Control of the Platform Reserve Army: The Roles of the State and Capital in China's Platform Economy

Abstract

The rise of digital platforms has formed a platform reserve army. The platform reserve army is the stagnant reserve army of contemporary digital capitalism, which brings challenges to labor control. Using data collected from an original survey of over 600 ride-hailing drivers in two Chinese cities, the roles of the state and capital, as well as their interactions in shaping capital's control over the platform reserve army in China, are clarified. Against the backdrop of the state's market-formalization policy, ride-hailing platforms have aligned with third-party rental companies that provide qualified vehicles. The platform-rental company alliance has effectively trapped a significant share of drivers to maintain an adequate and stable labor supply. Given their capacity to manipulate and restructure the reserve army, platforms have capitalized on the state's regulations to strengthen their control over labor.