Food Ordering and Delivery: How Platforms and Restaurants Should Split the Pie

Published Online:https://doi.org/10.1287/mnsc.2023.00435

References

  • Abhishek V, Guajardo JA, Zhang Z (2021) Business models in the sharing economy: Manufacturing durable goods in the presence of peer-to-peer rental markets. Inform. Systems Res. 32(4):1450–1469.LinkGoogle Scholar
  • Afeche P, Liu Z, Maglaras C (2018) Ride-hailing networks with strategic drivers: The impact of platform control capabilities on performance. Columbia Bus. School Res. Paper 18–19:18–19.Google Scholar
  • Agarwal A, Hosanagar K, Smith MD (2011) Location, location, location: An analysis of profitability of position in online advertising markets. J. Marketing Res. 48(6):1057–1073.CrossrefGoogle Scholar
  • Amaldoss W, Desai PS, Shin W (2015) Keyword search advertising and first-page bid estimates: A strategic analysis. Management Sci. 61(3):507–519.LinkGoogle Scholar
  • Astashkina E, Belavina E, Marinesi S (2019) The environmental impact of the advent of online grocery retailing. Preprint, submitted April 3, https://dx.doi.org/10.2139/ssrn.3358664.Google Scholar
  • Bai J, So KC, Tang CS, Chen X, Wang H (2019) Coordinating supply and demand on an on-demand service platform with impatient customers. Manufacturing Service Oper. Management 21(3):556–570.LinkGoogle Scholar
  • Balseiro SR, Feldman J, Mirrokni V, Muthukrishnan S (2014) Yield optimization of display advertising with ad exchange. Management Sci. 60(12):2886–2907.LinkGoogle Scholar
  • Banerjee S, Riquelme C, Johari R (2015) Pricing in ride-share platforms: A queueing-theoretic approach. Preprint, submitted February 24, https://dx.doi.org/10.2139/ssrn.2568258.Google Scholar
  • Baye MR, Gatti JRJ, Kattuman P, Morgan J (2009) Clicks, discontinuities, and firm demand online. Econom. Management Strategy 18(4):935–975.CrossrefGoogle Scholar
  • Belavina E, Girotra K, Kabra A (2017) Online grocery retail: Revenue models and environmental impact. Management Sci. 63(6):1781–1799.LinkGoogle Scholar
  • Benjaafar S, Ding JY, Kong G, Taylor T (2022) Labor welfare in on-demand service platforms. Manufacturing Service Oper. Management 24(1):110–124.LinkGoogle Scholar
  • Benjaafar S, Kong G, Li X, Courcoubetis C (2018) Peer-to-peer product sharing: Implications for ownership, usage, and social welfare in the sharing economy. Management Sci. 65(2):477–493.LinkGoogle Scholar
  • Benjaafar S, Bernhard H, Courcoubetis C, Kanakakis M, Papafragkos S (2021) Drivers, riders, and service providers: The impact of the sharing economy on mobility. Management Sci. 68(1):1–808.Google Scholar
  • Besbes O, Castro F, Lobel I (2021) Surge pricing and its spatial supply response. Management Sci. 67(3):1350–1367.LinkGoogle Scholar
  • Bimpikis K, Candogan O, Saban D (2019) Spatial pricing in ride-sharing networks. Oper. Res. 67(3):744–769.LinkGoogle Scholar
  • Cachon GP (2003) Supply chain coordination with contracts. Supply Chain Management: Design, Coordination and Operation, Handbooks in Operations Research and Management Science, vol. 11 (Elsevier, Amsterdam), 227–339.Google Scholar
  • Cachon GP, Lariviere MA (2005) Supply chain coordination with revenue-sharing contracts: Strengths and limitations. Management Sci. 51(1):30–44.LinkGoogle Scholar
  • Cachon GP, Daniels KM, Lobel R (2017) The role of surge pricing on a service platform with self-scheduling capacity. Manufacturing Service Oper. Management 19(3):368–384.LinkGoogle Scholar
