100% found this document useful (2 votes)
2K views80 pages

Challenges Faced by Consumer in Food Ordering App and Consumer Satisfaction

The document is a project report submitted by Sheron Patel to the University of Mumbai on the challenges faced by consumers in food ordering apps and consumer satisfaction. It includes an introduction to online food ordering apps like Zomato, Swiggy and Uber Eats. The research methodology section outlines the scope, objectives, significance and data collection methods used in the study. A literature review is also presented. The report findings identify factors like quality, price and service that influence consumer purchase decisions on food ordering apps. It also examines challenges faced by consumers around issues with pricing, food quality and delivery. The conclusion provides suggestions for companies to focus on quality, customer service and adopting new technologies to increase customer satisfaction and retention.

Uploaded by

Sheron Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
100% found this document useful (2 votes)
2K views80 pages

Challenges Faced by Consumer in Food Ordering App and Consumer Satisfaction

The document is a project report submitted by Sheron Patel to the University of Mumbai on the challenges faced by consumers in food ordering apps and consumer satisfaction. It includes an introduction to online food ordering apps like Zomato, Swiggy and Uber Eats. The research methodology section outlines the scope, objectives, significance and data collection methods used in the study. A literature review is also presented. The report findings identify factors like quality, price and service that influence consumer purchase decisions on food ordering apps. It also examines challenges faced by consumers around issues with pricing, food quality and delivery. The conclusion provides suggestions for companies to focus on quality, customer service and adopting new technologies to increase customer satisfaction and retention.

Uploaded by

Sheron Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

A

Project Report
On

Challenges faced by Consumers in Food Ordering App and Consumer


Satisfaction.

SUBMITTED BY:
Sheron Patel.

RollNo:128
T.Y.B.M.S. SEMESTER – VI

PROJECT GUIDE

PROF. Prajna Shetty

SUBMITTED TO
UNIVERSITY OF MUMBAI

RAJASTHANI SAMMELAN’S

Ghanshyamdas Saraf College Of Arts &


Commerce Affiliated to University of Mumbai
Reaccredited by NAAC with ‘A’ Grade
[Link], Malad (West)

Mumbai – 400064.

A.Y. 2019 –
2020
CERTIFICATE

This is to certify that Mr. /Ms. Sheron Patel, Roll no:128, has worked and duly completed
her Project Work for the degree of Bachelor of Management Studies under the Faculty of
Commerce in the subject of Management Study and her project is entitled, “Challenges
faced by consumers in food ordering app and consumer satisfaction” under my
supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her/his personal findings and investigations.

Name & Signature of:

Project Guide: Principal:

Date:

Colle ge
External Examiner: Date: College Seal
Seal
DECLARATION

I, the undersigned, [Link] Patel, a student of Ghanshyamdas Saraf College of Arts &
Commerce, Malad (West) T.Y.B.M.S. SEMESTER – VI hereby declare that the work
embodied in this project work titled “ Challenges faced by consumers in food ordering
app and consumer satisfaction“, forms my own contribution to the research work carried
out under the guidance of Prof. Prajna Shetty is a result of my own research work and has
not been previously submitted to any other University for any other Degree/Diploma to this
or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of the student

Certified by

Name and Signature of the Guiding Teacher


ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal Dr. Jayant Apte for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Chief Coordinator Dr. Lipi Mukherjee and Course
Coordinator Prof. Prajna Shetty for their moral support and guidance.

I would also like to express my sincere gratitude towards Prof. Prajna Shetty
whose constant guidance helped in successful completion of the project work.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me
in the completion of the project especially my Parents and Peers who supported me
throughout my project.
INDEX

[Link] TOPIC [Link]

EXECUTIVE SUMMARY

1 INTRODUCTION TO ONLINE FOOD ORDERING 7


APPS AND THEIR SWOT ANALYSIS
1.1 ZOMATO
1.2 SWIGGY
1.3 UBER EATS

2 RESEARCH METHODOLOGY 28
2.1 SCOPE
2.2 OBJECTIVES OF THE STUDY
2.3 SIGNIFICANCE
2.4 HYPOTHESIS
2.5 DATA COLLECTION METHOD
2.6 SAMPLING DESIGN
3 LITERATURE REVIEW 31

4 DATA ANALYSIS & INTERPRETATION 42

5 FINDINGS & CONCLUSION 59

6 SUGGESTIONS & LIMITATIONS 62

7 CASE STUDY 64
 BIBLIOGRAPHY
 APPENDIX
EXECUTIVE SUMMARY
Online food ordering is the process of food delivery or takeout from a local restaurants or food
cooperative through a web page or app. Much like ordering consumer goods online, many of
these services allow customers to keep accounts with them in order to make frequent ordering
convenient. A customer will search for a favourite restaurant, usually filtered via type of cuisine
and choose from available items, and choose delivery or pick-up. Payment can be amongst others
either by credit card, PayPal or cash, with the restaurant returning a percentage to the online food
company.

The research is about to identify the challenges & increase customer satisfaction in food industry
related to food ordering apps. The main objective of the study was to find the parameters that
contribute towards customer satisfaction and to understand the challenges faced by them while
ordering food through apps

The research methodology adopted for the study was secondary research in form of research
papers and books for literature review while self-administered questionnaire was circulated to
conduct primary research. The sample size of the study was 150 and stratified sampling
technique was used. The data collected was analyzed using IBM SPSS Statistics software version
25. Descriptive and inferential statistics were used to analyze the data.

While ordering food online towards online food ordering industry was influenced by factors
quality, price and service. Quality of the product had positive influence on purchase of food
through online apps whereas Price and Service had equal rating on purchase of food through
online food ordering apps. Challenges faced by the individuals is not specific to any age group
and there were many parameters identified such as improper price issues, food ordered was not
fresh, Behaviour of delivery guys was improper, Different/ Absence of food that was ordered,
issues in Payment of order.

Respondents find the Quality factor most important, hence they should focus more in providing
differentiated services to the customers to retain them. Companies should have a consistent
holistic view in providing services right from pre-order to post order of food through apps to
their customers Differentiated services will lead to customer retention and hence will increase
the customer base which will lead to profitability and growth to the organization. Companies
must adopt new technologies as customers are attracted to newer technologies.

Key Words: Quality, Customer Service, Price, Profitability, Growth, online Ordering, Customer
satisfaction, Platform companies.

.
1. Introduction
Customer satisfaction is defined as "the number of customers or percentage of total customers,
whose reported experience with a firm, its products, or its services (ratings) exceeds
specified satisfaction goals” (wikipedia, 2019)

Organization ought to never overlook the significance of consumer loyalty. There are many
components adding to the achievement (or disappointment) of a business, consumer loyalty is
one of them. It's critical to follow this factor and work on improving it so as to make firm’s
clients increasingly faithful and in the long run transform them into brand diplomats. On the off
chance that company couldn't care less about clients' fulfilment, don't anticipate that them should
think about company’s administrations or items. Dismal, yet evident. The sooner the company
face it, the better it will perform.

What are platform companies?


Platform companies are those of sufficient size and talent, and with enough talent management
and succession planning capabilities, to support add add-on or tuck-in acquisitions. These add-
ons may be competitors of the original platform company, or may be businesses with some link
to it, but they are added with the goal of increasing overall revenues and earnings of the platform
investment.

How are platform companies different from traditional companies?

Platforms facilitate the exchange of value. They cater to multiple user groups that need each
other in some way and who depend on the platform to bring them together. Value creation here
isn’t linear, and it isn’t one way — it’s networked and it’s mutual.

As a result, platforms create valuable ecosystems driven by network effects. The more users
there are on one side of the platform, the more valuable the platform becomes to other users
groups. This dynamic allows platforms to scale in ways that traditional, one-sided businesses
can’t. Platforms grow primarily by adding participants to their ecosystem, rather than by adding
physical resources or direct labour.

The value platforms provide also scales as they grow. Think back to your one-sided business.
They deliver you a product or service and you consume it.

This provides what’s called inherent value — you derive value from your use of the product or
service. But platforms add another source of value — networked value. This means that the
value you derive from the platform increases as more people use it.

Competition is not a zero-sum game in the world of platform businesses.


The Internet era has created radical new tools and techniques that are proving to be disruptive
to incumbent firms. Platforms create new markets and products on account of the network
interactions and the traditional assumption that competition is a zero-sum game is far less
applicable in the world of platforms.

Platform expertise has now become an essential attribute for business leadership.

Many business leaders are grappling with platform effects and its implications for the
business and its customers. The key differentiation between platform business and the older
pipeline business model is that the "primary venue for activities in which value is created for
participants shifts from an internal production department to a collection of external
producers and consumers." This means that the uncomfortable management of externalities
that was previously relegated to the PR department only, now becomes a key leadership skill.

Industry boundaries are becoming increasingly porous due to the impact of platforms.

The power of the platform is modifying and sometimes eliminating barriers that once
separated industries from one another. Thus, unexpected new competitors and partners
emerge from "seemingly unrelated" sectors, a dramatic effect of the rise of the platform. A
winning platform strategy blurs the boundaries among participants, thereby increasing
valuable interactions on the platform.

Consumers facing issues in online food ordering apps:


The biggest problems faced in food ordering systems are

1. Order cancellations

Companies are unable to bear with consumer cancellations and grievance redressal is an issue
along with refund policies

2. Improper pricing for menus

As it is, the smaller players work on lower margins and capital, and reducing prices further may
put them out of the business. As far as established restaurants and delivery services are
concerned, there is no guarantee that price cuts will lead to higher sales as customers always
expect ‘extra benefits’ while placing their orders

3. Inability to co-op up with the menu.

There is a spike in demand and orders just keep pouring in. But, does the restaurant have its
operations and logistics in place to handle the volume without interrupting the service to
customers? Most times, restaurants fail to develop a second or alternate line of operations to
handle online deliveries.
4. Health and hygiene factors:

No matter what food quality and packaging measures for online orders are taken, they are prone
to quality lapses. The pizzas will get cold, curries or sauces will spill, noodles will get sticky and
sandwiches will get moist. The customers equate the quality of food directly to the quality of
delivery.

5. Customer loyalty

A restaurant or delivery service that provides better deals, incentives or freebies earns the loyalty
of the moment. There is no sure-shot way to ensure that customers will stick around. Hence,
customer retention is a challenge in online business and requires higher levels of customer
satisfaction. Online customer relationship is difficult and that makes customer retention scary.
An analysis of e customers is vital since customer satisfaction results in loyalty and customer
loyalty is the basis of successful customer relationship.

Expected outcomes or suggestions to improve satisfaction and reduce challenges this project
suggests is:

Customers who face high level of problem on online purchase have low level of satisfaction on
online food ordering.

