Online Grocery Retail: Revenue Models and Environmental Impact

  title={Online Grocery Retail: Revenue Models and Environmental Impact},
  author={Elena Belavina and Karan Girotra and Ashish Kabra},
  journal={Chicago Booth Research Paper Series},
This paper compares the financial and environmental performance of two revenue models for the online retailing of groceries: the per-order model, where customers pay for each delivery, and the subscription model, where customers pay a set fee and receive free deliveries. We build a stylized model that incorporates (i) customers with ongoing uncertain grocery needs and who choose between shopping offline or online and (ii) an online retailer that makes deliveries through a proprietary… 

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