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E-commerce giant Ele.me, a subsidiary of Alibaba, has reached a landmark agreement with the Shanghai Municipal Trade Union Council on algorithm and labor rules that will govern its delivery operations throughout 2025. The agreement, officially titled the “2025 Ele.me Platform Algorithm and Labor Rules Agreement,” aims to improve the working conditions and safeguard the rights of its extensive rider network.
This agreement will directly impact over 4 million individuals across Ele.me’s platform, encompassing full-time delivery personnel, crowdsourced riders, and service provider staff. It follows the precedent set by the initial “2025 Ele.me (Shanghai) Online Delivery Algorithm and Labor Rules Agreement,” launched in Shanghai in April, which pioneered protections for gig workers in China’s rapidly expanding online delivery sector.
Following the initial Shanghai agreement, nine key provinces and cities across China convened similar consultation meetings. Ele.me solicited feedback from frontline delivery riders in over 200 cities. The company reported receiving nearly 10,000 suggestions, categorized into 217 distinct issues. Of these, Ele.me claims to have developed solutions and coordinated resolutions for 72, while responding to and committing to gradually optimize the remaining 2136.
Key areas of concern raised by riders centered on compensation, rest periods, occupational safety, and welfare benefits. These issues were central to the negotiation discussions. A panel of 11 rider representatives engaged in discussions with a team of nine Ele.me representatives. These representatives had expertise in algorithm technology, compliance management, logistics, legal affairs, rider welfare, and franchisee (service provider) operations.
Riders advocated for tangible improvements, including subsidies for working in extreme weather conditions, measures to address delays in order preparation by merchants, and improved insurance coverage. The platform addressed these concerns during the meeting, culminating in their inclusion in the final “2025 Ele.me Platform Online Delivery Algorithm and Labor Rules Agreement.”
The Shanghai Municipal Trade Union Council lauded the agreement as being substantive and comprehensive, representing a step forward in protecting the rights of gig economy workers. The agreement reflects increasing scrutiny of algorithm-driven labor practices within China’s tech sector. As platforms like Ele.me increasingly rely on sophisticated algorithms to manage and optimize their workforce, concerns around fairness, transparency, and worker well-being have risen. This agreement signals a growing trend towards greater regulatory oversight and a push for more equitable labor practices within the gig economy.
Analysts note that the success of this agreement will depend on its effective implementation and enforcement. Ensuring that Ele.me’s algorithms are fair, transparent, and responsive to the needs of its riders will be crucial. The industry will be watching closely to see how this agreement impacts Ele.me’s operations and whether it serves as a model for other platforms in China and beyond.
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