Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia

How does online commerce affect the offline presence of retail, food, and beverage (F&B) establishments in cities? While extensive literature exists on e-commerce’s effect on the retail industry, its impact on retailers’ location preference and in particular street vendors in the Global South ha...

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Bibliographic Details
Main Author: Wisambodhi, Prathito Andy
Other Authors: Sevtsuk, Andres
Format: Thesis
Published: Massachusetts Institute of Technology 2022
Online Access:https://hdl.handle.net/1721.1/139879
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author Wisambodhi, Prathito Andy
author2 Sevtsuk, Andres
author_facet Sevtsuk, Andres
Wisambodhi, Prathito Andy
author_sort Wisambodhi, Prathito Andy
collection MIT
description How does online commerce affect the offline presence of retail, food, and beverage (F&B) establishments in cities? While extensive literature exists on e-commerce’s effect on the retail industry, its impact on retailers’ location preference and in particular street vendors in the Global South has been less explored. E-commerce and food delivery apps (FDA) change search costs for customers and could therefore change the desirability of locations for retailers. Yet, most existing retail economic studies are specific to brick-and-mortar establishments in the Western urban context, despite street vendors’ rapid adoption of online commerce and the Asia Pacific region’s lead in the global e-commerce growth rate even before the COVID-19 pandemic. This thesis focuses on the effect of FDA on the growth trend and location preferences of F&B street vendors in Indonesia, using the city of Surakarta as a case study. By using spatial analysis and interviews, the thesis analyzes four hypotheses about the changes in street vendors’ presence, clustering, and location preferences based on street vendor location data collected in 2014 and 2019 on the same set of streets. The results show a negligible change in location preferences for street vendors of all kinds and a more pronounced change for F&B vendors after controlling for street vendor growth. Without growth control, FDA has a minimal effect on the change of F&B street vendors’ clustering and location preference which was also validated by the interviews. Finally, the thesis discusses data limitations and future opportunities that could inform policies on street vending and online delivery services.
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spelling mit-1721.1/1398792022-02-08T03:57:25Z Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia Wisambodhi, Prathito Andy Sevtsuk, Andres Massachusetts Institute of Technology. Department of Urban Studies and Planning How does online commerce affect the offline presence of retail, food, and beverage (F&B) establishments in cities? While extensive literature exists on e-commerce’s effect on the retail industry, its impact on retailers’ location preference and in particular street vendors in the Global South has been less explored. E-commerce and food delivery apps (FDA) change search costs for customers and could therefore change the desirability of locations for retailers. Yet, most existing retail economic studies are specific to brick-and-mortar establishments in the Western urban context, despite street vendors’ rapid adoption of online commerce and the Asia Pacific region’s lead in the global e-commerce growth rate even before the COVID-19 pandemic. This thesis focuses on the effect of FDA on the growth trend and location preferences of F&B street vendors in Indonesia, using the city of Surakarta as a case study. By using spatial analysis and interviews, the thesis analyzes four hypotheses about the changes in street vendors’ presence, clustering, and location preferences based on street vendor location data collected in 2014 and 2019 on the same set of streets. The results show a negligible change in location preferences for street vendors of all kinds and a more pronounced change for F&B vendors after controlling for street vendor growth. Without growth control, FDA has a minimal effect on the change of F&B street vendors’ clustering and location preference which was also validated by the interviews. Finally, the thesis discusses data limitations and future opportunities that could inform policies on street vending and online delivery services. M.C.P. 2022-02-07T15:10:22Z 2022-02-07T15:10:22Z 2021-09 2021-12-06T19:35:23.782Z Thesis https://hdl.handle.net/1721.1/139879 In Copyright - Educational Use Permitted Copyright retained by author(s) https://rightsstatements.org/page/InC-EDU/1.0/ application/pdf Massachusetts Institute of Technology
spellingShingle Wisambodhi, Prathito Andy
Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title_full Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title_fullStr Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title_full_unstemmed Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title_short Pushcarts to Platforms: Measuring Food Delivery Apps’ Effect on Street Vendors’ Location Preferences in the Global South. Case Study: Surakarta, Indonesia
title_sort pushcarts to platforms measuring food delivery apps effect on street vendors location preferences in the global south case study surakarta indonesia
url https://hdl.handle.net/1721.1/139879
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