The food delivery industry in China, valued at $200 billion, has seen significant growth over the past few years, especially during the Covid-19 lockdowns. Delivery workers, numbering around 12 million, play a crucial role in this industry as they navigate busy roads and bad weather conditions to deliver meals every day. However, recent incidents of explosive confrontations highlight the immense pressure and deteriorating conditions these workers are facing. Many workers are struggling to maintain their income due to decreased earnings and longer working hours.
The dominance of major food delivery platforms in China leaves little room for workers to negotiate better working conditions. Workers are paid on a commission basis, which means they need to work longer hours to make ends meet, especially as consumers are now ordering cheaper meals. The market for takeout delivery is projected to continue growing, reaching $280 billion by 2030. Despite the industry’s growth, workers are facing shrinking paychecks, with the average monthly earnings dropping from over $1,000 in 2018 to less than $950 in 2023.
The weak Chinese economy has led to reduced consumer spending, affecting the income of delivery workers whose pay is tied to the price of orders. The lack of tips from cash-strapped customers further adds to the financial strain on workers. With the unemployment rate rising, competition among delivery workers has become more intense, lowering their bargaining power. Delivery workers are treated as freelancers paid per trip, incentivizing them to take risks on the road to complete more deliveries, leading to dangerous situations and even fatal accidents.
The rise of delivery apps initially offered higher wages to attract workers, but as the industry has become dominated by major platforms, workers have lost labor protections and face stricter control over their work. Many restaurants offer cheaper deals for delivery, which puts pressure on workers to deliver more orders to maintain their income. The shift of cost burdens from platforms to drivers has resulted in complaints from workers who feel unjustly fined or penalized for reasons beyond their control. The lack of labor protections and the shift towards algorithm-controlled labor processes have left workers with little freedom or security in their jobs.
Despite the challenges and dangers, some delivery workers like 35-year-old Yang still find the job suitable for them due to its flexibility compared to other roles. While acknowledging the downsides of the industry, Yang appreciates the ability to earn more money by working longer hours or take breaks when needed. The food delivery industry in China continues to be a significant part of the country’s dining culture, with millions of workers contributing to its growth, even as they face increasing pressures and challenges in their day-to-day work.
