China is still stuck in the COVID era

Before working in Beijing, China, I was unduly worried that I would encounter China’s security officers or local police officers frequently. Instead, I encountered a different type of person dozens of times a day on the streets, in offices, and elsewhere: the 'yellow shirt man,' the delivery man for Meituan, a food delivery platform.

They deliver food, groceries, household items, and even alcohol and medicine to your doorstep in as little as 30 minutes to an hour. Hundreds of delivery drivers are stationed in restaurants and shopping malls everywhere. Last year, China's food delivery industry employed more than 10 million people.

The growth of delivery platforms in China has been linked to COVID-19. The aftermath of stringent quarantine measures, enacted as part of its 'zero COVID' policy, has been particularly impactful.

If even a single confirmed case emerged, the door to the apartment would be chained shut, rendering survival impossible without the delivery drivers who supplied food and necessities over the fence during isolation. The number of delivery drivers in Meituan surged from 3.98 million in 2019 to 7.45 million last year.

Many delivery drivers are rural laborers who have migrated to cities for employment opportunities. In 2020, the average monthly salary of a rural laborer was 4,100 yuan, approximately 770,000 won. During that time, delivery drivers in major cities such as Beijing and Shanghai earned around 7,000 yuan, explaining their popularity. Another contributing factor was the realization that many young people hesitated to pursue challenging and hazardous factory jobs, instead preferring the relatively convenient service industry, which offers a more flexible commute.

With their income cut in half, delivery drivers don't have many other options. China's real economy has been slow to recover, with the real estate market - a major employer - showing no signs of rebounding. This poses challenges for former construction workers and real estate agents who transitioned to become delivery drivers, as they find it difficult to return to their previous jobs. The unemployment rate for young people (16-24 years old) remains high at 14.7% in April.

The same is true for the ride-sharing industry. Many people who lost their jobs during the COVID-19 pandemic found work as drivers for ride-sharing companies such as Didi Chuxing to make ends meet. However, the demand for ride-sharing services hasn't recently increased.

According to the China Internet Network Information Center, the number of shared car drivers has increased by 127 percent in the past four years, while the number of people using ride-hailing services has increased by only 44 percent. Recently, local governments in Chongqing, Jiangxi, and other regions have advised residents, “Don't consider becoming a driver anymore because the market is saturated.”