Online Grocery Retail: Revenue Models and Environmental Impact
@article{Belavina2017OnlineGR, title={Online Grocery Retail: Revenue Models and Environmental Impact}, author={Elena Belavina and Karan Girotra and Ashish Kabra}, journal={Chicago Booth Research Paper Series}, year={2017} }
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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