Who Benefits from Food Delivery Platforms? The Heterogeneous Effects of Platforms on Restaurant Sales

Kyeongbae Kim and Gong Lee

Hitotsubashi Journal of Economics, 2024, vol. 65, issue 1, 65-93

Abstract: We quantify the heterogeneous impact of food delivery platforms on sales amounts at the restaurant level, using novel credit card transaction data from 2020 that cover the entire universe of Korean restaurants during the COVID-19 pandemic. Our instrumental-variable regression demonstrates the use of platforms increases a restaurantʼs monthly sales revenue by approximately 1,545 USD. Furthermore, we demonstrate the impact is particularly large on small restaurants. The bottom-decile restaurants experience a 97.6% increase in total sales revenue from platforms. Our findings show that small firms̶not just ʻsuperstarʼ firms̶can be the main beneficiaries of technological advancements, depending on industry characteristics.

Keywords: food delivery platforms; online shopping; food delivery; COVID-19 (search for similar items in EconPapers)
JEL-codes: L10 L81 L83 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjec:v:65:y:2024:i:1:p:65-93

DOI: 10.15057/hje.2024004

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