{"id":16235,"date":"2025-02-11T12:15:04","date_gmt":"2025-02-11T12:15:04","guid":{"rendered":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/11\/another-ride-hailing-service-rolls-into-ontario-with-several-challenges-awaiting-it\/"},"modified":"2025-02-11T12:15:04","modified_gmt":"2025-02-11T12:15:04","slug":"another-ride-hailing-service-rolls-into-ontario-with-several-challenges-awaiting-it","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/11\/another-ride-hailing-service-rolls-into-ontario-with-several-challenges-awaiting-it\/","title":{"rendered":"Another ride-hailing service rolls into Ontario with several challenges awaiting it"},"content":{"rendered":"


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Competition for Uber and Lyft is rolling into Canada.<\/p>\n

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Estonian company Bolt announced Tuesday that it has launched its Hopp ride-hailing service in the Greater\u00a0Toronto\u00a0Area.<\/p>\n

Hopp\u2019s Canadian debut adds\u00a0Toronto, Mississauga, Markham, Vaughan and Richmond Hill to the roster of 600 cities in 50 countries it already operates in.<\/p>\n

In Canada, however, the company may not be in for a smooth ride.<\/p>\n

It faces stiff competition from Uber, which has been in the market since 2012, and Lyft, which entered in 2017, along with a variety of regional players.<\/p>\n

Yet Hopp\u2019s general manager for Canada David Riggs maintains the market lacks competition.<\/p>\n

\u201cRide hailing isn\u2019t a winner-takes-all marketplace,\u201d he said.<\/p>\n

\u201cIn fact, monopolies get challenged in these marketplaces all the time and in the last number of years, regional players have challenged large competitors within the marketplace and been very successful.\u201d<\/p>\n

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He believes Hopp can find success in Canada by addressing both a lack of choice and \u201cless favourable\u201d conditions for drivers and riders alike.<\/p>\n

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\u201cThere is room for multiple competitors and where we really slide in is by being able to provide better earnings opportunities for the drivers and being a better partner for them, as well as being able to pass on the savings to riders,\u201d Riggs said.<\/p>\n

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He said Hopp offers more attractive pricing for riders and higher earnings for drivers, claiming the 15 per cent service fee, or commission, Hopp takes is the lowest in the industry.<\/p>\n

Like most other ride-hailing apps, Hopp considers its drivers to be independent contractors because they can choose when, where and how often they work. Since they aren\u2019t employees, they do not receive job security, vacation pay or other benefits.<\/p>\n

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As well, drivers for ride-hailing apps are generally only paid for time spent ferrying around passengers \u2014 not awaiting rides \u2014 a contentious issue for many independent contractors who also complain of low wages.<\/p>\n

A report released in December found drivers working for ride-hailing apps at the start of 2024 in\u00a0Toronto\u00a0earned a median hourly wage of $5.97, well below the $16.55 minimum wage Ontario had until October, when it increased to $17.20.<\/p>\n

The research commissioned by the city but completed by the University of\u00a0Toronto\u00a0and Universit\u00e9 de l\u2019Ontario fran\u00e7ais factored in the time drivers spent logged into platforms awaiting ride requests and transporting customers as well as the cost of using their own vehicles.<\/p>\n

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