£4,000 for a Life? The Human Toll of Cheap Deliveries in China

2 mins read

In recent years, China’s food delivery market has become fiercely competitive. Faced with penalty systems that directly impact their pay, riders often speed, run red lights, and even drive against traffic — all to meet tight delivery targets. The consequences have been dire: over 12,000 traffic accidents involving delivery workers were recorded in 2023 alone.

Earlier this year, ahead of the high-profile “Two Sessions” political meetings, delivery giants Meituan, JD.com, and Ele.me made headlines by announcing new social insurance schemes for full-time or stable part-time riders. While the announcements appeared progressive, the reality on the ground tells a different story : most riders remain excluded.

10 Million Riders, Minimal Protection

China now has over 10 million food delivery workers. Meituan alone employs 7.45 million, while Ele.me has more than 4 million — together, that’s more people than the entire population of Hong Kong.

However, most riders are classified as self-employed contractors, which disqualifies them from the basic protections guaranteed under Chinese labour law. By law, employers and employees must jointly contribute to pension, medical, and unemployment insurance — but self-employed workers must pay everything themselves, often out of reach for those already underpaid.

In 2023, Meituan reported that only 11% of its riders worked more than 260 days a year, meaning nearly 90% don’t meet the criteria for receiving the company’s promised social insurance.

Wages Shrinking, Trust Eroding

As platform competition heats up and delivery prices drop, riders’ incomes are falling. One seasoned courier said he used to earn 14,000–15,000 RMB per month in 2022; today, it’s closer to 10,000 RMB, and that’s on the high end. Most riders earn far less. Many interviewed by mainland media said they fear platforms will recoup insurance costs elsewhere, and some were even told they’d have to pay premiums themselves.

A 2022 national survey led by Wuhan University found that 80% of couriers lacked pension coverage, and 79% had no medical insurance. The top reason? Premiums were unaffordable. But the underlying problem runs deeper: only 26% of riders had formal contracts with platforms or subcontractors. Most are funneled through layers of outsourcing that deliberately blur employer responsibilities, with platforms encouraging riders to register as sole proprietors, thereby evading liability.

Deadlines, Algorithms, and Danger

Making matters worse, the platforms’ delivery algorithms tie pay and penalties to strict time limits and performance metrics. To “keep their score,” riders often risk their lives. Some apps have even directed couriers to ride against traffic or up pedestrian bridges.

In one tragic case, a courier died from sudden cardiac arrest mid-delivery. His family received just 40,000 RMB (around £4,000) in compensation, triggering national outrage.

The Price of Convenience

Companies often cite cost concerns to justify the lack of protection. For example, it’s estimated that Meituan would need to spend 14.7 billion RMB annually to insure 1 million full-time riders. But in 2022, the company earned an average of 6.2 RMB per order. If prices were raised by just 1 RMB per delivery, Meituan could cover insurance for 6 million riders and still double its profits.

If that seems too costly for consumers, perhaps we should ask: should urban convenience come at the cost of worker safety and lives?

The Hong Kong Parallel

In Hong Kong, the same labour model creates similar risks. Take the case of Ah Chun, a Deliveroo rider who suffered a traumatic brain injury during a delivery near Lingnan University. Now partially paralysed and blind in one eye, Ah Chun has been denied work injury compensation due to his self-employed status.

Another rider, Gurung, lost permanent use of his finger while delivering food. He received only HK$100,000 in compensation, far below the actual loss. When he sued for fairer compensation, the platform retaliated by seeking HK$280,000 in legal costs, accusing him of procedural abuse.

The System Must Change

From Beijing to Hong Kong, the gig economy runs on a common model: shift responsibility away from corporations and onto vulnerable workers. If platforms truly want to build sustainable futures, they must stop treating rider protections as optional. Labour rights must not be traded away for efficiency.

After all, a city’s convenience should not be built on the risks and sacrifices of those who keep it moving.