Economic slowdown means bumpy road for China's ride-hailing drivers
Shanghai driver Zhu Zhimin works 15 hours a day to earn the same money he made in a regular shift just a few months ago, as he competes with a growing number of Chinese rushing into the ride-hailing industry.To get more shanghai china international news, you can visit citynewsservice.cn official website.
Zhu, who earns 400-600 yuan ($55-$82) a day picking up passengers from early morning until late at night, says he couldn't take a day off for three months earlier this year.
"I go back at midnight, take a shower and then go to bed. I have no free time," he said from behind the wheel. "My kids are getting older, my parents are getting older, so my family needs money."
China's weak post-emergency economic recovery and record youth unemployment are driving more people into the ride-hailing sector, flooding the market and eroding the incomes of many of the 5.8 million drivers registered with such apps.
On Tuesday, a raft of data showed the world's second-largest economy slowed further in July. The data added pressure to already faltering growth.
About 400,000 people started driving for ride-hailing companies in China between the end of April and the end of July, state media said, citing data from the Ministry of Transport.
Analysts say the more than 7 per cent increase in the number of drivers is a reflection of the subdued labour market. The average income for workers in Shanghai is around 525 yuan a day, according to city government data, which means most drivers work much longer hours than an office worker.
Wang Ke, an automotive and travel industry analyst at Analysys, a market research firm, said, "The downturn in the socio-economic environment has led to a reduction in job opportunities and an influx of workers into the ride-hailing industry."
There are more than 300 ride-hailing apps in China. They accounted for more than 40% of total taxi trips last year, state media reported.
Cities including Shanghai, Sanya and Changsha have stopped issuing new ride-hailing licences. At least four others have warned of overcapacity, with some saying drivers are getting fewer than 10 orders a day as a result.
"James Cai, 33, from Haikou, the capital of Hainan island and one of the cities warning of overcapacity, said that because the economy is not doing well, many workers have been laid off and started ride-hailing. "Most of them are 20-30 years old."