The new rules for takeaway are here, is the spring for takeaway riders here?

What is certain is that after the new regulations, the rights and interests of riders will be more protected.

The new rules for takeaway are here, is the spring for takeaway riders here?

A new regulation concerning a large group of takeaway riders has been issued. The guidance requires that the catering platform guarantees the income of workers, ensures that the normal labor income of food delivery personnel is not lower than the local minimum wage standard, and must not use the “strictest algorithm” as an assessment requirement. At the same time, the platform and third-party cooperative units are supervised to establish labor relations. Of takeaway food delivery staff participate in social insurance.

Guide

One|| The food delivery industry is a new business format. In the ten years from 2008 to 2018, it has gone through a period of chaos and a period of intensive cultivation. Takeaway riders have also become a huge labor group as the market cake grows. This group has been accused of becoming “system slaves” in recent years.

II|| The deputy dean and professor of the School of Labor Economics, Capital University of Economics and Business believes that the biggest improvement in the guidance issued this time is to restrict the various management measures that the original platform was completely allowed to sell to food delivery staff. So as to realize the need to balance the protection of labor rights and the healthy development of the platform economy.

Ⅲ|| “Before the new regulations were introduced, the industry was a stage of barbaric growth.” Hu Qimu said that now is different. After the new regulations are introduced, the labor cost bonus on the rider’s side is announced to end, and the policy bonus is gradually receding. Takeaway The industry is entering a new stage of more standardized development.

On July 27, it began to rain in Beijing. This was the busiest time for Li Sui’s work. As an Ele.me takeaway, what Li Sui fears most is extreme weather such as heavy rain. “During extreme weather, the number of orders will increase significantly compared to usual. As a rider, he has no right to refuse orders,” he told Economic Observer reporter.

The day before, a new rule concerning a large group of takeaway riders like Li Sui was issued. However, Li Sui still knows very little about this new regulation. He described various things in the Economic Observer report, such as “normal labor income is not lower than the local minimum wage standard”, “the most stringent algorithm” must not be used as an assessment requirement, and a reasonable determination of order saturation He just kept saying, “This is really good, very good.”

Li Sui is not clear about the power of this new regulation on the platform and the food delivery business. Once the opinions were issued, Meituan, as the company with the highest market share in the food delivery industry, lost more than 230 billion Hong Kong dollars in market value that day.

Zhang Yi, CEO of iiMedia Consulting, told the Economic Observer that the new regulations for food delivery, express delivery and other new formats, although the capital market has such a performance. However, in terms of the medium and long-term development and trend of the industry, it is not a restriction or spread for these takeaway platforms such as Meituan and Ele. Because there are relevant and complete laws and regulations, it is a very good help to the entire platform economy. .

Huang Jin, deputy director of the International Economic Law Research Office of the Chinese Institute of Social Sciences International Law, and deputy director and secretary-general of the Competition Law Research Center, told reporters, “The “Opinions” are important for regulating and implementing corporate responsibilities of online catering platforms and protecting the rights and interests of workers in the industry. It is of great significance and plays an important guiding role in promoting the sustained, healthy and stable development of the gig economy”.

01 Difficulties of takeaway riders

Wearing a black raincoat, Li Sui gave a bag of bread to one of his clients while answering questions from a reporter from the Economic Observer. He was in his forties. During the communication with reporters, he kept saying “Hurry up.” , Hurry up,” he told reporters in the food delivery business, “There is no way. If you get a bad review, you will be gone for nothing in one day.”

If it is usually Li Sui may not be so anxious. On July 27, due to heavy rain in Beijing, the volume of takeaway orders increased. For Li Sui, this means that the risk of overtime deductions has also increased greatly. Slippery roads cannot be a reason for the rider to slow down.

my country’s food delivery industry is a new business format. In the ten years from 2008 to 2018, it has passed the chaos and intensive farming period. Since 2019, it has entered the refined operation period. The number of users has soared from 63 million in 2016 to Nearly 500 million people this year. The takeaway riders have also become a huge labor group as the market cake grows larger. In recent years, this group has been accused of becoming “slaves of the system” until last September’s article “Takeaway riders, trapped in the system” “Li” detonated public opinion and aroused greater concern at the social level.

