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Information Systems Faculty Publications and Presentations

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2023

Multi-sided markets

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Full-Text Articles in Business

Dinner At Your Doorstep: Service Innovation Via The Gig Economy On Food Delivery Platforms, Geng Sun, Yeongin Kim, Yinliang (Ricky) Tan, Geoffrey G. Parker Oct 2023

Dinner At Your Doorstep: Service Innovation Via The Gig Economy On Food Delivery Platforms, Geng Sun, Yeongin Kim, Yinliang (Ricky) Tan, Geoffrey G. Parker

Information Systems Faculty Publications and Presentations

Boosted by greater demand for convenience and then turbocharged by the coronavirus disease 2019 pandemic, online food delivery (OFD) has witnessed rapid growth over the past several years. Despite such growth, however, it is still unclear how incentives and payoffs of various parties are affected by the three-sidedness of the OFD market, which involves consumers, restaurants, and gig drivers—beyond the traditional two-sided setting. In this paper, we study the OFD platforms’ optimal choices in a competitive setting where the platforms compete on both prices and service quality. Our analysis shows that conventional insights from two-sided platforms do not completely carry …