Highly educated people are pouring into the food delivery industry. What’s the problem there?

China Insights
30 Jul 202412:30

Summary

TLDRThe video highlights the struggles of highly educated Chinese individuals who are forced to work in the food delivery industry due to economic challenges and job scarcity. It sheds light on various issues within the industry, such as poor hygiene, exploitation, and harsh working conditions. The narrative is supported by real-life incidents, including food contamination, and testimonials from graduates who have taken up delivery jobs. The video underscores the economic decline, high unemployment rates, and the tough reality faced by many in China today.

Takeaways

  • 🎓 The speaker, Leang Ding, is a highly educated individual with degrees from G University and Renman University of China, yet has to work in the food delivery industry, reflecting a trend among the educated in China.
  • 🐭 Food safety is a significant concern in China's food delivery industry, with incidents such as finding a mouse head in a meal and a customer consuming an entire rat in their order.
  • 🍽️ Hygiene issues are prevalent, with a video showing a chef using a broom to clean kitchen walls while preparing food for delivery.
  • 📚 The food delivery workforce in China includes a significant number of highly educated individuals, with 7 million delivery workers, 1% of whom hold master's or doctoral degrees.
  • 📉 China's economic downturn has led to job losses and an increase in the number of unemployed or underemployed individuals, including those with higher education, turning to food delivery as a means of employment.
  • 📈 The number of college graduates in China is expected to reach 1.79 million in 2024, with a high youth unemployment rate, indicating a challenging job market for new graduates.
  • 🏙️ The collapse of industries such as real estate has led to widespread layoffs, pushing more people into the already saturated food delivery industry.
  • 🚫 Despite the large number of people joining the food delivery industry, there are reports of layoffs and wage compression due to industry saturation and reduced delivery fees.
  • 🚦 Delivery workers face harsh working conditions, including fines for late deliveries and the need to navigate traffic and weather challenges.
  • 🤰 Even pregnant women are joining the food delivery workforce, highlighting the dire economic circumstances and the need for flexible employment options.
  • 📊 A survey report indicates that Chinese food delivery riders work long hours, with many working seven days a week and facing penalties for negative reviews, showcasing the demanding nature of the job.

Q & A

  • What is the educational background of the speaker, Leang Ding, mentioned in the video script?

    -Leang Ding is a graduate from G University Law School with an undergraduate degree and also holds a master's degree certificate from Renman University of China, along with professional qualification certificates from the judicial examination.

  • What issue in the food delivery industry was highlighted on June 1st, 2023?

    -On June 1st, 2023, a student at Jangi Industrial Vocational and Technical College found a mouse head in his meal in the cafeteria, which caused an uproar on the internet.

  • What shocking incident occurred on July 4th, 2024, involving a food delivery order?

    -On July 4th, 2024, a person from Changdu Shishan Province ordered Matan takeout and reportedly ate an entire rat that was in the meal.

  • What hygiene issue was captured in a video in September 2023 related to the food delivery industry?

    -In September 2023, a video was captured showing a chef using a broom dipped in water from a cooking pot to clean the kitchen walls, with the takeaway packaged for delivery on the table.

  • What was the surprising discovery made by a delivery man named Chen at Chong Chang Malatang Restaurant in Guangdong in July 2018?

    -Chen discovered the owner's son sitting on a chair, playing with his mobile phone and stepping on a pot of meatballs with his feet for about 15 minutes.

  • According to the video script, what percentage of food delivery workers in China have a master's degree or higher?

    -According to the script, 1% of food delivery workers in China have a master's degree or higher.

  • What challenges are faced by the food delivery industry in China as mentioned in the script?

    -The script mentions challenges such as hygiene issues, saturation of the industry with an influx of highly educated individuals, layoffs, reduced delivery fees, and intense competition.

  • What was the reported urban unemployment rate among young people aged 16 to 24 in China in 2023?

    -The reported urban unemployment rate among young people aged 16 to 24 in China in 2023 was as high as 21.3%.

