Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Promises and Pitfalls of Digital Platforms: Evidence from the Online Food Ordering and Delivery Industry

디지털 플랫폼의 경제적 역할과 과제: 음식 주문 배달 플랫폼 실증 분석

  • Yongkil Ahn (Department of Business Administration, Seoul National University of Science and Technology) ;
  • Myungjin Song (HMG Business Intelligence Institute, Hyundai Motor Group)
  • 안용길 (서울과학기술대학교 경영학과) ;
  • 송명진 (현대자동차그룹 HMG경영연구원)
  • Received : 2024.08.30
  • Accepted : 2024.09.25
  • Published : 2024.09.30
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Abstract

Purpose - We empirically investigate the promises and pitfalls of digital platforms in the online food ordering and delivery section. We first focus on the role of digital platforms before, during, and after the COVID-19 pandemic, and then proceed to explore whether there exists a digital divide phenomenon in Korea's digital economy. Design/methodology/approach - We partner with a nation-wide online food ordering and delivery platforms in Korea and quantify the long tail effect before and after the COVID-19 pandemic year by year. We also utilize non-parametric estimation techniques to investigate whether digital divide indeed exists in the cross-section of Korea's digital economy. Findings - We find that the use of digital platforms makes it easier for small businesses and restaurants to deal with the COVID-19 pandemic on average. But, it appears that relatively sophisticated (large or franchised rather small or independent) entities take more advantage of digital platforms. Research implications or Originality - This study is one of the first few empirical works on the role of digital platforms in Korea. The results may imply that digital platforms complement the traditional brick-and-mortal industry especially upon unexpected economic shocks. We also note that this complementary effect is transient and more clustered in those entities having a good understanding of digital platforms.

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References

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