Key Facts
Uber’s mission is to create opportunity through movement. Co-founded by Calgarian entrepreneur Garrett Camp in 2010, the company was started to solve a simple problem: how do you get access to a ride at the touch of a button? More than 10 billion trips later, the company continues to build products to get people closer to where they want to be. In Canada, Uber is now in over 140 municipalities across 9 provinces, and continues to expand.
In 2020, amidst a global pandemic and an economic crisis. Uber pivoted to encourage consumers to stay home and stay safe. In these extraordinary circumstances, frontline workers trusted Uber for a safe ride, restaurants leaned on Uber Eats to transition their operations to delivery and takeout, and drivers and delivery people helped move essential items to Canadians coast to coast.
For this report, Uber Canada commissioned Public First to help them better understand and quantify the impact Uber made in 2020 for consumers and communities across the country. While the report focuses on the specific impact of Uber’s rideshare and delivery platforms in Canada, Uber Freight’s logistics platform is also live in-market. Public First is an independent consultancy that works to help companies and organisations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society, and all the modelling for this report was independently peer reviewed.
As part of the research for this report, we ran an in-depth nationally-representative poll to explore Canadian travel and food ordering habits, a new anonymous survey of over 3,000 drivers and delivery people, and produced new quantitative models of the economic impact and value created to consumers, drivers and delivery people, and provinces by Uber. We looked both at the impact Uber has made to ordinary life, and how its ridesharing and delivery platforms have helped Canadians throughout the experience of Covid-19.
Economy
By facilitating a more convenient and on-demand form of transport and delivery, Uber helps save time, expand mobility, create new business for restaurants and the hospitality industry, and provide flexible earning opportunities for thousands of drivers and delivery people in Canada.
- In 2020, Uber unlocked an estimated $6.5 billion in economic value for the Canadian economy. This includes both the impact of earnings of drivers, delivery people and restaurants facilitated by Uber, and the wider indirect and induced multiplier effect created throughout the company's wider supply chain.
- According to Canadian riders, ridesharing is the second most significant transport innovation they have experienced in the last decade, behind only smartphone maps - and more impactful to them than any new transportation infrastructure project.
- 82% of riders say that convenience is an important reason they use Uber. In a normal year, we estimate that Uber saves riders over 13 million hours a year. That’s the equivalent of driving from Halifax to Vancouver over 230,000 times
- 59% of Uber Eats users agree that food delivery apps have helped to improve quality of life during the last year while eating out is restricted. In more normal times, 70% of Uber Eats users agree that food delivery apps have made it easier to discover new restaurants.
- In 2020, we estimate that ridesharing with Uber produced $23 billion in consumer surplus for Canadian riders, while Uber Eats is producing another $6 billion in consumer surplus. Together, that’s the equivalent of 1.3% of GDP.
- 75% of drivers and delivery people said they were satisfied with their experience using the Uber app. In total, in 2020, we estimate that drivers earn an additional $216 million a year in higher income through Uber, or an average of 15% more than their next best alternative source of income or work.
- 89% of drivers and delivery people say that schedule flexibility is important to them when looking for work, and on average flexibility was a more important factor than earnings in why drivers and delivery people choose to work with Uber. In total, in 2020 we estimate that this increased flexibility is worth an estimated $323 million to drivers and delivery people.
- 87% of those with children aged 18 or under or caring responsibilities said that the flexibility provided by app-based work made it easier to balance family and work responsibilities.
- 51% of Uber Eats users say that the availability of food delivery apps has significantly increased the amount of food they order. A majority of Uber Eats users say that they now order from a food delivery site multiple times a month, which in itself has significantly increased since the arrival of the pandemic. In total, we estimate that in 2020 Uber Eats by itself created $570 million in additional value for restaurants - and a gross impact of $2.3 billion for the Canadian economy as a whole.
- 81% of woman-identified riders say that safety is an important factor in their choice to use Uber. Half of woman-identified riders agreed that Uber is often the safest way for them to travel home.
- 63% of riders without access to a car said the availability of ridesharing services like Uber was important to their choice of not owning a vehicle. Uber's Green Future program provides access to resources valued at $800 million to help hundreds of thousands of drivers transition to battery EVs by 2025 in Canada, Europe, and the US.
Consumers
The on-demand economy has helped make everyday life easier for Canadians - saving time, increasing choice and improving mobility. For consumers, the primary reason for using Uber is convenience. Ridesharing platforms like Uber have made it easier to travel from point A to point B, food delivery platforms like Uber Eats have made it far easier to access a wide range of good quality food locally.
Drivers and delivery people
Drivers and delivery people overwhelmingly choose to use the Uber app because of the flexibility it provides, and the ability to control their own hours. The vast majority report being highly satisfied with their experience, and that Uber has helped them earn additional income.
Communities
Uber is an important economic multiplier for restaurants, cafes and local businesses more generally. During the last year, Uber Eats has helped provide a vital revenue channel to restaurants, while in a more normal year ridesharing with Uber helps provide a safer way to get home late at night, and fill in transportation gaps.
Introduction
By creating a more convenient and on-demand platform for transport and delivery, Uber helps save time, expand mobility, create new business for restaurants and the hospitality industry, and provide flexible earning opportunities for drivers and delivery people in Canada.