  • What is the average number of days and hours worked per week by Chinese food delivery riders according to the survey report mentioned in the script?

    -According to the survey report, Chinese food delivery riders work an average of 6.4 days a week and 9.8 hours a day.

  • What are the penalties for delivery riders who receive a negative review according to the script?

    -The penalties for delivery riders who receive a negative review range from $27.50 to $69, with the general fine being $69.

  • What is the situation regarding delivery fees for food delivery riders as described in the script?

    -The script describes a situation where delivery fees have been greatly reduced, with many orders appearing on the platform for as low as 40 cents, and a significant drop in delivery fees, entering an era of 40-cent fees.

Outlines

00:00

🎓 The Reality of Highly Educated Food Delivery Workers

This paragraph discusses the plight of highly educated individuals in China who, due to economic downturn and limited job opportunities, have resorted to working in the food delivery industry, which is traditionally not considered a respectable job. Despite having various degrees and professional qualifications, including law and master's degrees from prestigious universities, these individuals face the harsh reality of unemployment and underemployment. The script mentions several incidents highlighting the poor hygiene and shocking conditions in the food delivery industry, which has seen an influx of educated workers, including those with master's and doctorate degrees, due to the closure of companies and a struggling job market. The paragraph also touches on the psychological impact of this situation on the individuals involved and the broader implications for society.

05:01

🚴‍♂️ The Challenges and Struggles of Food Delivery Riders

The second paragraph delves into the personal stories and challenges faced by food delivery riders in China. It begins with individuals sharing their educational backgrounds and current roles as delivery workers, highlighting the stark contrast between their qualifications and the jobs they have taken up. The script describes the difficult working conditions, including long hours, harsh weather, and the constant threat of fines for late deliveries. It also discusses the industry's saturation, with many new entrants leading to layoffs and wage compression. The paragraph includes accounts of delivery workers facing extreme circumstances, such as a pregnant woman continuing to work and a teacher supplementing his income by delivering food. The narrative underscores the precarious nature of the job and the broader economic challenges affecting the workforce.

10:01

🏗️ The Impact of Economic Shifts on Delivery Workers

This paragraph examines the broader economic context affecting the food delivery industry in China. It discusses the high youth unemployment rate, the collapse of the real estate industry, and the subsequent drop in related employment sectors. The script highlights the influx of people into the food delivery industry, leading to an oversaturated market with intense competition and layoffs. It also details the working conditions of delivery workers, including the long hours, the requirement for timely deliveries regardless of weather conditions, and the penalties for negative reviews. The paragraph concludes with a survey report that provides statistical insights into the working patterns and challenges faced by Chinese food delivery riders, painting a picture of the industry's demanding and often harsh realities.

Mindmap

Keywords

💡Food Delivery Industry

The food delivery industry involves the business of transporting food orders from restaurants to customers. In the video, it is highlighted as a growing sector in China that has seen an influx of highly educated individuals due to economic downturns and job scarcity in other fields. The script mentions the industry's dark side, such as hygiene issues and the challenges faced by delivery workers.

💡Highly Educated Chinese Talents

Highly educated Chinese talents refer to individuals with advanced degrees such as masters or PhDs. The video discusses the phenomenon of these individuals working in the food delivery industry, which is traditionally not considered a respectable job in China, due to the lack of opportunities in their fields of study.

💡Economic Recession

Economic recession is a period of temporary economic decline during which trade and industrial activity are reduced. The script connects the increase in the number of delivery workers, including those with high levels of education, to the current economic recession in China, which has led to job losses and fewer opportunities in other sectors.

💡Hygiene Issues

Hygiene issues refer to problems related to cleanliness and health standards. The video script provides examples of unsanitary practices in the food delivery industry, such as a chef using a broom to clean kitchen walls and a restaurant owner's son stepping on food with his feet, raising concerns about the safety of the food being delivered.

