by Song Jianan

Chinese food delivery giant Meituan has announced plans to provide social security benefits for its full-time and stable part-time couriers across the country, with implementation set to begin in the second quarter of 2025.

The move follows JD.com’s recent pledge to cover full social security benefits—including the five statutory insurance schemes and housing fund—for its full-time food delivery riders starting March 2025. JD.com became the first platform in China to introduce such a policy for couriers, while also providing accident and health insurance for part-time riders.

Meituan revealed that since July 2022, it has been piloting occupational injury insurance for its gig workforce, allocating 1.4 billion yuan (US$194 million) to cover riders in seven provinces and municipalities. The company plans to expand this coverage nationwide, ensuring protection for all couriers.

Meituan has been researching social security schemes, including pension contributions, for delivery workers over the past year and is currently developing an information system to facilitate the rollout. According to publicly available data, in 2023, approximately 820,000 riders completed deliveries on at least 260 days of the year, making them eligible for the upcoming social security benefits. Given the continued growth of China’s food delivery sector, Meituan’s initiative is expected to cover over a million couriers in the future.

The announcement comes as competition in the food delivery market intensifies. While Meituan and Ele.me dominate the sector, with market shares of approximately 65% and 35% respectively as of 2023, JD.com’s recent entry into the space has introduced a new dynamic. The industry will be closely watching whether Ele.me follows suit in offering similar social security benefits.

Beyond insurance, Meituan has also introduced adjustments to its delivery algorithms. It recently launched a "no-penalty for late deliveries" pilot program in select cities in Guangxi, replacing financial penalties with a points-based system. The initiative includes measures such as improved dispatch coordination, better training for new riders, and enhanced appeal processes.

Industry observers note that China’s gig economy has gradually developed a clearer divide between professional and casual riders. As experienced couriers transition into long-term roles, providing social security aligns with their needs and contributes to a more stable and professional workforce.

However, the expansion of benefits could also trigger a "welfare race" among platforms, leading to higher costs. Some couriers have welcomed the initiative, saying it offers greater security and job satisfaction. Others remain cautious, stating that while social security contributions are beneficial, they will evaluate whether to switch platforms based on future developments.

With the industry evolving rapidly, the long-term impact of these policy changes—on both rider welfare and business competitiveness—remains to be seen.