 In order to increase satisfaction among customers, quality factor related to employees i.e.
Training them on treating their customers right simplicity on ordering

 Delivery time may be reduced to a maximum extent.

 E Commerce operators make sure that only quality goods are delivered to their
customers, thereby their customers may be satisfied and retained.

 No attempt has been made by online vendors to ascertain the performance of


goods. Hence, it is advised to have a constant follow-up with their customers to ascertain
the product performance and necessary steps may be initiated, if any pitfall is noticed on
their product
Problem Statement
Online customers quickly switch to competitors in case of dissatisfaction since choices are wide
with no switching costs. Customer satisfaction helps to predict the subsequent behaviour and the
future economic performance of the business. While making a repurchase, customers evaluate
and arrive at a decision not only based on one particular transaction but based on the past
experience of the previous purchase and consumption.

Platforms are a key driver of the new economy. The sharing economy, collaborative
economy, crowd economy, digital economy are all possible, in part at least, because of the
technical infrastructure that enable platform interactions.

Nowadays there has been a lot of discussion happening in regard of the development of a
food delivery platform. The experts are optimistic that the platform effects doesn’t mean that
the world’s great old businesses will vanish, but "their relative size and importance will
shrink as much of the work they used to do migrates to platforms that can provide
comparable services at a fraction of the cost and with far greater convenience." Major social
and economic disruption, on account of the platform revolution will create both winners and
losers.

We have to be wary of the unprecedented access to personal and business information


enjoyed by the largest platform businesses and the massive shift in employment and work.
Customers buying decision gets affected by the opinions and experience of friends, family
and discussions on online forums.
1.1 Zomato:
Zomato is an Indian restaurant aggregator and food delivery start up founded by Deepinder
Goyal in 2008. Zomato provides information, menus and user-reviews of restaurants, and also
has food delivery options from partner restaurants in select cities. As of 2019, the service is
available in 24 countries and in more than 10,000 cities

Zomato was founded as Foodiebay in 2008 and renamed Zomato in 2010. In 2011, Zomato
expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata. In 2012,
the company expanded operations internationally in several countries, including the United Arab
Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa. In 2013,
Zomato was launched in New Zealand, Turkey, Brazil and Indonesia, with its website and apps
available in Turkish, Brazilian Portuguese, Indonesian and English languages. In April 2014,
Zomato launched its services in Portugal, followed by launches in Canada, Lebanon and Ireland.

The acquisition of Seattle-based food portal Urban spoon marked the firm's entry into the United
States, Canada and Australia, and brought it into direct competition with similar models such
as Yelp and Foursquare.

With the introduction of .xxx domains in 2011, Zomato also launched [Link], a site
dedicated to food porn. In May 2012, it launched a print version of the website named "Citibank
Zomato Restaurant Guide," in collaboration with Citibank, but it has since been discontinued.

With its cloud kitchen, the company aimed to help restaurants to expand their presence without
incurring any fixed costs. In September 2017, Zomato claimed the company had "turned
profitable" in all 24 countries where it operated and introduced a "zero commission model" for
partner restaurants. Towards the end of 2017, Zomato stopped accepting updates from its active
users by not utilising moderators to verify and make updates. Users of the app reported issues
with new features to pay for orders.

Zomato narrowed down its losses by 34% to ₹389 Cr for the financial year 2016–17, from
₹590.1 Cr crore in the previous year 2015-16.

In September 2019, Zomato fired almost 10% of its workforce (540 people) tending to back-end
activities like customer service, merchant and delivery partner support functions.
Zomato has acquired 12 startups globally. In July 2014, Zomato made its first acquisition by
buying Menu-mania for an undisclosed sum. The company pursued other acquisitions such as
[Link] and [Link] for a combined US$3.25 million. In September 2014, Zomato
acquired Poland-based restaurant search service Gastronauci for an undisclosed sum. Three
months later, it acquired Italian restaurant search service Cibando.

Zomato also acquired Seattle-based food portal, Urbanspoon, for an estimated $60 million in
2015. Other acquisitions of 2015 include Mekanist in an all-cash deal, the Delhi-based startup
MapleGraph that built MaplePOS (renamed Zomato Base), and NexTable, a US-based table
reservation and restaurant management platform.

In 2016, the company acquired Sparse Labs, a logistics technology startup, and the food delivery
startup, Runnr, in 2017.

In September 2018, Zomato acquired Bengaluru-based food e-marketplace, TongueStun Food,


for about $18 million in a cash and stock deal. In December 2018, Zomato acquired Lucknow-
based startup, TechEagle Innovations, that works exclusively on drones, for an undisclosed
amount. Zomato claimed that the acquisition will help pave the way towards drone-based food
delivery in India, building technology aimed at a hub-to-hub delivery network.

On 21st January, 2020, Zomato acquired its rival Uber Eats' business in India in an all stock deal.

Zomato Gold is a paid service from Zomato that allows customers


with Gold membership get complimentary food and drinks while ordering from partner
restaurants and bars. Zomato Gold service is limited to dine-in orders only and not available for
deliveries

What are the benefits of Gold on Dining?

Gold members can enjoy benefits on food and drinks at separate partner restaurants. For benefits
on food, you get the second most expensive dish in the order as complimentary. For benefits on
drinks, you get one complimentary drink for every drink you order, up to a maximum of 2
complimentary drinks. The complimentary drink will be the same as the first drink ordered.
 Can I get Gold benefits on Food and Drinks at the same restaurant?

A partner restaurant offers only one of these benefits. Each partner restaurant has a tag that
allows you to distinguish between Food & Drinks partners.

 If I order 5 dishes, will I get 5 complimentary dishes?

No. All Gold members are entitled to only 1 complimentary dish for every visit. This means that
if you order 5 dishes with one Gold membership, the dish priced the same or less than the highest
priced dish will be complimentary.

 If I order 4 drinks, will I get 4 complimentary drinks?

No. All Gold members are entitled to upto 2 complimentary drinks against 2 or more paid drinks
for every visit. This means that if you order 4 drinks, only 2 will be complimentary. The
complimentary drink will be the same as the first drink which means you can order 1 beer and
get 1 beer complimentary, or order 1 beer and 1 mojito, and get 1 beer and 1 mojito
complimentary.

 How many times can I unlock at a Dining Gold partner restaurant?

 You can unlock Gold only once on a given day at a partner restaurant of your choice. However,
you can unlock at each partner restaurant as many times as you like during your membership
duration. Are Gold partner restaurants same across dining and delivery?

Gold partner restaurants offering benefits on delivery can be different from Gold partner
restaurants offering benefits on dining.
 Can the restaurant partners change after I purchase Gold membership?

Yes, our restaurant partners may change over time. We keep adding new partners to expand the
choices available to you. Existing partners may also be temporarily removed due to business
constraints or if we're working with them to ensure a seamless experience for our members.

 Can I share my complimentary drinks or dishes with my friends?

Yes, of course, you can share your drinks or dishes with your friends at the table.

 Is Zomato Gold valid on takeaway?

No. Zomato Gold is valid only for dining and delivery at the respective partner restaurant.

 Can I use my Gold membership in more than one device?

Your Zomato Gold membership can only be used on a single device and may not be used on
multiple devices with a single registered email.

Benefits of Zomato Gold:

It’s one of the best deals that every foodie can have. Zomato Hold offers either 1+1 on food or
2+2 on drinks.

 When you go to a restaurant which offers 1+1 of food i.e When you order 1 food item,
you get the second one at free of cost. So if you order dishes like pav bhaji, dosa or even
costly starters, you will get the second dish for dish. So, here suddenly you saved 150-
200 Rs
 The exact benefit of zomato gold we can find in case of restaurants providing 2+2 on
drinks. Suppose, if you order 4 bottles of beer, you will have to pay only for 2. So ,any
drink if you order 2,you will get next 2 free. I found it very beneficial in case of cocktails.
So, imagine the cost of drinks and try to calculate your savings. During one visit, you can
save almost 400 to 800 Rs.

 Zomato gold costs around 800-1000 Rs for a year. So don’t you think it is beneficial for
the people who go out once in a week or a month. Within 4-5 visits we can recover the
money that we have invested in membership. So, believe me guys, it’s a membership that
every person must have with them. If you guys want to have membership then use my
code TEJA90045 to get 20% off on membership.

 4. By using above referral code, you will get 20% on your membership cost. Offer is
valid only for limited [Link] hurry up before zomato closes taking membership.
SWOT Analysis of Zomato:

Strengths :-
First mover advantage – One of the best competitive advantages of Zomato is that it is the first
mover in many of the nations where it is establishing itself. Directories and other forms of
restaurant ratings might exist. But as an app Zomato is excellent and many countries (like India)
have loved the usability of the Zomato app.

Evergreen industry – The restaurant industry is an evergreen industry. Sure, there may be
recessions and other downturns which might affect the industry. But overall, this industry is
going to stick around at all times and is only going to grow with rising disposable income.

Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in 24


countries and is expanding year on year.

Fantastic design of the app – Zomato has regularly won awards for its app design and for its
user-friendliness. The App design is fantastic and it helps you discover restaurants nearby as well
as in an area you are going to visit.

Number of users – Zomato has a huge number of users using their app. At the same time, the
site also has 90 million visitors a month approximately. With so many users following the app
and site, there are more reviews and hence more chances to find better restaurants.

Focused approach – The brand has a very focused approach and has always tried to bring the
most of out of its unique offering. It is well connected with restaurants and regularly takes
feedback from customers as well as restaurants. This focused approach has also helped the brand
image and reputation of the firm.

Excellent funding available – Zomato has picked multiple rounds of funding over the years and
because it is now so well established in many countries, there is a lot of funding available for the
app.

Multiple acquisitions – Zomato has acquired multiple companies most of which are software
or technology related.

Already turning profits – In April 2017, Zomato was profitable in all 24 countries it was
operating in. For a company which is a start-up and has so much funding, it is a big thing to turn
profitable because many funded organizations are still declaring losses even after a decade of
establishment.
Brand Equity – Zomato is valued at $1.4 billion within 7 years of inception. That says volumes
about the popularity and love for the brand.

Fantastic marketing – You can find Zomato working for its own marketing offline as well as
online. Its print ads are hilarious and make an immediate connect with the audience. It is strong
on Social media marketing and uses a combination of ATL and BTL strategies to attract and
retain customers.

Weaknesses :-
Security issues for the app – A major issue for Zomato in the past has been some security
issues due to which the app was hacked and at least 17 million users data was copied. Such
security issues are a nightmare for internet companies.

Still a lot of expansion required – Considering that the app has established in 24 countries,
there is good expansion. But at the same time, the app has been started 7 years back and with the
amount of funding available for Zomato, the expansion can be much faster. It is allowing other
services to establish themselves in this niche before it reaches their country.

