your own car, you will need to be named as insured on the owner’s policy. Most car insurance policies in Ontario allow for other people to drive the car from time to time, but draw the line at regular use. Even if you don’t have to show proof of insurance to the company you’re driving for, you could find yourself without coverage if you’re in a collision.
Regardless of whose policy you’re on, you will need to make sure you’re also insured to use the car for commercial purposes, for example adding on rideshare car insurance to the policy. Using a car to make money increases the risk it will be damaged or stolen, and your insurance company will want to make sure you’re covered appropriately. If you use your car to make deliveries without telling your insurance company first, your policy could be revoked.
There’s also the matter of your driving costs. Between depreciation, interest, fuel, car insurance, and maintenance, it’s not cheap to own a car. The Canadian Automobile Association (CAA) estimates the cost of driving a compact car to be 45¢ per kilometre while the Canada Revenue Agency (CRA) has set its mileage rate for 2023 to 62¢ per kilometre.
SkipTheDishes driver u/SquareRival on Reddit tracked their driving stats for all of 2022 and found they drove a total of 28,879km to earn $33,300 – an average of $1.15 per km. Based on a cost of 62¢ per km, a little over half of their earnings were spent on their car, reducing their earnings after expenses to just over $12 per hour.
Also read: What is usage-based car insurance?
Tax implications of being a food courier
Another expense related to being a food delivery driver is income tax. When you drive for money, the CRA considers you a business and taxes you accordingly. To reduce the amount of tax you owe, you can claim your expenses. Keep track of the kilometres you drive, as well as other business-related expenses like your phone and home office if you have one.
Depending on how much you earn, you may also need to collect and remit HST. You’ll need to get an HST number and start charging tax when your income (not profit) tops $30,000 per year.
Estimate how much income tax and HST you’ll have to pay, and set it 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.
How much is insurance for a G2 driver?
The cost of insurance depends on many factors including your car, age, driving experience, claims history, and where you live. Estimates vary, but several online sources seem to agree on a range of $1,800 to $2,200 per year for a G2 driver.
To get an idea of how much extra you’ll pay for insurance with a G2 license, we compared car insurance quotes online using Ratehub.ca. To do this, we created a fictional driver, age 20, who lives in East York (i.e. within the greater Toronto area) and drives a super cool 2012 Honda Civic.
Interestingly, the best Toronto car insurance quote was the same whether we said our driver had a G license or a G2. However, the highest quote was about 10% more when we said our driver didn’t have a G2.
A factor that made even more of a difference is whether our driver had any insurance history. The best quote was about 40% lower when we said our driver had been insured in the past without any tickets, accidents or claims.
The bottom line
It’s possible to make money with a G2 license by delivering food for apps like Uber Eats and SkipTheDishes. But before you get behind the wheel, make sure you have the right insurance coverage and compare car insurance quotes online to find the best deal for the insurance you need.