Despite Heavy Snow, Riders Become the 'Capillaries' of the Platform Economy Delivering to Apartments, Villas, and Mountain Villages

Increase in New Job Groups Like Taxi Drivers and Security Workers
Emerging as Another Economic Agent

[Asia Economy Reporters Donghoon Jeong and Jeongyun Lee] Seong Hoin (31), a delivery rider in his third year, cited the heavy snowfall on the 6th and 7th as the most difficult working days. Working full-time as a rider in the Yeongdeungpo-gu and Gangseo-gu areas of Seoul, he rode through every alley until 8 p.m. on the 6th, when the delivery application (app) operation was suspended due to the heavy snow. Snow piled up on residential roads, increasing the risk of delivery. On icy uphill roads, motorcycles were useless. He carried jjajangmyeon and chicken with bare hands and climbed the narrow uphill roads several times on foot. Although he wanted to rest at home for safety, he could not give up his income. Seong said, "The worse the weather, the harder it is to operate the motorcycle, but the number of orders increases several times. Deliveries naturally get delayed, and there are more demands to hurry deliveries. I hope people refrain from rushing the riders who are driving in dangerous situations."

◆ Era of 200,000 riders... the cost of overwork is insufficient = The era of 200,000 riders plays a vital role in the platform economy, even more so when compared to the number of taxi drivers (about 260,000) and apartment security workers (about 200,000). The expansion of untact (contactless) consumption and the surge in delivery demand amid the spread of COVID-19 have elevated the role of riders as a new occupational group and economic agents. While entry and exit are easy, the labor intensity is as severe as in any other occupation. The cost of overwork is still insufficient. Based on full-time riders, most are men in their 20s to 40s, working more than 10 hours a day and over 50 hours a week, earning around 2.5 million KRW per month on average. Compared to the average monthly wage based on the minimum hourly wage (1.82 million KRW, based on 40 hours per week), this is an unreasonably low level.

◆ Part-time riders join instead of full-time = Despite the difficulty and low income, riders are evolving beyond full-time work into segmented forms such as side jobs and short-term part-time jobs. Son Seongil (37), a ‘two-job’ rider working at a small and medium-sized enterprise in the metropolitan area, started delivery work after COVID-19 last year. As leisure activities like exercise became difficult due to COVID-19, he chose this job to earn some pocket money. With more people around him making money through stock and real estate investments, he decided to try earning some pocket money as a rider. "Thanks to the decent income, I even gifted my girlfriend a luxury bag," he said. During the busiest delivery hours in the evening, he sometimes earns about 100,000 KRW in just 3 to 4 hours.

On the 7th, when the temperature in Seoul dropped to minus 15 degrees Celsius and a cold wave warning was issued, a motorcycle delivery worker set out for deliveries during lunchtime on Seosomun-ro, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

◆ Era of multiple jobs, delivery riders are the top choice = In the past, preferred side jobs for office workers included tutoring, part-time store work or management, serving, office assistance, and milk or newspaper delivery. Now, as with Son Seongil, riders have become the mainstream side job. According to a survey conducted by the job portal Incruit in October last year targeting 923 adult men and women seeking part-time jobs, 24.8% of job seekers said they hoped to work in delivery part-time jobs. The intention was especially high among office workers and people in their 30s and 40s.

◆ Challenges as economic agents = Delivery riders are sometimes called ‘ghosts of the city.’ They roam various parts of the city, but no one knows where they come from or who they work with, and few pay attention to them. Riders sign consignment contracts with delivery agencies and are classified as individual business owners. Therefore, delivery agencies can avoid legal responsibilities such as the four major insurances, severance pay, and industrial accident handling. This is why riders are said to be in a ‘labor blind spot.’

Professor Kim Seonghee of Korea University’s Labor Issues Research Institute said, "Recently, the phenomenon of special employment has become prominent, which offers companies the advantage of cost reduction. However, in reality, the consignment contracts that riders and others sign are no different from subordinate employment relationships. It is time for our society to make it a major agenda to determine by what standards their worker status should be guaranteed."

This content was produced with the assistance of AI translation services.