Chinese regulators met with major food delivery companies, including JD.com, Meituan, and Alibaba’s Ele.me—urging them to comply with regulations and promote fair competition.

The meeting took place on May 13, 2025, according to a statement from the authorities.

During the discussion, regulators urged the companies to comply with existing regulations.

They highlighted the importance of fair competition and the protection of consumers, business operators, and delivery workers.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Algorithmic management creates a dangerous trade-off between efficiency and safety

China’s food delivery workers face increasingly dangerous working conditions as platforms optimize for speed over safety through algorithmic management systems.

In Shanghai alone, a fatal accident involving a delivery driver occurs every 2.5 days, while food delivery accounts for 90% of traffic accidents in Nanjing1.

The algorithm-driven pressure is tangible, as drivers face severe penalties for late deliveries, with commission deductions forcing them to prioritize speed over safety1.

A viral exposé in 2019 revealed how the automated systems dictate impossible delivery windows, creating a system where dangerous driving becomes necessary rather than optional2.

The human cost extends beyond physical safety. Delivery workers report declining wages (now averaging just 6,803 yuan or $956 monthly, nearly 1,000 yuan less than five years ago) despite increasing workloads3.

This systemic issue persists because most workers are classified as independent contractors lacking legal protections, with approximately 16,000 agency subcontracted riders performing 90% of the work in Shanghai alone4.

2️⃣ Labor practices becoming a competitive differentiator in fierce market battle

JD.com has strategically positioned worker welfare as a competitive advantage in its challenge to market leader Meituan, recognizing shifting consumer sentiment around gig worker treatment.

The company is attempting to disrupt the $37 billion food delivery market by offering better conditions for delivery workers and zero commissions for restaurants, directly challenging Meituan’s business model5.