Unpacking the business model: Food delivery platforms as ‘multiple market makers’

Abstract

Food delivery platforms constitute one of the largest objects of study in the field of the digital platform economy. However, to date, there are just a few studies that look at these platforms beyond aspects related to labour relations. This paper aims to advance in the theorization and empirical analysis of the development of the business model of food delivery platforms and analyse the relationship between platforms and providers. I argue that the development of the business model of platforms implies a process of marketization, given that platforms define and organise at least four elements that configurate a for-profit market (i.e. commodification, membership, governance and monetization). In the process of creating the ‘core’ market (i.e. the ‘food delivery market’), they create or develop other support markets: the ‘marketing market’ and the ‘gastronomy market’. For that reason, I assert that they are not only ‘market makers’, but ‘multiple market makers’ or ‘market developers’. In addition, in that process, the platforms establish power relations with the providers from the gastronomy sector (restaurants, fast food outlets, pizzerias) and exercise algorithmic and non-algorithmic forms of control over them. To make these claims, this paper is based on a qualitative study of food delivery platforms and their relations with providers in the city of Buenos Aires, Argentina. I conducted in-depth interviews with members of chambers of commerce from the gastronomy sector and with providers and analysed contracts signed between the platforms and different types of food establishments.