The Importance of Mobility
In the last year, we’ve all seen what it is to not be able to travel as freely as we’d like. Fewer opportunities to catch up with friends and family, to network with a business contact, or to discover a new restaurant. Limited mobility limits our horizons.
The most obvious benefit from better mobility is saved time - but its wider impacts on a city, region, or province can also be much more fundamental than that:
- Growth - Faster and more convenient transport expands the effective size of a city, making it easier for more people to live within them and connect more frequently It is not a coincidence that advances in transport technology have been historically associated with ever larger cities. Economists have found that for every doubling of a city’s size, its productivity increases by around 5% - one of the key reasons governments have historically invested so much in transport.1
- Socialising and leisure - High quality transport links make it possible to enjoy all the cultural amenities offered by a city - from restaurants to the theatre - and then get home safely at the end of the night. Having good transport links helps a city be seen as a good place to live - which in turn helps cities attract and retain young families and new graduates.
In the last decade, one of the most significant transport innovations to emerge is the arrival of ridesharing. By building on modern technologies like the smartphone and GPS ridesharing enjoys many other features that make it unique from other forms of transport, from on-demand requesting of a vehicle to built-in two-way feedback. As we saw in our research, this makes it the most convenient and reliable option in many situations.
According to Canadian riders, ride-sharing services like Uber are the second most significant transport innovation they have experienced in the last decade, behind only smartphone maps - and more impactful to them than any new transportation infrastructure project. In this report, we explore why.
Thinking back on the last ten years, which changes have had the biggest positive impact on your own travelling experience?
The Invention of Uber
Uber was founded in 2009, with the first ride requested in San Francisco in 2010. By building on the GPS and connectivity built into a smartphone, the new app enabled several innovations:
- Instead of never being sure when their ride would pick them up, passengers could see the vehicle come to them in real time.
- By making it easier for drivers to find riders and vice versa, the service enabled drivers to spend less time waiting around, reducing costs and increasing earnings.
- The use of built-in GPS made it easier for drivers to navigate to new destinations.
- Riders and drivers could give feedback to each other, giving both more incentive to ensure a pleasant drive and helping to improve safety.
When combined, these innovations ensured that Uber was not just another way to get around but unlocked a new mode of transport - complementing public transport, while offering an alternative to traditional private cars.
Uber first launched in Canada in 2012. Today, the apps are accessible to 19 million Canadians across 140 municipalities, with tens of thousands of drivers and delivery people and millions of consumers regularly using Uber and/or Uber Eats. Beyond increasing its coverage in Canada, the company has also expanded to explore more ways to increase mobility: from public transit journey planning to e-bikes and e-scooters.
59% of riders in Canada have a favourable opinion of Uber, compared to just 12% who have an unfavourable opinion. At the same time, 75% of drivers and delivery people say they are satisfied with their experience using the platform.
The Economic Impact of Uber
There are multiple channels through which Uber creates economic value:
- Saving time for businesses. Just like a new runway, highway or rail link, Uber saves significant time for businesses - both directly boosting economic productivity, and supporting wider agglomeration effects.
- Facilitating the income of thousands of drivers and delivery people. Thousands of drivers and delivery people earn or supplement their income through Uber’s platform.
- Indirectly supporting the jobs of thousands of more through the wider supply chain supporting drivers and delivery people.The spending of drivers and delivery people on their cars in turn supports a wider supply chain of jobs in other companies such as car manufacturing, garages, and insurance companies.
- Keeping the economy moving during Covid-19. In the last year, Uber has helped ensure that millions of individuals without access to a car or convenient public transport can continue to make essential trips to commute to work, pick up shopping or get to medical appointments. Through contactless delivery, Uber Eats has provided Canadians with a solution to safely order meals and other essential items.
- Encouraging higher demand for restaurants or the hospitality industry. In non-COVID times, by making it easier and safer to travel late at night, Uber encourages more spending in the night-time economy in bars, restaurants, movie theatres and clubs.
In total, we estimate that in 2020 Uber unlocked $6.5 billion in economic value for Canada. This includes both the impact of earnings of drivers, delivery people and restaurants facilitated by Uber, and the wider indirect and induced multiplier effect created throughout the wider supply chain of drivers, delivery people and restaurants.
But in addition to this, many of the important types of value that Uber creates, don’t get measured in traditional Gross Value Added statistics:
- Removing transportation barriers for community organizations. Through partnerships with the Canadian Cancer Society, Canadian Council for Aboriginal Businesses and other local organizations, Uber is working to ensure that transportation is not a barrier for vulnerable communities, and also provides first and last mile connections to transit. Riders say that 1 in 14 of their Uber trips connect with public transit.
- Enabling more flexible work for drivers and delivery people who use the Uber app. Overwhelmingly, drivers and delivery people who use the Uber app told us they valued the freedom to set their own hours, letting them balance work with other responsibilities, jobs or interests.
- Increasing the safety of cities. Uber helps plug the inevitable gaps in public transport, especially when public transportation options become limited further into the evening, making it safer to get home - with clear evidence that the presence of the service improves safety.2
- Freeing up leisure time for riders. Much of the time saved by Uber is in riders’ personal lives - but that does not mean it matters less. This is extra time spent with family, enjoying sports, socialising or resting.
