New research says changes in driver shifts and pick-up choices for food delivery services can boost profits | 9/27/2019 | Staff
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The food delivery business, popularized by mobile online services such as Grubhub, OrderUp, and DoorDash, has become a $200 billion industry, which is expected to grow by more than 15% annually over the next five years. New research published in the INFORMS journal Transportation Science reveals how food delivery businesses can implement changes in driver shifts and order delivery structures that can decrease costs and contribute to higher profits.

The study, "Provably High-Quality Solutions for the Meal Delivery Routing Problem," conducted by Martin Savelsbergh of the Georgia Institute of Technology (GIT) and Baris Yildiz of Koc University, using data from Grubhub, finds that improving delivery drivers' shifts can reduce the difference between meal ready time and meal pick-up time by up to 50%. This illustrates the importance of having the right number of drivers at the right time.

Time - Meal - Restaurant - Accounts - %

The time it takes to prepare a meal at a desired restaurant accounts for 80% of the click-to-door time, or the time between placing an order and receiving an order. As a result, encouraging...
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