Paper on Transportation Science
(or see the working version here)
Insights here: https://www.informs.org/About-INFORMS/News-Room/Press-Releases/New-Research-Says-Changes-in-Driver-Shifts-and-Pick-up-Choices-for-Food-Delivery-Services-Can-Boost-Profits
“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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Published by Konstantinos I. Stouras
Konstantinos Stouras is Assistant Professor of Operations Management at UCD, Michael Smurfit Graduate Business School. He specializes in technology management and innovation. His research examines crowd-based innovation models and the impact of on-demand marketplaces in the digital transformation of the service industry. Konstantinos received a Ph.D. in Operations Management from INSEAD and holds graduate degrees in Financial Engineering, and Applied Mathematics and Physics from the National Technical University of Athens.
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