Food delivery optimization

Paper on Transportation Science

(or see the working version here)

Insights here:

“By introducing a minimum guaranteed hourly pay, platforms can gain more reliability among drivers and the benefits seem to outweigh the minimal cost increase,” said Savelsbergh. “A guaranteed pay rate of $15 an hour is 1.5 times the payment for a delivery if the delivery fee is $10. If a driver completes at least 1.5 deliveries per hour, the minimum-pay guarantee becomes inactive.”

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