How We Measured Uber’s Impact
In this report, Uber Canada commissioned Public First to better understand and quantify the impact they were making for riders and consumers, drivers and delivery people, and communities in Canada.
We used a mixture of methods to explore Uber’s impact:
- An in-depth nationally-representative poll to explore Canadian travel and food ordering habits, as well as dedicated polls in the largest provinces where Uber operates: Ontario, British Columbia and Quebec.
- A new anonymous survey of over 3,000 drivers and delivery people, asking them about their experience and the reasons they chose the Uber platform.
- Building off the data from Public First’s poll, data provided by Uber and official statistics from Statistics Canada, we created new quantitative models of the economic impact, time saved, consumer surplus and driver value created by Uber.
- We performed a new literature review of the extensive independent academic research, looking at the latest evidence on Uber’s impact on drivers, delivery people, riders and cities.
Supporting communities through Covid-19
While most Canadians stayed at home in 2020 to help slow the spread of Covid-19, Uber continued to operate to help frontline staff get to work, and to deliver food to those sheltering in place.
In total, Uber pledged over $6 million worth of free rides, meals and food deliveries to healthcare workers, seniors, survivors of gender-based violence, and people in need in Canada.
Other initiatives have included:
- $1 million contribution to the Canadian Hospitality Worker Relief Fund, supporting those who experienced an adverse financial impact in the early days of the pandemic.
- With Restaurants Canada, providing $1 million in Eat Local Relief Grants to support restaurants through the third wave of the pandemic.
- Over $20 million in reduced and waived fees to support local restaurants throughout the pandemic.
- Support for Black-owned restaurants and small businesses to help assist with their COVID-19 economic recovery, including providing sustainable financial support for the Black Chamber of Commerce’s The Black Pages directory.
- A novel private-public partnership with the Government of Canada to help drive awareness and confidence in the COVID-19 vaccines by amplifying key public health information through the platform to riders and consumers, drivers and delivery people, and restaurants.
- Ongoing programming with cities and public health organizations to offer free rides to vaccination centres to ensure transportation is not a barrier to vaccination.
- A partnership with Switch Health enabling patients to request a contactless pickup and laboratory dropoff of a Covid-19 test kit.
- With Second Harvest, Uber Freight has moved over 3.4 million pounds of food and crucial resources to various communities in Canada.
The Impact of Uber: Consumers
The on-demand economy has helped make everyday life easier for Canadians - saving time, increasing choice and improving mobility. For consumers, the primary reason for using Uber is convenience. Food delivery platforms like Uber Eats have made it far easier to access a wide range of good quality food locally.
Over the last decade, Uber has increasingly become a part of everyday life. From getting home from a restaurant to travelling between meetings, helping carry heavy items to being there in an emergency, the availability of convenient, safe ridesharing services has become something many Canadians increasingly rely on.
When we asked Canadians about their experiences with Uber, the equivalent of
- 1,200,000 - Canadians have used Uber to travel to or from work
- 800,000 - Canadians have used Uber to get somewhere fast in an emergency
- 740,000 -Canadians have used Uber to travel to or from a doctor or hospital
- 470,000 -Canadians have used Uber to transport heavy furniture or bulky items
In our nationally representative poll:
- 25% of the respondents - representing some 7.6 million Canadians - said that they had used the Uber app in the last 2 years, and around half of those were aged under 35 (47%)
- There was no significant difference in gender in how likely someone was to use the Uber app
- Racialized people were twice as likely to be users of Uber as the general population
Prior to the Covid-19 pandemic, 42% of riders said that they used Uber at least once a month, and 69% multiple times a year.
Uber during Covid-19
Of course, 2020 was not an ordinary year, and many of us have been unable to travel in the way we normally would.
For the significant minority who have continued to need to travel, however, Uber has been an essential service. Around 40% of Uber riders said that they had travelled with Uber since the pandemic began.
In order to help keep both riders, drivers and delivery people safe, Uber has introduced a new Door-to-Door Safety standard. All riders, drivers and delivery people are required to wear a face cover or mask when using Uber, enforced through mask verification technology. Over 2 million units of PPE have been distributed to drivers and delivery people, and Uber is providing Public Health Officials with contact tracing support when needed. Any driver or delivery person diagnosed with COVID-19 or is individually asked to self-isolate by a public health authority receives financial assistance for up to 14 days while their account is on hold. The Uber Pool shared-ride service was suspended, and a prominent in-app message reminded riders to travel only when necessary.
In our polling, we found that the strong majority of those who have travelled said that they felt safe and were satisfied with their trip:
Helping keep each other safe during Covid-19
Throughout the Covid-19 pandemic, Uber has introduced multiple safety features to help ensure that those who have to travel stay safe:
- Based on guidance of health experts and Public Health Organizations, Uber has extended its “No Mask. No Ride” policy indefinitely - meaning that drivers and riders must wear a mask or face covering. When drivers take a selfie, their mask detection system assesses the presence of a face cover or a mask.
- Riders are prohibited from being in the front passenger seat, the number of riders per vehicle has been limited and the Uber Pool service completely suspended.
