The food delivery industry in China, worth $200 billion, has seen a significant increase in demand during the Covid-19 lockdown period, providing a solid income for delivery workers. However, as China’s economy faces setbacks like a property crisis and decreased consumer spending, delivery workers are facing challenges. They are working long hours, being squeezed financially due to a sluggish economy, and facing pressure to maintain earnings due to commission-based work. This situation is exacerbated by the dominance of major delivery platforms dictating contractual terms without much room for negotiation.
With around 12 million drivers forming the backbone of China’s food delivery network, delivery workers are crucial to the country’s dining culture. They work tirelessly every day, delivering meals across a vast network of roads and alleys, often braving harsh weather conditions. The industry has experienced significant growth, reaching $214 billion in 2023 and projected to reach $280 billion in 2030. Despite the growth, delivery workers are under immense pressure to meet tight deadlines, often resorting to dangerous behaviors on the road like speeding or running red lights.
The decrease in profits for delivery workers is evident in their diminishing paychecks, earning less compared to previous years while putting in longer hours to maintain earnings. Many workers find themselves working multiple deliveries each day to meet the average monthly income. The weakened economy in China leads to reduced spending from consumers, impacting delivery workers’ earnings as pay is based on the price of orders. Additionally, heightened competition for delivery jobs due to rising youth unemployment rates further weakens workers’ bargaining power.
Delivery apps initially attracted workers with higher wages but have shifted towards cutting bonuses and pay as they dominate the market, leaving workers with little labor protections. Workers are often treated as freelancers paid per trip, incentivizing them to prioritize quantity over road safety. This approach has resulted in fatal consequences, with delivery workers risking their lives to meet delivery quotas. Despite the challenges, some like 35-year-old delivery driver Yang find the industry suits them for its flexibility, allowing them to earn based on their availability and work preferences.
Overall, the food delivery industry in China has witnessed explosive incidents involving delivery workers under immense pressure. The industry’s rapid growth and dominance by major delivery platforms have resulted in challenging conditions for workers, including reduced earnings, longer working hours, and dangerous work environments. As China’s economy faces various challenges, delivery workers find themselves at the forefront of the issues, struggling to make a living while meeting the demanding expectations of the industry. The future of delivery work in China remains uncertain as workers continue to navigate an evolving landscape shaped by economic fluctuations and market forces.
