Exploring development structure and trends of Uber Eats in Taiwan through system dynamics – a case study

Abstract Delivery platforms are two-sided marketplaces that connect platform users and partner stores to complete transactions and perform services. The use of restaurant delivery platforms increased dramatically following the Covid-19 pandemic. Uber Eats is one of the most popular food delivery platforms in Taiwan. This study thus applied a system dynamics approach to model the development dynamics of Uber Eats in Taiwan to elucidate its system behavior. The development structure was found to be a causal feedback loop consisting of four cumulative variables: the number of platform users, the number of partner stores, the number of delivery personnel, and the amount of capital. Thus, Uber Eats must accumulate a sufficient number of platform users, partner stores, delivery personnel, and capital to be sustainable. Based on our findings, we simulated decision scenarios to serve as reference for the company itself, related industries, and academia. Most notably, we found that until the market reaches saturation, spending on promotional activities is an important factor for growth.