Multisided Platforms. How do platform-based ventures in the food delivery industry acquire consumers in the start-up phase and how are these customer acquisition methods perceived by the consumer?

Abstract: This study aims to examine customer acquisition strategies of multisided platforms and consumer perception towards them. It further aims to contribute to current literature by addressing present uncertainty regarding the relationship of customer acquisition and consumer perception. From a practical perspective it should help other multisided platforms to identify customer acquisition methods that are not only successful but also set the foundation to retain the acquired consumers. The study focuses on on-demand offline services, exemplified by platform-based food delivery services. It has a qualitative approach and uses a multiple case study design. First, three qualitative semi-structured interviews with representatives of food delivery services are conducted. Second, six in-depth interviews with consumers of those services are conducted to understand how they perceive certain strategies. The findings show that MSPs use a variety of customer acquisition methods, which are all perceived differently by the consumer. The study further reveals customer acquisition through marketing, discount codes and value proposition as the most salient themes. Within marketing, the consumer perceives induced customer acquisition more skeptical than word-of-mouth acquisition. One reason for that is, that is that induced customer acquisition such as out-of-home and social media marketing are not as trustworthy as recommendations from friends. Discount codes in general are perceived very positive mainly because of the economic benefit associated with saving money. Value proposition on the other hand is the main reason why consumers use food delivery services in first place. Reasons for that is that ordering through a food delivery service offers convenience, culinary variety and saves time. The study contributes to the field of multisided platform research and bridges the gap to customer acquisition and perception.Furthermore, the findings of this paper show applicable implications for other on-demand offline platforms that have common characteristics in the business model and a similar target group.