Chinese Food Delivery Workers Struggle Amid Economic Downturn

China's $200 billion food delivery industry, which burgeoned during the pandemic, is now shrinking due to economic challenges. As growth slows, delivery workers face decreased incomes and job instability. Economic slowdown and cost-cutting pressures force these workers to endure longer hours and increased risks, exacerbating their financial struggles.

The once-thriving $200 billion Chinese food delivery industry, which saw significant growth during the Covid-19 pandemic, is now facing substantial challenges, according to a CNN report. The industry, known for being the largest globally in terms of revenue and order volume, has provided a steady source of income for many casual workers. However, they now find themselves struggling to make ends meet.

The situation is further compounded by China's economic slowdown, triggered by a property crisis and weakened consumer spending, which has sharply impacted the incomes and job security of delivery workers. Recent data from the National Bureau of Statistics highlighted a moderation in third-quarter growth, pointing to persistent struggles in consumer spending and an ongoing property market crisis that continues to weigh down the economy.

The gross domestic product grew by 4.6% from July to September compared to the previous year, slightly above Reuters polled economists' forecast of 4.5%, CNN reported. Jenny Chan, an associate sociology professor at the Polytechnic University of Hong Kong, indicated that delivery workers are under continuous pressure due to platforms' cost-cutting strategies. "They are working long hours under tremendous strain," Chan stated, adding their situation won't improve as long as delivery companies focus on keeping costs low.

Amid economic pressures, there's a trend toward more budget-conscious meals, reducing the earnings of delivery workers, who are forced to work longer hours to sustain their income levels. These conditions compel workers to meet strict deadlines, sometimes risking safety by speeding or running red lights, creating hazards for themselves and other road users, CNN noted.

Paychecks for delivery workers have shrunk significantly, compounded by financial hardships. Last year, their monthly earnings averaged 6,803 yuan ($956), as reported by the China New Employment Research Center—almost 1,000 yuan ($140) less than five years prior, despite longer working hours reported by many, CNN reported.

The 1,000 yuan reduction may appear minor in USD terms, but it is significant in China, where the national average monthly wage was just 1,838 yuan ($258) last year, according to NBS data. (ANI)

(With inputs from agencies.)