How Information and Communications Technology Affects the Micro-Location Choices of Stores on On-Demand Food Delivery Platforms: Evidence from Xinjiekou’s Central Business District in Nanjing

Abstract

The digitization of consumption, led by information and communications technology (ICT), has reshaped the urban commercial spatial structure (UCSS) of restaurants and retailers. However, the impacts of ICT on UCSS and location selection remain unclear. In this study, based on on-demand food delivery data and real-time traffic data, we used two types of machine learning algorithms, random forest regression (RFR) and the density-based spatial clustering of applications with noise (DBSCAN), to study the spatial distribution patterns, driving factors, and new geographical location phenomena of ‘brick-and-click’ (B&C) stores in Xinjiekou’s central business district (CBD) in Nanjing, China. The results show that the UCSS in the CBD is being decentralized, but the degree of influence is related to the business type. Additionally, the scale of demand and the distance from core commercial nodes greatly affect the scales of B&C stores. Moreover, the agglomeration of high-sales B&C stores seems to indicate a micro-location advantage, characterized by the concentration of delivery riders, which is usually located in the commercial hinterland with dense traffic. This makes stores situated in traditionally advantageous locations more attractive for online sales. Thus, ICT enhances the Matthew effect in business competition. These findings deepen our understanding of urban digital planning management and business systems.

Keywords

• ICT
• restaurant
• retail
• micro-location
• on-demand food delivery