  • Cachon GP, Dizdarer T, Tsoukalas G (2021) Decentralized or centralized control of online service platforms: Who should set prices? Working paper, University of Pennsylvania, Philadelphia.Google Scholar
  • Chen M, Hu M, Wang J (2022) Food delivery service and restaurant: Friend or foe? Management Sci. 68(9):6539–6551.LinkGoogle Scholar
  • Cui H, Niu R, Tong X (2022) Food in the time of covid: Estimating the effects of delivery platforms on small-business restaurants in California. Preprint, submitted September 15, https://dx.doi.org/10.2139/ssrn.4219542.Google Scholar
  • Davalos J (2021) New York city council passes bill to cap food delivery fees. Bloomberg (August 26), https://www.bloomberg.com/news/articles/2021-12-13/asia-stocks-set-to-drop-amid-policy-omicron-risks-markets-wrap.Google Scholar
  • Dickinson G (2023) How to navigate and negotiate contracts with third-party food delivery platforms. Accessed April 17, 2023, https://backofhouse.io/resources/tips-navigate-negotiate-restaurant-contracts-third-party-food-delivery-platforms-commission-rates.Google Scholar
  • Edelman B, Ostrovsky M, Schwarz M (2007) Internet advertising and the generalized second-price auction: Selling billions of dollars worth of keywords. Amer. Econom. Rev. 97(1):242–259.CrossrefGoogle Scholar
  • Feldman P, Frazelle AE, Swinney R (2023) Managing relationships between restaurants and food delivery platforms: Conflict, contracts, and coordination. Management Sci. 69(2):812–823.LinkGoogle Scholar
  • Feng G, Kong G, Wang Z (2021) We are on the way: Analysis of on-demand ride-hailing systems. Manufacturing Service Oper. Management 23(5):1237–1256.LinkGoogle Scholar
  • Filippas A, Horton JJ, Zeckhauser RJ (2020) Owning, using, and renting: Some simple economics of the “sharing economy”. Management Sci. 66(9):4152–4172.LinkGoogle Scholar
  • Filippas A, Jagabathula S, Sundararajan A (2023) The limits of centralized pricing in online marketplaces and the value of user control. Management Sci. 69(12):7202–7216.Google Scholar
  • Forman L (2019) Some restaurants get served in delivery boom. Wall Street Journal (June 13), https://www.wsj.com/articles/some-restaurants-get-served-in-delivery-boom-11560420001.Google Scholar
  • Fraiberger SP, Sundararajan A (2015) Peer-to-peer rental markets in the sharing economy. Working paper, New York University, New York.Google Scholar
  • Ghose A, Yang S (2009) An empirical analysis of search engine advertising: Sponsored search in electronic markets. Management Sci. 55(10):1605–1622.LinkGoogle Scholar
  • Glaeser CK, Fisher M, Su X (2019) Optimal retail location: Empirical methodology and application to practice: Finalist–2017 m&som practice-based research competition. Manufacturing Service Oper. Management 21(1):86–102.LinkGoogle Scholar
  • Gorbushin A, Hu M, Yang X, Zhou Y (2025) Cross-vs. in-region courier routing in on-demand delivery. Preprint, submitted February 28, http://dx.doi.org/10.2139/ssrn.5170292.Google Scholar
  • Gurvich I, Lariviere M, Moreno A (2019) Operations in the on-demand economy: Staffing services with self-scheduling capacity. Hu M, ed. Sharing Economy: Making Supply Meet Demand (Springer International Publishing, Cham, Switzerland), 249–278.Google Scholar
  • Hu M, Zhou Y (2017) Price, wage and fixed commission in on-demand matching. Preprint, submitted April 10, https://dx.doi.org/10.2139/ssrn.2949513.Google Scholar
  • Hu B, Hu M, Zhu H (2022) Surge pricing and two-sided temporal responses in ride hailing. Manufacturing Service Oper. Management 24(1):91–109.LinkGoogle Scholar