Word of mouth and Facebook check-ins – Besides such apps, in many places word of mouth
still trumps apps and at the same time, Facebook check-ins are a strong competitor
wherein people might not need Zomato. Thus, it is an app for early adopters but definitely not for
laggards.

Opportunities :-

Further expansion – The number 1 opportunity for Zomato is to expand to more countries and
establish its base faster. Service industry has a major problem that services can be copied very
fast and very easily. As a result, it is critical for Zomato to establish and expand itself faster.

More acquisitions – There are and were many small players in this space. Zomato can acquire
several of its competitors and at the same time, it has to keep an eye on the tech industry and
acquire any tech innovation it can get its hands on to keep on rising.

Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants wherein
restaurants will not have to get a physical space to actually sell their food products. Instead, they
can sell from Zomato.

Creating a community – Zomato does have a huge following but the users do not interact with
each other. Creating a forum and a community out of the users already following Zomato can be
a huge benefit for the brand.
Adoption of the internet and Smartphones – There is a huge increase in the adoption of
Internet across developing and underdeveloped countries as well. Similarly, adoption of
smartphone has also increased. Thus more and more orders and research about restaurants can
happen online instead of through physical visits.

Threats :-
Google’s schema module – One of the major threats Zomato faces right now is the Schema
module of Google wherein google locations itself is getting in restaurant recommendations. Even
google homepage shows the google maps page where you can search for restaurants within your
locality. Google being such a big brand, zomato faces huge competition from them.

Market followers and challengers – In the service industry, it is very easy to replicate the success
of another service product or offering. Similarly, marketing followers and challengers can slowly
take away the market share of Zomato.
1.2 Swiggy.

Swiggy is India's largest and most valuable online food ordering and delivery platform. Founded
in 2014, Swiggy is based out of Bengaluru, India and, as of March 2019, was operating out of
100 Indian cities. In early 2019, Swiggy expanded into general product deliveries, under the
brand name Swiggy Stores.

In September 2019, Swiggy launched instant pick up and drop service Swiggy Go. The service is
used to pick up and drop off a diverse array of items, including laundry and document or parcel
deliveries to business clients and retail customers.

In 2013 two founders, Sriharsha Majety and Nandan Reddy, designed an e-commerce website
called "Bundl" to facilitate courier service and ship goods within India. Bundl was quickly
paused, and they moved into the food delivery market. At the time, the food delivery sector was
in turmoil as several notable startups, such as Foodpanda (later acquired by Ola Cabs), TinyOwl
(later acquired by Zomato) and Ola Cafe (later closed) were struggling. Majety and Reddy
approached Rahul Jaimini, formerly with Myntra, and founded Swiggy and parent holding
company Bundl Technologies in 2014. The company built out a dedicated delivery network and
grew rapidly, primarily driven by the focus on logistics and locking in key resources.

By 2015, the company began attracting external investments. The first was a $2 million
investment from Accel and SAIF Partners, along with an additional investment from Norwest
Venture Partners. The next year, Swiggy raised $15 million from new and existing investors,
including Bessemer Venture Partners and Harmony Partners.

In 2017, Naspers led an $80 million funding round into Swiggy. Swiggy received $100 million
from China-based Meituan-Dianping and Naspers in 2018 and then later a string of investments
took the company's valuation to over a $1 billion.

Swiggy acquired Bengaluru-based Asian food start-up 48East in 2017. Swiggy later acquired
Mumbai-based Scootsy Logistics, a struggling food and fashion delivery service. In 2019, the
company invested Rs 31 crore in Mumbai-based ready-to-eat food brand Fingerlix.
SWIGGY BUSINESS MODEL

Just like Grubhub in the USA, Swiggy operates on a hyperlocal on-demand food delivery
business model. It not only aggregates restaurants but also organises a fleet of delivery partners
which deliver the food (in less than 30 minutes) on-demand.
Owned and operated by Bundl Technologies Private Limited, this unicorn startup followed the
path paved by Uber and crafted a business model which relied on a dual partnership model. The
partners can be divided into two categories:
Delivery Partners: They form the delivery fleet which is given the responsibility to pick up the
order from the partner restaurant and deliver it to the end consumer.

Restaurant Partners: The restaurant partners are restaurants which opt to deliver to customer
that come from Swiggy application and website

How Swiggy Works?


Swiggy provides an online platform for ordering from a wide range of listed neighbourhood
partner restaurants and have their own fleet of delivery personnel who pick up the orders from
the partner restaurants and deliver it to the customers at their doorsteps.

Swiggy works by providing a complete food ordering and delivery solution that connects the
existing neighbourhood restaurants with the urban foodies proving to be beneficial for both.

You can open the Swiggy application on your mobile phones or visit the Swiggy website and
you will find a whole list of restaurants to order from.

Once the restaurant is selected and the order placed, the restaurant which has its own Swiggy
application receives the order details and starts preparing for the order.

A broadcast signal is then sent to all the drivers in the vicinity who have their own driver
application. Those willing to accept the order can choose to accept and deliver it.

Like other on-demand delivery startups, Swiggy also has integrated the Google Maps API which
lets the customers know where their order is and the amount of time it will take for their order to
get delivered in real-time.
How Swiggy Makes Money?
Swiggy’s business model has made Swiggy an early mover in the foodservice space in India and
has had a set base model on which their business is based, but they have started earning revenues
from other related avenues ever since they have established themselves.

Commissions
Swiggy typically charges a 15% – 25% commission on the order bill amount received by the
restaurant. This commission is charged on the full bill amount which is inclusive of the Goods
and Service Tax charged over and above the menu price.

Swiggy continuously tries to get restaurants on board to be available on Swiggy exclusively. On


this account, certain benefits are given to restaurants like greater visibility and sometimes a drop
in the commission of about 2% – 3%. But since the resulting benefit is far more than the drop in
revenue, Swiggy does this aggressively.

The percentage of the commission depends on various factors like the frequency of orders
received, location of the restaurant, dependency of the restaurant on Swiggy, percentage charged
by competitors, penetration to a new city etc.

Delivery charges
Swiggy does not have a minimum order requirement for delivery which means that Swiggy often
receives orders amounting to less than Rs 100. This increases the logistics cost per order.

So, after Swiggy got a strong hold of the market, it started charging delivery charges to low order
amounts (depending and varying upon city to city). Delivery charges are typically around Rs 20
for orders less than Rs 250. Swiggy sometimes also charges a surge in delivery prices in times of
high demand, rains, special occasions and midnight delivery in select markets.

This additionally helps in pushing customers in ordering above the threshold to avoid paying
delivery charges.
SWOT Analysis of Swiggy:
Strengths :-
 Fast Delivery: SWIGGY is always known for its it has always taken care of their
customers by delivering their order in time
 Sensible complete Image: We think of ordering food for the first name which click is
swiggy. It has create clean and crystal image among people
 Trained folks for creating Delivery: Swiggy has well trained their team to march in the
market
 Wide selection of eating place offered: The main USP point of swiggy is that they
provide eating options from various place and wide range
 Delivery is Free: Swiggy takes care from ordering and delivering of the food with no
chargers
 Neat Packaging: Swiggy delivers food in neat and hygiene packaging

Weakness :-
 Orders solely on the market from restaurants that are within the zone of the ordered place.
Swiggy is targeting on the zonal restaurants. As their competitors are increasing they
need to expand their restaurants.
 Low awareness of brand names Swiggy needs to re work on their branding. They need to
create some more marketing strategies to be in market.

Opportunities :-
 Pioneer in Food Delivery Business: Swiggy was the first platform to introduce this
concept in the market. They have shown new way to Home-Delivery with minimal
chargers
 Growing Market place for Potential Consumers: They have shown people to rise and
grow in the market
 Increase in Market Share: A little re-branding can we re-grow them in the Market
 Value Effective and sensible Quality Food: They need to increase their zonal restaurant
base to compete in market
 Give Higher Services: Delivery should be more quick and no chargers

Threats :-
 Increase health consciousness
 Increasing potential competitors
 Negligence of potential competitor
1.3 UberEats:
Uber Eats is an American online food ordering and delivery platform launched by Uber in 2014
and based in San Francisco, California

Uber Eats' parent company Uber was founded in 2009 by Garrett Camp and Travis
Kalanick. The company made its foray into food delivery in August 2014 with the launch of the
UberFRESH service in Santa Monica, California. In 2015, the platform was renamed to
UberEATS, and the ordering software was released as its own application, separate from the app
for Uber rides. Its London operation opened in 2016.

In August 2018, Uber Eats changed its flat $4.99 delivery fee to a rate that is determined by
distances. The fee ranges from a $2 minimum to an $8 maximum. In the UK and Ireland, the
delivery fee is based on the value of the order. In February 2019, Uber Eats announced that it
would reduce its fee from 35 percent of the order's value to 30 percent. As part of its expansion
into foreign markets, the company announced its intention to open virtual restaurants in the
UK. Sometimes called cloud restaurants or cloud kitchens, these are restaurant kitchens staffed
to prepare and deliver food, either for existing brick-and-mortar restaurants wishing to move
their delivery operations offsite, or for delivery-only restaurants with no walk-in or dining room
service.

In November 2018, the company announced plans to triple its workforce in its European
markets. As of November 2018, the company reported making food deliveries in 200 cities in 20
countries in EMEA markets.

In 2019, Uber Eats announced that it will deliver food to customers by drones, starting in
summer 2019, and partnered with Apple on the release of the Apple Card. In July, Uber Eats
began offering a dine-in option in certain cities that allowed customers to order food ahead of
time and then eat in the restaurant.

September 2019, Uber Eats announced that it would be discontinuing service in South Korea,
and Reuters attributed the decision to the amount of competition for food delivery companies in
the South Korean market. In October, the company launched a pick-up option. On October 15,
2019, the company announced that it would be partnering with Burger King to offer nation-wide
food delivery in the United States.
On January 21, 2020, Zomato announced the acquisition of Uber Eats India in an all-stock
acquisition. As part of the deal, Uber would own 9.99% stake in Zomato and Zomato would gain
all the users of Uber Eats. At the time of the deal, Zomato was valued at roughly $3.55 billion.

