What Has Changed in the New National Standards for Food Delivery That Billions Are Watching?

Recently, Taobao Flash Sales, Meituan, and JD Food Delivery have each released announcements stating their firm support for and implementation of the “Recommended National Standards for Food Delivery Platform Service Management.” These announcements are widely interpreted as the “new national standards.” While there is a significant gap between a “recommendation statement” and a “national standard” in legal terms, in practice, this “statement” is a mandatory response for the three major food delivery giants, as no one wants to face regulatory talks. So, the question arises: what exactly are the key points of this “recommendation statement”? I’ve summarized the main aspects, which are essentially three key measures:The First Measure: “Anti-Overwork”.The main provision here is: delivery drivers are required to take at least one day off per week, and they should be able to decide whether to take that day off themselves—platforms should not force overtime. The maximum work duration for drivers should generally not exceed 8 hours per day, and if they work overtime, the driver must confirm the additional hours. After working 4 hours continuously, drivers should receive a fatigue alert, and they should be given a 20-minute break. Platforms are prohibited from using algorithms or reward systems to force or indirectly pressure drivers into working overtime.

Overall, this provision aligns with labor laws (8-hour workdays) and long-distance driving regulations, aiming to prevent a small number of delivery drivers from overworking and making competition less intense. If we can eliminate the “strivers,” the market’s average order value will increase, allowing most delivery drivers to earn more and work less. It’s a win-win. However, these provisions are mostly framed with “in principle,” so actual implementation remains to be seen. Hopefully, the three major platforms can truly “honor their commitments.”The Second Measure: “Limit the Giants”.One of the key regulations here is that platforms are prohibited from forcing merchants to run promotions. Platforms are also required to optimize their dispatch algorithms, considering factors such as traffic conditions, weather, and merchant cooking times to avoid squeezing delivery times due to unreasonable algorithms. If a merchant is late in preparing food, the system should automatically adjust the delivery time and allow drivers to freely swap or cancel orders without penalty. This is a direct restriction on platforms, addressing the severe issue of “exploiting labor” that has become prominent in the food delivery industry. Delivery drivers are often in a tough situation: although they appear to have some form of “social insurance,” platform fines, algorithmic exploitation, and the phenomenon of “shifting merchant and consumer risks onto the delivery drivers” are too severe. A former deputy director of the Beijing Social Security Bureau shared a personal experience: after working a full day, he was shocked to find that one late order resulted in a 60% deduction in his delivery fee.

After working 12 hours, his total earnings were just 41 yuan. This is a primary reason why many delivery drivers suffer from “death fatigue.” The regulation on “banning platforms from forcing merchants to promote” also somewhat curbs platforms from using “big stores to bully small ones.” Some might ask: what exactly is the relationship between platforms and merchants? The answer is simple: the internet landlord collects rent from the store. As the landlord controls the traffic, they naturally have the incentive to raise the rent (i.e., pressuring merchants into promotions to buy traffic and exposure).The Third Measure: “Delivery Duration and Safety Speed Limits”.This regulation, which has stirred significant controversy, stipulates that “delivery times must meet the safe speed limit, and electric bikes should not exceed an average speed of 15 km/h.” What does a speed limit of 15 km/h mean? For comparison, most people ride shared bicycles at a speed of about 20 km/h. This means delivery drivers will be required to ride electric bikes slower than people riding normal bicycles. After some thought, it seems this regulation aims to help delivery drivers “enjoy the scenery along the way” and reduce overwork, while also addressing traffic violations. It seems like a good thing. But how many people will actually comply with the rules in practice is uncertain. This news might have a bigger impact on the capital market, such as a decline in the stock prices of electric bike companies and a rise in motorcycle companies. The reason is simple: if this standard is enforced, riders will likely swap their electric bikes for motorcycles.

However, this is not ideal for environmental protection, and after some time, the policy might be revised back. Therefore, we expect the enforcement of this standard to have significant flexibility. Moreover, platforms have their own “workarounds.” The food delivery battle is still ongoing, with Meituan, which has been underperforming in the third quarter, likely to take major actions to compete with Alibaba. Alibaba, meanwhile, doesn’t seem to be backing down. To maintain their order volume and DAU (Daily Active Users), both sides will continue to find new ways to entice merchants into participating in activities and subsidies. As of now, we still see active subsidy campaigns on both platforms. I’ve also learned from several delivery drivers that, although the major apps have introduced fatigue alerts, the “mandatory 20-minute rest” feature can technically be bypassed, allowing drivers to continue accepting orders. Only the merchant-side reforms are yielding immediate results. Many merchants who previously had “promotion buttons” removed now face pressure due to higher customer complaints. But now, platforms have added a “technical service fee,” which isn’t much different from the old “promotion button.” So, the “wool” is still on the sheep.The reform in the food delivery industry concerns the consumption habits of billions of workers.While the “recommended national standard” has served as a warning, we hope that future regulations will be more reasonable and enforceable, truly protecting the interests of consumers, merchants, and delivery drivers. The industry’s reform must advance into deeper waters.