  • Jerath K, Ma L, Park YH, Srinivasan K (2011) A “position paradox” in sponsored search auctions. Marketing Sci. 30(4):612–627.LinkGoogle Scholar
  • Jiang B, Tian L (2016) Collaborative consumption: Strategic and economic implications of product sharing. Management Sci. 64(3):1171–1188.LinkGoogle Scholar
  • Karamshetty V, Freeman M, Hasija S (2022) An unintended consequence of platform dependence: Empirical evidence from food-delivery platforms. ICIS 2022 Proc., vol. 2 (Association for Information Systems, Atlanta).Google Scholar
  • Katona Z, Sarvary M (2010) The race for sponsored links: Bidding patterns for search advertising. Marketing Sci. 29(2):199–215.LinkGoogle Scholar
  • L’Ecuyer P, Maillé P, Stier-Moses NE, Tuffin B (2017) Revenue-maximizing rankings for online platforms with quality-sensitive consumers. Oper. Res. 65(2):408–423.LinkGoogle Scholar
  • Li Z, Wang G (2024) The role of on-demand delivery platforms in restaurants. Management Sci., ePub ahead of print October 16, https://doi.org/10.1287/mnsc.2021.01010.Google Scholar
  • Littman J (2019) Delivery by the numbers: How top third-party platforms compare. Restaurant Dive (October 3), https://www.restaurantdive.com/news/delivery-by-the-numbers-how-top-third-party-platforms-compare/564279/.Google Scholar
  • Liu D, Chen J, Whinston AB (2010) Ex ante information and the design of keyword auctions. Inform. Systems Res. 21(1):133–153.LinkGoogle Scholar
  • Liu S, He L, Shen ZJM (2021) On-time last-mile delivery: Order assignment with travel-time predictors. Management Sci. 67(7):4095–4119.LinkGoogle Scholar
  • Mak HY (2022) Enabling smarter cities with operations management. Manufacturing Service Oper. Management 24(1):24–39.LinkGoogle Scholar
  • Mao W, Ming L, Rong Y, Tang CS, Zheng H (2022) On-demand meal delivery platforms: Operational level data and research opportunities. Manufacturing Service Oper. Management 24(5):2535–2542.LinkGoogle Scholar
  • Oblander ES, McCarthy D (2021) How has COVID-19 impacted customer relationship dynamics at restaurant food delivery businesses? Working paper, Columbia University, New York.Google Scholar
  • Ozkan E, Ward AR (2020) Dynamic matching for real-time ride sharing. Stochastic Systems 10(1):29–70.Google Scholar
  • Rana P, Haddon H (2021) Doordash and uber eats are hot. They’re still not making money. Wall Street Journal (May 28), https://www.wsj.com/articles/doordash-and-uber-eats-are-hot-theyre-still-not-making-money-11622194203.Google Scholar
  • Sullivan M (2024) Price controls in a multi-sided market. Working paper, University of Western Ontario, London.Google Scholar
  • Taylor TA (2018) On-demand service platforms. Manufacturing Service Oper. Management 20(4):704–720.LinkGoogle Scholar
  • Varian HR (2007) Position auctions. Internat. J. Industrial Organ. 25(6):1163–1178.CrossrefGoogle Scholar
  • Yahoo Finance (2021) Just eat takeaway.com n.v. (grub) income statement. Accessed November 9, 2022, https://finance.yahoo.com/quote/GRUB/financials?p=GRUB.Google Scholar
  • Yahoo Finance (2022a) Doordash, inc. (dash) income statement. Accessed November 9, 2022, https://finance.yahoo.com/quote/DASH/financials?p=DASH.Google Scholar
  • Yahoo Finance (2022b) Just eat takeaway.com n.v. (jtkwy) income statement. Accessed November 9, 2022, https://finance.yahoo.com/quote/JTKWY/financials?p=JTKWY.Google Scholar
  • Yahoo Finance (2022c) Uber technologies, inc. (uber) income statement. Accessed November 9, 2022, https://finance.yahoo.com/quote/UBER/financials?p=UBER.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.