- Uber continues to distribute PPE to help keep delivery people and drivers safe.
- Local public officials can request contact tracing support from Uber’s Law Enforcement and Public Safety Response Portal in response to COVID-19 outbreaks.
- Uber has introduced a financial assistance program to support drivers who have been diagnosed with COVID-19 or ordered to self-quarantine or self-isolate by a doctor or public health authority.
How we use Uber
Outside the pandemic period in a more normal year, Uber is being widely used to help us get to and from friends and family, eating out, and entertainment.
But it is not just being used for leisure. We also found that Uber is being widely used to help with work, everyday chores and childcare.
And Uber is an important option for when you really need to get somewhere fast or on time.
On average, riders say Uber saves around a quarter of the time that the next best alternative would have taken.
Building off this, we estimate that Uber saves riders over 13 million hours in a normal year. That is the equivalent of driving from Halifax to Vancouver over 230,000 times.
Why do riders choose Uber?
In the past, some may have assumed that the primary reason for using Uber is lower cost. It is true that Uber is often a lower cost option - but this is not always the case.
When we asked riders how much their next best alternative to Uber would have cost on their last trip:
- 40% said it would have cost more.
- 13% said it would have cost around the same.
- 31% said it would have cost less.
If cost doesn’t explain why people turn to Uber, why do they use it?
When we asked riders about the most important reasons why they used Uber, convenience came top (82%), with other factors such as reliability (81%) and safety (78%) seen as just as important as cost.
Even more striking, however, was when we asked as part of the survey for riders and consumers to write in their own words why they use the service - and one answer came back far more than others: convenience.
In your own words, why do you use Uber/Uber Eats? (Base: Riders and Consumers)
Why do you use Uber? 3
"Convenience and when there’s limited public transport." Man, 59, British Columbia
"Before the pandemic, I used Uber when I was running late for work. During this pandemic, I use Uber Eats if I don't feel like cooking at home." Woman, 23, Alberta
"I like how convenient and easy it is to use. Being able to get to and from places safely is also very important to me. I can always rely on Uber for that." Woman, 24, Ontario
"Because it has made life more convenient. Instead of ordering a taxi, the process of ordering a car for a ride is easier and you feel safer." Woman, 37, Ontario
"The app works very well, the drivers are courteous, payments and tips are done seamlessly on the app and I don't have to take out my credit card at destination. Wait times are generally very good and I can follow my driver on the app." Woman, 62, British Columbia
"I have a disability. It is very difficult for me to climb down and up stairs and to walk. I use car sharing services because it is easier for me. I do not like using buses, and only travel on them if I have no choice." Woman, 66, Ontario
"Because of Covid, we can't go out to dine and I like the convenience of not having to go out to pick up food." Woman, 22, Ontario
"Not being a driver and having to care for a senior mother with mobility issues, it allows me to get around for a reasonable price. All the drivers I have had have been very professional. As a female, I appreciate that." Woman, 40, Ontario
"I use Uber for the convenience and dependability. I trust Uber drivers and never had a bad experience." Woman, 66, Quebec
"I use Uber when I cannot use my own car because there is no easy access to parking in the district where I will be going or if I will be there for a longer period and the price of parking far outweighs the cost of taking an Uber ride with friends." Woman, 65, Quebec
Uber Eats
With restaurants’ dining rooms often shut in the last year, Canadian consumers have increasingly turned to food delivery platforms such as Uber Eats to keep accessing a wide variety of good quality food locally. A large majority (75%) of Uber Eats users say that on average they order using a food delivery app at least once a month, and 59% agree that they’ve helped to improve quality of life while eating out isn’t allowed.
When we asked what the most important reasons Uber Eats users used food delivery apps were, they pointed to reasons from quick delivery times (36%) to just being tired of cooking or doing the dishes (37%).
Even before the Covid-19 pandemic, food delivery apps were helping increase the variety of food we order, making it easier to find new favourites:
- 70% of Uber Eats users agree that food delivery apps have made it easier to discover new restaurants
- 64% of Uber Eats users say that they have ordered from a restaurant that they have never dined at before via a delivery app
- 64% of Uber Eat users agree that food delivery apps are a lot more convenient than other forms of takeout
Food delivery apps have also made it much easier to be spontaneous. When we asked Uber Eats users, just under a third (29%) say that they already know what and where they are ordering from - with the majority preferring to browse (64%) before making a final decision.
How much value does Uber create for consumers?
How much is the increased convenience, safety and reliability enabled by Uber worth to riders and consumers?
One of the most important measures of economic welfare is the - consumer surplus - the amount you would have to pay someone for them to voluntarily give a good or service up. If a good has a zero consumer surplus, that implies we can take or leave it - whereas goods with a high consumer surplus are playing an important role in our lives.
As part of their poll, we asked riders and consumers how much they would have to be compensated to lose access to the Uber app for the next month.
In total, in 2020 we estimate that rides with Uber are producing a $23 billion in consumer surplus for Canadian riders, while Uber Eats is producing another $6 billion in consumer surplus. Together, that’s the equivalent of 1.3% of GDP.
