Discussions on improving the treatment of delivery workers have begun in China. As competition among delivery platforms intensifies, over 13 million delivery workers have emerged, among whom many are revealed to be lacking access to social insurance benefits. In response, leading platforms have stated they will provide social insurance only to delivery workers who meet certain criteria, but local media pointed out that a majority still remain in welfare blind spots.
In Beijing, China, it is common to see delivery workers in uniforms from delivery apps bustling around even when it is not mealtime. Although there are almost no customers in cafes, the sight of drinks being packaged for delivery often fills the shelves, and when entering the elevators of shopping malls densely populated with restaurants, one will inevitably share the ride with one or two delivery workers, highlighting the vibrancy of China's delivery culture.
This exceptionally convenient service arises from competition among delivery platforms, as they handle almost all consumer goods and most delivery fees are free. They deliver not only food, groceries, and convenience store items but also fresh produce, flowers, electronics, cosmetics, and pet supplies for free. While it is illegal domestically, anyone in China can receive deliveries of pharmaceuticals and alcohol with just a few taps on an app.
Such shockingly convenient services stem from competition among delivery platforms. Meituan (美团), which has been leading the delivery market, faced a challenge when China’s leading shopping platform, JD (京东), announced its entry into the market in February. The giant platform Alibaba is also operating the delivery platform Ele.me (饿了么). Meituan's CEO Wang Xing stated during the performance announcement on the 26th that "We will win (the competition) at any cost."
As competition among platforms expands, the number of delivery workers in China has exceeded 10 million. According to China's National Bureau of Statistics, the number of delivery workers in China reached 13 million as of 2023. According to Xinhua News Agency, the number of active delivery workers per platform annually is approximately 7.45 million for Meituan, 4 million for Ele.me, and about 1.3 million for JD.
Depending on their contractual relationship with the platform, delivery workers are categorized as regular employees, outsourced contracts, part-time 'crowdsourced' workers, 'Rupao (乐跑)' and 'Youshang (优享)', hired by self-employed restaurant operators. Among these, outsourced contracts, crowdsourcing, and Rupao methods dominate. These employment types are classified as 'new employment forms' even in China.
The average income is slightly higher than that of blue-collar workers. According to the China Business Journal, the monthly average income for delivery workers in 2023 is about 6,803 yuan (approximately 1.3 million won), surpassing the average for blue-collar workers (6,043 yuan, approximately 1.15 million won). Meituan also reported that its high-earning delivery workers earned an average of 10,010 yuan (approximately 1.91 million won) in the first quarter. However, only 8.85% of the delivery workers responded that they could earn more than 9,000 yuan a month.
As the number of delivery workers increases, social security issues concerning them are also coming to the forefront. According to the China Business Journal, China's social insurance is mainly operated at the provincial level, with weak interregional connections. For instance, if one works in Guangdong and pays insurance premiums, returning to their hometown of Heilongjiang could lead to restrictions or reductions in pension payments. Additionally, to collect a pension, one must pay premiums for at least 15 years, a period that is expected to increase to 20 years in the future. This is a difficult condition for the many short-term delivery workers to meet.
The China Business Journal noted, "Delivery workers are in a situation where they want to subscribe to social insurance due to the blind spots in the social security system, but cannot." It added, "Ultimately, they are left to rely on cash income and medical insurance, possibly also work-related injury insurance, while avoiding long-term social insurance subscriptions."
In response, JD and Meituan announced that they would provide benefits by offering social insurance to delivery workers who meet certain conditions. According to Xinhua News Agency, JD announced it would fully support the social security expenses for over 10,000 regular delivery workers in March this year. Meituan also stated that it would pilot a program subsidizing 50% of the insurance premiums for delivery workers who qualify for 'basic pension' contributions in some regions starting in April.
However, Professor Li Nan from SuNam University pointed out to the China Business Journal, "Workers who work short-term and temporarily across multiple platforms still remain in blind spots," stressing that the insurance issue for these workers continues to exist in a state of policy vacuum.