Year-end Sale % OFF 
Abstract
AbstractWe analyze channel integration between a last‐mile delivery platform and a general merchandise retailer in two distinct stages: (1) platform delivery access (PDA), where the retailer continues to offer standard delivery through its own website but directs customers to the platform's website for new same‐day delivery; and (2) integrated delivery access (IDA), where customers can continue to use same‐day delivery service at the delivery platform website but can purchase products in a single order with both same‐day and standard delivery options at the retailer's website. We perform a quasi‐experiment using consumer spending data from retailer, target, and delivery platform, Shipt. We find that PDA provides positive impacts to the delivery platform through increased sales. IDA, on the other hand, increases the retailer's online channel sales but does not impact the delivery platform's sales. Moreover, we find that the positive effects of PDA on the delivery platform's sales are stronger in markets where online grocery penetration is lower, indicating that the effects were likely driven by increased purchases for groceries. Finally, the positive effect of IDA on the retailer's online channel sales is stronger in markets where the retailer has a greater loyal customer base and online grocery penetration is lower.
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
