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Delivery driver jobs: employee or app-based gig work

Delivery jobs as an employee or through an app: the licence you need, insurance for work use, pay rules for app-based workers in BC and Ontario, and taxes.

  • Applies to: British Columbia and Ontario

There are two main ways to do delivery work. You can be hired as an employee by a store, restaurant, or courier company. Or you can sign up with a delivery app and pick your own hours. Both can be a good first job, but the pay, costs, and protections are different.

We checked the facts in this guide on October 12, 2026. Rules and rates change, so follow the links to the official pages for the latest details.

Employee or app-based: what's the difference?

Employee delivery jobApp-based delivery
Who sets your hoursYour employerYou choose when to log in
VehicleOften the employer's, but checkUsually your own car, bike, or e-bike
Vehicle costsAsk your employerMostly yours
TaxesTaken off your payYou usually report and pay them yourself
Rules that protect youFull employment standardsSpecial rules for platform workers (see below)

Employee jobs include drivers for pharmacies, grocery stores, restaurants, furniture and appliance stores, and courier companies. Some jobs are for a delivery helper who rides along and carries items, which may not need a licence at all. As an employee, you are generally covered by the regular rules for minimum wage, overtime, breaks, and vacation pay. Read our rights guides for BC and Ontario.

App-based work gives you flexibility, but you pay for your own gas, repairs, phone data, and insurance. Your income can change a lot from week to week.

The licence you need

BC. You need a commercial licence (Class 1, 2, 3, or 4) for vehicles such as buses, taxis, and trucks with more than two axles (ICBC). Most car and small van delivery jobs don't use those vehicles, but always check what the job posting asks for.

If you have a novice (N) licence, ICBC's rules still apply while you work (ICBC):

  • You can't use a phone or other electronic device at any time while driving. This matters for app-based work, where orders come in by phone.
  • You must display the N sign.
  • You can only carry one passenger, unless they are immediate family or you have a qualified supervisor with you.

From October 19, 2026, novice drivers with a clean driving record will no longer take a second road test to get a Class 5 licence with restrictions. Instead, they must pass a Driving Record Assessment, followed by a 12-month restriction period (ICBC).

Ontario. A Class G licence covers cars, vans, and small trucks. With a G1, you can only drive with a fully licensed driver who has at least four years of experience, so you can't do delivery work alone. With a G2, you can drive without an accompanying driver, but you must keep a zero blood alcohol level (ontario.ca).

Ontario's distracted driving law says that simply holding a phone while driving is against the law. A mounted phone is allowed if it is secure, and you may only touch it to make, answer, or end a call. You can't program a GPS on a hand-held device except by voice. Novice drivers (G1 and G2) face licence suspensions if convicted.

Your driving record. Employers often ask for a copy of your driving record. In BC, ICBC says that if you are applying for a job, you'll need a National Safety Code (NSC) abstract, which you can request for your employer through My ICBC (ICBC). In Ontario, the 3-year driver record is often used for jobs, and an uncertified copy costs $12 (ontario.ca).

Insurance when you drive for work

Your regular car insurance may not cover delivery work. Talk to your insurance company or broker before you start.

BC. ICBC's "pleasure" rate class lets you use your vehicle for up to six days in a calendar month for commuting, business, or delivery. ICBC lists a separate rate class for driving for delivery, such as for a food delivery app. If you are in the wrong rate class, it could affect your coverage and leave you personally responsible for the cost of claims (ICBC). Ask an Autoplan broker which class fits how you drive.

Ontario. Every vehicle registered in Ontario must be insured (MTO Driver's Handbook). Tell your insurance company or broker that you plan to deliver, and ask exactly what is covered. If you work for an app, ask the app what insurance it has and when it covers you, for example only while you are carrying an order.

If you deliver as an employee using your own car, ask your employer the same questions.

Rules for app-based delivery workers

Both provinces now have special rules for people who deliver through apps.

BC (since September 3, 2024). For app-based ride-hail and delivery work:

  • Minimum pay: at least $21.89 an hour for "engaged time," since June 1, 2026. Engaged time starts when you accept an order and ends when you complete it or it's cancelled (BC minimum wage). Time spent waiting between orders is not counted (BC Gov News).
  • Distance allowance: at least $0.35 per kilometre for delivery, when you are not walking (BC minimum wage).
  • Tips: Platforms must pass on all customer tips and can't withhold or deduct from them. Tips don't count toward the minimum pay (BC Gov News).
  • Before you accept: you can see the estimated pay and the pickup and delivery locations, within 300 metres (BC Gov News).
  • Deactivation: platforms must give a written reason for a suspension or deactivation, and can't suspend you indefinitely (BC Gov News).
  • Injury coverage: WorkSafeBC covers app-based ride-hail and delivery workers for injuries on or after September 3, 2024. The platform must register and pay the premiums. If you are hurt, report it to the platform right away, see a doctor, and call Teleclaim at 1-888-967-5377 (WorkSafeBC).

Ontario (since July 1, 2025). The Digital Platform Workers' Rights Act covers delivery, ride share, and courier work done through an app, whether the platform calls you an employee or an independent contractor (ontario.ca):

  • Minimum pay: at least the general minimum wage, now $17.95 an hour, for the time you spend on work assignments, not counting tips. An assignment starts when you accept it and ends when the work is done. Travel before an assignment starts, or after it ends, is not counted.
  • Information: when you are offered work, you must get your estimated pay and how it was calculated. Within 24 hours after you finish, you must get the actual pay, tips, and start and end times.
  • Tips: the operator can't withhold tips or take deductions from them.
  • Removal: you must get a written explanation if you are removed from the platform. For a removal of 24 hours or more, you are entitled to two weeks' written notice, with some exceptions, such as wilful misconduct.
  • Help: call the Employment Standards Information Centre at 1-800-531-5551.

Taxes for app-based work

The Canada Revenue Agency (CRA) says delivery drivers who work independently for delivery apps are considered self-employed contractors. You must file a tax return and report all your income, including tips. You may be able to deduct business expenses, such as fees the platform keeps (CRA).

For GST/HST, you generally must register once your earnings from taxable work go over $30,000 in four calendar quarters. Ride-hailing is different: you must register as soon as you start earning money from it (CRA: Gig economy, CRA tax tip). Keep records of what you earn and spend, and set money aside for taxes.

Watch for fake delivery jobs

Be careful with "jobs" that ask you to receive packages at home and send them on to someone else. These are often scams. Read Job scams that target first-time job seekers.

Next steps

Sources

Rules and wages change. These are the official sources we checked.

  1. Government of BC: Minimum wage (including online platform workers)
  2. BC Gov News: Fair pay, basic protections coming for gig workers (June 12, 2024)
  3. WorkSafeBC: Coverage for app-based ride-hail and delivery services workers
  4. Ontario: Rights and protections for digital platform workers
  5. Ontario: Your guide to the Employment Standards Act, Minimum wage
  6. ICBC: Types of licences
  7. ICBC: You have a Class 7 licence and you're under 25
  8. ICBC: Changes to the Graduated Licensing Program
  9. ICBC: Territory and rate class
  10. ICBC: Driving record
  11. Ontario: Get a G driver's licence, new drivers
  12. Ontario: Distracted driving
  13. Ontario: Get a driving record
  14. Ontario: MTO Driver's Handbook, Vehicle insurance and registration
  15. Canada Revenue Agency: Tax obligations for commercial ridesharing and delivery services
  16. Canada Revenue Agency: Gig economy