The Sustainability of Crowdsourced Online Food Delivery Ecosystem: Evidence from South Korea

This study examines the sustainability of different online food delivery (OFD) models in South Korea's competitive food delivery market, focusing on three distinct approaches: OFD 1.0 (Shop Delivery Model), OFD 2.0 (Integrated Model), and OFD 3.0 (Free Integrated Model). Through secondary data analysis and industry reports, we evaluate how each model impacts four key stakeholders: consumers, restaurants, riders, and platforms. The study also investigates the implications of regulatory interventions, particularly commission fee caps, on ecosystem sustainability. Our findings suggest that while OFD 3.0 demonstrates advantages in customer satisfaction and operational efficiency through its free delivery approach, it shows greater vulnerability to regulatory pressures compared to traditional models. The research reveals that regulatory interventions, such as commission fee caps, can have unintended consequences across the ecosystem, potentially harming the same stakeholders they aim to protect. Drawing from the Amazon Antitrust Paradox framework, we argue that platform regulations in South Korea should consider the distinct operational characteristics of each delivery model to avoid disrupting ecosystem efficiency. This study contributes to the growing literature on digital platforms by providing insights into the complex relationships between delivery models, regulatory frameworks, and ecosystem sustainability in the food delivery industry.