💡Unemployment

Unemployment is the state of being without a job while actively seeking work. The video discusses the high unemployment rate among the youth in China, which has forced many college graduates and highly educated individuals to turn to the food delivery industry for employment.

💡College Graduates

College graduates are individuals who have completed their undergraduate studies at a university or college. The script mentions the record number of college graduates in China and the difficulty they face in finding jobs, contributing to the large number of college-educated individuals in the food delivery workforce.

💡Professional Qualification Certificate

A professional qualification certificate is a document that certifies an individual's competence in a specific profession. The video script shows individuals with such certificates, including the narrator, who despite their qualifications, have resorted to working in the food delivery industry.

💡Youth Unemployment Rate

The youth unemployment rate is the percentage of unemployed individuals in the labor force who are aged 16 to 24. The video script mentions that this rate in China has reached new highs, indicating a significant challenge for young people entering the job market.

💡Delivery Workers

Delivery workers are individuals whose job is to transport goods or services, in this case, food, from one place to another. The video script discusses the struggles of delivery workers, including long working hours, low pay, and the risk of accidents while on the job.

💡Industry Saturation

Industry saturation refers to a state where an industry has reached the maximum number of competitors or participants it can support. The script mentions that the food delivery industry in China is extremely saturated, leading to layoffs and increased competition among delivery workers.

💡Income Compression

Income compression is a reduction in the difference between the highest and lowest wages or earnings within an industry or occupation. The video script describes how delivery workers are facing reduced earnings due to cuts in delivery fees, highlighting the financial challenges they face.

Highlights

Leang Ding graduated from G University law school and has both undergraduate and master's degrees, as well as a professional qualification certificate from the judicial examination.

Highly educated Chinese talents are working in the food delivery industry, which is not considered a respectable job in China.

Food safety issues in China's food delivery industry, such as finding a mouse head in a meal and eating an entire rat in takeout.

Hygiene concerns in food delivery, including a chef using a broom to clean kitchen walls and a child stepping on food with their feet.

The influx of highly educated individuals into the food delivery industry amid China's economic recession.

Media report on 70,000 masters and PhDs delivering food, questioning if they are letting down their academic credentials.

Survey data showing 7 million food delivery workers in China, with 1% holding master's or doctorate degrees.

Economic decline in China leading to job scarcity, with the food delivery industry becoming a last resort for many.

High youth unemployment rate in China, with the real estate industry collapse affecting related employment.

Saturated food delivery industry with large-scale layoffs and intense competition.

Delivery workers facing wage compression and reduced delivery fees, impacting their livelihood.

Difficult working conditions for delivery workers, including avoiding traffic police and working in harsh weather.

Increasing number of women, including pregnant women, joining the food delivery industry.

Delivery workers' struggle with fines for exceeding time limits and the impact on their income.

A survey report on the working hours and conditions of Chinese food delivery riders, highlighting the long hours and penalties.

The psychological impact on highly educated individuals working in the food delivery industry and the challenges they face.

A personal account of a teacher delivering food, sharing his experience and earnings.

The harsh reality of the food delivery industry as a last resort for many, despite the challenges and low social status.

Transcripts

play00:00

[Music]

play00:26

hello everyone I am leang ding I

play00:28

graduated from G University law school

play00:31

with my undergraduate degree this is my

play00:33

undergraduate diploma bachelor's degree

play00:35

certificate from gin University master's

play00:38

degree certificate from renman

play00:39

University of China this is my

play00:41

professional qualification certificate

play00:43

from the judicial

play00:46

examination more Highly Educated Chinese

play00:49

talents have no choice but to work in

play00:50

the food delivery industry this is not a

play00:53

respectable job in China before

play00:55

continuing let's look at the darkness

play00:57

behind China's seemingly ever growing

play00:59

food delivery industry his on June 1st

play01:02

2023 at jangi industrial vocational and

play01:05

Technical College a student found a

play01:06

mouse head in his meal while eating in

play01:08

the cafeteria causing an uproar on the

play01:11

internet on July 4th 2024 a neicon from

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changdu shishan Province ordered Matan

