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Photo Essay: Struggle to Survive in China’s Ride-Hailing Industry

Published: Aug. 27, 2024  2:16 p.m.  GMT+8
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Liu Zhiqiang, 40, started driving eight years ago, when he could earn as much as 18,000 yuan a month. Photo: Caixin
Liu Zhiqiang, 40, started driving eight years ago, when he could earn as much as 18,000 yuan a month. Photo: Caixin

During the pandemic, Xiao Jian started seeing videos online touting the high salaries of ride-hailing drivers in China.

With both a home mortgage and loans from his failed supermarket business, the 30-year-old Hebei province native decided to move to neighboring Beijing and try his hand as a ride-hailing driver. He did not get off to a roaring start. Without any savings, he had to work for a company willing to rent vehicles under convoluted no-money-down leases that didn’t favor the driver.

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  • Many individuals, including Xiao Jian and Luo Ning, turned to ride-hailing in China during the pandemic, driven by promises of high salaries, but faced challenges such as low earnings and high operational costs.
  • The rapid growth and subsequent saturation of the ride-hailing industry have made it more challenging for drivers to earn sustainable incomes, leading some, like Xiao Xu, to explore alternative business models and social media opportunities.
  • Long hours, safety risks, and physical tolls are common concerns for drivers like Luo Ning and Gao Changyuan, who struggle with the demanding nature of the job and look for ways to diversify their income.
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Explore the story in 3 minutes

The rise of the ride-hailing industry in China over the past decade has been marked by striking shifts. Initially a lucrative and flexible job, it has increasingly become a precarious gig as the market saturates and regulatory oversight grows [para. 5].

During the pandemic, Xiao Jian turned to ride-hailing to tackle his financial woes, including a home mortgage and loans from a failed supermarket business [para. 2]. Moving to Beijing, he entered the industry through a no-money-down lease, which was less than ideal. Over three months, he earned less than 3,000 yuan ($418) but had to pay numerous fines and damages, leading him to quit with empty pockets [para. 3][para. 4].

Similarly, Liu Zhiqiang, one of the early adopters of ride-hailing, experienced a drastic change in income. At its peak, he earned 30,000 yuan a month. However, with market saturation and regulatory changes, income levels for drivers like him have plummeted [para. 7]. Another driver, Gao Changyuan, joined the industry post her failed teahouse and hot pot restaurant ventures, attracted by the promise of a 12,000 yuan monthly income. Initially paying a 5,000 yuan fee for an electric car with poor mileage, she later upgraded by paying additional sums but still found her income stagnating due to the influx of new drivers [para. 9][para. 10].

The ride-hailing job poses severe emotional and physical stresses, as evidenced by Luo Ning, who has seen her income shrink to 3,000-4,000 yuan a month despite putting in long hours [para. 14][para. 16]. Coupled with this, her husband Liu Zhen also became a driver after losing his construction job, further emphasizing the desperation pushing families into such gigs [para. 17].

Nevertheless, Luo Yi, another driver, has found ways to somewhat manage his time and earnings more efficiently, typically making 400-500 yuan in a 10-hour shift. He approaches ride-hailing with a more strategic mindset, driving mainly during rush hours and commission-free shifts [para. 18][para. 19].

Conversely, after failing as a businessman and accruing over 1 million yuan in debt, Xiao Xu took up ride-hailing. Despite initial hurdles, he eventually pivoted to running a fleet of ride-hailing cars, which became lucrative enough for him to pay off his debts within three months [para. 21][para. 22]. On another front, Gao Changyuan began leveraging social media platforms like Douyin to share her life as a driver, gaining a significant following and some additional income [para. 23].

Luo Yi, too, manages a Xiaohongshu account and is exploring photography and English to potentially shift to the luxury segment of ride-hailing. He views his current stint more as a temporary stepping stone rather than a long-term career [para. 25].

This investigation underscores the volatile and often harsh realities of China's ride-hailing industry. While initially lucrative, the sector has seen incomes dwindle due to market saturation and increasing regulations. Personal stories of drivers like Xiao Jian, Liu Zhiqiang, Gao Changyuan, Luo Ning, and others reveal the significant challenges they face, highlighting the widespread impact on livelihoods and mental well-being. Some have found alternative paths to sustain themselves, but for the majority, the future remains uncertain, necessitating a reevaluation of their career strategies [para. 1][para. 6][para. 8].

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What Happened When
2017:
Liu Zhiqiang's net monthly income as a ride-hailing driver reached as high as 30,000 yuan.
2020:
Gao Changyuan joined the ride-hailing industry after her ventures failed.
After 2022:
Gao Changyuan opened accounts on short video platforms and gained more than 20,000 followers.
July 2021:
Xiao Xu started his own ride-hailing fleet.
By March 31, 2024:
Luo Ning heard about the death of a fellow ride-hailing driver.
AI generated, for reference only
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