Home
+
Analysts see a more than 7 percent increase in the number of drivers as a manifestation of the subdued job market
Published : 16 Aug 2023, 09:58 AM
Shanghai driver Zhu Zhimin works 15 hours a day to earn the same money he was making only a few months ago working a regular shift, as he competes with an increasing number of Chinese rushing into theride-hailingindustry.
Zhu, who takes home 400-600 yuan ($55-$82) a day ferrying passengers from early morning to late at night, says he wasn't able to take a day off for three months earlier this year.
"I go back at midnight, I take a shower and then go to bed. I have no spare time," he said from behind the wheel. "My children are getting older, my parents are getting older, so my family needs money."
China'sweakpost-pandemic recovery and recordyouth unemploymentare sending more people into theride-hailingsector, flooding the market and eroding the incomes of many of the 5.8 milliondriversregistered for such apps.
On Tuesday, araft of datahighlighted how the world's second largesteconomyhad slowed further in July, putting pressure on already faltering growth.
About 400,000 people began driving forride-hailingfirms in China between the end of April and the end of July, state media said, citing Ministry of Transport data.
Analysts see this more than 7 percent increase in the number ofdriversas a manifestation of the subdued job market.Average income for employees in Shanghai is around 525 yuan a day, data from the city government shows, in line with what mostdriversmake working much longer hours than an office worker.
"The downturn of the socio-economic environment led to a reduction in job opportunities and an influx of labour into theride-hailingindustry," said Wang Ke, an automotive and travel industry analyst at Analysys, a market research firm.
"An increasing number of unemployed individuals make theride-hailingindustry their first choice."
China has more than 300ride-hailingapps, which accounted for over 40% of total taxi trips last year, state media reported.
Cities including Shanghai, Sanya and Changsha havesuspendedissuing newride-hailingpermits. At least four others have issued warnings of overcapacity, with some sayingdriversget fewer than 10 orders a day as a result.
"Because theeconomyis not doing well, many workers have been laid off and beganride-hailing," said James Cai, 33, from Haikou, the capital of Hainan island and one of the cities warning of too manydrivers. "Most of them are 20-30 year olds."
Cai said he earns 200-300 yuan a day, driving for Didi Global -China'sanswer to Uber - from 8.00 am until close to midnight. Up until recently, he made 400 yuan a day plus bonuses, going home before 8.00 pm.
"This job is not working out," he added.
Didi did not respond to emailed questions about driver numbers, pay and the latest curbs in some cities.
'SELF-CORRECTION'
Wang, from Analysys, expects a market "self-correction" as somedriversdrop out.
Nanxun Li, another Haikou driver, sold his car last month and quit a job he had been doing for 10 years, after his income dropped to 300-400 yuan a day from 1,000 when he first started.
"It's getting difficult to make ends meet," Li said.
But even with lessdrivers, making a living is likely to become more difficult for many people asChina enters an era of much slower economic growth, economists say.
More than 21% of Chinese youth were unemployed as of June.China'sstatistics bureau said on Tuesday it willstopreleasing jobless youth data, drawing public ire.
Shanghai driver Li Weimin's rationale for working underscores the shrinking job market.
"I don’t eat during the day, and I only have one meal after I get home at night," said the 45-year-old, who drives from 6.30 am to 1 am to take home around 500 yuan.
"But I must persist, because there is no other job."
