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How do food delivery apps make money?

Abstract

grocery stores aspen co rely on urban transportation To alleviate customers’ burden of traveling in highly dense cities. This study aims to evaluate the impact of traffic conditions (through the use of Google Maps API) on key performance indicators of online food delivery services (through the use of web scraping techniques to retrieve customer’s ratings and the physical location of restaurants as provided by Facebook). From a collection of 19,934 possible routes between the physical location of 787 online providers and 4296 customers in Bogotá city, we found that traffic conditions exerted no practical effects on transactions volume and delivery time fulfillment, even though early deliveries showed a mild association with the number of comments provided by customers after receiving their orders at home.

Collaborative consumption (CC) is a new form of consumer behavior with important implications for business research (Benoit et al., 2017). CC takes place when people coordinate the acquisition and distribution of a resource. This coordination is frequently done for a fee or other non-monetary compensation through trading, bartering, and swapping (Belk, 2014). It is”that the peer-to-peer-based activity of receiving, providing, or sharing the accessibility to services and goods, coordinated through community-based on the web services” (Hamari et al., 20-16 ), p. 2047. According to some scholars, it is not clear the upcoming development of CC and its effects on midsize businesses (Barnes and Mattsson, 20 17 ). However, because an emerging phenomenon from the computer-mediated interaction between clients and providers, CC occurs in a considerable assortment of business, such as transport (Uber, Zipcar), lodging (Airbnb)and tourism (couch surfing ), entertainment (Spotify) and online food delivery services (Just-Eat. Com, Clickdelivery.com, UberEATS) (Pigatto et al., 2017).

Online food delivery providers (OFD) offer chances for Research as they are underrepresented in the literature of CC. According to Pigatto et al. (2017), these services can be distinguished as business platforms That provide order solutions, monitoring, and payment of this process but are perhaps not Responsible for the groundwork and order delivery operations although large Fast food chains such as McDonald’s or Domino’s Pizza provide their delivery. Services, small or moderate restaurants chains have captured the emergence of Intermediaries that offer these form of services (Yeo et al., 2017).

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