10 Things to Know Before Becoming a Food Delivery Driver in Ontario
The gig economy has exploded in recent years, and food delivery platforms like Uber Eats, DoorDash, and SkipTheDishes offer an attractive source of flexible income. For many Ontarians, especially students, newcomers, or part-time workers, delivery driving appears to be a simple way to earn extra cash.
But before you sign up and start making deliveries, it's important to understand the full picture. Food delivery driving comes with legal responsibilities, tax obligations, safety concerns, and financial risks that aren’t always obvious.
Here’s a detailed guide to what you should consider before becoming a food delivery driver in Ontario.
1. You’re Not an Employee—You’re an Independent Contractor
This is a key legal distinction. When you join a delivery app in Ontario, you're agreeing to work as an independent contractor, not as an employee. This means:
No minimum wage protection or overtime pay under the Employment Standards Act (ESA)
No employment benefits, such as vacation pay, statutory holidays, or paid sick leave
No protection against termination (your account can be deactivated at any time without traditional due process)
While the Ontario government has introduced gig worker legislation (like the “Working for Workers Act”), it mostly requires platforms to provide basic information (e.g., estimated earnings, how pay is calculated) and maintain records of work performed. These rules fall short of full employment protections.
2. You’re Responsible for All of Your Taxes
As an independent contractor in Ontario, you are considered self-employed by the Canada Revenue Agency (CRA). This means:
You are responsible for filing your own taxes, regardless of whether you receive a T4A slip from the platform
You must report 100% of your gross earnings from all platforms, even if you weren’t issued a formal tax slip
You may be required to pay Canada Pension Plan (CPP) contributions on self-employment income
You must remit both income tax and self-employment tax
If you earn more than $30,000 in a 12-month period, you may be required to register for a GST/HST number and begin charging and remitting HST (even for food delivery). However, most part-time or casual drivers don’t cross this threshold.
You should also track deductible business expenses, such as:
Vehicle maintenance and depreciation
Fuel
Car insurance (see more below)
Phone plans and accessories used for delivery
Parking, tolls, delivery bags, etc.
Keeping detailed records is essential. Many gig workers in Ontario use apps like QuickBooks Self-Employed, Hurdlr, or Everlance to automate tracking.
3. You May Need to Adjust Your Auto Insurance
One of the most overlooked risks is that your personal auto insurance does not cover commercial activity such as food delivery. If you're in an accident while delivering and haven't disclosed this to your insurer, your claim could be denied and your policy may be cancelled.
In Ontario, you have two options:
Add a ride-sharing or delivery endorsement to your existing policy
Get a commercial auto insurance policy, though this is generally more expensive
Some platforms offer limited liability coverage while you’re on a delivery, but:
It usually doesn’t cover damage to your own vehicle
It only applies when you're actively on a delivery (not while waiting for an order or driving between deliveries)
4. No Special Licence Required—but Local Rules May Apply
In Ontario, you generally only need a valid G2 or G class driver’s licence to deliver by car. However:
Some municipalities require delivery drivers to register for a business licence or have the vehicle registered as a private transportation company vehicle
If you’re delivering by bike, scooter, or e-bike, local helmet laws and traffic regulations still apply
Also, ensure your vehicle is properly plated and insured in Ontario and meets all safety requirements.
5. Vehicle Wear and Tear Is a Real Cost
Delivery work causes your car to depreciate faster. You’ll be putting significantly more kilometres on your vehicle, often under urban stop-and-go conditions. This leads to:
Increased maintenance (oil changes, tires, brakes)
Reduced resale value
Higher chances of breakdowns and out-of-pocket repairs
Make sure to track these costs—what seems like $25/hour earnings could drop to far less once expenses are factored in.
6. Your Physical Safety Matters
Ontario drivers face all kinds of weather—snowstorms, ice, and rain—not to mention traffic congestion in urban areas. Personal safety is a real issue, especially if you're delivering late at night or in unfamiliar areas.
Tips for staying safe:
Lock your car when stepping out for deliveries
Be cautious in poorly lit or high-risk neighbourhoods
Drive carefully in winter weather and plan for longer delivery times
Let someone know your schedule if working late
Consider using a dash cam for your own protection
Some platforms in Ontario have in-app safety tools, but ultimately, the responsibility is on you.
7. Don’t Rely on App Estimates—Track Real Earnings
Many platforms advertise high hourly pay or “guaranteed” earnings—but the reality often falls short. In Ontario, your earnings will fluctuate based on:
Time of day
Geographic area
Tips (which can vary greatly)
App promotions (boosts, quests, peak pay)
But you won’t be paid for:
Time waiting for orders
Travel between drop-offs (if not considered “active time”)
Slow days with fewer deliveries
That means your true hourly wage—after expenses—may be close to or even below minimum wage. Be sure to log your hours and expenses so you have a clear picture of your actual income.
8. Customer Ratings Can Make or Break Your Account
Your driver rating matters. Inconsistent or low ratings can lead to warnings or account deactivation. Ontario drivers have reported being deactivated for:
Low customer satisfaction scores
Late deliveries, even if delays were restaurant-related
Customer complaints (including false reports)
There’s often limited appeal or dispute resolution when deactivation happens. While Uber and DoorDash have processes to challenge removals, they're not governed by Ontario employment laws, so you don’t have the same rights as an employee.
9. Labor Laws Are Evolving—But Still Limited
In Ontario, the Working for Workers Act, 2022 began regulating digital platform workers in small ways—requiring:
Clearer explanations of pay structure
Notice of account suspension or termination
A minimum hourly amount (for “engaged time” only—not waiting time)
However, this is not equivalent to being a full employee. You still don’t get access to:
Overtime pay;
Job security; or,
Vacation or sick days
Legal challenges and worker advocacy efforts are ongoing, but for now, Ontario gig workers operate under a limited-rights framework.
10. You’re a Business—Act Like One
Even if you're just delivering part-time, you are running a micro-business. To protect yourself and maximize your success:
Track your income and expenses accurately
Consider opening a separate business bank account
Plan for tax season by saving a portion of your income monthly
Set a schedule to optimize your time
Evaluate whether full-time driving is financially sustainable long-term
If you earn enough, you can also consider registering a sole proprietorship or getting a Master Business Licence in Ontario for professional purposes.
Food delivery in Ontario can offer flexible income, but it’s not as simple as it seems. You take on all the risks—financial, legal, and physical—while getting few of the protections of traditional employment.
Whether you’re driving occasionally or daily, go into it with a clear understanding of the obligations. Track your numbers, insure yourself properly, protect your safety, and stay up to date with changes in Ontario’s gig worker laws.