Logistics strategies of food delivery O2O supply chain with anti-food waste regulation

Abstract

With the ever-growing popularity of food deliver, more and more consumers are embracing this convenience as part of their lifestyle. However, the issue of food waste created by the food deliver industry has become a pressing concern in society. This paper aims to examine the link between food waste and food delivery services, and investigate the effects of anti-food waste regulations on the generation of food waste and the choice of logistics strategies in an Online-to-Offline (O2O) supply chain. Using game-theoretical approach, we focus on two prominent logistics strategies—the restaurant-free self-logistics strategy (RF strategy) and the platform-charge logistics strategy (PC strategy). Our research results show that anti-food waste regulation can effectively reduce food waste in food delivery service under the PC logistics strategy. The choice of logistics strategy is constrained by the online market potential, the relative logistics costs of platform logistics, and anti-food waste regulations. If the anti-food waste regulation is strict, as long as the size of the food delivery market and the relative logistics costs of platform logistics are not simultaneously small, the RF strategy will be the equilibrium strategy, whereas the supply chain members should choose the PC strategy. The study thus offers useful inferences for theory and practice.