INTRODUCTION (400 Words)

When was the food delivery revolution happened across the globe?

When was the current top online food delivery company established?

In the United States, the first restaurant food delivery service in the world began in 1995 with

World Wide Waiter[19][20] and still operates today as Waiter.com. The top three restaurant food

delivery services are DoorDash,[21] GrubHub, and UberEats,[22] which together account for some

80 percent of the sector's revenue. The remainder is accounted for by smaller services. [ In

Europe, major restaurant delivery services include Deliveroo, Delivery Hero/Food Panda, Just

Eat Takeaway (founded in Holland in 2000 as Thuisbezorgd.nl., operates in 11 countries,

including Poland, Romania, Bulgaria and Israel), UberEats and Wolt.

In South America, food delivery services include UberEats, Doordash, Grubhub, DiDi, the

dominant ride-hailing company in China, and Rappi, based in Colombia. Both Didi and Rappi

are funded by SoftBank, the Japanese investment fund that is also a major investor in Uber.[24]

In China, food delivery services include Alibaba-acquired Ele.me and Tencent-backed Meituan.

China's food delivery market is expected to cross $21 billion in 2021.[25]

In India, the food delivery services include Zomato and Swiggy. Indian online food delivery is

expected to become an $8 billion industry by 2020.[26]

In Africa, the food delivery services include UberEats currently operating in South

Africa and Nairobi, Glovo currently available in Kenya,[27] Jumia Foods currently operating

in Kenya, Nigeria, Algeria, Ghana, Morocco, Tunisia, Ivory Coast, and Uganda, Mr D

Food currently available in South Africa, OrderIn available in South Africa, Ayazona currently

available in Nairobi, and Yum Deliveries available in Kenya. Online food delivery in Africa is

an emerging market that has seen a soaring growth in 2020 with new competitive market entries.
[28]
 Online food delivery in Africa is slowly starting to take off, with multiple niche local delivery

companies springing up offering a variety of different services ranging from food deliveries to

groceries and house amenities delivery.

What is the consumer ethnic groups and genders in a country you chose?

Services sector is the largest sector of India, Online food delivery service in odd hrs is one in
which a restaurant delivers food to its customers either through its own website/app or
through a third-party website/app like Zomato, Swiggy etc. Restaurants can register their
business with these apps, once registered restaurant makes an online menu of food served
by them on the app of online food Delivery Company. Customers can view the food offered
by the restaurant through the mobile app. Food ordered by customer is delivered by using
logistical support of online food delivery companies. it is a win-win situation for parties
involved, customer gets variety of food delivered to their doorstep adding to convenience;
restaurants experience increases in their business whereas food delivery company gets
commission on amount of food delivered from restaurant. Most of the online food delivery
demands come from the age group of 18-40 years whereby 65 % of the target market are
below 35 years of age. The male seems to outnumber the number of females in this
composition.

Body

What was their market entry challenges and its current challenges?
How has internet websites and mobile applications play a key success factor in Food

and Beverage industry?

Mobile apps and web-based system play an important role in food ordering at this point of
time. With more people using smart phones, increasing literacy and access to the Internet, it
is highly recommended for food delivery business to leverage on this new opportunity.
The customers should be familiar with the functions of the apps and the process of
making online orders. They are the type of customers who wish to order food to save cost
and time. With all the boom in digital industry across the globe, it’s had it impact on the
Indian economy too. The online food ordering firms have sprouted up in bulk. The market
size of food in India was expected to reach Rs. 42 lakh crores by 2025, reports BCG.
Presently, the Indian food market is around Rs. 25 lakh Crores. The space is coming up with
a lot of innovation catering to their customer convenience, satisfaction and retention. This
has also built room for a lot of new players, who are targeting specific groups of people.
Many new players joining the segment with innovative business models such as delivering
food for health-conscious people, home cooked meals, etc. Food tech is the hot talk in the
start-up town. After technology start-ups have made their mark in the e-commerce, taxi &
real estate sectors, now the ever-hungry Indian entrepreneurs are looking to satiate the
appetite of others. Food tech is a vast market and food delivery start-ups are just a part of it.

Various apps in the Indian market are: Zomato, Swiggy, food panda, batmen deliver, midnight
express, Uber Eats.

