‘Really squeezed’: Why drivers in the world’s largest food delivery market are having meltdowns

Oct 17, 2024 at 10:00 PM

Delivery Drivers in China: Struggling to Survive Amid Economic Turmoil

China's booming food delivery industry has become a lifeline for many, providing employment and convenience during the pandemic. However, the sector's rapid growth has come at a cost, with delivery workers facing mounting pressures and dwindling paychecks. As the country's economy grapples with various setbacks, these essential workers are bearing the brunt, leading to a rise in confrontations and a growing sense of desperation.

Powering China's Dining Culture, One Delivery at a Time

The Backbone of China's Delivery Network

China's food delivery industry has experienced exponential growth, with a fleet of over 12 million drivers crisscrossing the country's vast network of roads and alleyways. These workers have become an indispensable part of the nation's dining culture, keeping communities afloat during the strict COVID-19 lockdowns. The industry has reached staggering heights, with the market projected to hit $280 billion by 2030, cementing China's position as the world's largest takeout delivery market.

Delivering Under Pressure

However, the relentless pace and high demands of the industry have taken a toll on delivery workers. Constantly under pressure to meet tight deadlines, many resort to risky maneuvers, such as speeding or running red lights, endangering themselves and other road users. Viral videos on Chinese social media have captured the emotional outbursts of frustrated workers, from smashing phones to forcefully pushing over motorbikes, as they grapple with the mounting stress.

The Squeeze on Earnings

As China's economy faces a raft of challenges, from a prolonged property crisis to sluggish consumer spending, delivery workers are bearing the brunt. With people ordering cheaper meals, their commissions-based earnings have dwindled, forcing them to work longer hours to maintain their income. The dominance of two major delivery platforms has also enabled these companies to dictate contractual terms, leaving little room for workers to push back against deteriorating work conditions.

A Shrinking Paycheck

The financial strain on delivery workers is evident in the shrinking of their paychecks. In 2018, they earned an average of over $1,000 per month, but by 2023, this figure had dropped to less than $950. To make ends meet, many now work 10-hour shifts, completing up to 30 deliveries per day, earning around $30 to $40 per shift. This relentless schedule is a testament to the economic pressures they face, as a weakening economy and fierce competition for limited delivery orders have eroded their bargaining power.

The Duopoly's Dominance

The delivery industry's shift towards a duopoly has further exacerbated the challenges faced by workers. Initially, the platforms invested heavily to attract workers, offering higher wages to fuel their expansion. However, as they solidified their market dominance, the cost burden has been increasingly shifted to the drivers, with bonuses and pay cuts becoming the norm. This has left workers with little recourse, as the platforms' algorithms and control over the labor process have diminished their ability to negotiate better terms.

Dangerous Consequences

The pressures faced by delivery workers have had dire consequences. In 2019, a driver in Beijing was killed after being hit by a tree knocked over by strong winds, highlighting the risks they face on the road. More recently, a delivery driver in Hunan was caught on camera slamming his scooter into a car after running a red light, underscoring the hazardous situations they are forced to navigate.Despite the challenges, some delivery workers, like 35-year-old Yang, still see the job as a suitable option, citing the flexibility it offers. However, the industry's transformation has left many feeling the strain, with workers expressing a sense of desperation and a desire for better working conditions and fair compensation.