Drivers and Delivery People
Drivers and delivery people overwhelmingly choose to use the Uber app because of the flexibility it provides, and the ability to control their own hours. The vast majority report being highly satisfied with their experience, and that Uber has helped them earn additional income.
Drivers and delivery people are highly satisfied with the experience of using Uber
In our survey:
When we asked drivers and delivery people what were important reasons they chose to drive or deliver through the Uber app, the most popular answers were wanting more schedule flexibility, enjoyed driving, and the ability to interact with riders, customers or restaurants. .
If they weren’t driving with Uber, the majority say they would look for another, similar driving or delivery role. Just 22% say that they would look for a traditional full-time job as a replacement, while:
- 25% say that they would start their own business or otherwise work for themselves
- 21% say they would look for another on-demand economy or delivery style work
- 11% say they would look for a part-time job
The Importance of Access to Flexible Work
The Internet has made it easier than ever before for individuals to earn extra income on the side - or to go entirely freelance, and be their own boss. Statistics Canada estimates that between 2005 and 2016 the share of the gig economy in the Canadian workforce increased from 5.5% to 8.2%. App-based workers make up a portion of this, and working with platforms like Uber means you don’t have to commit to all the fixed responsibilities of a full time job, but can choose to work when, where and for how long suits you.
When we asked drivers and delivery people what they most liked about using Uber to drive, flexibility was by far the leading response.
In your own words, what do you like most about driving for Uber? (Base: Drivers and delivery people using the Uber platform)
The ability to choose your own hours is often particularly important to drivers and delivery people. Many drivers and delivery people balance their time on the Uber app with jobs, platform work, education or caring responsibilities. In our driver survey, 89% of drivers and delivery people say that schedule flexibility is important to them when looking for work, and on average flexibility was a more important factor than earnings in why drivers and delivery people choose to work with Uber. Only a minority said that using Uber was their only source of income. In another recent poll of Uber drivers and delivery people by Ipsos Mori, 74% described their work as part-time.
In order to test its importance, we asked drivers and delivery people whether they would prefer a hypothetical situation in which they received higher earnings, but had to work fixed hours. A majority of drivers said that they would rather retain the right to choose their own hours, even if the alternative was a 20% increase in earnings. In total, in 2020 we estimate that this increased flexibility is worth $323 million to drivers and delivery people.
Flexibility matters for many reasons. 55% of drivers and delivery people say that they earn income from other sources, as well as via the Uber app - 35% have a traditional full-time job too - and it is only a small minority of drivers and delivery people who use the platform more than 40 hours a week.
Flexibility can be particularly important for those with other caring responsibilities for children, eldery relatives or others who need support:
- 87% of those with children aged 18 or under or caring responsibilities said that the flexibility provided by app-based work made it easier to balance family and work responsibilities.
- 80% of those with children aged 18 or under or caring responsibilities said that working via the Uber platform provides them with significantly more flexibility than their past jobs.
In total, in 2020, we estimate that drivers earn an additional $216 million a year in higher income through Uber, or an average of 15% more than their next best alternative.
What do you like most about driving with Uber? 4
"Flexibility to turn the app off when I need to go for family emergencies or deal with school related issues." Woman, 36, Ontario
"I enjoy the flexibility and the social interaction. I’ve had over 4,000 trips & only encountered a few rude customers. It’s a very comfortable working environment. No stress." Man, 57, Quebec
"I like driving in general. Driving with Uber is comfortable because it's so flexible and I work the hours I want, explore cities and increase my knowledge of all roads and places. It meets my needs and my expenses." Man, 40, Quebec
"It's much safer than driving a taxi. The rider and driver are traceable making it a much safer service for both the rider and driver. Almost all people are nice to talk with. I like helping visitors to the city with information about the city." Man, 65, British Columbia
"I enjoy driving, meeting new people, listening to their concerns, frustrations or good things happening in their lives. Driving with Uber keeps me grounded, and if not for driving I'd be bored, anxious and frustrated at home." Man, 32, Ontario
"I love the freedom of having my own schedule. I have a husband and 7 kids so it's nice to be able to take a break whenever I would like to during the day and not have a boss breathing down my neck the whole time to get back to work. The tips are wonderful and the people that I have met are pretty amazing." Woman, 31, Ontario
Drivers and delivery people come from diverse backgrounds
In our polling, we found that drivers and delivery people are coming from a wide range of diverse backgrounds, with a majority coming from a racialized background and a wide distribution of ages represented:
Communities
Uber is an important economic multiplier for restaurants, cafes and local businesses more generally. During the last year, Uber Eats has helped provide vital continuing income to restaurants, while in a more normal year Uber helps provide a safer way to get home late at night, and fill in the gaps where public transport does not reach or is not as convenient.
Supporting restaurants, bars and entertainment
Mobility matters. Making it easier for people to move around a city makes it easier for workers to find new work, friends to try new hobbies and cities to grow larger, and stimulates the economy.
Take the night-time economy of restaurants, bars and entertainment. In our polling, 61% of riders agreed that getting home late at night is easier and safer than it used to be. Because of this, we estimate that in 2019 Uber supported over $386 million of activity in the Canadian night-time economy..