How have the company built its brand principles along with operational and IT

difficulties of brand building?

What other related factors have made their business so successful today?

Consumer buying behaviour

Understanding behaviour of consumers is a key to the success of business

organizations. Marketing personnel are constantly analysing the patterns of buying
behaviour and purchase decisions to predict the future trends. Consumer behaviour can
be explained as the analysis of how, when, what and why people buy. Consumer
behaviour can be understood as: "The decision process and physical activity individuals
engage in when evaluating, acquiring, using, or disposing of goods and services."
(Loudon and Della Bitta, 1980)

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Online food industry in odd hrs

Lifestyle changes like people working in odd shifts, late-night studying and sleeping
habits have resulted in a sudden upsurge of the demand of food and other products at
late night. This emerging trend has given birth to a new business segment – Midnight
Food Delivery. Hence, the business model addresses people’s requirements during late
night.

India is the back office for many other countries. There are thousands of people who
work in night shifts pushing demand for the food at night. Seeing the open field for a
ready market, many players are booming in the midnight delivery segment targeting a
very niche clientele.

Players like The Booty Call, Crave Busters, Midnight Munchies, Take It That One, Fly
by Knight, Batman Delivers and Midnight Expr’s not only deliver food but also
deliver chocolates, medicines, etc at your doorsteps during midnight.

Not only working people, but hostels have also been a big market for these players.
These players generally deliver food in the 15 km of their radar. Since there are very
few players in the market, the sector has shown a remarkable growth and it is leading
the business expansion in tier II and tier III cities.
 Above data clearly illustrated that there is huge potential at tier-I, II & III cities and it is
growing rapidly

Food demand near to bus stand or railway station is always on peak as these places are 24
hrs on.

It has found that it is not just the students who are burning the midnight oil and feel the
urge to binge at times, but also professionals working on their presentations that need
to be taken to a meeting next morning also order food in odd hrs

What are their 7P's and PESTEL strategies?

1. PRODUCT: our 24*7 Online Food Delivery is one of the popular delivery
companies that supplies ordered food and beverage items to its customers in odd
hours when most of restaurants are closed and consumer is in real need of the
food. It has created a single window and included a wide range of food parlors
and restaurants under its umbrella. A customer now can make a choice from
visual menus of restaurants in neighborhood and order online. The company has
estimated seven hundred and fifty restaurants on its platform and receives nearly
seventy thousand orders on monthly basis.
Projected data clearly shows that there is huge potential in this online food delivery
industry.

2. PRICE: 24*7 Online Food Delivery has an extensive workforce and this
flexibility prompts it to allow its customer a policy of no minimum order.
This has increased its customer base to a great deal. Online Food delivery
in Odd hours has tie-ups with restaurants that offer a minimum of 15% to
25% commission and this has helped it in increasing its distributive channel
and garnering better revenues. It also charges a minimum delivery fee from its
customer irrespective of a small or high amount order. The restaurant
advertising which us does on our site or application is the major source of our
revenue. Restaurant advertising includes banners ads for restaurants which
gives them maximum visibility as soon as a person logs into the app or the site.
Event based advertising when restaurant hold an event and use our platform as a
medium to advertise their event. There is a commission set on the ticket sales
through us. we also provide consulting services to restaurants to where should
the restaurant chains open our next outlet. We uses various analytical tools to
analyze where the demand lies and help us with the solution. The percentage
revenue distribution can be summarized as under; restaurant advertising- 85%,
event advertising- 5%, event ticket sales- 15% of the revenue.

3. PLACE: is an online search site that can be accessed by native users of Phones,
Laptops, Computers, Universal Windows Platform i.e. Windows 10 and
Windows 10 Mobile, Android users, iOS, and watches. It is currently available
for use in about 23 countries including India, Canada, Chile, Malaysia, United
Arab Emirates, New Zealand, Lebanon, the United Kingdom, Ireland, Czech
Republic, Italy, Sri Lanka, Poland, Turkey, Slovakia, Portugal, Qatar, South
Africa, the USA as well as Australia among others. Today, the site receives a
flooded traffic of about 90 million visits every month. Products/services are
available in about different languages namely: English, Hindi & regional
languages.
4. PROMOTION: 24*7 Online Delivery has realized the importance of a good marketing
strategy and we have suggested several plans to create further brand awareness. It
relies heavily on mouth publicity and satisfied customers is its greatest advertising
tools as they recommend the brand to friends and family. Online Food delivery firms
has to adopt online marketing strategy and has taken help of social media platforms
like Twitter, Facebook, Instagram, YouTube and Pinterest via innovative and
interesting ad campaigns like #SingWithus and #SpecialHoliwithUS. The company
has to runs contests to encourage direct participation by customers through
#KhaoPiyoBindass and offers to munch bag and coupons as rewards.
We also suggest that we should start market penetration by doing TV & Online
campaign that we are suggesting to the consumer & influencer that daily different
healthy food for all 7-week days that create the market penetration.

