China: Delivery platforms compete to offer better worker benefits
China’s food delivery platforms are competing to roll out social security benefits, as the government presses for improved conditions in an industry criticised in the past for harsh treatment of its bike riders and drivers. China’s largest players — Meituan and Alibaba-owned Ele.me — have both said they will expand social insurance benefits for their full-time delivery workers. Their moves followed ecommerce platform JD.com announcing last month it would enter the food delivery business and provide social security schemes for drivers, including housing fund benefits and various types of insurance…
Analysts caution that, while important, the announcements have so far been sparse on details. And while the moves were likely to be partially motivated by calls to protect workers, there also appeared to be an element of competition, with major platforms reluctant to lose drivers — and market share — to rivals. “It would be great if JD.com is really sincere to become a role model for the entire industry . . . there might be a huge rippling effect,” said Jenny Chan, associate professor of sociology at the Hong Kong Polytechnic University. But, she added, platforms should clarify how many workers qualify for the payments, whether drivers will have to make contributions themselves and how they will ensure accountability, given that many drivers are employed through third parties...