(Yicai) Sept. 19 -- China’s ride-hailing car drivers rank as the second-highest earners among the country’s six official blue-collar occupations, a new report shows, with the sector serving not just as a key source of flexible work but also as a buffer for industrial job losses and regional economic swings.

These drivers earn an average of CNY7,623 (USD1,070) each per month, according to the report by the China Research Center on New Forms of Employment at Capital University of Economics and Business. They also had the highest satisfaction rate at over 81 percent, showing how flexible hours, in-vehicle work safety, and instant payouts enhance their financial well-being.

Earnings depend on multiple factors, including fares and order volumes, bonuses and subsidies, fuel and electricity costs, and pick-up efficiency. Commission rates also play a major role. For example, market leader Didi Chuxing charged commissions of 14 percent last year.

The report, based on a survey of more than 5,400 drivers in 13 provincial-level regions, shows that the sector has nearly 7.5 million workers and is not only a key channel for flexible employment but also a cushion for jobs lost during industrial reform and regional economic swings.

The ride-hailing sector provides an ample buffer against economic changes, policy adjustments, and industrial upgrades, becoming an important support for stable employment and structural transformation, said Zhang Chenggang, the think tank’s director.

Seventy-seven percent of the drivers entered the sector after becoming unemployed, the survey found. Ride-hailing platforms offer low-barrier, high-flexibility job opportunities for those displaced from traditional roles.

Most drivers are men, as women make up under 10 percent despite a slight increase in representation. More than 60 percent of them have a high school education.

Over half are the primary or sole source of income for their families, with about 80 percent having moderate financial pressure, which leads them to opt for a job offering instant payouts and flexible hours, according to the report.

Working hours vary from driver to driver, with 6.4 hours the daily average, though most work around 10 hours.

The drivers are, on average, nearly 40 years old. As China's population ages, the country is raising the retirement age. More than 20 cities, including Chengdu, Hangzhou, Kunming, Qingdao, Shenzhen, and Weifang, have raised the retirement age for ride-hailing drivers to 65.

The sector is hitting some bottlenecks. Last year, the number of licensed drivers surged to nearly 7.5 million, a 159 percent increase since 2020, while monthly order volumes grew by “just” 38 percent. The oversupply has prompted platform operators to cut prices in a bid to compete. 

Another issue that Zhang pointed out is drivers' concerns over “algorithmic control,” which could be solved by exploring diversified income models.

China’s five other blue-collar positions are delivery couriers, truck drivers, express delivery workers, manufacturing line operators, and construction laborers.

Editor: Futura Costaglione