Retention in platform economy – how to reduce churn in on-demand food delivery and attract new couriers
Tengvall, Kati (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202303153657
https://urn.fi/URN:NBN:fi:amk-202303153657
Tiivistelmä
This thesis was commissioned by a Finnish company operating in the industry of on-demand food deliveries with the aim to understand why food couriers decide to leave the platform. Currently courier churn is high, and the pool of workers is not endless as there is a fierce competition of the needed workforce, especially in smaller cities. The purpose of the thesis was to discover insights on couriers’ experiences, identify courier pain points and innovate ideas on how to keep them content and active for longer time and on the other hand, how to attract new workers to the platform.
To understand the pain points of the food couriers, a study was conducted during spring 2022. First, nine current couriers and one former courier of the company were interviewed and based on their answers a survey was created. The survey was sent out to every third courier of the company and altogether 258 answers were received.
The findings imply that the biggest factors to cause dissatisfaction among the couriers are related to the lack of work hours, the algorithmic management and evaluation, and the remuneration model for not compensating all the driven distances. In addition, couriers are not engaged nor share a communal feeling. However, most of the couriers are content with their work, consider the payment model being fair, feel that they are treated well, and are proud to work as couriers for the company.
The findings of the study were reflected to earlier studies and literature and most of the findings were in line with them. A courier journey map was created, and pain points were added to different phases of the journey to illustrate the moments of truth when there is a chance to lose or win the courier over. This journey map was sent to the interviewees for comments. After this, suggestions were given to the company on how to solve the couriers’ biggest concerns and keep them content and active on the platform for longer time .
Altogether 47 suggestions and ideas were given to the commissioner. Most of the suggestions were related to couriers’ experience and the recruitment process of new couriers, but there were also ideas linked to support functions and the courier phone application which is used for doing deliveries. Some of the ideas were taken into action already in 2022 and some will be further discussed in 2023.
This thesis has raised awareness on the extremely diverse workforce of on-demand food delivery couriers and given a new perspective to couriers’ work. As the public opinion of the couriers, and the on-demand food delivery companies has been quite negative, it has been interesting to notice how many of the couriers are after all fairly satisfied with the work and want to continue doing it.
To understand the pain points of the food couriers, a study was conducted during spring 2022. First, nine current couriers and one former courier of the company were interviewed and based on their answers a survey was created. The survey was sent out to every third courier of the company and altogether 258 answers were received.
The findings imply that the biggest factors to cause dissatisfaction among the couriers are related to the lack of work hours, the algorithmic management and evaluation, and the remuneration model for not compensating all the driven distances. In addition, couriers are not engaged nor share a communal feeling. However, most of the couriers are content with their work, consider the payment model being fair, feel that they are treated well, and are proud to work as couriers for the company.
The findings of the study were reflected to earlier studies and literature and most of the findings were in line with them. A courier journey map was created, and pain points were added to different phases of the journey to illustrate the moments of truth when there is a chance to lose or win the courier over. This journey map was sent to the interviewees for comments. After this, suggestions were given to the company on how to solve the couriers’ biggest concerns and keep them content and active on the platform for longer time .
Altogether 47 suggestions and ideas were given to the commissioner. Most of the suggestions were related to couriers’ experience and the recruitment process of new couriers, but there were also ideas linked to support functions and the courier phone application which is used for doing deliveries. Some of the ideas were taken into action already in 2022 and some will be further discussed in 2023.
This thesis has raised awareness on the extremely diverse workforce of on-demand food delivery couriers and given a new perspective to couriers’ work. As the public opinion of the couriers, and the on-demand food delivery companies has been quite negative, it has been interesting to notice how many of the couriers are after all fairly satisfied with the work and want to continue doing it.