The landscape for Uber Eats drivers across Canada has become increasingly complex in 2025, as new provincial regulations, legal challenges, and platform policy changes converge to create both opportunities and obstacles for delivery workers. From British Columbia’s groundbreaking gig worker protections to nationwide legal battles over hidden fees, Canadian drivers are experiencing the most significant shifts in the industry’s short history.
Revolutionary Worker Protections Transform British Columbia’s Gig Economy
British Columbia has emerged as a pioneer in gig worker rights, implementing Canada’s first comprehensive regulations for app-based delivery and ride-hailing workers. These regulations, which took effect on September 3, 2024, establish a minimum wage of $20.88 per hour for engaged time—representing 120% of BC’s general minimum wage of $17.40.
The new framework fundamentally changes how drivers are compensated during their active working periods. Engaged time begins when a worker accepts an assignment and continues through its completion, though it doesn’t include waiting time between assignments. This distinction recognizes the unique nature of gig work while ensuring fair compensation for actual working hours.
Platform companies must now top up earnings when a driver’s pay period doesn’t meet the minimum earnings standard for their engaged time worked. Additionally, workers gain access to workers’ compensation coverage, vehicle expense allowances, and enhanced pay transparency measures.
Impact on Driver Earnings and Working Conditions
The new regulations affect approximately 35,000 delivery workers and 11,000 ride-hailing drivers across British Columbia. For many drivers, these changes represent a significant improvement in financial security and workplace protections. The legislation includes provisions for injury coverage, addressing long-standing concerns about workers bearing the full cost of workplace accidents.
However, the implementation has also created new challenges. Drivers must now navigate more complex earning calculations and reporting requirements while adapting to platform changes designed to comply with the new regulations.
Legal Challenges Create Uncertainty for Mobile App Usage
A significant challenge emerged in early 2025 when the BC Supreme Court ruled that accepting delivery orders on a phone while driving constitutes distracted driving, even with a single tap on a properly mounted device. This decision followed a case involving Vancouver-based Uber Eats driver Vasu Subhashbhai Virda, who was fined $295 for tapping his phone to accept a delivery order.
Justice Wendy A. Baker determined that distracted driving laws only permit single taps for answering phone calls, not for other app functions. This interpretation puts drivers in an impossible position—they risk losing income by not accepting orders quickly enough, but face substantial fines and penalty points for accepting them while driving.
The implications extend beyond individual fines. Distracted driving tickets carry $368 fines and four penalty points, which can affect future employment opportunities and insurance rates. Many drivers argue that current legislation wasn’t written with the gig economy in mind and needs updating to reflect modern work realities.
Technology Solutions and Ongoing Concerns
Uber states that its app can operate in hands-free mode through Apple CarPlay or Android Auto systems. However, not all drivers have access to these technologies, particularly those using older vehicles or personal phones without compatible systems.
The disconnect between legal requirements and practical work necessities has created widespread concern among the driver community. Many are calling for legislative updates that acknowledge the legitimate use of apps for gig work while maintaining road safety standards.
Class Action Lawsuit Challenges Hidden Fee Practices
A major class action lawsuit filed in Ontario on May 16, 2025, challenges Uber Technologies Inc. over alleged deceptive pricing practices involving hidden “Service Fees” on delivery orders. The lawsuit, led by Toronto-based Koskie Minsky LLP, claims that service fees ranging from $2 to $4 are only revealed at final checkout, misleading customers about true order costs.
The Service Fee appears under “Taxes & Other Fees” rather than being displayed upfront like delivery fees, creating what plaintiffs call “drip pricing”—the practice of withholding fees until the transaction’s final stage. This approach allegedly makes orders appear less expensive than they actually are, influencing purchasing decisions.
The lawsuit has particular significance for Uber One subscribers, who pay for a service promising $0 delivery fees but still encounter service charges on qualifying orders. If successful, the legal action could result in refunds for millions of Canadian users who paid these fees since May 2023.
Platform Changes Reshape Driver Incentives and Requirements
Uber has introduced significant changes to its Uber Eats Pro program, implementing new criteria including acceptance rates alongside existing cancellation rates, satisfaction ratings, and monthly points accumulation. The updated system creates four tiers: Green (starting level), Gold, Platinum, and Diamond, each offering different benefits and earning opportunities.
Higher-tier drivers receive priority access to “Preferred Deliveries”—higher-paying orders that can significantly impact earnings potential. Diamond-level drivers also gain access to premium support services, providing real-time assistance during deliveries.
Documentation and Compliance Requirements
Driver requirements remain comprehensive, including valid full-class driver’s licenses, vehicle insurance with the driver’s name, proof of work eligibility, and background checks covering criminal history and driving records. Unlike traditional Uber rideshare drivers, Uber Eats drivers don’t require vehicle inspections or GST/HST numbers for earnings under $30,000 annually.
The onboarding process typically takes one to two weeks, during which new drivers must submit various documents and pass screening requirements. Background screenings may experience processing delays, adding uncertainty to the approval timeline.
Economic Pressures and Market Dynamics
Canadian Uber Eats drivers face increasing economic pressures in 2025. While base pay formulas include trip supplements designed to make deliveries more worthwhile, many drivers report that earnings can vary significantly based on location, time of day, and seasonal factors.
The platform allows drivers to work up to 12 hours within any 24-hour period and offers flexibility in scheduling, but this independence comes with income unpredictability. Many drivers work across multiple platforms to maximize earning potential and protect against deactivation risks.
| Policy Area | Key Changes | Impact on Drivers |
|---|---|---|
| BC Minimum Wage | $20.88/hour for engaged time | Increased earnings, pay transparency |
| Distracted Driving | Court ruling limits app use | $368 fines, operational challenges |
| Hidden Fees Lawsuit | Class action over service charges | Potential customer impact on orders |
| Uber Eats Pro | New acceptance rate requirements | Tier-based earnings, performance pressure |
| Background Checks | Annual screening requirements | Continued compliance costs |
Balancing Innovation with Worker Rights
The evolving regulatory landscape represents a critical juncture for the gig economy in Canada. While British Columbia’s pioneering approach offers a model for other provinces, the practical implementation challenges highlight the complexity of regulating new forms of work.
Drivers continue advocating for consistent national standards that protect worker rights while preserving the flexibility that makes gig work attractive. The resolution of current legal challenges, particularly around distracted driving and fee transparency, will likely influence policy development across the country.
The success of these new frameworks will ultimately depend on their ability to balance legitimate business needs with worker protections, technological realities with safety requirements, and innovation with fairness. As other provinces watch British Columbia’s experience, the lessons learned will shape the future of gig work regulation across Canada.
Frequently Asked Questions
Q: Do the new BC regulations apply to drivers in other provinces? A: No, the BC regulations only apply within British Columbia. Other provinces have their own requirements, though some are considering similar legislation.
Q: Can drivers still work flexible hours under the new regulations? A: Yes, the BC regulations specifically preserve schedule flexibility while ensuring minimum wage protections during engaged time.
Q: How does the distracted driving ruling affect drivers outside BC? A: The ruling is specific to BC courts, but similar interpretations could apply in other provinces with comparable distracted driving laws.
Q: Who qualifies for the Uber Eats hidden fees lawsuit? A: Canadian residents who placed delivery orders on Uber Eats and paid service fees after May 16, 2023, may qualify for the class action.