Chinese food delivery industry faces downturn workers' earnings drop by 1 000 yuan

Chinese food delivery industry faces downturn workers' earnings drop by 1 000 yuan

China's food delivery industry is experiencing a downturn after significant growth during the Covid-19 pandemic. Delivery workers' earnings have dropped by nearly 1,000 yuan ($140) per month compared to five years ago, according to a report from the China New Employment Research Center.

The $200 billion food delivery sector, the largest in the world by revenue and order volume, had provided a steady income for many casual workers.

However, these workers are now struggling due to China’s economic slowdown, driven by a property crisis and weak consumer spending, leading to reduced income and job instability for delivery workers.

Last year, delivery workers earned an average of 6,803 yuan ($956) per month, as per the China New Employment Research Center report. This is nearly 1,000 yuan ($140) less per month than what they earned five years ago, despite many working longer hours. In comparison, China's national average monthly wage was 1,838 yuan ($258) last year, according to the National Bureau of Statistics (NBS).

NBS also reported a slowdown in third-quarter growth, with gross domestic product (GDP) rising by 4.6% from July to September, slightly exceeding economists' forecasts of 4.5%.

Jenny Chan, an associate professor of sociology at the Polytechnic University of Hong Kong, said that delivery workers face continued pressure due to cost-cutting measures by delivery platforms. ‘They are working long hours, really being squeezed,’ Chan said. ‘They will continue to face pressure as delivery platforms need to keep costs low,’ she added. Chan also said that the economic downturn has shifted consumer preferences toward cheaper meals, further reducing delivery workers' earnings, even as they work longer hours to maintain their income.

In addition, delivery workers often feel pressured to meet tight deadlines, leading them to take risks such as speeding or running red lights, which endangers both themselves and others on the road.