Starting this Friday, China applies new rules that set limits on the algorithms that organize the work of delivery people and platform drivers, a group of about 84 million key people in urban life.
The regulation affects delivery times, penalty systems and order assignment, in a model marked by operational pressure and automated management.
The adjustment introduces greater labor demands and points to a change in the functioning of the sector after years of expansion supported by prices and volume.
Rules on the street
The new guidelines, issued by the State Council (Executive) and the Central Committee of the ruling Communist Party (CPC), force platforms to adjust work management in delivery and transportation applications.
Among the changes is the establishment of limits on the working day through automatic disconnection systems after certain hours of activity, as well as the review of delivery times and order assignment criteria.
The text also requires companies to guarantee timely payments commensurate with the workload, strengthen security coverage, especially in adverse weather conditions, and improve the transparency of algorithmic systems.
At this point, the regulations recognize the right of workers to know and participate in the rules that determine rates, routes or evaluations.
The authorities set a goal for labor practices in the platform economy to be standardized before 2027, in a sector that has gone from operating with little regulation to being under more direct supervision in just a few years.
The algorithm under control
For years, the organization of work on platforms has been determined by automated systems that set times, routes and remuneration based on real-time data.
In this scheme, delivery people could see delivery times reduced if the system detected improvements in previous routes, while minimal delays or negative evaluations triggered penalties that affected their income.
Different analyzes and public debate in China have indicated that these mechanisms have increased pressure on workers, by combining efficiency objectives with variable incentives that are difficult to anticipate.
The new rules introduce for the first time the obligation to make these systems more transparent and to allow the participation of worker representatives in their design, in an attempt to move part of the control from the algorithm to a regulated framework.
Costs and model adjustment
The reinforcement of labor demands is forcing platforms to review their cost structure in a sector that grew supported by low prices and order volume.
The introduction of insurance, mandatory breaks and greater payment guarantees increases the cost per shipment, while companies were already increasing investments to adapt to regulatory supervision.
Some companies have indicated in their recent results an impact on their margins linked to these measures, while they explore ways to compensate for it through adjustments in rates or improvements in operational efficiency.
The latter include the use of artificial intelligence to optimize routes or the development of automated delivery solutions in certain cities.
In parallel, new regulations on light electric vehicles, from battery safety standards to use and charging restrictions, are also modifying the conditions under which delivery drivers operate in cities, affecting their daily mobility and the costs associated with their activity.
From the field, delivery workers consulted by EFE point to limited changes in the short term. “This is going to be like many other times. Everything changes, but day to day will put everything back in order,” said a worker from the Shunfeng company.
The change coincides with an environment of less economic dynamism and greater pressure on employment, factors that have expanded the number of people who turn to these platforms as a source of income and that reinforce the role of the sector in the urban labor market.
