The gig economy, represented by platform-based food delivery services, has experienced rapid global growth in recent years. However, legal controversies regarding workers' employment status, labor protection, and market monopolization have become increasingly prominent. In 2021, the People's Court of Huqiu District, Suzhou City, China, issued a ruling in case (2020) Su 0505 Minchu 5582, which was later designated as Supreme Court Guiding Case No. 238. This case holds significant implications for determining whether platform-based delivery riders qualify as employees under de facto labor relationships. Meanwhile, between 2024 and 2025, new market entrants such as JD.com and Wahaha Group have disrupted the previously stable duopoly in China’s food delivery industry. By integrating transaction cost theory and the multi-principal-agent model, this paper examines the impact of recent legal cases and competitive dynamics on platform-based employment models and market structures from a law and economics perspective. The study finds that stricter legal regulations, coupled with intensified competition from new entrants, may push platform enterprises to strike a balance between safeguarding workers’ rights and fostering innovation. Based on these findings, the paper proposes several policy and legal recommendations aimed at achieving a more equitable and efficient market equilibrium.
Legal Regulation; Guiding Case No. 238; Multi-Principal-Agent; Market Competition
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