The guidance concerns the daily work guarantee of 12.5 million takeout delivery riders. According to Meituan’s 2020 annual report, as of the end of 2020, a total of 9.5 million takeaway riders have increased their income through Meituan. Ele.me’s “2020 Ele.me Blue Knight Research Report” released in April shows that the total number of Eleme’s platform riders exceeds 3 million. Previously, takeaway riders did not have social security protection, the delivery process was dominated by algorithms, and the frequent occurrence of traffic accidents caused great concern.

With the rapid expansion of the food delivery industry, the rights and interests of food delivery workers, together with issues such as food safety and food waste , have gradually become prominent, becoming several major problems that the industry needs to solve urgently.

Cui Lili, executive director of the Electronic Commerce Research Institute of Shanghai University of Finance and Economics, told the Economic Observer that the food delivery/delivery industry has now become an important instant service to support the normal operation of urban life. After several years of development, she is engaged in the food delivery business. The staff has formed a huge scale. But for a long time, as a new business model and new model, the labor relationship under the traditional labor model in the past does not apply to the labor relationship between the platform and the flexible labor force sent out .

“To a certain extent, the rights and interests of workers sent out from the vast platform for non-fixed employment have not been fully protected, and some extreme events have also occurred that have affected the rights and interests of consumers.” Cui Lili added.

Li Sui’s takeaway rider experience is not great. He believes that “salary does not match the intensity of labor.” He said that he can make five yuan for one order. He works at least twelve hours a day and can run more often. Fourteen hours, the monthly salary just reached 6000 yuan. For riders who are always on the road regardless of the wind and sun, such salary levels do not seem to match their labor intensity.

According to the exchange between Economic Observer and Li Sui, the platform’s neglect of labor safety and the corresponding lack of social security for delivery workers. The delivery volume of the platform often exceeds the delivery capacity of the delivery staff. In order not to overtime, the delivery staff can only choose to break the traffic rules to grab time on the road. “Sometimes it may be overtime after waiting for the red light before leaving. If If the road ahead is blocked, you will ride on the sidewalk.” In particular, the extreme weather conditions mentioned above make the rider dare not slow down.

Meanwhile, the reporter learned that the platform does not takeaway delivery man for the purchase of a unified social security, and with Lee because the price is too high, do not choose to spend fifty thousand yuan to purchase commercial insurance at their own expense, if the room in case when the traffic accident, he was Unaffordable medical expenses.

In addition, the rider is often the weakest party in the contradiction handling mechanism. First, because the distinction between the responsibilities of the merchant and the rider is not clear enough, Li Sui talked, “Even if the merchant’s packaging is a problem, the rider’s money will still be deducted if the food is spilled. (When the platform assigns responsibilities), it won’t be seen. It’s because of the platform’s protection mechanism for customers, “As long as the customer has a bad review, the rider’s money will be deducted to pay. So sometimes when the time is over, we would rather take the initiative to pay the customer privately, and the money lost is more than the money he deducted for a bad review few.

Li Sui has actually had some experience with the new business formats mentioned in the new regulations, such as temporary residences and smart meal cabinets, but he has not received the expected results. Li Sui once went to a community with a smart food pick-up cabinet to deliver food, but he needed to pay 0.4 yuan to put the food in the pick-up cabinet, so he chose to wait downstairs for customers to pick up the meal. It is precisely because of this that he does not want to promote the smart fetching cabinet, “you only make a few dollars per order, and you have to suck a little away when you put a cabinet.”

02 The new rules are here

The deputy dean and professor of the School of Labor Economics of Capital University of Economics and Business stated that the guidance on the rights and interests of food delivery workers is to implement the relevant requirements of the “Guiding Opinions on Safeguarding the Rights and Interests of Workers in New Employment Forms” issued by the eight ministries on July 16. customized. “The policy is more specific and actionable, and it provides stronger protection for food delivery staff.”

Scope stated that the guidance has certain binding force on the platform because it is relatively clear in terms of related requirements, such as the openness and transparency of the algorithm, and the procedures for negotiating with the trade union include some minimum requirements for the protection of labor rights, such as minimum wages. , Participation in social security, etc.”