On January 28, 2020 it was reported that Uber Eats no longer had exclusive delivery rights
for McDonald's in the United Kingdom, as the fast food company had partnered with British-
based food-delivery company Just Eat. The company had already lost its exclusive delivery
rights with McDonald's in the United States the year before.
SWOT Analysis of UberEats
Strengths :-
Largest Ride Sharing Technology: Uber has positioned itself as the largest ride-sharing
technology in the world. It was one of the first ride-sharing apps, operating across the globe. The
transportation company had more than 40 million active monthly users in more than 760 cities
internationally in the year 2016. In 2018 that number is forecasted to be 100 million

 Strong Brand Recognition: Uber has maintained a strong brand recognition in over 50
countries. It has already overtaken GM, Honda, and Ford regarding brand value
framework. With its incorporation of new technological features, it is predicted to
enhance its services in the next few years. Currently, Uber values at $72 billion (2018)
 Low Fixed Investment: Uber operates on low fixed investment (low operational cost)
and has easily accessed more cites in its communicative network. Because there is no
fixed infrastructure or investment in place, the company continues to expand at a fast
pace.
 Dynamic Pricing Strategy: Uber has remained consistent in its dynamic pricing
strategy. It’s “Higher the Demand; Higher the Price” policy has proven to be beneficial
to its drivers and industry. Its drivers earn a substantial amount at night time and during
bad weather and holiday nights.
 Adaptive Nature: The adaptive nature of Uber has great recognition across the globe. Its
International exposure has allowed it to blend and integrate among different nationalities
and cultures. It in turns has helped Uber to earn trust and reliability. It has received
acclaim for its smart marketing. For example, the company uses its social media accounts
to get in touch with customers. Through Facebook, Twitter, and Instagram Uber lets its
customers know about deals, promos, and any updates. Additionally, the company also
addresses the complaints of its customers through social media channels. These social
media channels are great for customer engagement and quick feedback.

 Low Prices as Compared to Taxis and Other Commute apps: Uber offers low prices
as compared to traditional taxis. The biggest difference between taxis and Uber is that
Taxis charge per mile (while travelling) and per minute (when not travelling). On the
other hand, Uber charges per minute and per mile for both moving and idling. This
pricing strategy has proven to be beneficial for customers. Additionally, Uber is cheaper
than Lyft and SideCar in 20 major U.S cities. However, other variables affect the final
price of a ride. These include the geographical location, distance travelled, surge pricing,
cancellation fees, and other trip-specific additions.
 Customer to Driver Interaction: The business model of Uber is ideal for a customer to
driver interaction. Uber has created a rating system that helps customers rate their
travelling experience as well as the driver. This rating system helps identify the best
drivers and monitors the performance of the drivers.

Weakness :-

 Multiple Scandals: Uber’s brand has received negative coverage over numerous
scandals and controversies. Cases such as sexual harassment and targeted attacks have
defamed the company. It came to the point that its co-founder Travis Kalanick had to
resign. Public outcry over these allegations resulted in #DeleteUber campaign where
about 500K users deleted their accounts in 2017.

 Substantial Losses: Although it has increased its revenues, Uber has been facing
significant losses since 2009. In order to beat out its growing competition, the company
began providing bonuses to its drivers and discounts to its customers. This investment
has only resulted in Uber’s net losses to exceed $2.75 billion in 2016.
 Dependency on the workforce: Uber’s heavy dependence on its workforce and internet
has not been advantageous for the company. The behavior of its drivers has
been unpredictable and has damaged the image of the company. Over 103 Uber drivers
in the US were accused of sexual harassment and abuse which paints a poor picture of the
company culture.
 Public Backlash: Uber faced a severe public backlash over its high pricing
during Hurricane Sandy. This forced the company to revise its policy.
Opportunities :-
Accountability and Performance: Customers are no longer impressed by unorganized cab
services who have been over the market. This presents a lucrative opportunity for Uber. It can
improve by offering its services based on accountability and performance. By tracking the
performance of the drivers, the company can identify top performers. Additionally, the
company can address the numerous cases of sexual misconduct that have been reported against
many Uber drivers.

 Utilize Digitalization: The world is becoming increasingly digital. More people prefer an
interconnected – network that is easily available on their smartphones. Uber should
continue to invest in services like Uber Eats and expand its customer base accordingly.
There are countries and places where Uber does not operate like China and Denmark.
Uber can increase its customer base by expanding its operations in these areas.
 Driverless Technology and other services: Uber has the potential to venture into
driverless technology and other special transportation services like ambulances or other
forms of emergency vehicles. This will help the company to differentiate, gain more
popularity in public and the mainstream media.
 Logistics: Uber can also launch its own movers and packers for the public’s
convenience, They don’t have any shortage of resources after all.

Threats :-

 Customer and Employee Retention: With competition on the rise, customer and
employee retention can prove to be a challenge for Uber. Any financial incentive from its
competitor is enough to steal its customer base and employees.
 Lawsuits: About 300,000 Uber drivers filed lawsuits against the company over the
company’s minimum wage policy. These were settled out of court However, the cases
were enough to threaten and damage Uber’s public image.
 Increasing Competitors: Competition from Lyft and other transportation services such
as Ola in India has significantly affected Uber.
2. Research Methodology

Research methodology is the specific procedures or techniques used to identify, select,


process, and analyze information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study's overall validity and reliability

2.1 Scope:

The scope of the study is to gain first-hand knowledge about the consumer satisfaction
levels and the challenges faced for food ordering apps industry. Thus, providing a better
understanding about the industry as there hasn’t been much research to substantiate about the
same due to the advent of newer platform companies with new technologies.

2.2 Objectives of the study:

 To study the challenges faced by consumers in ordering food through apps


 To study the parameters of customer satisfaction with respect to food ordering apps
 To determine what influence the consumers to choose ordering food through apps over
traditional dining in restaurants
 To determine which is the most popular food ordering app
 To study demographics and ethics
 To study the inability to manage service
 To study consumer perception and knowledge on food ordering app
2.3 Significance of the study:

One of the important feature is, it allows you to promote your restaurant
or food serving company online and enables you to attract more customers towards your
restaurant. You can easily promote offers, combos, discount prices etc., and can stay in touch
with them frequently.
Here are the advantages of online ordering:
 Makes the ordering process easier.
 Efficient customer and order management.
 Monitor your expenses incurred in real time.
 Free and cheap marketing.
 Better customers data.
 The convenience of mobile ordering.
 Stay ahead of the competition.
 Grow your bottom line.

2.4 Hypothesis of the study:

H01: There is no relationship between difficulties faced by the customers in ordering food
through apps and age of the respondents

HA1: There is relationship between difficulties faced by the customers in ordering food through
apps age of the respondents

H02: There is no relationship between difficulties faced by the customers and income group

HA2: There is relationship between difficulties faced by the customers and income group

H03: There is no significant difference between price as an attracting factor to order food online
and the age of the respondent

HA3: There is significant difference between price as an attracting factor to order food online and
the occupation of the respondent
H04: There is no significant difference between list of hotels as an attracting factor to order food
online and the occupation of the respondent

HA4: There is significant difference between list of hotels as an attracting factor to order food
online and the occupation of the respondent

H05: There is no significant difference between menu choice as an attracting factor to order food
online and the occupation of the respondent

HA5: There is significant difference between menu choice as an attracting factor to order food
online and the occupation of the respondent

H06: There is no significant difference between delivery time as an attracting factor to order food
online and the occupation of the respondent

HA6: There is significant difference between delivery time as an attracting factor to order food
online and the occupation of the respondent

H07: There is no significant difference between quality of food as an attracting factor to order
food online and the occupation of the respondent

HA7: There is significant difference between quality of food as an attracting factor to order food
online and the occupation of the respondent
2.5. Data collection Method

 Primary Data

Primary data is information collected through original or first-hand research.


For example, surveys and focus group discussions. On the other hand, secondary data is
information which has been collected in the past by someone else. For example, researching the
internet, newspaper articles and company reports. For this study, a self-administered
questionnaire was circulated to collect the primary data.

 Secondary Data

Secondary data is used to increase the sampling size of research studies and is also
chosen for the efficiency and speed that comes with using an already existing
resource. Secondary data facilitates large research projects, in which many research groups
working in tandem collect secondary data. The data for literature review was obtained from
various research papers, online articles and websites.

2.6 Sample Design

 Sampling Method

The sample size selected for the study was 110. A stratified sampling technique was used.
The stratified sampling technique was used because if the population density varies greatly
within a region, stratified sampling will ensure that estimates can be made with equal accuracy in
different parts of the region, and that comparisons of sub-regions can be made with
equal statistical power and researcher wanted all available subjects to participate in the survey.
3. REVIEW OF LITERATURE:

•Customer Perceptions of Electronic Food Ordering:


(Kimes, 2011)
This paper shows younger consumers are more likely to use electronic ordering than older
respondents. 60% of respondents between 18 and 34 years old have ordered online, as compared
to 35% of people aged 35 or over. Though there is growing popularity of online ordering systems
simple food ordering over telephone was preferred. Amongst the youth who ordered food online
there were female who ordered more in the urban & semi urban areas. Pizza and Italian food
were the most popular choice of food. People who were frequent order placers placed ordered
based on their past experiences & recommendations, along with home delivery options as
compared to non-users. The most important factor highlighted in the survey was order accuracy
and least was personal connection with the restaurants, which shows that consumers need
convenience and simple ordering systems and users believed in acceptance of credit cards and
promotions while ordering. The primary reason for ordering food was social gatherings and
didn’t want to cook food at home. People ordered majorly from restaurants website and reasons
for not ordering food online was those consumers preferred human interaction more and
technological anxiety.

•Automated Food Ordering System with Real-Time Customer Feedback:


(Tanpure, Shidankar, & Joshi, 2013)
This paper shows automation by using wireless techniques and mobile technologies has changed
the business in hospitality industry. The difference between existing PDA ( personal digital
assistants) and AOS-RTF (automated food ordering system with real time customer feedback) is
shown in this paper. The findings prove the AOS-RTF is a better option to use as it is Android
enabled system as compared to PDA which is expensive, requires customer presence, time-
consuming, lacks real time feedback, may pose health hazards like flu as 1 PDA may be common
to many people, lack of images etc. AOS-RTF will be coming up with more payment method,
register links, linking multiple restaurants to uplift the customer experience which will prove the
future of hospitality industry.
•Implementing Customizable Online Food Ordering System Using Web Based Application
(Chavan, Jadhav, Korade, &Teli, 2015)
This paper shows the shift from traditional ordering of food from entering into the restaurants to
placing the order after sitting to pre-placing the order even before entering the restaurants, just
pressing the button and confirming the order on the smart phone. Due to the advent of
technologies electronic payments is also made easier. Most of the online restaurants have their
focus on quick preparation and speedy delivery of orders rather than offering a rich dining
experience. The main advantage of the this system is that the application is pre-loaded with menu
and payment option and from the customers point of view it is easy to order and for restaurants it
is flexible for them to execute the orders timely. This system is designed to bring convenience,
effective and ease so that it improves the performance of restaurant’s staff and modernize the
experience of customers with the hint of new age internet technologies.