play01:17

takeout and actually ate an entire rat

play01:19

from the meal some medicon said I was

play01:22

eating and almost vomited when I saw

play01:24

this picture some people also said it's

play01:27

a bit outrageous to have mice in a

play01:28

takeaway People Order Teo because they

play01:31

have no time or it's inconvenient to

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cook and the food is delicious however

play01:36

the hygienic situation of takeways is

play01:38

worrying in September 2023 someone

play01:42

captured a video showing a chef using a

play01:44

broom dipped in water from a cooking pot

play01:45

to clean the walls in the kitchen on the

play01:48

table is the takeaway packaged for

play01:50

delivery in July 2018 when a delivery

play01:53

man sir named Chen went to Chong Chang

play01:55

malatang Restaurant in shanto Guangdong

play01:57

to pick up takeout he was surprised to

play01:59

find the owner's son sitting on a chair

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playing with his mobile phone and

play02:03

stepping on a pot of meatballs with his

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feet for about 15 minutes the delivery

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boy took a photo and handed it to the

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local Health Department the store was

play02:11

forced to close it's reported that the

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business of this malatang shop is very

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good now let's get back to the topic of

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delivery people in the midst of the

play02:20

current economic recession China's food

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delivery industry has seen an influx of

play02:24

an incredibly large number of Highly

play02:26

Educated people on April 18th 2023 an

play02:30

article by the Chinese media netes

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entitled 70,000 Masters and phds deliver

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food did they let down their academic

play02:37

credentials or did their academic

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qualifications fail them said today

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there are too many people delivering

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food and more and more people continue

play02:44

to enter the industry including

play02:46

unemployed workers bosses who have

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failed to start their businesses and

play02:50

college students who cannot find

play02:52

jobs there is even special survey data

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showing that there are 7 million food

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delivery guys in China of which 1% are

play02:59

those with master's degrees and

play03:00

Doctorate Degrees which means that there

play03:02

are 70,000 people with master's degrees

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and doctorates delivering food in

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addition there are also those with

play03:08

college degrees food delivery staff

play03:11

account for 11% that is 770,000 college

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students are delivering food and

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delivery staff with a bachelor's degree

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account for 3% that is 210,000 college

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students are delivering food in total

play03:25

college students with a college degree

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or above account for 15% of the

play03:29

workforce that is 1.05 million college

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students are delivering

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food why do these highly educated and

play03:36

outstanding young people feel forced to

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settle on delivering food because as

play03:41

China's economy continues to decline

play03:43

many companies have closed down the

play03:45

Education and Training industry has been

play03:47

severely hit and many young people

play03:49

cannot find jobs in 2024 the number of

play03:52

college graduates in China will reach a

play03:54

new high reaching 1.79 million China's

play03:58

GDP growth in the first first half of

play04:00

this year was only 5% according to the

play04:03

GDP growth rate announced by the CCP

play04:05

nearly 7 million college graduates

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cannot find a job moreover many foreign

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capitals have left China and many

play04:12

Chinese companies have also gone

play04:13

bankrupt with civil servants Banks

play04:16

schools and other Industries

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experiencing large- scale layoffs newly

play04:19

graduated college students and highly

play04:21

educated Personnel who have lost their

play04:23

jobs in other departments have no choice

play04:25

but to start taking out

play04:27

food this picture circulated online is

play04:29

in March 2021 shows a young man

play04:31

delivering food with his young child he

play04:34

says I am a software engineer I used to

play04:36

look down on the delivery boy but now I

play04:38

have no choice the family needs to eat

play04:42

on July 15th 2024 a jangu food delivery

play04:45

Rider said in a video I studied for an

play04:47

undergraduate degree and majored in

play04:49

accounting now I deliver food what about

play04:52

you w

play05:00

nison responded one after another I am

play05:03

an undergraduate student majoring in

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medical laboratory technology and now I

