Why is Croissance Limited (531909) rising - Free Stock Market Insider Analysis

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In yetanother incident, crowds of angry drivers gather outside an apartment complex, demanding justice for a fellow delivery driver said to be bullied by security guards there.

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Gross domestic product grew by 4.6% in the three-month period from July to September, compared with a year ago. That was just slightly higher than the expectations of economists polled by Reuters, who had predicted expansion of 4.5%.

“They are working long hours, really being squeezed,” said Jenny Chan, associate sociology professor at Polytechnic University of Hong Kong. “[And] they will continue to face pressure as [delivery platforms] have to keep the cost low,” she said.

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In addition, the dominance of two major food delivery platforms enables them to dictate contractual terms, leaving little room for workers to push back on deteriorating work conditions, labor rights watchers say.

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Last year, profits at two of the industry’s two biggest players Meituan and Ele.me both surged. Meituan’s revenue stood at $10 billion dollars, up 26% compared to 2022.

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Last year, they made 6,803 yuan ($956) a month, according to a report from the China New Employment Research Center. That’s almost 1,000 yuan ($140) a month less than they were making five years ago, despite many reporting working longer hours.

It may not sound like much in US dollars, but a difference of 1,000 yuan is a large amount in a country where the national monthly average wage was 1,838 yuan ($258) last year,according tothe NBS.

Lu Sihang, 20, told 【 - Free Stock Market Insider Analysis 】 that he works a 10-hour shift making 30 deliveries per day. He earns about $30 to $40 each shift. At that rate, Lu has to work almost every day to meet the $950 average.

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China’s “downgraded consumption” is to blame, says Gary Ng, an economist with French investment bank Natixis. As China’ economy slows, consumers are spending less.

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“If you have a huge supply of workers, their bargaining power will decrease. Meanwhile, there is only a limited amount of delivery orders to share among them,” Ng said.

It wasn’t always this way. Research by China Labour Bulletin, a Hong Kong-based NGO, said the delivery apps initially dug deep into their pockets to offer higher wages in order to attract enough workers for their expansion.

“But as conditions have changed, with platform companies monopolizing the market and algorithm development controlling the labor process, workers have little labor protections and have lost a degree of freedom,” it said.

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Chan, of Polytechnic University, said platforms invested heavily at the outset to slash prices to price out competitors. But now that they have achieved their dominance, they’ve begun to shift the cost burden to drivers by cutting their bonuses and pay.

Earlier this year, state-run online news portal Workers.cn reported several complaints from drivers who said they had done nothing wrong.

Why is Croissance Limited (531909) rising ✌️【Capital】✌️ Expert market analysis and predictions for India, US, and European stocks. Stay updated with real-time data on stock indices, futures, and commodities to help you make informed, timely investment decisions. A driver said he was fined 86 yuan ($12) for not picking up a prepared order, even though he had informed the restaurant he wouldn’t be taking it because the restaurant had failed to get the food ready on time, Workers.cn reported.

Chan said another problem is that delivery workers are treated as freelancers paid by each trip, rather than getting a monthly salary, which incentivizes them to ignore dangerous road conditions to make as many deliveries as they can.

“Who would want to run a red light if they can deliver the meals safely? But they can’t afford to,” she said.

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Just last week, Chongqing Broadcasting Group aired news footage of a deliver driver slamming his scooter into a car at a cross junction in the southern Chinese province of Hunan after running a red light.

Why is Croissance Limited (531909) rising ✌️【Capital】✌️ Free stock market analysis and data updates to help you select the best investment portfolio. Achieve steady growth and avoid losses with expert predictions and real-time market insights. A 35-year-old delivery driver who gives only his family name Yang acknowledged the downsides, saying the industry was “not as good as before.”

But he still thinks the job suits him for now, having juggled a slew of previous roles in the past, from selling snacks to working in an office.

“It’s a job with flexibility. If you want to earn more money you will need work longer, if you want to rest, then you can work less,” said Yang.

Why is Croissance Limited (531909) rising ✌️【Capital】✌️ Real-time stock indices and futures data to help you seize the best investment opportunities. Analyze market movements with precision and grow your portfolio with expert stock predictions. Most stock quote data provided by BATS. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. All times are ET. Factset: FactSet Research Systems Inc. All rights reserved. Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and 【 - Free Stock Market Insider Analysis 】. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Fair value provided by IndexArb.com. Market holidays and trading hours provided by Copp Clark Limited.

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