In recent years, amid the ongoing downward pressure on the Chinese economy, low-threshold, high-intensity “platform economy” positions such as ride-hailing, food delivery, and express delivery have become the last resort for a large number of unemployed and migrant workers. However, with the explosive growth in supply, the profit margins in these industries have been severely squeezed, leading to many practitioners facing unprecedented existential crises. Stories of ride-hailing drivers, from fleet operators to former sports champions, have become poignant reflections of the current economic difficulties.
According to a verified Weibo user known as “Master Mei,” who has been in the business training industry in China for many years and frequently shuttles between China and the United States, the situation for many working in the ride-hailing industry is dire. He shared a video on September 28 of a conversation with a ride-hailing driver during a trip.
The driver revealed that business has been tough for the past two years. Last Chinese New Year, half of his and his friends’ dozens of cars were parked due to poor business, resulting in a loss of nearly 200,000 RMB in just one month. He mentioned that in the past, a car would make a profit of only 2,000 RMB per month, but now even that profit has disappeared due to oversupply, leaving them to bear the losses themselves.
Furthermore, he disclosed that some people in the past two years can’t even afford to eat. Some migrants who come to Shanghai have spent all the money they brought with them and have even resorted to begging drivers for a car to make money as a ride-hailing driver. These individuals are in dire situations, even lacking the money for a return ticket home and forced to seek opportunities in Shanghai.
Amid the economic downturn and mass layoffs in various industries in China, gig economy positions such as food delivery, express delivery, and ride-hailing have become the preferred “occupation” for many unemployed individuals due to their low barriers to entry, quick start-up, and flexible working hours. However, these jobs come with high intensity, weak protections, and significant income fluctuations, posing challenges to both physical well-being and quality of life.
The plight of ride-hailing industry is directly reflected in the living standards of frontline drivers. One Shanghai blogger shared on September 28 that he recently bought a lightweight motorcycle, and a ride-hailing driver in his thirties delivered it to his home. During their journey, the driver shared about his approximate 12-hour workdays and the constant threat of fines due to lacking the proper permit for cargo transport, leading to accumulated fines of tens of thousands of RMB since 2021.
The blogger and the driver also discussed the challenges the driver faces, including navigation issues with his current Android phone and the suggestion to upgrade to an iPhone 16, 128GB model for better performance. However, the driver expressed difficulty in affording such an expense given the current economic circumstances.
Moreover, the driver mentioned the health issues he has faced post receiving three vaccine doses, developing diabetes that requires him to self-administer insulin during breaks. He pointed out the difficulty in wound healing due to the risk of infections, highlighting the harsh realities faced by frontline workers in the gig economy.
In the face of adversity, these individuals, like the retired Shanghai volleyball player known as “Ice Fruit 193,” have navigated through various jobs post-retirement, from managing a McDonald’s restaurant to working in advertising sales, and even attempting a failed chain store business. Witnessing others in chauffeur service and drawn to driving, he briefly became a driver but realizes it’s not a sustainable career path. Despite the challenges, he perseveres and now also engages in live streaming activities alongside driving for ride-hailing services in the evenings.
The economic landscape in China has forced many into non-traditional employment opportunities, with individuals from various backgrounds struggling to make ends meet in a challenging environment where financial stability and security are increasingly elusive.