•Outsourcing To Online Food Delivery Services: Perspective Of F&B Business Owners


(See-Kwong, 2017)
The paper shows increase in “no cooking” trends, there is shift of needs and preferences of
consumers. Owners choose to outsource their services to gather revenue, exposure, and
convenience has the most significant impact on the decision made to outsource to third-party
online food delivery service. The parameters that enhance satisfaction and add delight are home
delivery, various methods of payments, the availability of ratings and reviews, and minimal
human interaction. It is an emerging trend for restauranteurs as globally people are moving
towards online ordering. Online food delivery service is also deemed to be more appealing to
smaller restaurant businesses that may not have the capacity to incorporate delivery service to
their business functions. Technology diffusion in this sector is creating a whole new world of
experience of fine dining and this medium should be channelized in such a manner that it proves
boon to both the sides and not bane.

•Consumer Perceptions Of The Fast Food Industry In Sweden.


(Mammadli, 2016)
This paper shows consumer perception of fast food industry in terms of behavioural intentions,
customer satisfaction and attributes of perceived value within Sweden. The research showed to
select any QSR was quality and taste followed by cleanliness, consumers also give preference to
quality of service and menu along with delivery speed. Knowing what customers value the most
can lead to increase in satisfaction level, sales and raise in the brand value. The research also
showed that consumers not only go to restaurants to eat food but for fun, change, meet friends,
etc. the consumers expect healthier menu options, spacious seating arrangements, more menu
variety and vegetarian options. Keeping mind all the parameters which the customer expects will
help in increase the brand awareness, long enduring customer relationships, increased market
share, loyal customer rate and hence retention rate will be higher, this will pave the way for
restaurateurs to expand their business.
•Customer Perception and Satisfaction on Ordering Food via Internet, a Case on
[Link], in Manipal
(Sethu&Saini, 2016)
This paper shows the extrinsic and intrinsic components of the food service decision-making
process. The extrinsic influence includes culture, socio economic, reference group, and
household and intrinsic influence covers needs, experience, personality and self-image, and
perception and attitudes. The experiment was done on 212 students of Manipal University on
[Link] which is an online food ordering portal which had several restaurants linked to it
and it provided ease in ordering food to the students as 100% of the respondents used the app.
Customers buying decision gets affected by the opinions and experience of friends, family and
discussions on online forums. The app helped saving time of students as instead of going to their
favourite joints their favourite food came to them. Thus, this shows usage of internet
technologies and ordering food online is more used by youngsters.

•Problems and Changing Needs of Consumers in Fast Food Industry: The Indian Perspective
(Prabhavathi, Kishore, & Kumar, 2014)
The paper claims that major reasons for growth of fast food industry is rising no. of nuclear
families, economic growth and increase in per capita income and globalization. The objective of
the study was to analyse the food consumption lifestyle behaviour of consumers segment for
developing new marketing strategies in fast food sector. Problems in this industry were absence
of healthy menu, no new varieties of fast food and slow delivery time. Various demographic
factors like age, gender, occupation status, education, income, marital status played an important
role in decision making, consumption habits and buying behaviour.

•Methods, Systems, And Computer Program Products For Ordering Food/Beverage Item At A
Food/Beverage Establishment Using A Mobile Terminal
(Sabapathypillai, 2006)
This paper shows the method of taking a food/beverage order at a food/beverage establishment
includes receiving a menu selection from a customer mobile terminal in the food/beverage
establishment at a dedicated restaurant transceiver over a wireless data connection. The menu
selection designates at least one food/beverage item. The menu selection may be received
responsive to transmitting food/beverage menu content from the dedicated restaurant transceiver
to the mobile terminal. Technological advancements are used to ease the proceedings of the
orders and reduce human errors along with improved efficiency.
•Customer-Based Wireless Ordering And Payment System For Food Service Establishments
Using Terminals And Mobile Devices
(Hernblad, 2016)
This paper shows the working of an interactive system which helps the consumers pay their bills
themselves along with disclosure of their orders. The device used can be a mobile device or a
thin, battery powered, touch-terminal which contains codes or graphical lists, payment
methodologies, for a seamless payment system. This invention was done to enhance customer
experience and for efficient order placing and payments by consumers and to keep up with the
fast moving technologies. These inventions were to replace the reducing labour force in the
hospitality industry.

•Factors Affecting Customer Satisfaction of Food and Beverage Outlets- A Study of Food and
Beverage Outlets between Amritsar and Jalandhar
(Kumar & Bhatnagar, 2017)
This paper shows the research findings from consumers in between Jalandhar- Amritsar
Highway. The research was to find out factors affecting satisfaction of customer on the basis of
food quality, service quality, and physical environment of food outlets, hygiene and cleanliness.
Most of the consumers were travellers and the parameters mentioned here were only followed by
branded outlets and not local outlets due to high labour costs. All the mentioned parameters help
in achieving great customer experience and loyalty and all the outlets should take into
consideration for smooth working and delight of customers.

•Customer Satisfaction Measurement In Hotel Industry: Content Analysis Study


(Holjevac, Marković, &Raspor)
This paper states that one of the biggest challenges in the hospitality industry is providing and
maintaining customer satisfaction. The study reveals the examination of GCCs (guest comment
cards) and satisfaction management schemes for customers of Opatija hotels. The primary
objective of GCC was to understand needs and preferences assess the satisfaction of the service
provided to the customers and gather their opinions on the same. The study revealed that GCC
should be motivationally be filled customers and questionnaire should be designed keeping in
mind the purview of customer delights and preferences.
•A Study On Customer’s Attitude And Perception Towards Digital Food App Services
(Parashar&Ghadiyali, 2017)
This paper focuses on the inclination of consumers towards food ordering apps and the paradigm
shift of restaurateurs towards third party service delivery. Food tech is the hot talk in the start-up
town. Food delivery apps have now become a big hit with tech-savvy individuals across India.
There are several food delivery apps in India that one can download on smart phones to order
food on the go and from the comfort of homes. The special apps are a convenient way for the
consumers to place orders and for the company to attract further more consumers but the comfort
of usage must be given a higher preference. Consumers also expect to get correct and timely
orders along with checking with new nearby hotels and their service.

•The changing market for food delivery


(Hirschberg, Rajko, Schumacher, &Wrulic, 2016)
This article of McKinsey states that mobile food ordering apps have changed the shape of
restaurant business completely. By a single tap from the consumer’s electronic devices food
reaches consumer’s home. 5 top players are JustEat, GrubHub, Delivery Hero, Deliveroo,
Foodpanda. The market for food delivery apps is €83 billion and annual growth rate is estimated
to be 3.5%. there are two types of food deliveries online platforms i.e. aggregators & new
delivery players. Aggregators get the fixed margin from the orders from the restaurants and
restaurant will do the delivery. [Link], on the other hand new delivery players provide
logistics for the restaurants. They are compensated by receiving a fixed margin on the order from
the restaurants along with fee from consumers. The opportunity for new delivery players is that
they can incorporate lower-end traditional-delivery restaurants instead of merely competing with
aggregators. The 2 major forces that can drive the growth of new delivery players are
substitution of fine dining restaurants and cooking meals at home. Customer behaviour towards it
shows that customers who sign-up with relevant data do not switch as they get personalized
treatment, speed of delivery is crucial, orders are placed by home majorly than from work place,
weekends have more no. of orders. Online food-ordering has grown all over the world and has
potential to grow in future.
•Big data analytics is the new battleground for food ordering apps
(quantzig)
This article states that online food ordering is popular amongst the millennial due to its
convenience and ease of use. The providers are using big data to provide new levels of consumer
satisfaction. Big data benefits to providers are 1) accurate delivery time estimates: real time
traffics, temperature, route extensively help the providers to promise accurate delivery time to
consumers. Wrong estimation of these factors may result to wastage or damage of food. 2)
Operational efficiency: big data helps to provide quality service. The impact of market trends on
stock consumption, formulating best practices to improve customer service, helps to improve
operational efficiency and survive in the market. 3) Understanding customer sentiments: social
media plays an important role as customers can express their thoughts and that can either build or
sabotage the name of company. 4) Personalization: understanding the customer preference,
payment options, reviews, helps the providers to give customer-centric services 5) analyse the
market basket: it is based on the purchase history and preferences of customers in the past.
Exciting deals can be proposed to customers based on the data, this will bring in loyalty and
satisfaction by making the purchase decision easier.

•How Restaurants Are Using Technology to Deliver Better Customer Service


(tico, 2012)
This article shows an older version before use of internet in restaurants. Customers in the survey
conducted express their thoughts that restaurants should start using internet to make their service
fast or billing process. Then, these technologies listed down were new and not every outlet could
afford to have it but it was expected and advisable for the restaurants to have it to keep up with
the fast changing technological pace. 1) Mobile ordering: most famous, domino’s pizza was
leading then. 2) I-pad order kiosks: Blazing onion Burger Company was using it. It helped
preventing walk-a-ways and resulted into more orders. 3) Facebook ordering: next big thing.
Facebook payment companies such as Chow Now and Net Waiter are help restaurants to ace-up.
It is potential medium to grow and low-cost way to attract new customers. Taco Spot used this
and got 10% increment in the sales. 4) Tabletop E-waiter & check-out: Diner do not like the
waiters to take their credit cards for payments with the fear of credit card fraud instead, they
could provide tablets for self-payments. Records show restaurants could serve more dinners
along with additional servings and wait time was reduced to 7 mins. E.g HMSHost 5) Digital
menu boards + smart phones: changing menu and prices manually is a task hence this comes as a
huge help with entertaining customers as they wait in line. 6) Games while-u-wait: introduced
for kids while they wait for orders by McDonalds. 7) Online coupons: popular with diners as
they wish for it and use it frantically. Incorporating innovation that satisfies clients and turns
tables quicker will be an easy decision.
•Food Industry Using the Internet of Things to Make Processing Smarter
(runvick, 2017)
This article states that use of IoT is helping the food processors and suppliers to reduce the
maintenance costs, gain opportunities, increase productivity, and transparency in supply chain.
CERTUSS is one of the examples which show the data points include temperature, flame signal,
and steam pressure via embedded sim or Wi-Fi. Spotting issues an rectifying them before hand is
easier over phone. Global manufacturing processes shows the providers new business
opportunities and solutions to problems by getting connected to the cloud, decision making is
quick. Improving food safety is of utmost importance. Transparency in supply food chain
including customers in the process consumers learn about everything from the exact wheat field
their pasta was made from to the final stages of packaging and labelling. IoT should be treated as
empowerment not as a replacement.

•How Internet of Things Is Transforming the Food Industry


(sagar, 2018)
The article states that IoT in food supply chain massively contributes to reduce cost, wastages,
risks. IoT facilitates food companies to ensure superior levels of traceability, food safety and,
therefore accountability all through the farm-to-plate supplies chain operations. It helps in
production and storage. Food wastage results in carbon emissions which hampers the
environment. Highest quality standards on existing products or new could be leveraged by the
use of IoT by suppliers. IoT could be implemented to any of the food delivery functions.

