To examine optimal omnichannel pricing strategies, courier wage-setting decisions, and welfare distribution on on-demand delivery platforms offering buy-online-and-pick-up-in-store options.
Developed a stylized analytical model examining pricing across service channels and platform wage-setting for independent couriers.
Estimated model primitives using empirical operational data from a leading meal-delivery platform in China to evaluate the impacts of pickup options and wage regulations.
Demonstrated that the standard positive price-demand relationship in gig services fails under omnichannel operations, and in-store pickup prices can equal or exceed delivery prices.
Found that buy-online-and-pick-up-in-store consistently increases platform and merchant profits, but only improves consumer surplus under high market demand.
Showed that introducing in-store pickup channels consistently reduces courier welfare across all market conditions.