online food delivery case study


Why are online food delivery services so expensive?

    This is mostly due to high fees that online food delivery services charge, not only as service and delivery charges to the consumer, but also to the restaurant. Most online food delivery services charge the restaurant between 20-30 percent of each purchase.

Is the rapid growth of online food delivery services disrupting the restaurant industry?

    Abstract The rapid growth of online food delivery services has disrupted the traditionally oine restaurant industry. This study presents empirical evidence on the crowding-out e ects and market expansions induced by the staggered entry of online food delivery services.

What is the distribution of online food delivery service sales?

    The distribution of online food delivery service sales, which flters out transactions of zero dollars, is more centered to the left, but has a longer right tail. 40 Appendix Figure A2: Density of Restaurant and OFD Expenditure (per card) Year-over-Year (a) Density of Amount (per card) (b) Density of OFD Amount (per card)

Do online food delivery services cause incremental cannibalization of restaurant sales?

    Finally, the impact of online food delivery services is quantifed year- over-year in order to determine whether di erent levels of exposure to online food delivery services has caused incremental cannibalization of restaurant sales. 6 Results
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