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- W3102391164 abstract "The food delivery market has started to migrate to platforms rapidly. One reason food delivery platforms benefit this market is the potential to optimize courier routing by sharing couriers among many restaurants. We address the following questions: First, how courier sharing contributes to the reduction of delivery costs? Second, how platforms affect restaurant positioning and food delivery market coverage. To address these questions, we consider a spatial queuing model in which couriers are the servers. We model traditional restaurant delivery with dedicated couriers as two M/G/1 queues in which each courier works for one restaurant, and the platform delivery as two M/G/2 queue in which couriers are shared between restaurants and can take orders from any of them. We show that sharing couriers attains a shorter wait time for a market with a sufficiently high arrival rate and a sufficiently high sensitivity to taste among customers. This will result in higher customers' welfare and consequently drives up prices. Moreover, when the market is sensitive enough to taste, sharing couriers can lead to an increase in restaurant variety and market coverage. We then make extensions from a linear city to a two-dimensional space with the Manhattan distance and to account for asymmetric restaurants." @default.
- W3102391164 created "2020-11-23" @default.
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- W3102391164 date "2020-03-04" @default.
- W3102391164 modified "2023-09-23" @default.
- W3102391164 title "Courier Sharing in Food Delivery" @default.
- W3102391164 hasPublicationYear "2020" @default.
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