Twenty-one hours and 400 deliveries into a shift, Mr. Kim in Korea texted a colleague asking for a day off. Four days later, he died of “kwarosa(과로사),” or overwork. On the other side of the world in Manhattan, Mr. Pacheco was complaining that after a six-hour shift, he brought home $32. That’s hardly enough to keep a roof over his head at night and less than half of New York City’s hourly minimum wage. While some couriers are happy just to have an income during the pandemic, they shoulder [1] great costs for the essential service they provide.
Consumers see deliveries as a fantastic convenience, and delivery apps and logistics companies have provided business owners with a lifeline [2] during lockdowns; As governments around the world took measures to limit the COVID-19 pandemic in 2020 by imposing lockdown orders and imploring people to stay at home, retailers and restaurants quickly shifted to online delivery platforms to stave off [3] financial ruin. As a result, earnings for Doordash, GrubHub, Uber Eats, and Postmates, the four largest food delivery apps in America, more than doubled in 2020. Likewise, online orders now account for fifteen percent of global retail spending, more than doubling in just two years.
On the flip side, often unnoticed but essential, couriers around the world have been pushed to their breaking point to keep up with the surging demand: with companies trying to cut costs while scaling up [4] the delivery volume, workers have had to receive reduced wages and work longer hours. At the same time, these workers are put in vulnerable positions without much recourse [5]. For example, U.S. Companies like Uber Eats and Doordash do not classify their workers as employees but independent contractors; they are not entitled to essential benefits like retirement plans, healthcare, or minimum wage. Delivery workers at Relay, a food delivery startup, have been victims of unscrupulous [6] business practices. Workers for Relay complained of their tips from customers being withheld by the company with no explanation. When one worker asked Relay why his tips weren’t being paid out, he was blocked from the app with no recourse other than filing an expensive and time-consuming lawsuit. By extension, delivery workers can be targets for petty crime, as they often have food and cash on them but are not insured against workplace theft since they are contractors.
We have seen some activism to improve the working conditions of couriers. For Chinese commerce during the pandemic, delivery workers have been a lifeline and shouldered the economic cost of increased delivery volume—over sixty billion packages were sent across the nation last year. In response to worsening labor conditions, one delivery driver named Chen Guijiang began posting videos of his work, encouraging fellow 7 million couriers to organize around their common problems and demand better pay. Chen started showing up to help fellow couriers negotiate with their bosses, organized collective dinners with other couriers, and quickly became an influential figure online. Then in February, Chen, along with his social media accounts, disappeared. A month later, Chinese authorities announced that he had been arrested for “picking quarrels and provoking trouble.” The Communist Party, which sees any independent political organizations, including trade unions, as threats to state power, censored the discussion of his case on WeChat and Douyin and warned his family to not help him. For his attempts at organizing fellow couriers, Chen faces years of jail.
In Korea, working as a logistics courier is perhaps one of the hardest, least-protected jobs available. Korea has some of the fastest delivery times in the world, with many online retailers offering “sunrise” or “bullet speed” delivery options. Couriers are usually paid around 800KRW per package, face fines for late deliveries, are uninsured, and do not receive overtime pay or paid-time-off. The pandemic-caused growth of online shopping has raised the demand for delivered goods in Korea by 30%. Couriers now work an average of twelve hours per day. While a national law was passed in 2018 to limit the workweek to fifty-two hours, couriers were not included in the deal because they are independent contractors for large corporations such as CJ Logistics, not employees. These increasingly long hours and heavy workloads led to over fifteen high-profile deaths of delivery workers nationally in 2020, resulting in demands for change. Some Korean shoppers began to put out snacks or signs saying, “it’s OK to be late.” Meanwhile, couriers have begun to collectively bargain with employers, resulting in Lotte Logistics declaring that they will hire 1,000 new workers and abolish penalties for late deliveries.
So, will life be getting any easier for couriers in the future?—Despite some victories in Korea, perhaps not. One issue is that the consumer preference for convenient deliveries appears likely to outlast the pandemic. One survey in July of 2020 showed that 52% of US consumers said they would avoid restaurants and bars after reopening. In South Korea, demand for delivered goods increased by 10% annually for years and by over 20% in 2020. For now, this new delivery-centered economy depends on overburdening logistics workers, an unsavory trade-off for convenience. However, if couriers are better compensated and protected, consumers will likely be forced to shoulder the cost in the form of slower and more expensive deliveries. This leaves some observers to guess that robots, such as Agility Robotics’ Digit, may soon push couriers out of work altogether.