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Moderate traffic builds along Toronto's Gardiner Expressway— a main artery in and out of the ... More downtown core. The skyline rises beyond, lit by a golden sunset.
Traffic congestion and greenhouse gas (GHG) emissions are two of the most pressing challenges facing Canadian cities. A recent Canadian Centre for Economic Analysis study has found that gridlock costs the national economy C$12.8 billion annually, with C$10.1 billion of that burden concentrated in the Greater Toronto and Hamilton Area (GTHA). Including social impacts such as stress and health problems, the province of Ontario’s total congestion cost rises to C$56.4 billion annually (Table 1).
Table 1: Impacts of Congestion in the GTHA and Ontario
Impacts of Congestion in the GTHA and Ontario
Canadian Centre for Economic Analysis, 2024
The problem extends beyond Ontario. Vancouver, for example, is among North America’s most congested cities, with commuters losing an average of 86 hours annually to traffic delays. These delays not only erode productivity but also exacerbate air pollution. Health Canada estimates that, each year, traffic-related air pollution contributes to 1,200 premature deaths and costs the economy $9.5 billion in healthcare expenses across Canada. Transportation is Canada’s second-largest source of GHG emissions, accounting for 22% of total national emissions. Road transportation dominates this figure, and emissions from passenger vehicles and freight trucks have steadily increased since 1990.
With Canada’s urban populations growing rapidly—Toronto, Vancouver, and Calgary gained over 100,000 residents last year—the need for innovative mobility solutions has never been more urgent, especially given the slow growth rate and rising costs associated with urban transit development. As digital connectivity improves, Canada can better leverage on-demand transit services to address first- and last-mile gaps, while also partnering with ride-sharing apps to link commuters more effectively to public transit networks. Cities worldwide have begun exploring these tech-driven solutions and reported positive outcomes, offering Canadian municipalities a valuable blueprint for reducing congestion, cutting emissions, and creating more sustainable urban transportation systems.
On-Demand Transit Can Boost Ridership and Improve Network Efficiency
Canada’s urban transit systems have started to rebound from pandemic lows, but they remain strained. According to Statistics Canada, urban transit ridership reached 131.7 million trips in December 2024, recovering 81.5% of pre-pandemic levels, but it still fell 21.6 million trips short of 2019’s volumes. Meanwhile, transit agency operating revenue (excluding subsidies) rose 13.8% from December 2023 to $336.2 million in December 2024, falling $2.5 million short of December 2019 figures (Chart 1).
Chart 1: Monthly Urban Public Transit Operating Revenue and Passenger Trips, 2019–2024
Monthly Urban Public Transit Operating Revenue and Passenger Trips, 2019–2024
Statistics Canada, 2025
The public health measures introduced in March 2020 to mitigate the spread of COVID-19 triggered a steep decline in transit use—from nearly 1.9 billion trips in 2019 to 849.1 million in 2020 and 778.4 million in 2021. Although annual recovery has been gradual, overall ridership in 2024 amounted to 1.6 billion passenger trips (an 8.8% increase over 2023), reaching only 84.2% of pre-pandemic levels (Chart 2).
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