BEYOND THE RIDERS: ALGORITHMIC MANAGEMENT EXERCISED BY FOOD DELIVERY PLATFORMS OVER PROVIDERS

Abstract

To date, there are almost no studies that analyse the use of algorithmic management by digital food
delivery platforms over providers, i.e., the businesses that prepare and sell the food that is delivered
to consumers by riders. This article seeks to contribute to addressing this gap in the literature. It
addresses the following research questions: What are the characteristics of the algorithmic
management practices exercised by food delivery platforms over providers? In what ways do these
practices resemble or differ from those applied to riders? What role does algorithmic management
play in shaping the business model of delivery platforms?
To investigate these questions, a qualitative case study focusing on the relationship between food
delivery platforms and businesses in the gastronomic sector in the city of Buenos Aires during the
Covid-19 pandemic and the post-pandemic period is conducted. The study draws on in-depth
interviews with members of industry associations, owners or managers of food businesses with
varied profiles, and employees in the technology departments of the platforms. Additionally,
contracts signed between platforms and a range of gastronomic establishments are analysed.
The hypothesis of this article is that algorithmic management is a method used by food delivery
platforms to also control providers. This form of management shares similarities with the way
platforms control riders, but it also presents certain differences in terms of scope, since providers
are partner-clients of the platforms with bargaining power. Algorithmic management over providers
is functional and indispensable for the development of the platforms’ business model, and its
ultimate aim is to multiply transactions and increase rents.