•Digitalization: the future of food and beverages


(McNamara, 2017)
Digitalization in simple terms means optimizing the business by use of internet and other online
channels. The world of food and beverage is susceptible to change every day. Digitalization
offers an alternate, quicker, better methodology, yet be aware of the trap of endeavouring to
digitize or computerize current work instead of making better approaches for business. Consider
building up an advanced twin of the esteem chain, including producing tasks the board and
computerization. This is a key piece of the by and large advanced string, and one that ought to be
lined up with the more extensive ace information the executives’ plot, which is basic in
supporting the computerized twin. Moreover, organizing the production of information, and
keeping up and making significant all examination is basic. The fundamental focal point of this
exertion is straightforwardness and driving better choices over the venture. With the goal for
digitalization to give genuine change in an endeavor, it must be viewed as something other than
another approach to expand effectiveness. Digitalization must be propelled deliberately,
bolstered completely by all partners and saw as a move up to the whole plan of action.
•Statistics and facts about online food industry services.
(Portal, 2015)
Sustenance conveyance has been a part of the eatery business for a long time. Prior to the coming
of the web, conveyance was offered by takeout and conveyance just eateries or sit in eateries
with their own conveyance benefit. It likewise prompted the formation of collected internet
requesting stages, which enable shoppers to peruse through eateries which offer conveyance, and
request specifically off the stage. As of late these too have differentiated, with a few destinations
empowering clients to arrange from eateries with no conveyance administration of their own.
UberEats, give their very own drivers who gather the feast from the picked eatery and convey it
to the client. This has permitted numerous eateries, which recently did not have the offices, to
enter the conveyance advertise. In spite of the enhancement of the conveyance showcase by
these developments, online conveyance deals represented just four billion U.S. dollars of the
aggregate 30 billion U.S. dollar conveyance showcase in 2015

•Restaurants Face Digital Dilemma


(kell, 2017)
There have been three models in eatery co-ordinations in the U.S. There is the customary diner
with a lounge area and kitchen, which ruled until around World War II. At that point came the
time of portable eating, which prompted the ascent of junk food organizations, for example,
McDonald's (MCD, +1.49%). That thusly caused the upgrade of numerous kitchens, client
territories, and parking garages to encourage serving nourishment to individuals in autos as
opposed to at tables. Presently the ascent of computerized requesting implies that numerous
foundations that weren't set up for huge amounts of to-go requests or home conveyance need to
consider the format of their offices and how they send their staff. The digital revolution hasn’t
always been smooth: Mobile ordering has become so popular that crowds mass during peak
times, discouraging walk-in visitors. Digital orders may need fewer tables and chairs and a
bigger space for food pickup. Speed is often of the essence for the smart phone set, so certain
parking spots might be set aside solely to facilitate quick drop-ins.
•Why Mobile Food Ordering Apps are the Future of Food Delivery?
(vishwanath)
This article states that there is disruption in the food ordering and delivery services. Restaurants
are readily opting the technologies due to non-usage of phones. 70% of the orders are placed on
mobile phones and considered to be the most powerful medium. Benefits of a mobile phone app
is been explained by this article: 1) the layout is customizable as per the restaurant’s theme as
this helps them brand their services in a better manner. 2) Real-time menu: any changes in the
menu are automatically reflected in it, this is an added advantage in multiple outlet stores. 3)
Easy ordering: cuisines according to customer preferences, local decision, outlet decision makes
the process easy. OTP methods are used and hence, security is maintained 4) customer-profiles:
it helps in maintaining the database of the customer by saving their names, addresses, previous
orders, favorite orders,
reviews and feedback. 5) push notifications: helps in keeping the customers engaged, informs
them about the new products, launches, new combos, etc. 6) Advance orders: customer are given
preference on choosing the preferences in deliveries. 7) POS Integration: POS integration
ensures that all orders received from the mobile ordering app get directly pushed to the POS
terminal of the selected outlet. International immersion has become the must have feature in the
restaurants.

•Mobile- ordering creates problems for restaurants:


(jargon, 2017)
This article states that restaurant operations have been reshaped by the advent of technology.
Standing and cutting the line while ordering on mobiles was frustrating so the store built cubbies
with sliding doors to take the orders employees were given extra training that includes guiding
to-go customers to the right area. Location is another problem faced by restaurant chains as
orders are either placed during transit or wrong location to pick up their order, hence the
immediate is detected. Solving this would help the customers as well as restaurant chains in an
efficient manner.
•Challenges that online food delivery restaurants and services face
(Challenges that online food delivery restaurants and services face, 2017)
Challenges may create hindrance in the overall operations of the restaurants, hence they require
special efforts. Online food delivery channel grows popular, it also brings with it entry barriers
for new players, and risk of cannibalisation for the existing players. Wavering customer loyalty
is the main drawback of platform companies. Better deals more loyalty. Unpredictable pricing
model lower margins and capital, and reducing prices further may put them out of the business.
Customers expect higher benefits and there is no guarantee that prices of orders will not increase.
Logistics dilemma: area is the constraint in the delivery service. Customers expect timely
delivery, and inefficient logistics can only disappoint them and make them lose trust in the
service. Unreliable delivery and logistics staff: staff inadequacy could be because of the attrition
is quite high as well for a number of reasons such as inadequate salaries, poaching and
absconding, lack of training, absence of employee benefits and career progression opportunities,
and health and life risks (weather all seasons, frequent changes in work schedules and carrying
bulky bags). Inconsistency in food quality: regardless of what nourishment quality and bundling
measures for online requests are taken, they are inclined to quality omissions. The pizzas will get
cold, curries or sauces will spill, noodles will get sticky and sandwiches will get sodden. The
clients liken the nature of nourishment specifically to the nature of conveyance. Inability to cope
with volume: restaurants fail to develop a second or alternate line of operations to handle online
deliveries. Entry of bigwigs: they have monetary and tasks assets to take care of the market
demand and keep the challenge under control. Along these lines, little and autonomous
sustenance conveyance setups battle to hold their situation in the market. Overcoming these
obstacles restaurant companies can reach heights.

•The hidden psychology of online food ordering


(the hidden psychology of ordering food online, 2014)
The article states that physical menu cannot show the whole menu but the online menu can show
the variety they offer along with the chain is also able to obtain valuable data from the touch
screens. People spend more time on I-pad as there is a whole variety of food which they
normally do not tend to order. Requests are more exact both from the client stance and the
request taker on our side, at times telephone requesting can be precarious if it's an uproarious
store, or a bustling situation on the client's side. There are 34 million different ways to make a
solitary Domino's pizza, and a great deal of conditions can become mixed up in interpretation.
Computerized requesting can deal with a ton of that. Digital orders are more reliable.
Third party food delivery business on the rise, but take warning
(Zimmer, 2018)

47 percent of the 6,000 consumers surveyed used an online food delivery service in 2017 43
percent of the 6,000 say it replaced a dined-in meal Coffee and burger chains saw the largest
increase in activity. The outsider conveyance benefit industry, there could be a substantial
increment in despondent and hungry buyers who send their cash to a counterfeit outsider
conveyance benefit and the doorbell never rings.
4. Data Analysis Techniques

Data analysis was carried out with the help of Google Survey forms. It helps to understand the
mind-set of the people and choices made by them. Personal survey and attention was given while
collecting data. The following are primary data and all the hypothesis are based on this data.

The questions are:

1 .What is the name of responded?

2. Gender?

Objective: The objective of this question is to understand the ratio of male and
female who has submitted the form.

Interpretation: We can understand that the ratio of male is greater to that of


female. We can say that gents/males order more online food than females.
3. What is your age?

Objective: This question was asked to understand the age group of people
ordering food through various modes.

Interpretation: We can say that majority of our consumers are between the age
group of 18yrs to 25yrs than 25yrs to 35yrs and so on.
4. Marital Status?

Objective: To understand which group of people order food online whether


married or unmarried.

Interpretation: We can understand that unmarried people order more online


food than married as shown in the above figure
5. Occupation?

Objective: This question was asked to know more about our consumers and
their occupation

Interpretation: We can understand that our major consumers are teens or college
students. Competitor can advertise more about them to student groups.
6. Income per month (this question was optional)

Objective: To understand income of our consumer and their expense on food

Interpretation: We can interpretate by the figure that most of our consumers


who has filled the form falls under the range of less than rs.25,000
7. What mode do you prefer for ordering food?

Objective: This question was asked to the consumer to know what mode do
they prefer for food ordering

Interpretation: We can understand that our consumers order food from both the
mode which is online as well as offline.
8. How often to you order online?

Objective: To understand the food ordering behaviour of our consumer

Interpretation: We can interpretate that majority of our consumer order once a


week and some consumers order 3-4 times in a week
9. How much do you spend on food ordering if you order regularly?

Objective: This question was asked to know about our consumers spending in
online food ordering

Interpretation: We can understand that our consumer spent maximum rs 400 - rs


600 on food orders
10. What mode of payment you prefer or use frequently?

Objective: This question was asked to the responded to understand which mode
of payment they prefer for ordering food

Interpretation: We can understand that our consumer normally uses both the
method for payment i.e. online and offline. Other half generally pays by cash
11. Which is the most important factor while ordering food online?

Objective: This question helps to understand which are the most important
factors for consumer while ordering food

Interpretation: We can understand by the above graph that quality is the most
important factor for consumer other than price and service
12. Which app do you use frequently to order food online? (This question is
optional if you don’t order food online)

Objective: To understand the food ordering behaviour of consumer and from


which app do they order frequently

Interpretation: We can understand that consumer generally orders from Swiggy


app and Zomato app as they provide more offers and fast delivery
13. Rate online food servicing apps on scale from 1-5. (Where 1 being highly
satisfied and 5 being highly dissatisfied)

Objective: To understand the level of satisfaction in the consumer for food


servicing app

Interpretation: We can understand by the above diagram that consumers are


satisfied. Competitors or the food servicing industry can opt for highly satisfied
by various marketing methods
14. On what payment method you get additional discount during online food
ordering?

Objective: This question was asked to the consumer to understand on what


payment method the food servicing app provides more discounts

Interpretation: As shown in the diagram we can understand that more discounts are
offered to the consumer paying by various online payment methods like paytm,
phonepe, upi, etc
15. Online food ordering was worth your money?

Objective: To understand that the money used to order food online was worthy
or not

Interpretation: We can see in the above diagram that most of the consumers
response is positive
16. Do you like to switch apps or restaurant while ordering food?

Objective: This question was asked to the consumer to see the brand loyalty and
change in taste and habits

Interpretation: We can see that as there are new restaurants and apps are
developing consumers are tend to try new things. In this change in trends it is
important for food servicing industry to keep their consumers loyal
17. What challenges do you face while ordering food online?

