Zhu, who brings home 400 to 600 yuan ($55 to $82) a day from ferrying passengers from early morning to late evening, says he hasn’t been able to take a day off for three more months. early this year.
“I come home at midnight, take a shower and then go to bed. I have no free time,” he said behind the wheel. “My kids are getting old, my parents are getting old, so my family needs money.”
China’s weak post-pandemic recovery and record youth unemployment are sending more people into the ride-hailing industry, flooding the market and eroding the incomes of many of the 5.8 million registered drivers for these apps.
On Tuesday, a series of data highlighted how the world’s second-largest economy slowed further in July, putting pressure on already faltering growth.
About 400,000 people started driving for ride-sharing companies in China between late April and late July, state media said, citing data from the transportation ministry.
Analysts see this increase of more than 7% in the number of drivers as a manifestation of the sluggishness of the labor market. many more hours than an office worker.
“The slowdown in the socio-economic environment has led to reduced employment opportunities and an influx of labor in the ride-sharing industry,” said Wang Ke, an automotive and travel industry analyst. at Analysys, a market research company.
“A growing number of unemployed people are making the ridesharing industry their first choice.”
China has more than 300 ride-sharing apps, which accounted for more than 40 percent of total taxi rides last year, state media reported.
Cities like Shanghai, Sanya and Changsha have suspended the issuance of new carpool permits. At least four others have issued overcapacity warnings, with some saying drivers are receiving fewer than 10 orders a day as a result.
“Because the economy is not doing well, many workers have been laid off and started carpooling,” said James Cai, 33, from Haikou, the capital of Hainan Island and one of the cities warning of too many drivers. “Most of them are between 20 and 30 years old.”
Cai said he earns 200 to 300 yuan a day, driving for Didi Global – China’s answer to Uber – from 8 a.m. until nearly midnight. Until recently, he earned 400 yuan a day plus bonuses, returning home by 8 p.m.
“This job is not working,” he added.
Didi did not respond to emailed questions about driver numbers, salary and latest curbs in some cities.
‘Auto correction’
Wang of Analysys expects the market to “self-correct” as some drivers drop out.
Nanxun Li, another driver from Haikou, sold his car last month and quit a job he had held for 10 years after his earnings dropped to 300-400 yuan a day from 1,000 when he started.
“It’s getting hard to make ends meet,” Li said.
But even with fewer drivers, earning a living is likely to become more difficult for many people as China enters an era of much slower economic growth, economists say.
More than 21% of young Chinese were unemployed in June. China’s statistics bureau said on Tuesday it would stop publishing data on unemployed youth, sparking public anger.
Shanghai driver Li Weimin’s rationale for working underscores the shrinking labor market.
“I don’t eat during the day and only have one meal after I get home in the evening,” said the 45-year-old, who drives from 6:30 a.m. to 1 a.m. to bring home around 500 yuan.
“But I must persist, because there is no other work.”
