25% of China’s labour market involved in the gig economy: Report

China’s internet sector has created a breeding ground for the gig economy and it is estimated that the country has about 200 million gig workers, or almost one-fourth of the entire labour force, according to a report by Daxue Consulting.

Why it matters

China’s gig economy may be thriving but its low-cost business model is no longer sustainable and faces the challenges of high debt from unbridled expansion, pressures from investors, tightening regulations, demographic changes and geopolitical tensions – all of which are forcing companies to innovate their business model in order to continue flourishing.

Key insights

• The e-commerce, food delivery and ride-hailing markets are highly concentrated since top players hold over 80% market share, catching the attention of national antitrust bodies.
• Growing discontent among gig employees and government pressure have forced online platforms to improve wage and safety conditions for food delivery, logistics and transport workers.
• Beyond ride-hailing, takeout food and express delivery, three gigs in China’s gig economy not many know of are: designated drivers, boyfriend rental programs and professional line standers.