Estonian-Based Service Launches in GTA Amid Tough Competition and Industry Challenges
The ride-hailing market in Canada is getting a new player. Hopp, an Estonian-based ride-share service operated by Bolt, has officially launched in the Greater Toronto Area (GTA), marking its entry into Canada’s competitive transportation industry.
Hopp’s expansion adds Toronto, Mississauga, Markham, Vaughan, and Richmond Hill to its growing global network, which spans 600 cities in 50 countries.
However, the company faces significant challenges, including entrenched competitors Uber and Lyft, regulatory uncertainty, and concerns over driver wages and working conditions.
Despite Uber’s presence in Canada since 2012 and Lyft’s entry in 2017, Hopp’s Canadian General Manager, David Riggs, believes there is still room for new players.
“Ride-hailing isn’t a winner-takes-all marketplace,” Riggs said. “Monopolies get challenged in these markets all the time, and regional players have proven they can succeed.”
Riggs says Hopp aims to offer better earnings for drivers and lower fares for passengers, claiming that its 15% service fee is the lowest in the industry.
“We are committed to being a better partner for drivers and passing on the savings to riders,” he added.
Like other ride-hailing services, Hopp classifies its drivers as independent contractors, meaning they lack job security, vacation pay, and benefits.
A December 2024 study, commissioned by the City of Toronto, found that ride-hailing drivers in early 2024 earned a median hourly wage of just $5.97, well below Ontario’s $16.55 minimum wage at the time.
While Uber disputed the study’s methodology, it reported that Toronto drivers earned $30.10 per hour for “engaged time”, excluding tips.
Asked about average earnings for Hopp drivers, Riggs declined to provide figures, saying it varies based on when and how often drivers work
Hopp enters the market amid heated debates over driver licensing regulations.
Last December, Toronto city staff proposed capping the number of ride-hailing drivers at 80,429—a recommendation that was later overturned after pushback from Mayor Olivia Chow and ride-share companies.
Uber even pursued legal action, arguing the cap would harm its business and limit driver opportunities. Riggs said Hopp supports a “one driver, one license” model, where drivers can freely choose which platforms they work for.
For now, Hopp’s operations are limited to the GTA, but Riggs confirmed that expansion into other provinces and cities is under consideration.
“We are always looking at opportunities to expand,” he said.
With a crowded ride-hailing market, ongoing regulatory challenges, and driver wage concerns, Hopp’s success in Canada’s competitive landscape remains uncertain. However, its promise of lower fees for drivers and affordability for passengers could make it a formidable new challenger to Uber and Lyft.
Will Hopp disrupt the market, or struggle to gain traction? Time will tell.