Uncovering merchants’ willingness to wait in on-demand food delivery markets

While traditional on-demand food delivery services help restaurants reach more customers and enable doorstep deliveries, they also come with drawbacks, such as high commission fees and limited control over the delivery process. White-label food delivery services have emerged as an alternative, ready...

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Main Authors: LIANG, Jian, ZHAO, Ya, WANG, Hai, XIAO, Zuopeng, KE, Jintao
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Language:English
Published: Institutional Knowledge at Singapore Management University 2024
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Online Access:https://ink.library.smu.edu.sg/sis_research/9309
https://ink.library.smu.edu.sg/context/sis_research/article/10309/viewcontent/UncoveringMerchantWillingnessToWait_av.pdf
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spelling sg-smu-ink.sis_research-103092024-10-28T08:51:32Z Uncovering merchants’ willingness to wait in on-demand food delivery markets LIANG, Jian ZHAO, Ya WANG, Hai XIAO, Zuopeng KE, Jintao While traditional on-demand food delivery services help restaurants reach more customers and enable doorstep deliveries, they also come with drawbacks, such as high commission fees and limited control over the delivery process. White-label food delivery services have emerged as an alternative, ready-to-use platform for restaurants to arrange delivery for customer orders received through their applications or websites, without the constraints imposed by traditional on-demand food delivery platforms or the need to develop an in-house delivery operation. Although several studies have investigated consumer behavior when using traditional on-demand food delivery services, there is limited research on merchants’ behavior when adopting white-label food delivery services. In this research, we develop a non-parametric survival model to estimate merchants’ willingness to wait when using white-label food delivery services and examine how various factors, such as delivery fees, the number of placed orders, and average waiting time, affect merchants’ willingness to wait, drawing on a dataset of both delivered and canceled orders from a crowd-sourcing delivery platform in Singapore. The empirical results show that merchants’ willingness to wait has a non-linear relationship with their average waiting time; it initially increases and then decreases with average waiting time. Moreover, the relationship between merchants’ willingness to wait during the pick-up stage and their average waiting times in the matching stage follows a similar non-linear trend. Merchants who have experienced lengthy waiting times on average in the matching stage tend to be less patient in the pick-up stage. This research sheds light on the stage-specific dynamics of merchants waiting behavior in white-label delivery service and provides insights for delivery platforms to optimize their operational strategies and enhance user experiences. 2024-11-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/9309 info:doi/10.1016/j.tranpol.2024.09.002 https://ink.library.smu.edu.sg/context/sis_research/article/10309/viewcontent/UncoveringMerchantWillingnessToWait_av.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Food delivery On-demand services Waiting time Willingness to wait Numerical Analysis and Scientific Computing Sales and Merchandising Transportation
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Food delivery
On-demand services
Waiting time
Willingness to wait
Numerical Analysis and Scientific Computing
Sales and Merchandising
Transportation
spellingShingle Food delivery
On-demand services
Waiting time
Willingness to wait
Numerical Analysis and Scientific Computing
Sales and Merchandising
Transportation
LIANG, Jian
ZHAO, Ya
WANG, Hai
XIAO, Zuopeng
KE, Jintao
Uncovering merchants’ willingness to wait in on-demand food delivery markets
description While traditional on-demand food delivery services help restaurants reach more customers and enable doorstep deliveries, they also come with drawbacks, such as high commission fees and limited control over the delivery process. White-label food delivery services have emerged as an alternative, ready-to-use platform for restaurants to arrange delivery for customer orders received through their applications or websites, without the constraints imposed by traditional on-demand food delivery platforms or the need to develop an in-house delivery operation. Although several studies have investigated consumer behavior when using traditional on-demand food delivery services, there is limited research on merchants’ behavior when adopting white-label food delivery services. In this research, we develop a non-parametric survival model to estimate merchants’ willingness to wait when using white-label food delivery services and examine how various factors, such as delivery fees, the number of placed orders, and average waiting time, affect merchants’ willingness to wait, drawing on a dataset of both delivered and canceled orders from a crowd-sourcing delivery platform in Singapore. The empirical results show that merchants’ willingness to wait has a non-linear relationship with their average waiting time; it initially increases and then decreases with average waiting time. Moreover, the relationship between merchants’ willingness to wait during the pick-up stage and their average waiting times in the matching stage follows a similar non-linear trend. Merchants who have experienced lengthy waiting times on average in the matching stage tend to be less patient in the pick-up stage. This research sheds light on the stage-specific dynamics of merchants waiting behavior in white-label delivery service and provides insights for delivery platforms to optimize their operational strategies and enhance user experiences.
format text
author LIANG, Jian
ZHAO, Ya
WANG, Hai
XIAO, Zuopeng
KE, Jintao
author_facet LIANG, Jian
ZHAO, Ya
WANG, Hai
XIAO, Zuopeng
KE, Jintao
author_sort LIANG, Jian
title Uncovering merchants’ willingness to wait in on-demand food delivery markets
title_short Uncovering merchants’ willingness to wait in on-demand food delivery markets
title_full Uncovering merchants’ willingness to wait in on-demand food delivery markets
title_fullStr Uncovering merchants’ willingness to wait in on-demand food delivery markets
title_full_unstemmed Uncovering merchants’ willingness to wait in on-demand food delivery markets
title_sort uncovering merchants’ willingness to wait in on-demand food delivery markets
publisher Institutional Knowledge at Singapore Management University
publishDate 2024
url https://ink.library.smu.edu.sg/sis_research/9309
https://ink.library.smu.edu.sg/context/sis_research/article/10309/viewcontent/UncoveringMerchantWillingnessToWait_av.pdf
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