5. PHYSICAL PRESENCE: We being a service offers no product of its own. We have

no physical presence, except for the delivery system. The delivery system consists of
delivery men delivering the food placed by an order from our website or application.
There are selected restaurants which offer delivery services through us. Basically, we
act as a third-party system for the deal between these restaurants and the buyer.

6. PEOPLE: Majority of the companies rely on its workforce to offer their product or
services. This workforce constitutes the people segment in services. Company
comprises a strong team of around 3000 people working towards best services to
people. They have adopted leaner operations systems where the market demand is less.
This led to the maximum utilization of workforce. Also they are keen in suggesting
best practices as a part of their consultancy business to restaurants, employee retention
methods and maximizing their potential.

7. PROCESS: In food delivery service the key part lies in the fact that food should be hot
and fresh as and when it reaches customers. All the players in the food delivery space
make this as a differentiating factor from its competitors. Our complete process is one
needs to sign in with registered phone number and email address. The location is
 detected, and one can browse the menu and place the order. Payment can be made
wither by cash or online modes. The restaurant confirms the order and dispatches as
soon as it is made. Then we ask for the feedback after the service provided. Thus, an
entire process is made to be convenient to the user and the user can have a hassle-free
experience.
PESTLE analysis

Political

Governments across the world have expansive regulatory frameworks for every
aspect of the food industry. This includes the cleanliness of commercial kitchens,
the standards for storing and transporting produce, and even the requirements for
laborers in the food business. Without a doubt, this makes the food industry one
of the most tightly-regulated industries of all. On the plus side, this ensures that
consumers aren’t exposed to poor quality nutrition, but the complexities of
regulation certainly take away from the margins of the food business.

Economic
Here are the Economic factors impacting the food industry:

Growing Disposable Incomes

As a general trend, the world’s population is only getting richer. That means that
individuals in the lower, middle, and upper classes all have more money to spend
on luxuries — including restaurant food. As a result, the overall revenue of the
food industry is growing, as individuals cook less and eat out more often. This has
a positive effect on all corners of the space, including restaurateurs, food
distributors, and the individual workers who play a role in these businesses.

Increasing Labor Costs

Disposable incomes are growing for a reason: laborers are earning more money
these days. On the whole, the cost of hiring workers is increasing across all
industries. This is caused by not only a growing demand for employees, but also
higher and higher government expectations for minimum wages. As in many other
industries, the effect of increasing labor costs is simple: less margin for the owner
of the business, and thus less profit.

Sociocultural
Here are the Sociocultural factors impacting the food industry:

Health Consciousness
Nowadays, scientists know more about the relationship between food and our
bodies than ever before. There’s a clear relationship between the food we eat and
our personal health, and consumers are conscious of this. As a result, many
individuals are looking for healthier ways to fuel their bodies. This doesn’t
necessarily have a positive or negative effect on the food industry, but it means
that businesses will have to adapt to stay relevant. For example, fast food
businesses will likely have to move away from traditional, high-calorie fried foods
towards healthier alternatives like salads.
Dietary Restrictions
Aside from having a better grasp of what kinds of food are and aren’t healthy,
consumers are also more knowledgeable about their individual dietary restrictions.
For example, many individuals now understand the negative impact of gluten in
those with Celiac disease. This has led to consumers expecting greater
understanding on behalf of those who work in the food industry. Once again, this
isn’t necessarily a bad thing, but it means that the food industry will have to make
changes to keep clients happy.

