China’s food delivery industry is experiencing a downturn after significant growth during the Covid-19 pandemic. SuppliersProfits have fallen by nearly 1,000 yuan ($140) a month compared with five years ago, according to a report by China New Employment Research Center.
The $200 billion food delivery sector, the world’s largest by revenue and order volume, has provided a steady income for many casual workers. Now, however, these workers are struggling because economic slowdownmanaged by a property crisis and weak consumer spendingresulting in reduced income and job instability for providers.
Last year, delivery workers earned an average of 6,803 yuan ($956) a month, according to a report by the China New Employment Research Center. That’s nearly 1,000 yuan ($140) less per month than what they earned five years ago, even though many people are working longer hours. By comparison, China’s national average monthly salary was 1,838 yuan ($258) last year, according to Bureau of National Statistics (NBS).
The NBS also reported a slowdown in growth in the third quarter, with gross domestic product (GDP) rising 4.6 percent from July to September, slightly beating economists’ forecasts of 4.5 percent.
Jenny Chan, Associate Professor of Sociology at Hong Kong Polytechnic Universitysaid suppliers face continued pressure due to cost-cutting measures by delivery platforms. “They work long hours, they’re really pressed,” Chan said. “They will continue to face pressures such as delivery platforms we have to keep costs low,” she added.
Chan also said the economic downturn has shifted consumer preferences to cheaper meals, further reducing the income of vendors even as they work longer hours to maintain their income.
In addition, delivery workers often feel pressured to meet tight deadlines, causing them to take risks, such as speeding or running red lights, which endanger both themselves and others on the road.
China’s food delivery industry faces downturn, workers’ incomes fall by 1,000 yuan – Times of India
