Strained to Breaking Point: The Crisis Facing Delivery Drivers in China’s Largest Food Market

Beijing/Hong Kong — On a bustling street in China, a food delivery rider’s frustration boils over as he smashes his cellphone onto the pavement. His breaking point? A negative review from a customer that undermines his hard-earned efforts. In another instance, a delivery worker kneels to beg forgiveness from a police officer for running a red light, only to jump up, shove over his motorbike, and sprint across the road, barely noticing the oncoming traffic. Elsewhere, a group of drivers gathers outside an apartment complex, demanding accountability after one of their fellow riders was allegedly bullied by security guards.

These are not isolated incidents but a growing pattern of explosive confrontations spreading across China, widely shared on social media. They reveal the immense pressure bearing down on millions of delivery drivers in the world’s largest food delivery market—an industry that has become a cornerstone of China’s economic fabric but is increasingly crushing the very workers who sustain it.

Valued at over $200 billion, China’s food delivery sector has more than doubled since the start of the pandemic, driven by surging demand during lockdowns. What was once a dependable income source for many casual workers is now a battleground of harsh economic realities. China’s struggling economy, exacerbated by a protracted property crisis and weak consumer spending, has dramatically reduced the earnings of delivery workers, pushing them to the edge.

This economic strain was made all the more evident when the National Bureau of Statistics (NBS) announced further moderation in China’s economic growth during the third quarter of 2023. Gross domestic product (GDP) grew by only 4.6% from July to September compared to the previous year—just slightly above the 4.5% forecast by economists. Weak consumption, combined with a steep decline in the property market, contributed to this sluggish growth.

“The drivers are being squeezed on all sides,” said Jenny Chan, associate sociology professor at Hong Kong Polytechnic University. “They’re working long hours, often under harsh conditions, and the pressure will only mount as delivery platforms try to minimize costs.”

As consumer spending falters, people are ordering cheaper meals, which has a direct impact on drivers’ incomes. Most delivery workers operate on a commission-based model, meaning lower-priced orders lead to reduced earnings. The dominance of two major platforms—Meituan and Ele.me—leaves workers with little negotiating power to push back against deteriorating working conditions. Labor rights experts have noted that this duopoly allows companies to dictate contractual terms, squeezing workers further by limiting their options for better pay or working conditions.

China’s food delivery industry, which began gaining prominence in 2009 with the launch of Ele.me (now owned by Alibaba), has grown into a behemoth. An estimated 12 million delivery drivers make up the backbone of this vast network, which has become a fixture of urban life. These workers were essential during the COVID-19 lockdowns, ensuring that meals and groceries reached residents confined to their homes. Today, they are an indispensable part of the country’s dining culture, navigating a labyrinth of streets to deliver meals, often under punishing conditions like torrential rain or even typhoons.

According to iiMedia Research, the market reached a staggering $214 billion in 2023—more than double its size in 2020. By 2030, it is projected to reach $280 billion, cementing China’s status as the world’s largest food delivery market by both revenue and volume. Yet, despite this explosive growth, the workers themselves have seen their paychecks dwindle.

Drivers report being under immense pressure to meet tight deadlines, often cutting corners by speeding or running red lights, putting their lives at risk. The rider who smashed his phone, for example, told Chinese state media that the customer complaint against him was unfounded, but the penalty imposed by the delivery platform still reduced his work assignments, thereby cutting into his income.

“What do they want from us?” the rider lamented in a widely circulated video. “Do they want us dead?”

Profits, however, are surging for the platforms. Meituan, one of the industry giants, saw a 26% increase in revenue, reaching $10 billion in 2023. Alibaba’s Ele.me reported $8.3 billion in revenue for its local services division for the fiscal year ending in March, marking a 19% increase. CNN reached out to both companies for comment, but neither responded.

As these platforms profit, drivers’ paychecks have shrunk. According to a report by the China New Employment Research Center, the average monthly income for delivery workers in 2022 was 6,803 yuan ($956), nearly 1,000 yuan less than five years ago. This decline comes despite the fact that many drivers are working longer hours—often upwards of 10 hours a day, as they scramble to meet delivery targets.

A 20-year-old driver, Lu Sihang, explained to CNN that he makes around $30 to $40 per shift, delivering approximately 30 orders during a typical 10-hour workday. To make the average monthly wage, Lu has to work almost every single day.

“The economy is pushing down wages,” said Gary Ng, an economist with French investment bank Natixis. Ng explained that China’s “downgraded consumption” trend—where consumers spend less even on necessities like food—has led restaurants to cut prices to attract customers, further reducing delivery workers’ commission-based earnings.

Adding to their woes, China’s youth unemployment rate hit 18.8% in August 2023, making competition for delivery jobs even fiercer. “With a huge supply of workers and a limited number of delivery orders, their bargaining power is diminishing,” Ng noted.

The problem is not just economic. Labor activists argue that the platforms initially lured drivers with high wages to fuel their expansion, but now, with monopolistic control, they are slashing bonuses and cutting costs at the drivers’ expense. Many workers are treated as freelancers, paid per trip rather than a stable monthly salary, leading them to prioritize speed over safety, often with fatal consequences. In one tragic case, a driver in Beijing was killed after being struck by a falling tree during a storm. More recently, a driver in Hunan province crashed his scooter into a car after running a red light, further underscoring the dangers workers face daily.

Despite the overwhelming challenges, some drivers, like 35-year-old Yang, still see benefits in the job’s flexibility. Having worked in various industries before, from selling snacks to office work, Yang says the freedom to choose his hours makes the job tolerable for now. But even he admits, “It’s not as good as it used to be.”

In an industry dominated by platforms with enormous power, it remains to be seen how much longer drivers can endure these crushing conditions. What’s clear is that they are reaching their breaking point, with little relief in sight.

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