The Price of Convenience: Inside China's Gig Economy

Mu Jie, 49, works 13-hour shifts delivering groceries for Xiaoxiang in Beijing, earning approximately 400 yuan ($1.20 per order) per day, with an average of 85 orders daily.

A Nation on Two Wheels

He is one of over 10 million food delivery drivers in China. Many are migrant workers or recent graduates struggling with unemployment. Drivers often live in cramped dormitories or cheap housing in urban villages, separated from their families.

The Platform War

The gig economy has grown rapidly since COVID-19, with platforms Meituan and Ele.me competing aggressively. In 2024, a brutal price war included promotions such as 1¢ milk tea deals, leading to a surge in orders and occasional platform crashes. The result: losses for Meituan and profit declines for JD.com and Alibaba.

Pressure from Above

In response to government pressure, Meituan and Ele.me have made concessions:

• Replaced late-delivery fines with a points-deduction system
• Introduced some social insurance for drivers
• Set up rest stations for breaks

The Human Cost

Many drivers work without rest days to maximize earnings, despite platforms offering some flexibility. Long-time drivers report needing to work longer hours just to maintain previous income levels.

Harvard researcher Jack Linzhou Xing noted that while platform work offers better pay than factory jobs, workers face low earnings and high financial stress, with issues of rider fatigue and burnout remaining severe.