Unified Optimization of Assortment Selection and Courier Routing for Meal Delivery Platforms

Abstract

Meal delivery platforms are reshaping urban logistics, connecting customers, restaurants, and couriers in complex and competitive markets. This paper introduces an integrated optimization model that simultaneously determines which restaurants should be offered on a meal delivery platform and how couriers are routed and compensated. We show that this joint approach can increase overall profits and reduce the required courier workforce compared with conventional planning methods. In addition, we explore trade-offs between pay-per-service and fixed employment policies, illustrating how platforms can fine-tune their compensation strategies to balance cost stability, service quality, and driver retention. Our findings highlight the value of bridging tactical and operational decisions in on-demand delivery, and they set the stage for future research on scaling these methods to larger networks.