play05:07

making harassing phone calls I have a

play05:10

bachelor's degree in civil engineering

play05:11

and now I also deliver food I got an

play05:14

undergraduate degree in electronic

play05:16

information engineering I kept winning

play05:18

Awards in college and now I run a street

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stall in a small County in this video a

play05:24

young man wearing May to on delivery

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clothes speaks fluent English to the

play05:27

camera but the content makes people

play05:29

either laugh or cry hey guys what's up

play05:32

for those of you who have just graduated

play05:34

from schools and who are wondering what

play05:36

kind of Bright Futures is ahead of you

play05:38

well spoil alerts this is where we going

play05:40

to end up in and don't be

play05:44

surprised this picture shows a delivery

play05:47

boy showing his diploma he is a master's

play05:49

graduate from renman University of China

play05:52

this video shows that a master student

play05:54

from renman University of China has also

play05:56

become a delivery boy in the video he

play05:59

specific shares his study skills and

play06:01

college entrance examination stories

play06:03

with college entrance examination

play06:07

students hello everyone I am leang dond

play06:10

ding I graduated from Gan University law

play06:12

school this is my undergraduate diploma

play06:15

bachelor's degree certificate from Jen

play06:17

University and master's degree

play06:19

certificate from renman University of

play06:20

China these are my professional

play06:22

qualification certificates from the

play06:24

judicial

play06:27

examination this video shows how a tough

play06:29

graduate from peing University couldn't

play06:31

find a job delivering food and was

play06:33

ridiculed by

play06:35

medicon after the video of delivering

play06:37

food after graduation from peaking

play06:39

University was posted yesterday many

play06:41

medicin ridiculed me yes that's right I

play06:44

also feel sorry for my parents

play06:46

painstaking cultivation it's even more

play06:49

difficult to accept the reality of

play06:50

falling from the peak to the

play06:52

bottom for Highly Educated talents

play06:55

engaged in the food delivery industry

play06:57

this industry will not only bring about

play06:59

a huge psychological Gap but they will

play07:01

also face a difficult and uncertain

play07:03

future in 2023 China's youth

play07:05

unemployment rate hit new highs among

play07:07

young people aged 16 to 24 the urban

play07:10

unemployment rate is as high as

play07:12

21.3% but Outsiders say this figure is

play07:15

seriously

play07:16

underestimated with the collapse of

play07:18

China's real estate industry the

play07:20

employment rate related to Home

play07:21

Appliances decoration Property

play07:23

Management Etc has also dropped

play07:25

companies large and small have laid off

play07:27

employees so many people are rushing to

play07:29

go for takeout but now the food delivery

play07:32

industry is also extremely saturated

play07:35

this video shows that in February 20123

play07:38

many delivery workers were waiting

play07:39

outside for orders in a certain place in

play07:49

China as a large number of people join

play07:51

the food delivery industry there are

play07:53

also large layoffs

play08:02

the man disclosed in the video that the

play08:04

manager of the Matan site said that he

play08:06

had basically fired all the disobedient

play08:08

guys and also some who worked part-time

play08:10

and they would all be fired one after

play08:12

another this shows that the current

play08:14

employment situation is tough when many

play08:16

people want to resign from the company

play08:18

they often say the worst case scenario

play08:21

is to deliver food however as you can

play08:23

see from this video it's challenging to

play08:25

be a delivery

play08:28

person hello everyone this is Guan Lan

play08:30

water hole Shenzhen like this time in

play08:33

previous years the order volume is

play08:34

relatively stable now you can see that

play08:37

the streets are full of riders waiting

play08:38

on the roadside for orders from the

play08:40

system I looked at the data of two

play08:42