Uber Eats has been particularly important for restaurants during 2020, where many would have been unable to otherwise open for much of the year. Delivery apps gave Canadian consumers a safe way to continue to support their local restaurants, with only 5% of Uber Eats users telling us that they currently feel unsafe ordering a food delivery.
By making it more convenient to order from a wide range of restaurants, food delivery apps have significantly increased the amount of food customers order for delivery. 51% of Uber Eats users say that the availability of food delivery apps has significantly increased the amount of food they order. A majority of Uber Eats users say that they now order from a food delivery site multiple times a month, which in itself has significantly increased since the arrival of the pandemic. An independent estimate from prior to the COVID-19 pandemic found that the availability of food delivery services can increase restaurant sales by 30-50%.5
A more recent survey from Technomic of 400 restaurants in the US and Canada that partner with Uber Eats found that6:
- 84% of surveyed restaurants say third-party delivery has helped them reach new customers
- 76% of surveyed restaurants say that they would have had to close their doors without their partnership with Uber Eats
- 81% of surveyed restaurants say that they would have had to lay off staff members if not for third party delivery
In total, we estimate that in 2019 Uber Eats by itself created $210 million in additional value for restaurants. - and a gross impact of $825 million for the Canadian economy as a whole.
During Covid, this value has significantly increased, with Uber Eats driving an additional $570 million to restaurants in Canada in 2020 - creating $2.3 billion in gross economic value.
Keeping communities safe
After they have enjoyed a good evening out, many people can be anxious about travelling home in the dark. In our polling, 51% of women under 25 said they generally feel unsafe travelling home at night. .
Before ridesharing, it could be difficult, if not impossible, to find a taxi at the end of a night out - and taking public transport could require a long walk in the dark to your front door, or waiting alone at a bus stop. 41% of riders agreed that if ridesharing services didn’t exist, it would be somewhat or very difficult to find a taxi near them. Only half (52%) of Uber users told us that they are aware of a metro/subway or train station within a thirty minute walk of their home.
Independent academic research has found that having Uber available in a city reduces drunk driving, traffic accidents, and the number of arrests for physical and sexual assault.7 In our polling, half of female riders (49%) agreed that Uber is often the safest way for them to travel home. Since 2017, Uber has been the official designated driving app of MADD Canada. Together, Uber and MADD are working towards a shared goal of reliable rides and safer roads for Canadians.
Helping promote women’s safety
1 in 3 women and girls worldwide experience physical or sexual violence in their lifetime. During the pandemic, the incidence of domestic violence has grown worse.8 As a company, Uber had committed to continue to work to help prevent gender-based violence, and ensure that its platform is safe.9
In Canada, Uber has launched multiple initiatives to help improve women’s safety, including:
- In 2020, launching the Emergency Assistance feature, providing riders and drivers with an immediate in-app shortcut to call 911 , and share their location and trip details with the authorities.
- An additional 24/7 Critical Safety Line, built into the app, for non-emergency support.
- Allowing riders to easily share their location with trusted contacts
- Implementing sexual assault and misconduct education information modules for active drivers, focussing on topics such as privacy and personal space, conversational boundaries, sexual violence awareness and bystander intervention
- Donating over $100,000 worth of free rides to non-profit organizations such as the YWCA and the Ending Violence Association of BC
- A global commitment of $2.6 million to combat the global crisis of gender based violence, with Canadian partners YWCA, Ending Violence Association of BC, and Le Chaînon.
Why do you use Uber? 10
"Convenience and safety. In my city, Kitchener, there's not much safety for women, so I feel safer when using Uber in the night travelling back from work or school. It's trustworthy and easy to access. Very good platform for university students" Woman, 23, Ontario
"I like how convenient and easy they are to use. Being able to get to and from places safely is also very important to me. I can always rely on Uber for that." Woman, 24, Ontario
Prioritizing Safety
Every driver who wants to work via the Uber app goes through rigorous safety screening:
- Every driver is background checked before their first trip, which checks for potential issues including driving violations, impaired driving or a criminal record. This screening is then rerun every year.
- Drivers and delivery people are regularly asked to take a photograph of themselves, which is matched against existing identification, to make sure that accounts aren’t being shared with non screened drivers and delivery people.
- Drivers must ensure that their vehicles pass an annual inspection and receive the relevant safety certification for their jurisdiction.
Sustainability
Decarbonizing transport is one of the most important steps for countries to achieve net zero emissions. While there are more electric vehicles and charging options available than ever before accessibility remains limited in Canada. Since 1990, transport’s share of Canada’s greenhouse gas emissions has actually increased, from 21% to 25%. Since 2000, Canadian car ownership has increased significantly.11
While ridesharing increases overall mobility, this does not need to come at the expense of worsened sustainability:
- Because of Uber’s on-demand nature, Uber achieves much higher utilization rates than taxis, reducing the amount of time driving without transporting riders.12
- Drivers are investing heavily in hybrid and electric vehicles, with the company committing to become a zero-emissions global platform by 2040.
- For riders, the availability and reliability of Uber makes it possible to replace a driving trip with a multi-modal trip, combining public transport and rides with Uber- and for a number of riders to go without owning a car altogether.
Uber’s recent climate assessment report, based on nearly 4 billion anonymized trips in the US and Canada, found that:13
- The carbon intensity of trips through Uber is 44% lower than through taxis, and has fallen overall by 6% in recent years.
