How On-Demand Delivery Services affects Land Use

The expansion of on-demand delivery services has been made possible by ghost kitchens and dark stores – grocery fulfillment centers which are located near consumers but are not open to customers [1]. These fulfillment centers have created new real estate opportunities. Several major ghost kitchen operators are known for building large portfolios out of warehouses, empty strip malls, or other storefronts near areas with growing on-demand food-delivery markets [1]. Restaurants are dispersing away from ground-floor locations in popular retail districts as ghost kitchens increase their urban real estate [1], [2].

One emerging area of study is the impact of on-demand delivery services on restaurant formation and viability. The services charge participating restaurants delivery fees as high as 30 percent of order value, though some cities have imposed caps of 15 percent [3].

References

  1. A. Shapiro, “Platform urbanism in a pandemic: Dark stores, ghost kitchens, and the logistical-urban frontier,” J. Consum. Cult., vol. 23, no. 1, pp. 168–187, Feb. 2023, doi: 10.1177/14695405211069983.

  2. G. Talamini, W. Li, and X. Li, “From brick-and-mortar to location-less restaurant: The spatial fixing of on-demand food delivery platformization,” Cities, vol. 128, p. 103820, Sep. 2022, doi: 10.1016/j.cities.2022.103820.

  3. Y. Liu and S. Li, “An economic analysis of on-demand food delivery platforms: Impacts of regulations and integration with ride-sourcing platforms,” Transp. Res. Part E Logist. Transp. Rev., vol. 171, p. 103019, Mar. 2023, doi: 10.1016/j.tre.2023.103019.

Related Literature Reviews

See Literature Reviews on On-Demand Delivery Services

See Literature Reviews on Land Use

Note: Mobility COE research partners conducted this literature review in Spring of 2024 based on research available at the time. Unless otherwise noted, this content has not been updated to reflect newer research.

Citing text in non-academic sources:

  1. Attribute to “Center of Excellence on New Mobility and Automated Vehicles”
  2. When links are included, include a link to the individual page where the statement was made.

Citing text in academic sources:

  1. The Center of Excellence on New Mobility and Automated Vehicles recommend that you visit, read, and cite the academic articles referenced here