Objective: To understand the challenges or limitations faced by consumer while


using app

Interpretation: The food industry can solve these challenges faced by consumer
and can increase their brand loyalty and sales
5. Findings & Conclusion

5.1. Findings:

1. 44% of the respondents out of the total respondents prefer ordering online and offline
both followed by online ordering by 36%.
2. 31.5% respondents out of the total respondents order once a week followed by 3-4 days a
week by 25.8%
3. Quality was found to be the most important factor for making any purchase decision.
50.4% of respondents considered quality as the most important factor. This was followed
by price and service accounting for about of24.8% for both respondents respectively.
4. Across both the genders, male & female, quality is the most important factor for females
by61.3%whereas services was the most important factor for males by 54%.
5. Within the age group 15-25 did not face any difficulties with 53.3% while ordering food
online whereas the group who faced the major difficulties within the age group of 26-35
with 84.2%
6. After all the tests were performed the findings are:

 There is no relationship between difficulties faced by the customers in ordering


food through apps and age
 There is no relationship between difficulties faced by the customers and income
group.
 There is no significant difference between price as an attracting factor to order
food online and the occupation of the respondent
 There is no significant difference between list of hotels as an attracting factor to
order food online and the occupation of the respondent
 There is no significant difference between menu choice as an attracting factor to
order food online and the occupation of the respondent
 There is no significant difference between delivery time as an attracting factor to
order food online and the occupation of the respondent
 There is no significant difference between quality of food as an attracting factor
to order food online and the occupation of the respondent
7. After performing factor analysis it was found that: The parameters to study customer
satisfaction related to price showed that respondents are price conscious, and look for
offers and promotions. The parameters related to service showed that respondents believe
in getting all the possible service parameters listed in the study to obtain smooth
experience while ordering. The parameters related to Quality showed that respondents
expect quality food from the restaurants they order.
8. Zomato was found to be the most popular apps amongst the respondents followed by
Swiggy
5.2 Conclusion:

 Restaurant ordering have been reshaped by the advent of technology


 By the study we can see that there is a gradual shift from traditional dining to online food
ordering through apps
 While ordering online respondents feel that Quality is the most important factor
 Service and Price go hand in hand.
 The millennial group of 15-25 did not face any difficulties while ordering food online and
the age group of 26-35 faced the most difficulties as the latter group is well accustomed
to the new technologies.
 The respondent falling into any income group is irrelevant as they all have faced certain
challenges while ordering online through food ordering apps
 Through the survey the conclusion derived was respondents order through apps was at
least once a week
 Challenges are faced by any age group and it is not specific to a particular age group.
 Zomato and Swiggy were found to be the leading apps through which the customer’s
order food
 Occupation of the respondents does not make any difference in attracting the respondents
to order food through food ordering apps.
6. Suggestion & Limitation

6.1. Suggestion:
 Companies should focus more on increasing customer satisfaction
 Companies should focus in reducing the challenges faced by proper grievance redressal
to its clients
 Companies should have a consistent holistic view in providing services right from pre-
order to post-order of food through apps to their customers
 Companies should make the processes of online ordering through apps simpler to reduce
challenges while ordering as they may have the tendency of losing their customer base
due to complexity
 Respondents find the Quality factor most important, hence they should focus more in
providing differentiated services to the customers to retain them
 Differentiated services will lead to customer retention and hence will increase the
customer base which will lead to profitability and growth to the organization
 Companies must adopt new technologies as customers are attracted to newer
technologies
 Uber Eats and Foodpanda should work on their operations to match the operations and
workings of Zomato and Uber Eats
6.2 Limitations:
 The study was conducted for time duration of four months, from December 2019 to
March 2020. If the study was conducted for longer duration, it would have helped to gain
much better insight about food ordering apps industry.
 The area of study was Mumbai city; therefore the study is not applicable to non-metros
cities and rural areas.
 Majority of respondents were between the age group of 15 and 25 years.
 Case Study

Zomato initially named as Foodiebay was started in 2008 by Mr. Deepinder Goyal. It is a
restaurant searching platform providing in-depth details with autonomous reviews and ratings.
Foodiebay, the initial name was changed to Zomato in November 2010 to increase their reach
among people.

To differentiate themselves from their competitors, Zomato concentrated on adding approx.


18,000 new places to eat from. Along with they also decorated many special features, such as
pointed to particular dishes or opening times”.

To be the largest resource in food supply market, Zomato bought urbanspoon, a leading
restaurant service providing portal for $52 million to enter US, Canada and Australia to leverage
local insights and experience and to expand their business in overseas seeing the future goal and
objective.
Vision
 To expand to more 50 countries
Milestones:
 Number of listed restaurants: in 2008 it was 4000 restaurants which increase to 94000 in 2013
and currently 384,100 in Q1 of 2015.
 Monthly visitors of Zomato increases to 35 million in 2014 which was 11 million in 2013 and
0.015 million in 2008.
 Yearly revenue of Zomato in 2008 was 0.06 crores which increased to 11.3 crores in 2013.
 Spread in 21 countries worldwide.
Success Factor:
 First mover advantage
 Strong content platform
 Efficient employees
 Good rating mechanism and social platform
 Funding from experienced source
Strategy of Zomato: Zomato works with keen interest on various strategies to achieve their
goal. It includes
 Financial strategy: To increase their fund and revenue
 Marketing strategy: To tap their customers from across the globe
 Growth strategy: To grow continuously and increase their customers and page traffic
 Globalization strategy: To expand themselves across the whole globe as a leading service
provider
Marketing Strategy
 Featured and user friendly website
 Global mobile app
 Focusing on digital marketing channels for potential customers
 Acquire the competitors: To be the largest resource in food supply market, Zomato bought
urbanspoon for $52 million to enter US, Canada and Australia

 Simpler review and rating system


 Integrating other tools in their marketing strategy has given them wonderful hike in their
business.

 Sales promotion: Coupons and price-off

 Direct Marketing: Phone call and direct mail


Investments

In August 2010, Zomato got its first round of funding of $1million from Info Edge, India. And
in September 2011, got its second round of funding of $3.5million from the same financier. Next
year Zomato upraised its third round of another $2.5 million from the same investor and again in
early 2013, Info Edge funded fourth round worth $10 million which gives them a 57.9% stake in
Zomato.

Seeing the future and growth of Zomato, Sequoia Capital and Info Edge, India in November
2013 funded Zomato with $37 million. Info Edge now owned 50.1% of Zomato on an
investment of INR 143 crores. The total funding raised by Zomato till November 2013 stands at
$53.5 million.

In November 2014, Zomato came up with a fresh round of funding of $60 million at a post-
money valuation of ~US$660 million. This round of funding was jointly headed by Info Edge
India Limited and VY Capital, with involvement from Sequoia Capital. This made a total
funding of over US$113 million for Zomato.

Recently in a fresh round of funding in April 2015, Info Edge, India has invested an amount of
Rs 155 crore in Zomato. Info Edge said in a statement “Being Info Edge’s fair share of Zomato’s
recent fund raises of USD 50 million”. Upon completion of the allotment of shares, Info Edge’s
aggregate investment in Zomato will be about Rs 484 crore.

As the website was launched, it became popular soon and expanded rapidly, covering many
important regions of India including Kolkata, Mumbai, Bengaluru and Pune by the year 2010.
Apart from being a service provider within India, [Link] now has branched to overseas in
the regions of Philippines, New Zealand, Qatar, South Africa, Sri Lanka, the United Arab
Emirates and the UK as well.

The website covers a list of over 1, 20,000 restaurants across all these regions catering to more
than 15 million customers worldwide. With its headquarter in New Delhi, [Link] is
providing career opportunity to over 350 employees all across the globe.
Social media Strategy
Zomato uses different platforms to engage their customers with them.

Facebook
There is a huge engagement of customers on Facebook. Zomato has more than 600k strong
Facebook community.

Twitter

Twitter is a place where Zomato is sparkling. It has more than 114 k followers there. Used as a
conversation platform with the customers, Zomato is doing a great job in engaging their
customers on their page. They answers all the queries raised over the platform by the customers.
Blog

Sharing and updating with all the latest updates is a key point for any organization. Zomato uses
their blog as their mouthpiece to share all the latest updates.

Pinterest

The platform shares the food experience with great content to attract their customers. The
company needs to do a lot of job to make its followers on this platform which will certainly work
in their promotion.

Instagram
This platform lets the user share the foodie photographs just by sharing it using the tag # Zomato.
The image automatically gets shared on the microsite.

Success Story
The key factor for Zomato success is its marketing strategy and in-depth knowledge of their
competitors. Zomato aims to be a place where the foodies hangout. The company has spread in
20 countries with its headquarter in New Delhi, India providing service to over 35 million values
customers per month. The list of registered restaurants on the website has increased to 384,100
till March 2015.

Facebook, Twitter and Pinterest are the 3 main platforms which made the base for the success of
Zomato with a deep presence among their customers. Other than that, Zomato has extensively
invested a lot over SMO’s, SEO’s and has worked a lot to improve its UI and make it more user
interactive. Side by side with a goal to branch globally, they also invest much on TV ads to
bombinate Zomato.
Pankaj Chaddah, the co-founder of Zomato agreed, “ads on the mobile app have changed the
revenue game for them”. More than 50% of their total traffic comes from their mobile apps.
“Using location-based services to target ads around a consumer’s physical location helps make
this decision easier” said Chaddah.

Sanjeev Bikchandani, co-founder of Info Edge and Zomato’s largest shareholder said, “the firm
will focus on segments such as online food ordering, restaurant booking, subscription-based
services and billing inside of restaurants”.
BIBLIOGRAPHY

Abbas, M. (2018, June 4). Maharashtra top e-waste generating state in India: Study. Retrieved
March 15, 2019, from Economic Times:
[Link]
in-india-study/64448215

Agnihotri, D. V. (2011, June). E-waste in India.

Ahuja, A. (2018, June 26). E-Waste On The Rise: India Is Now One Of The Top Five E-Waste
Producers In The World: Report. Retrieved March 15, 2019, from NDTV:
[Link]

Avakian, M. (n.d.). E-waste: An Emerging Health Risk. Retrieved March 11, 2019, from
National Institute of Environmental Health Sciences:
[Link]
merging_health_risk_.cfm

Bhoi, V. N., & Shah, T. (2014). E-Waste: A New Environmental Challenge. International
Journal of Advanced Research in Computer Science and Software Engineering , 4 (2), 442-447.

Bhutta, M. K., Omar, A., & Yang, X. (2011). ElectronicWaste: A Growing Concern in Today’s
Environment. (Y.-K. Ng, Ed.) Economics Research International .

Borthakur, A., & Singh, P. (2012). Electronic waste in India: Problems and policies.
International Journal of Environmental Sciences , 3 (1), 353-362.