- Drivers on Uber are 5.5 times more likely to use hybrid vehicles than other drivers in their local area.
New technologies such as ridesharing, carpooling and electric bikes are making it easier to get around, and reducing the burden of congestion. In our polling, 63% of riders without access to a car said the availability of ridesharing services like Uber was important to their choice of not owning a vehicle.
This is part of a wider trend. Ridesharing gives individuals more options and flexibility, making it easier to travel around a city. Almost nobody relies entirely on ridesharing services to travel around an area - instead they form an important complement for public transport, covering those journeys for which other modes of transport would be unsafe, inconvenient or take too long.
Uber Green
As the largest mobility platform in the world, Uber has a significant responsibility to help tackle the problem of transport emissions. The company has committed to becoming a fully zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles, on public transit or through micromobility.
An important milestone on the way to this goal is the company’s commitment to work with policymakers and industry on supportive policies that will enable 100% of rides in Canada, the US and Europe to take place in electric vehicles by 2030.
The Uber Green program is designed to help riders and drivers make this transition in a financially sustainable way. It features:
- Allowing riders to request a ride in an electric or hybrid vehicle for just $1 extra. On average, each Uber Green trip produces at least 25% fewer carbon emissions than the average trip.
- $0.50 of this extra cost is earned directly by the driver, with the other half going to the Green Future program helping drivers purchase electric vehicles.
- For existing electric vehicle drivers, topping up the $0.50 with an additional $1, to offer a combined $1.50 premium for each zero emissions ride.
The program is currently available in Calgary, Edmonton, Hamilton, Kingston, London, Niagara Falls, Ottawa, Waterloo Region, Regina, Saskatoon, Windsor, Winnipeg, Toronto, Quebec City, Montreal and Vancouver.
Uber’s Impact in Ontario
Population: 14.7mn
Uber’s arrival: 2012
Uber Eats arrival: 2015
Impact
- Total Economic Impact (2020): $3.7 billion
- Additional Revenue to Restaurants from Uber Eats (2020): $372 million
- Total Consumer Surplus (2020): $20 billion
- Time Saved (normal year): 7 million hours per year
Insights
- 74% of Ontario riders agree that Uber is an important transport innovation
- 85% of Ontario riders agree that convenience is an important reason they use Uber
- 71% of Uber Eats users say that food delivery apps have made it easier to discover new restaurants
- 55% of Uber Eats users say that food delivery apps have increased the overall amount they order from restaurants
In your own words, what do you like most about driving or delivering?
"I am a new immigrant to Canada. Uber is the only way for me to meet people and start learning about local culture, customs, lifestyle in my new home country. I've learned a lot from passengers while driving their trips. To me, Uber is much more than earning money. The perks of meeting different people on a daily basis is a major plus." Man, 46, Ontario
Uber’s Impact in British Columbia
Population: 5.1mn
Uber’s arrival: 2020
Uber Eats arrival: 2017
Impact
- Total Economic Impact (2020): $660 million
- Additional Revenue to Restaurants from Uber Eats (2020): $51 million
- Total Consumer Surplus (2020): $1.7 billion
- Time Saved (normal year): 910,000 hours per year
Insights
- 72% of British Columbia riders agree that Uber is an important transport innovation
- 79% of British Columbia riders agree that convenience is an important reason they use Uber
- 65% of Uber Eats users say that food delivery apps have made it easier to discover new restaurants
- 60% of Uber Eats users say that food delivery apps have increased the overall amount they order from restaurants
In your own words, what do you like most about driving or delivering?
"Flexible schedule. I work while waiting for my kids extracurricular. With family obligations, I cannot schedule ahead of time. This is the main reason I deliver with Uber over the others." Man, 47, British Columbia
Uber’s Impact in Quebec
Population: 8.6mn
Uber’s arrival: 2013
Uber Eats arrival: 2017
Impact
- Total Economic Impact (2020): $1.1 billion
- Additional Revenue to Restaurants from Uber Eats (2020): $119 million
- Total Consumer Surplus (2020): $9 billion
- Time Saved (normal year): 1.1 million hours per year
Insights
- 69% of Quebec riders agree that Uber is an important transport innovation
- 75% of Quebec riders agree that convenience is an important reason they use Uber
- 68% of Uber Eats users say that food delivery apps have made it easier to discover new restaurants
- 51% of Uber Eats users say that food delivery apps have increased the overall amount they order from restaurants
In your own words, what do you like most about driving or delivering?
"Sometimes just the experience of being on my own, having my music playing, discovering parts of the city I didn’t know, discovering restaurants I might want to go to/order from, and meeting people." Man, 34, Quebec
Methodology
Consumers
Consumer Surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked riders and Uber Eats users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [Uber for rideshare/Uber Eats] or go without access to [Uber for rideshare/Uber Eats] for one month and get paid £X?”
The price offered was randomised between $1.25, $2.50, $5, $10, $20, $50, $100, $200, and $500.
We then computed both a linear and logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure.
This was scaled by province population from Statistics Canada and province usage, derived from our nationally representative poll.