colleagues today one of them just got

play08:44

off work and placed an order after

play08:46

waiting an hour then another colleague

play08:48

Works full-time most of the day earning

play08:50

about $6

play08:53

us the job of the delivery boy seems

play08:56

really difficult even so their wages are

play08:58

still being compressed on March 17th

play09:01

2023 a Chinese medicon posted Shenzhen

play09:05

mayuan officially issued a notice that

play09:07

take out delivery fees will be greatly

play09:09

reduced May Tuan has made structural

play09:12

adjustments to delivery fees as a result

play09:14

the delivery fees for many orders that

play09:16

you can see today have dropped

play09:18

significantly and a large number of

play09:19

orders have appeared on the platform for

play09:22

orders of us40 cents and Orders of

play09:24

approximately $14 there are no large

play09:26

subsidies and the delivery fee is only

play09:28

us60

play09:30

the price reduction is really too harsh

play09:32

dada and Shan Fung Express have also cut

play09:35

prices accordingly and shenz Jen's Take

play09:37

out delivery fees have entered the era

play09:39

of

play09:39

us40 faced with Fierce industry

play09:42

competition layoffs and declining income

play09:44

delivery Boys still have to avoid the

play09:46

traffic police this video shows an

play09:49

actual scene in juw high city guangong

play09:51

province on July 16th

play09:53

20124 of course many women have joined

play09:56

the food delivery industry including

play09:58

pregnant women this picture shows that

play10:00

on August 19th 2022 a female delivery

play10:03

worker in shinyang hernand Province was

play10:05

7 months pregnant and was still

play10:07

delivering food with a big belly this is

play10:10

also a microcosm of the lower class

play10:12

people in China this video shows that in

play10:14

May 20121 an urban management officer in

play10:17

J Jang ripped away a takeout box from

play10:19

the takeout boys motorcycle on the night

play10:21

of August 2023 it rained heavily in Long

play10:24

gong Shenzhen a delivery boy struggled

play10:27

to push a cart to deliver food in the

play10:28

flood some nison said to survive we have

play10:32

no choice but to fight some nison who

play10:34

know the Inside Story said if you exceed

play10:37

the time limit you will be fined

play10:39

heavily on August 23rd 2023 Shen bin a

play10:43

teacher at the school of liberal arts of

play10:45

ly e University in Shandong Province

play10:47

posted an article in the winter of 2022

play10:50

I delivered food in Lin e City on the

play10:52

WEA public account dong e Academy he

play10:55

wrote that his regular income was $138

play10:57

per hour in 275 per hour was his limit

play11:00

in May toan Riders are divided into

play11:03

three levels professional riters go to

play11:05

work at 9:00 every day and get off work

play11:07

at 9:00 in the evening the actual time

play11:09

is longer they run orders pushed by the

play11:11

system and each order costs about

play11:14

us50 they are allowed 4 days off every

play11:16

month you must report the day of rest a

play11:19

week in advance you cannot ask for leave

play11:21

the more windy rainy and snowy it is the

play11:24

more timely delivery is required if you

play11:26

receive a negative review the penalty

play11:28

ranges from you

play11:29

$27.50 to us $69 and the general fine is

play11:33

US $69 into the survey report on the

play11:36

professional group of Chinese Takeaway

play11:38

writers released on February 2nd 2023

play11:41

the professional group of Chinese

play11:42

Takeaway writers Works an average of 6.4

play11:45

days a week and an average of 9.8 hours

play11:47

a day 61.6% of food delivery Riders work

play11:51

7 days a week 55.1% of food delivery

play11:54

Riders work an average of 8 to 10 hours

play11:56

a day and 36.7% of food delivery Riders

play12:00

work in average of more than 10 hours a

play12:02

day is a perfect example of the

play12:03

challenges Chinese delivery workers face

play12:05

and also the epitome of many Chinese

play12:07

people

play12:10

[Music]

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Related Tags
Food DeliveryEconomic CrisisJob MarketChinaEducation GapUnemploymentIndustry SaturationWorker StrugglesHygiene ConcernsDelivery Challenges