It should be banned. This thing needs government intervention.
Chinese Economics Thread
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It should be banned. This thing needs government intervention.
A lot of it is really stupid. You are not expected to leave until your boss has already left and a lot of the hours are totally unproductive as a result.
why tho? its creating jobs right? not great ones but ones nonetheless
dumb as it sounds but if companies want to burn money why stop them?
Nothing productive happens past 4pm..
Why doesn’t the CCP do something about this rules/laws? After all, they are a socialist communist government, I would have thought they will be more leaning towards workers welfare to balance greedy companies from such practices
Why? It's basically a stimulus targeted at the lowest paid food delivery people while making a "luxury" service accessible to other low income earners.
Because the free market should fix it.
Besides I think varies widely between industry and companies.
Instead of burning money in China, they should be investing abroad to take foreign market share. These companies need to be kicked out of the China market for wasting money like this.
This isn't the 'win' Zhao Dashuai thinks it is.
What ends up happening is that the restaurants are forced to sell their delivery food at a lower price (coercive participation in promotions run by platforms where costs are born by the small restaurants). The conversation goes something like "hey nice delivery business you have with us, would be a shame if the traffic went away". In general most small restaurants do not have the brand/customers to not care (unless you're some famous place that people line up for) about participating in this platform.
Restaurants are forced to find ways to save costs (hire less wait staff because delivery requires less waiters), or cut corners (预制菜 anyone?).
On the other hand, its well known how the platforms gamify the delivery work for delivery drivers and squeeze the drivers to make more drops with less pay.
So in the end this ecosystem ends up focused on pseudo-zero-sum competition (there is still some nominal growth but not much) that is not quite sustainable over the long term.
But yes, someone tell us again why deflation is good.
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Deflation is not good. Its economics 101. Deflation leads to deflationary spiral of lower consumption and lower growth.
China can easily solve this by reducing interest rate which will bring more money into the system and more inflation. Consumption will also grow.
They have such a huge surplus that there is no fear of currency devaluation due to lower interest rates.
They are just being too cautious and wasting China's large work force at the moment.
Restaurant customers are paying less for their foods in China. As long as the foods are safe and healthy, how is that not a win?
Say whatever about the platforms, they cut down costs in logistics overall. It is hypocritical for a restaurant owner wanting to enjoy the benefits from using the platform and complain about the cost of the service at the same time. Small businesses are not forced to stay if they are losing money on the platform.
Not everyone thinks they need the service by a waiter for every meal. When they do, they still have the choice. As for pre-cooked meals, there are legit reasons, stricter fire codes in crowded places for example, in addition to lowering costs. It is also unreasonable to expect that all restaurants would be able to meet the demands at low costs without any pre-cooked food.
Many Chinese restaurant goers are actually okay with pre-cooked foods as long as they are charged fairly. You should have known the debates on 西贝.