On July 26, the day the guidance was released, the stock prices of related companies such as Meituan and Alibaba plummeted. Meituan fell 17% on July 27, and its closing share price was 194 Hong Kong dollars. On the 26th and 27th, it fell by more than 28%. The highest share price in the past year reached 460 Hong Kong dollars. Alibaba Hong Kong stocks fell more than 6.53% on July 27, fell more than 11% for two consecutive days, and closed at HK$179.

Zhang Gang, chief analyst of Southwest Securities , said that the decline in the share price of food delivery companies is related to the recent occurrence of Chinese concept stock risks, the “double reduction” policy, and Internet special surveys. There is no doubt that the industry itself is the seven-sector alliance. Issued guidance on safeguarding the rights and interests of food delivery staff.

The guidance requires the catering platform to guarantee the income of workers, to ensure that the normal labor income of food delivery personnel is not lower than the local minimum wage standard, and the “strictest algorithm” must not be used as an assessment requirement. At the same time, the platform and third-party cooperation units are urged to establish labor relations. Take-out food delivery staff participate in social insurance.

Zhang Gang said that the opinions set strict regulations on the labor intensity, algorithmic assessment, and social security of food delivery workers. For platforms, the salary and management costs of delivery staff will increase. For platforms such as Meituan and Ele.me, they have to bear the pressure of rising costs.

In Zhang Yi’s view, after the new regulations for catering platforms come out, there may be some increase in costs in the short term. However, these platforms have hundreds of millions of users, and its business model is not only in the takeaway itself. In fact, all the incoming costs can be digested and shared through the growth and innovation model.

In the long run, Zhang Gang believes that the introduction of the guidance is conducive to the healthy development of the industry. Zhang Yi also said that in the long run, regulating the rights and interests protection of the entire take-out related personnel has more positive significance for the regulation of the entire labor market. “For the development of the platform economy, whether it is Meituan, Are you hungry or for other food delivery platforms, there are rules to follow for the social responsibilities of employees. For the new format of food delivery, the past related rules are not standardized and unclear. In fact, there are hidden dangers for platform development.”

“On the whole, this policy is still balancing the labor protection of food delivery personnel and the development of the platform economy. Its fundamental purpose is to regulate and promote the healthy development of the platform economy.” Scope said that the guiding opinions should also try to adapt to the platform economy in the choice of institutional paths. The employment characteristics of the company adopt the principle of different types of employment and different insurance methods as a whole, and it is not mandatory to adopt a one-size-fits-all approach.

Scope believes that the biggest improvement in the guidance issued this time is that it limits the various management measures that the original platform is completely indifferent to, and the delivery of food delivery personnel, such as the control of the algorithm and the transparency of the algorithm, and the negotiation of the trade union. Therefore, the need to balance the protection of labor rights and the healthy development of the platform economy is realized.

After the guidance was issued, Meituan and Ele.me both responded, saying that they would invest more in rider protection and improve the platform’s functions. At the same time, Meituan and Ele.me both mentioned that they will try to pay professional injury protection for riders.

Huang Jin told reporters that the “Opinions” provide strong support for the establishment and improvement of the platform economic governance system, safeguarding public interests and social stability, and it also reflects that since China’s economy has entered the new normal , “the market has played a decisive role in the allocation of resources. Give full play to the role of the government” and “promote the all-round development of human beings and the all-round progress of society, so that the broad masses of people will gain a more substantial, more secure, and more sustainable sense of happiness, and security.”

03 The industrial ecology has entered a new stage

Talking about the significance of the introduction of the “New Rules for Food Delivery”, Hu Qimu, the chief researcher of the China Steel Economic Research Institute, believes that before and after the release of this industrial policy, the development stage of the entire food delivery industry has changed.

Recalling industrial ecology two years ago, Hu Qi told reporters, animal husbandry, the country’s main wound up with a new format, a new model on the policy guidance to drum encourage the development of the digital economy, which has brought the industry to the development of takeaway dividend policy.

There is no doubt that the food delivery platform under the business logic will inevitably “strengthen its performance and gain profits” in the market competition. Based on observations and Hu Qimu’s analysis, “the food delivery platform will only have the capital to bet if the number of active users is large-scale. So that it can have more money to burn.”

This is also true. Takeaway platforms such as Meituan and Ele.me use “burning money” to subsidize consumers and provide businesses with some services to expand their respective user bases. But in such a closed-loop business, if the platform wants to improve its operating efficiency, it must use artificial intelligence, big data and other algorithms to further plan the rider’s delivery route, time and other standards, and the problem will arise-to improve operating efficiency. It can only reduce labor costs in disguise.

