Meituan, which owns one of China’s largest food delivery platforms, is trialing a new policy to log off delivery workers who work excessively long hours. The initiative, aimed at safeguarding workers’ well-being, comes amid increasing scrutiny of labor rights and algorithm-driven management in the gig economy.
Why it matters: Algorithmic management has become a new standard in regulating digital labor, replacing human oversight with platform-driven algorithms. While this makes regulation smarter and more efficient, it also makes it pervasive. Platforms typically increase compensation after a certain order volume, and this mechanism turns earning money into an addictive cycle, which led to frequent safety incidents caused by workers pushing themselves to the brink. In an academic survey with a sample size of 1,209, more than one-third of the riders had been involved in an accident. The log off mechanism is one step toward addressing this issue.
Details: Meituan’s policy includes automated rest prompts for riders who exceed a certain cumulative working time. If the time limit is further breached, the platform enforces a mandatory log-off, preventing riders from taking new orders until the following day. Riders already in the middle of a delivery will be allowed to complete it before being logged off.
- According to Meituan, approximately 7.45 million delivery riders were registered on its platform in 2023.
- The tiered salary system of food delivery platforms has created intense competition among riders, pushing them to work at an unsustainable pace. According to a report by LatePost, delivery riders in first- and second-tier cities now earn more than the average annual salary of recent college graduates. In some first-tier cities, top riders can make over RMB 10,000 ($1372) per month during peak seasons. However, these riders often work over 10 hours a day, leading to significant physical strain.
- Beyond working hours, concerns around labor relations, contract signing, and occupational injury protection are also critical issues. The food delivery industry widely adopts an outsourcing model, where delivery services are contracted to different companies based on regions. These contractors then hire riders to complete the deliveries. At the same time, riders rarely sign formal labor contracts, and the types of contracts vary greatly. This creates challenges for riders in accessing occupational injury protection and benefits.
- According to Jiemian, Ele.me implemented a nationwide rider rest policy in August of this year. The 2023 Ele.me Rider Rights Protection Report reveals that between May 2022 and September 2023, the platform had over 4 million active riders.
- A Meituan spokesperson stated that the company is actively listening to feedback from various parties, including riders, and continues to explore ways to improve its rider fatigue prevention mechanisms. However, regarding the specific duration for forced log-off, Meituan clarified that the current plan is still in the pilot phase, and the detailed rules will be announced after further refinement.
Context: In 2017, China’s food delivery platforms began to expand, leading to rapid market growth. In 2024, Meituan reported a revenue of RMB 93.6 billion ($12.8 billion) in the third quarter of 2024, marking a year-on-year increase of 22.4%, with an adjusted net profit of RMB 12.83 billion ($1.8 billion), up 124% compared to the previous year.
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