Last updated: March 18, 2022
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Legality of pricing
Poparide helps drivers share the costs of driving by connecting them with passengers travelling in the same direction. To comply with local carpooling laws, drivers must ensure that their Poparide earnings do not exceed the shareable (operating) costs of their vehicle, which include gas, insurance and maintenance.
The Canadian Automobile Association (CAA) provides an excellent driving cost calculator that we recommend drivers use to estimate their specific annual shareable costs. To help them stay within legal limits and to ensure fair pricing for passengers, Poparide caps the price per seat at 17 cents per kilometre.
The cost of driving
The CAA estimates the annual cost of driving a car in Canada is around $9,500 a year. They have also found that 60% of Canadians underestimate the annual costs of owning and operating a vehicle by as much as $4000.
The basis of our price cap per kilometre is a calculation using several averaged values for the cost of gas, insurance and maintenance. Depreciation, credit repayments, licensing and registration costs do not qualify as shareable costs under most carpooling legislation and are therefore not included in the calculation.
- Average gas price across Canada, March 2022: GasBuddy
- Average car insurance rates across Canadian provinces, July 2021: Arc Insurance (Insurance Bureau of Canada)
- Maintenance is highly variable based on the vehicle's age, but averages range between $500 and $2,000 annually
- Depreciation, licensing and registration are not shareable (operating) costs
- Poparide trips on average have 1.8 passengers booked
To ensure fair pricing, Poparide caps the price per seat at 17 cents per kilometre. We then round the price up to the nearest dollar. The 17 cent per kilometre limit is based on:
- the "Carpool cost per km" value calculated above, 12.2 cents per kilometre
- some reasonable variations in fuel efficiency, gas and insurance prices
- pricing data compiled by Poparide over time based on platform activity
Drivers can and often do offer a lower price than the recommended amount to attract more passengers.
How we calculate recommended prices
When you post a trip on Poparide, we will calculate a recommended price per seat for the route you are posting on, based on the data we have from other drivers posting on that route.
If there is not enough data available for the route you're posting on, we will calculate a recommended price based on the distance and the average price per km on Poparide.
Please note that we give you full control of your trip's pricing and that you can adjust prices on your trip at any time.