The role of analytics in data-driven business models of multi-sided platforms: An exploration in the food industry

Abstract

The collection and use of data play an increasingly important role in the growth and success of today’s digital multi-sided platforms (MSPs). However, many aspiring MSPs lack effective strategies for using data to establish a profitable data-driven business model (DDBM). This study explores how MSPs in the food industry can utilize data to develop such a DDBM. Based on an analysis of seven illustrative cases of high-growth MSPs, namely food delivery and meal kit providers, the study identifies eight factors that reveal the role of analytics in those firms’ DDBM, and further classifies them into three DDBM boosters. The findings contribute to our extant knowledge on MSPs and DDBM by addressing how digital platforms in the food industry can leverage big data to optimize their current business processes, predict future value of their product and service offerings, and develop their partnerships.