Delivery Rider’s Death Shines Light on Fierce Competition in China’s Gig Industry

By Bao Yunhong, Sun Yanran and Wang Xintong

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A Meituan delivery driver delivers food in Hangzhou, Zhejiang province, on July 20. Photo: VCG

The sudden death of a takeout deliveryman in the eastern Chinese city of Hangzhou has thrown into stark relief the strenuous nature of this gig industry, where drivers are working ever-longer hours to chase shrinking fees as competition grows amid China’s bleak job market.

A middle-aged deliveryman was found unconscious on his electric scooter outside a local residential complex early Friday morning, Jimu News reported, quoting an eyewitness. He had been lying on the scooter for several hours before fellow delivery riders realized something was wrong, the witness said.

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A 55-year-old deliveryman in Hangzhou died on the job, highlighting the tough conditions in China’s gig economy amid a bleak job market.
Delivery riders face increasing competition and longer hours, with their income dependent on the number of orders, and no benefits or insurance.
The number of riders and delivery order fees have changed, with many now earning between 5,000 and 6,000 yuan monthly, often insufficient for living in major cities.

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Who’s Who

Alibaba Group Holding Ltd.: Alibaba Group Holding Ltd. is mentioned in the article as one of the various platforms from which freelance delivery riders, including the late Yuan, took orders. Alibaba operates Ele.me, a food delivery service. The gig workers using these platforms earn income based on the number of orders they fulfill, without receiving the benefits that regular employees might get.

Meituan: Meituan is a food delivery platform in China. In 2023, 7.45 million riders earned income by delivering orders for Meituan, an increase from 6.24 million in 2022. Despite the perception of a flexible and higher-income job, drivers' earnings have declined, with pay for longer delivery distances dropping from 10 yuan in 2019 to an average of 4.5 yuan.

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What Happened When

2019：: Delivery drivers could earn 10 yuan for an order requiring a delivery distance of more than three kilometers.

Previous year (2022)：: The number of riders earning an income by delivering Meituan orders was 6.24 million.

2022：: Employees in the private sector in Hangzhou earned an average of 7,152 yuan.

2023：: A total of 7.45 million riders earned an income by delivering Meituan orders.

July 2024：: The number of young people without jobs in China rose for the first time in five months as millions of fresh graduates entered the labor market.

Monday, September 09, 2024：: A neighborhood committee in Hangzhou’s Yuhang district confirmed in a statement that the 55-year-old deliveryman, surnamed Yuan, died despite rescue efforts.