Food Delivery and Ready Food Services (China Market)

2021: Authorities oblige Chinese food delivery services to raise salaries for couriers and soften working conditions

At the end of July 2021, Chinese regulators said that food delivery services from the PRC should improve working conditions for their couriers, in particular, guarantee wages above the minimum wage, provide couriers with insurance and mitigate the timing of delivery of orders to customers.

According to Reuters, new requirements for food delivery services were issued by the State Administration for Market Regulation together with several other administrative departments, including the National Commission for Development and Reform, the Chinese Cyberspace Administration and the Ministry of Public Security.

PRC authorities oblige local food delivery services to raise salaries for couriers and soften working conditions

Chinese food delivery services, including Meituan, part of which is owned by Internet giant Tencent, or Alibaba-owned Ele.me service, have been sharply criticized on local social networks for relatively low wages for couriers and the lack of basic social insurance or health insurance.

As it turns out, I can exceed the allotted time or not, "said the 27-year-old driver Ele.me. - For example, on Tuesday I had only seven orders during lunch, but still three of them were late.

These three orders cost him 84 yuan, or about one third of his daily income, because Ele.me did not pay him a fee for the delivery of the order and imposed a fine of 20 yuan on him for the order.

According to the research company Trustdata, couriers on scooters dressed in bright yellow Meituan jackets or blue from Ele.me have become ubiquitous, as the online food delivery market in China has grown to more than 400 million active users per month and 600 billion yuan in transactions. According to Bernstein Research, most couriers work from 26 to 28 days a month, and in the largest cities in China they can work up to 17 or 18 hours a day.

The companies did not comment on the new requirements from the authorities, but earlier a representative of Ele.me said:

Driver safety is a top priority for Ele.me, and we take many measures to protect their well-being.[1]

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