Time Saved
As part of our polling, we asked riders for the duration of their most recent trip with Uber, and how long the next best alternative would have taken.
We then used the difference to estimate time saved per trip, multiplying by Uber provided data on total number of annual trips by region to estimate total time saved per year.
We then calculated the monetary value of this using Region Traffic Models value of non working time and average GVA per hour.
Drivers and delivery people
Gross Increase in Income
Gross Driver Income
Gross Driver Income is calculated from proprietary data provided by Uber on total driver and delivery people payouts and the number of drivers and delivery people partnering with Uber by region.
Increase in Income (%) is taken from the driver survey, and the average response to:
“If Uber did not exist, how much do you think you would be likely to earn per week in your next best alternative?”
Value of Flexibility
As part of the driver survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now
Which would you choose?”
X was randomised between 5%, 10%, and 20%.
We then used a probit and logit regression to derive a demand curve, and the total driver surplus per user, averaging the results of the two models. This model was conditional on both driver type (rideshare or delivery person) and location. This was then scaled up to a national level and regional level by data provided by Uber on driver numbers.
Economic Impact
Impact on Restaurants
The model utilizes Uber’s internal data on the total payout to restaurants via Uber Eats, and this is proportioned out to the provinces according to number of trips. We estimate the proportion that is additional using the average of:
- The self-reported estimate from the consumer polling of how much spend is additional, and would not have been ordered if food delivery apps did not exist.
- The mid-point of Collison (2020)’s estimated range of the proportion of dollars spent on food delivery apps that are incremental.14
Following standard input-output methodology, we used the latest Statistics Canada detailed multipliers (2017 detailed), to calculate Type 1 and Type 2 output multipliers for restaurants for Canada and the Provinces. These multipliers are used to show the total impact via restaurants Uber Eats has on the economy.
Impact on Night-Time Economy
The night-time economy estimate is based on estimating gross output for a given number of additional night-time trips. We have defined night-time trips as any trips made between the time 10pm-5am.
The model uses self-reported data from the consumer polling on the purpose and time of day of their most recent trip. We calculated the average spend per trip by purpose using Statistics Canada Household Spend data, and assumed that individuals would only spend money in the night-time economy for the following purposes:
- Going or returning from shopping.
- Seeing or returning for a film, show or performance.
- Visiting or returning from a restaurant or bar.
In addition, we asked riders how likely they would have been to not make the trip if Uber and other ridesharing services did not exist. For those individuals who answered “Very likely” all trips are assumed to be additional, while for those who answered “Somewhat likely” half of trips are assumed to be additional.
Total spend is categorised and multiplied by the relevant Statistics Canada Type 2 multiplier, and then summed across trip purpose to give the total impact.
Total Economic Impact
Total economic impact is calculated as the sum of:
- Driver payouts.
- Indirect and induced impact of driver spending on vehicles.
- Induced impact of additional driver income.
- Indirect and induced impact of restaurant spending via Uber Eats.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Canada. It does not attempt to measure what would happen in a hypothetical where Uber no longer existed.
Our modelling does not include the impact of Uber's direct investment or employment footprint as a company, or any spillover effect this has to the wider tech ecosystem.
- https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/706671/agglomeration-elasticities-existing-evidence-and-future-priorities.pdf
- We highlight some of this evidence later on, in our section on safety.
- Quotes have been edited for spelling and grammar, but are otherwise unchanged.
- Quotes have been edited for spelling and grammar, but are otherwise unchanged.
- The Impact of Online Food Delivery Services on Restaurant Sales, Jack Collison, 2020, https://web.stanford.edu/~leinav/teaching/Collison.pdf
- https://uber.app.box.com/s/hxhyoxm08brg2pjnhny8hw78h6xdm33y
- Driving Safety : An Empirical Analysis of Ridesharing’s Impact on Drunk Driving and Alcohol-Related Crime, Frank Martin-Buck, 2016, https://pdfs.semanticscholar.org/3f1e/b273fcee888441147105882dd12ca811fd35.pdf; Ride-Sharing, Fatal Crashes, and Crime, Angela K. Dills and Sean E. Mullholland, 2016, https://onlinelibrary.wiley.com/doi/abs/10.1002/soej.12255; Assessing the Impact of Ridesharing Services on Public Health and Safety Outcomes, Marlon Graf, 2017, https://milkeninstitute.org/sites/default/files/reports-pdf/110117-Ridesharing-and-Public-Health.pdf
- https://www.un.org/en/observances/ending-violence-against-women-day
- https://www.uber.com/en-CA/newsroom/16-days-2020/
- Quotes have been edited for spelling and grammar, but are otherwise unchanged.
- https://www.cipma.org/2018/04/12/millennial-ownership-of-vehicles-in-canada/
- Disruptive Change in the Taxi Business: The Case of Uber, Judd Cramer & Alan B. Krueger, 2016, https://www.nber.org/system/files/working_papers/w22083/w22083.pdf
- https://d1nyezh1ys8wfo.cloudfront.net/static/PDFs/Uber_ClimateAssessmentandPerformanceReport_10_05_2020.pdf?uclick_id=74c8c81c-bbab-492f-8172-8f9dbf06072d
- https://web.stanford.edu/~leinav/teaching/Collison.pdf