Chinese food delivery driver Zhuang Zhenhua delivered hot meals on time at the promised time and triumphantly completed his work through the Meituan app-and was immediately fined half of his income.
A glitch meant that it mistakenly registered him as late and he would be automatically punished-he said that even though the industry is booming, express companies are one of the many ways in which millions of workers are being exploited.
The authorities launched a crackdown, requiring companies including Meituan and Alibaba’s Ele.me to ensure basic labor protection, such as appropriate compensation, insurance, and processing algorithms that effectively encourage dangerous driving.
However, a dozen drivers told AFP that there has been little change in the area.
Usually, the only way to complete an order on time is to “walk very fast…speeding through a red light and driving on the wrong road,” Zhuang said.
“In the beginning, it took 40 to 50 minutes to complete an order (assigned by the app)-now for orders within two kilometers, the distance and time are the same as before, and we have 30 minutes,” he explained.
According to a report by the China Hotel Association, the coronavirus pandemic and the resulting blockade have caused a surge in demand for food delivery services: the industry is now worth 664 billion yuan ($100 billion).
The country’s competitive application-based services have been extended to almost all aspects of modern life, and digital-savvy consumers are accustomed to instant services and fast delivery due to the ready flow of cheap labor.
But after years of unrestricted growth, China’s large technology companies are being attacked by Beijing, with Tencent, Didi and Meituan all targeting antitrust rules.
Earlier this year, Alibaba was fined US$2.8 billion after an investigation found that Alibaba had abused its dominant market position.
The public is increasingly concerned about the amount of data processed by popular apps, including food delivery platforms, and Chinese authorities have instructed cyberspace regulators to investigate how technology groups use algorithms.
In recent years, due to the promise of fast service, the shortened delivery time has also led to more accidents.
On a global scale, the industry faces scrutiny of the treatment of its mainly freelancers, who endure low salaries, few employee rights, and are often hired through agents to avoid providing benefits.
According to government data, China’s gig economy now accounts for nearly a quarter of its labor force-200 million people are in “flexible employment.”
The family of a courier who delivered food for Ele.me in Beijing received almost no compensation. Another courier set himself on fire in a salary dispute with the company, causing the plight of food delivery and truck drivers to attract public attention.
Despite being hailed as an essential service, especially at the peak of the pandemic, the average monthly income of drivers is only RMB 7,700.
Mr. Zhuang said many people think they put their lives at risk because the app uses algorithms to determine the route and travel time allowed before the driver incurs a “delayed delivery” fine.
Another rider surnamed Liu told AFP that the assigned delivery time includes the time required to prepare food, which is beyond his control, but this may affect his salary.
“If there is a delay, the driver will take responsibility,” the 40-year-old said, adding that the system would have difficulty rejecting orders from slow merchants.
“It’s no use complaining,” said 50-year-old driver Chen Mingqiang.
Meituan, which has more than 628 million users, said it calculates the time required for the journey in four ways, allocates the longest time from these options, and includes a buffer.
In a written statement, the company insisted that such a decision was made “to regard the safety of riders as the first priority and to meet the needs of consumers” and that drivers can object to unfair fines.
Last month, after China’s cyberspace regulator outlined plans for stricter control of technology companies, Meituan said it would optimize its “algorithmic strategy” and introduce more allowances to help couriers avoid dangerous working conditions.
Kendra Schaefer of Trivium, a Beijing-based consulting firm, said the lack of transparency in how the platform is coded to determine driver requirements and compensation is a serious problem.
“Algorithms are designed to maximize efficiency. Unfortunately, as society modernizes, we find that algorithms maximize efficiency at the expense of humans,” she said.
“Everyone wants drivers to get better treatment, but no one wants to pay for it.”
The industry relies heavily on migrant workers-they usually have lower skills and come to the city from the countryside, hoping to make money.
For many people, there are few employment options.
Zhuang admitted: “If I were to choose, I would never be a delivery driver. This is a dangerous job with a lot of risk.”
