As China’s food delivery industry continues to expand, the workers powering this $200 billion sector are being pushed to their breaking point. What was once a symbol of economic opportunity has transformed into a labor-intensive, high-pressure job where drivers face shrinking wages, longer hours, and increasingly dangerous working conditions. The emotional strain of the job is evident in the growing number of viral videos on Chinese social media, where delivery drivers, pushed to their limits by negative reviews or impossible deadlines, have been seen smashing their phones in public displays of frustration.
These moments of desperation reflect a deeper crisis within the industry, one that has been exacerbated by China’s slowing economy. For years, the delivery market has been one of the fastest-growing sectors in the country, but as economic growth cools, the pressure on delivery workers has intensified. Data released by the National Bureau of Statistics last Friday shows that China’s economy grew by just 4.6% in the third quarter, a decline that has put further strain on industries reliant on consumer spending, including food delivery.
For delivery drivers, who are typically paid on commission, the slowing economy has had a direct impact on their earnings. With consumers cutting back on discretionary spending, including food deliveries, the number of orders has dropped, leaving workers with fewer opportunities to earn a decent wage. Many drivers have been forced to work longer hours to make up for the shortfall, often taking on dangerous routes or speeding through traffic to meet deadlines. The risks are high, and accidents are becoming more frequent.
The dominance of platforms like Meituan and Ele.me has further compounded the problem. As the industry’s leading players, these companies have implemented strict policies that dictate how many orders a driver must complete within a set time frame, and any delays or infractions can result in severe penalties. While the platforms continue to report record profits, the drivers who keep the system running are facing a race to the bottom.
Labor rights advocates have raised concerns about the treatment of delivery drivers, highlighting the lack of legal protections for these workers. Despite being the backbone of the industry, drivers are classified as independent contractors, meaning they do not receive the same benefits or protections as traditional employees. As a result, they are often left without insurance or paid leave, and they bear the full cost of any accidents or injuries that occur on the job.
The rapid growth of China’s food delivery industry has not been without its challenges. Although the market reached a staggering $214 billion in 2023 and is expected to hit $280 billion by 2030, the workers powering this industry have seen little improvement in their working conditions. Instead, they are being squeezed by platforms that prioritize profits over people, using algorithms to dictate their every move. For many drivers, this has created a sense of powerlessness, as they have little control over their schedules or earnings.
Economist Gary Ng from Natixis has pointed to China’s “downgraded consumption” as a major factor contributing to the decline in delivery drivers’ earnings. With consumers cutting back on non-essential spending, restaurants have been forced to lower their prices, which in turn reduces the commissions paid to delivery workers. This economic downturn has had a profound impact on the industry, leading to increased competition among drivers and fewer opportunities for them to earn a living wage.
In some parts of China, local governments have taken steps to address these issues. Pilot programs have been introduced in cities like Shenzhen and Beijing, aimed at improving the working conditions of delivery drivers. These programs include measures such as mandatory insurance coverage, minimum wage guarantees, and enhanced labor protections. However, these initiatives are still in the early stages, and many drivers remain skeptical that they will bring about meaningful change.
For drivers like Zhang, a 32-year-old father of two, the job has become a constant source of stress. He recalls a time when he could support his family comfortably by working as a delivery driver, but now, he finds himself working longer hours for less pay. “It’s like we’re stuck in a cycle,” he says. “No matter how hard we work, it’s never enough.” Zhang’s story is echoed by thousands of other drivers across the country, all of whom are grappling with the same challenges: long hours, low pay, and the ever-present risk of accidents.
Without significant intervention, the future for China’s delivery workers looks bleak. As the economy continues to slow and competition among platforms intensifies, the workers who form the backbone of this industry will continue to bear the brunt of its shortcomings. And while platforms like Meituan and Ele.me continue to dominate the market, the drivers who keep them running are left struggling to survive.