“The rider has no threshold, especially compared to the takeaway platform, the rider brother has no bargaining power.” Hu Qimu directly pointed to this problem in the takeaway industry. In his opinion, the supply of riders, that is, the supply side of labor is more. , The food delivery industry is always oversupply. This results in the platform being able to reduce the rider’s labor cost as much as possible, “If the cost is reduced to a certain level, it is suspected of harming the legitimate rights and interests of the rider.”

During the interview, Hu Qimu said that the food delivery industry used to develop towards lower and lower platform costs and greater and greater labor intensity for riders. In the end, the legitimate rights and interests of riders were not protected. He called it ” Market failure”.

“This situation cannot be resolved through market mechanisms. It requires the government to correct this market failure through the formulation of the “New Takeaway Regulations”.” In Hu Qimu’s view, the government’s introduction of this new regulation is for the riders. It is a kind of guarantee, “By implementing the responsibility of the Internet platform, we will further safeguard the legitimate rights and interests of riders in the process of food delivery.”

Regarding the past development status of the food delivery industry, “before the new regulations were introduced, the industry was a stage of barbaric growth.” Hu Qimu told reporters that this is different now. After the introduction of the new regulations, the labor cost bonus on the rider’s side has been announced, and the policy dividend has been announced. It is also gradually retreating. He feels that the food delivery industry is entering a new stage of more standardized development.

To “take away the new regulations,” Ali, vice president of the local living services company Hu Xiaoyu told the Economic Observer newspaper reporter to interview, also expressed the same idea, “policy guidance will make the industry more plus health and become more orderly.” He believes that the development of the food delivery industry has not only built an ecosystem, but also needs to build an ecosystem.

What is certain is that after the new regulations, the rights and interests of riders have been protected, and their income has been increased to a certain extent, the future consumer service experience will also be greatly improved. As a platform company, Hu Xiaoyu does not shy away from talking about a series of norms and guidance, which brings more challenges to the company.

“The operating cost of enterprises has increased significantly. How the platform can better digest this cost in the future and how to improve internal efficiency becomes the key.” Hu Xiaoyu said.

The huge increase in platform labor costs and the increase in takeaway delivery costs made Hu Qimu worried. “The platform may pass on part of the increase in labor costs to the merchants.” In addition, consumers used to place some large orders on the takeaway platform. Welfare activities such as coupons and free distribution fees. In the fierce market competition in the future, if merchants want to survive and the platform must retain users, who will bear the increased cost?

Hu Qimu believes that the future will not only depend on the game between the interests of platforms, merchants and consumers, but also closely related to the industrial structure of the entire market competition.

Hu Xiaoyu personally feels that the policy guidelines will only make the industry better and better, improve the quality of service, and enhance the protection of riders, and the increased costs will not be transferred to consumers, and he does not think that after the release of the “New Takeaway Regulations”, It will bring too much change to the market structure of the industry.

Looking at it now, government regulators have stepped in to further regulate the food delivery industry and protect the rights and interests of related parties. The purpose is to promote the industry to provide consumers with high-quality products and services and optimize the consumption experience. Returning to industrial development, Hu Qimu believes that there will still be fierce competition, but, “In the past, in the industry structure competition, the platform was more costly, but in the future, it will be more technical.”

Hu Qimu said that in the past, the platform wandered through the vague area of ​​the rider’s labor rights protection, thereby obtaining low-cost labor. “But in the future this road will be blocked and the industry’s gameplay will change.” He told reporters that the platform’s Competitive advantages no longer come from cost, but more critically at the technical level. How to rely on technological innovation to improve the operating efficiency of the platform and enhance the consumer experience of users, so as to gain market competitiveness.

Of course, it is foreseeable that such an industry will be more conducive to large-scale platforms such as Meituan and Ele. Based on its technological and algorithm advantages to improve operational efficiency, and small platforms that emphasize “economy of scale” in technology research and development. In other words, limited by the scale of income, the ability to bear such costs is often weak.

(At the request of the interviewee, Li Suiwei is a pseudonym)

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-new-rules-for-takeaway-are-here-is-the-spring-for-takeaway-riders-here-2/
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