Market Segmentation of Delivery Apps Using Latent Class Logit Model

As the usage of domestic delivery apps skyrockets, the market sees a rapid expansion. Over the past five years, the transaction volume has amplified more than ninefold, predominantly propelled by private delivery apps. However, the rising service fees of these apps have sparked dissatisfaction among consumers and small business owners, drawing attention to the emergence of public delivery apps. These apps could potentially achieve numerous social objectives, such as broadening consumer choices and invigorating local markets. In this study, we aimed to understand consumers' preferences for delivery apps and explore ways to improve public delivery apps and revitalize local economies through them. To achieve this, we analyzed consumer preferences for market segmentation of delivery apps using latent class logt model. This study proposes marketing strategies to increase the usage of public delivery apps and revitalize local economies.