Butkeviciene, V., Stravinskiene, J., & Rutelione, A. (2008). Impact of Consumer Package
Communication on Consumer Decision Making. Engineering Economics , 1 (56), 57-65.

Challenges that online food delivery restaurants and services face. (2017, oct 26). Retrieved jan
8, 2019, from yourstory: [Link]
restaurants-and-services-face/
Chaudhary, M., Shalender, K., & Mishra, A. K. (2018). Issues and Challenges in E-Waste
Management in India: A Gap Between Theory and Practice. The IUP Journal of Business
Strategy , 15 (1), 54-63.

Chavan, V., Jadhav, P., Korade, S., & Teli, P. (2015). Implementing Customizable Online Food
Ordering System Using Web Based Application . IJISET - International Journal of Innovative
Science, Engineering & Technology , 1-6.

Chen, Y. J., & Wu, T.-H. (2010, June 13). Effective e-waste management - The role of
international cooperation and fragmentation.

Chovanová, H. H., Korshunov, A. I., & Babčanová, D. (2015). Impact of Brand on Consumer
Behavior. Procedia Economics and Finance , 615-621.

Consumer Base for Electronics Products Evolving. (2004). Circuits Assembly , 15 (3), 12-12.

Darakhshan, N., & Islam, J. U. (n.d.). Purchase Intention and Buying Behavior towards Laptops:
A study of students in Jamia Millia Islamia University, New Delhi, India.

Darakhshan, N., & Islam, J. U. (2014). Purchase Intention and Buying Behavior towards
Laptops: A study of students in Jamia Millia Islamia University, New Delhi, India. Retrieved
November , 3.

Dasgupta, D., Debsarkar, A., Chatterjee, D., Gangopadhyay, A., & Chatterjee, D. (2015). Present
E-waste Handling and Disposal Scenario in India: Planning for Future Management.
International Journal of Engineering Research and Applications , 5 (5), 99-107.

Gaidajis, G., Angelakoglou, K., & Aktsoglou, D. (2010). E-waste: Environmental Problems and
Current Management. Journal of Engineering Science and Technology Review , 3 (1), 193-199.

Gomez, M., Martin-Consuegra, D., & Molina, A. (2015). The importance of packaging in
purchase and usage behaviour. International Journal of Consumer Studies , 39 (3), 203-211.

Grant, K., Goldizen, F. C., Sly, P. D., Brune, M.-N., Neira, M., Berg, M. v., et al. (2013). Health
consequences of exposure to e-waste: a systematic review. The Lancet Global Health , 1, 350-
361.
Guliyev, S. (2017, May 5). Impact of a brand on consumer decision making process.

Hamann, D., Williams Jr, R. L., & Omar, M. (2007). Branding strategy and consumer high-
technology product. Journal of Product & Brand Management , 16 (2), 98-111.

Hernblad, K. (2016). CUSTOMER-BASED WIRELESS ORDERING AND PAYMENT


SYSTEM FOR FOOD SERVICE ESTABLISHMENTS USING TERMINALS AND MOBILE
DEVICES . United States Patent Application Publication , 1-60.

Hibić, S., & Poturak, M. (2016). Impact of a Brand on Consumer Decision-making Process.
European Journal of Economic Studies , 17 (3), 405-414.

Hirschberg, C., Rajko, A., Schumacher, T., & Wrulic, M. (2016, november). the-changing-
market-for-food-delivery.

Holjevac, I. A., Marković, S., & Raspor, S. (n.d.). CUSTOMER SATISFACTION


MEASUREMENT IN HOTEL INDUSTRY: CONTENT ANALYSIS STUDY. Retrieved dec
28, 2018, from [Link]: [Link]

Hoyer, W. D. (1984). An Examination of Consumer Decision Making for a Common Repeat


Purchase Product. Journal of Consumer Research , 11 (3), 822-829.

Hoyer, W. D., & Brown, S. P. (1990). Effects of Brand Awareness on Choice for a Common,
Repeat-Purchase Product. The Journal of Cosnumer Research , XVII (2), 141-148.

Iazzi, A., & Santovito, S. (2016). Branded Versus Non-Branded: Differences in Consumer
Preferences. International Journal of Marketing Studies , 8 (1), 57-71.

jargon, j. (2017, oct 17). mobile ordering apps creates problems for restaurants. Retrieved jan 8,
2019, from the wall street journal: [Link]
problems-for-restaurants-1508119500

Jha, S. (2015). Conscious and Non-conscious Decision Making in Consumer Choice: A


Conceptual Model. South Asian Journal of Management , 22 (3), 122-136.

kell, j. (2017, june 9). Restaurants Face Digital Dilemma. Retrieved january 8, 2019, from
forbes: [Link]
Keller, K. L. (2013). Strategic Brand Management (4th ed.). Pearson Education Inc.

Kimes, S. E. (2011, 5 1). Customer Perceptions of Electronic Food Ordering. Retrieved 12 24,
2018, from Cornell University School of Hotel Administration:
[Link]
1&messagePartId=0.1

Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2013). Marketing Management (14th ed.).
Dorling Kindersley (India) Pvt. Ltd.

Kumar, R., & Karishma. (2016). Current Scenario of e-waste management in India: issues and
strategies. International Journal of Scientific and Research Publications , 6 (1).

Kumar, S., & Bhatnagar, D. D. (2017). Factors Affecting Customer Satisfaction of Food and
Beverage Outlets- A Study of Food and Beverage Outlets between Amritsar and Jalandhar. IOSR
Journal Of Humanities And Social Science , 1-7.

Laxmi, S., & Rao, D. T. (2015). Consumer Buying Behaviour for Electronic Products A Study of
select items. International Journal of Research and Computational Technology , 7 (2).
Appendix

1) What is your name? *

2) Gender *
I. Female.
II. Male.

3) What is your age? *


I. 18yrs - 25yrs.
II. 25yrs - 35yrs.
III. 35yrs - 50yrs.
IV. 50yrs and above.

4) Marital status? *
I. Married.
II. Unmarried.

5) Occupation? *
I. Business.
II. Job.
III. Student.
IV. Homemaker.

6) Income (per month) This question is optional for students


I. Less than 25000
II. 25000-50000
III. 50000-75000
IV. More than 75000

7) What mode do you prefer for ordering food ? *


I. Online.
II. Offline.
III. Both

8) How often do you order online? *


I. 3-4 days a week.
II. Once a week.
III. Once a month.
IV. Occasionally ( on birthdays,festivals,etc).
V. Rarely (once in 6 months or once a year).
9) How much do you spend on food ordering if you order regularly? *
I. 400rs-600rs.
II. 600rs-800rs.
III. More than 800rs.

10) What mode of payment you prefer or use frequently? *


I. Online (via apps, cards,etc).
II. Offline (cash).
III. Both (card and cash).

11) Which is the most important factor while ordering food online? *
I. Quality.
II. Price.
III. Service.
IV. Quantity.

12) Which app do you use frequently to order food online? (This question is optional if you
don't order food online)
I. Zomato.
II. Swiggy.
III. UberEats.
IV. Others

13) Rate online food servicing apps on scale from 1-5. (Where 1 being highly satisfied and 5
being highly dissatisfied.) *
I. Highly satisfied.
II. Satisfied.
III. Neutral.
IV. Dissatisfied.
V. Highly dissatisfied.

14) On what payment method you get additional discount during online food ordering? *
I. [Link] card payment (debit,credit card)
II. [Link] app payment (phonepe, paytm, upi, etc)
III. [Link] cash
IV. [Link]

15) Online food ordering was worth your money? *


I. Yes.
II. No.
16) Do you like to switch apps or restaurants while ordering food ? *
I. Yes.
II. No.

17) What challenges do you face while ordering food online? *


I. Error while using app
II. Service provided by the food company
III. Payment issues

18) Any feedback on online food ordering app to increase consumer satisfaction?

Common questions

Powered by AI

Customer satisfaction is pivotal for the success of platforms like Zomato and Swiggy. Users prioritize order accuracy, food quality, and timely delivery, which directly impact customer retention and loyalty . Challenges such as app security and user interface also influence satisfaction levels, requiring continuous refinement to maintain competitive positioning .

Zomato expanded internationally by initially entering markets like the United Arab Emirates, Sri Lanka, and the United Kingdom in 2012, and subsequently in other countries such as Turkey, Brazil, and Indonesia in 2013 . Zomato faces challenges in maintaining its competitive edge due to the rapidly replicable nature of service industry innovations, potential security breaches, and competition from entities like Google Maps offering restaurant recommendations .

Zomato's strategy involves international expansion, acquiring local competitors, and exploring new business models like cloud kitchens to combat market saturation. Swiggy focuses on fast deliveries, wide restaurant selections, and consistent brand presence, capitalizing on first-mover advantages in certain regions. Both leverage technology and partnerships, but Zomato's aggressive acquisition strategy contrasts with Swiggy's emphasis on operational efficiency and customer experience .

Zomato's opportunities include expanding into more countries, acquiring competitors, and innovating with cloud restaurant concepts . Conversely, it faces threats from Google's Schema module and other market entrants who can swiftly replicate Zomato's offerings .

Social media and community engagement are crucial for food delivery platforms like Zomato by enhancing brand visibility, facilitating customer interactions, and promoting user-generated content such as reviews and check-ins. This engagement helps build brand loyalty and attracts new users while fostering a community environment that encourages repeat usage .

The introduction of delivery fees and surge pricing has enabled platforms like Swiggy and Uber Eats to manage operational costs and incentivize larger order sizes by pushing users to meet order thresholds to avoid charges. Surge pricing during peak times or adverse conditions like rain helps manage demand and ensure service sustainability .

Consumer demographic trends indicate younger consumers, particularly those aged 18-34, are more inclined to use food delivery apps, valuing convenience and speed over personal dining experiences. This trend suggests a growing market among tech-savvy users who prioritize lifestyle convenience, influencing how companies design and market their services .

Primary concerns for users include data breaches and personal information theft, exemplified by Zomato's security issues where 17 million users' data was compromised. Such breaches affect user trust and can lead to reputational damage, impacting user retention and necessitating increased investment in security measures to rebuild consumer confidence .

Cloud kitchen models are significant for Zomato because they allow the company and partnered restaurants to expand their reach without incurring high costs associated with traditional restaurant spaces. This model supports scalability and can increase market penetration, crucial for maintaining competitive advantage in a rapidly evolving digital food delivery space .

Technological advancements have significantly reshaped the traditional dining industry, with a shift towards convenience and accessibility offered by online food ordering platforms. Preferences are shifting because technology allows for easy comparison of prices, menus, and customer reviews, enhancing decision-making for users who value convenience and efficiency over traditional dining experiences .

You might also like