(The Information) The growth of Temu and Shein has spurred the rise of little-known delivery startups that help them keep prices ultralow for shoppers. Now those budget delivery services are facing a growing number of legal complaints about their pay practices.
With a click of a button, shoppers on these and other sites like AliExpress set in motion a delivery chain that often starts in China and ends at their doorsteps, with the sites trying to keep a lid on costs every step of the way. The last few miles can be carried out by contract workers paid as little as 50 cents per delivery, who say they often work 12-plus–hour days for far less than minimum wage.
For example, two proposed class action lawsuits were filed earlier this year against UniUni, which makes deliveries using contract drivers for companies including AliExpress, Shein and Temu. Founded in 2019, UniUni has raised $135 million from Alibaba and other investors, according to PitchBook, including $30 million from Bessemer Venture Partners in November.
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