Technological
Here are the Technological factors impacting the food industry:

Automation
We’re seeing various types of automation more and more in the food industry.
Perhaps the best example is the use of self-checkout screens at fast food
venues such as McDonalds, but it’s not the only one! Just recently, social media
platforms went crazy as viral footage of a hotel’s robot cooking up omelettes began
to spread. As we find more ways to use technology — including robots — in the
food industry, there will be less need for laborers. Overall, this is a good thing for
the industry, as it will allow businesses to improve profitability and reduce the
likelihood of human error.
Legal
Here are the Legal factors impacting the food industry:

Safety Standards
As touched upon in the Political section of this PESTLE analysis, the food industry
has high standards for safety matters. In particular, there are scores of rules in
every country on how food should be transported, stored, and prepared —
including directions on what temperatures various food types can reach, how they
should be cleaned, and so on. While this is indeed largely a Political issue, it
becomes a Legal matter if any of these regulations are ever breached. As such,
those in the food business need to be extremely careful to ensure that they stay
within the bounds of these rules to prevent costly lawsuits.
Environmental
Here are the Environmental factors impacting the food industry:

Impact of Meat
Not only is there growing awareness for the health repercussions of the food we
eat, but also for the environmental repercussions of the food we eat. One
particularly problematic food group from an environmental point of view is meat.
The production of meat — especially red meats — uses huge amounts of water and
creates a significant carbon footprint. No less, the meat industry is tearing down
large amounts of forest to create new space for farms. The result of this is that
more and more individuals are switching to plant-based diets, and governments
are slowly taking interest. Once again, this isn’t necessarily a negative for food
businesses, but they will have to recognize the impact of this shift in the long
term.

What are differences between their online food delivery model and other core

competitors?

The food delivery industry has emerged as one of the biggest online platforms with several new
companies starting up in a past decade. The shape of the market is changing with a breakneck
speed with players like Swiggy, Zomato, Foodpanda, Uber Eats, and many others.
The food delivery industry has emerged as one of the biggest online platforms with several
new companies starting up in a past decade. The shape of the market is changing with a
breakneck speed with players like Swiggy, Zomato, Foodpanda, Uber Eats, and many others.
With these giant players in the food industry market, the industry is flourishing not just in the
metros but in the tier II and III cities as well. The business of delivering and ordering food
online is changing with rapid growth and these are attracting considerable investment. But
the increased competition and unstable growth policies has caused some causalities along the
way as well. Companies like Eat Fresh and TinyOwl had to shut down due to massive losses.
Even FoodPanda, a giant food delivery marketplace available in 13 countries that went
through multiple acquisitions first by Delivery Hero and then by OLA, is finding it difficult
to survive in online food delivery market. Towards the end of 2018, both Swiggy and
Zomato entered the much-vaunted unicorn startup group, with the expectations for 2019 for
both companies skyrocketing thanks to this development. The two companies started off
positively, with the combined monthly orders crossing the 50 million mark and the revenues
for the two going up as well. Swiggy is comfortably the platform with a higher number of
daily orders with over 1.5 million daily orders, to Zomato’s 1.2 million. A lot of this can be
attributed to the growth patterns of the two companies. While Swiggy chose to continue to
align its expansion in 2019 with the delivery and logistics side, Zomato has expanded to the
media space by boosting its advertising wing and adding a streaming service.

What are their service commitments to customers and benefits given to customers?

Your customers are the people you are supplying with a product or service and are to be treated with
respect.  They are not to be taken advantage of and priority should be given to the way in which
customer-facing staff treat people.  There should be easily accessible ways for customers to express
concerns or complaints It can be easy to think of customer service as just another basic logistical process
in your company just like sales or marketing.  However, great customer service is of the utmost
importance when it comes to running and growing your business.

In a competitive environment good customer service will give your business an advantage.  We live in an
age where people communicate widely and publicly with others and businesses receiving comments of
good or poor service on social media and review websites like Trustpilot can make a huge difference to
their sales and bottom line.

How has the company retained the partnership agreement with their food

providers?

General Partnerships (GP)

This type of structure assumes that profits, liability, and management duties are divided
equally among partners. If you opt for an unequal distribution, the percentages assigned to
each partner must be documented in the partnership agreement.

Limited Partnerships (LP)

This type of structure is more complicated than GPs. LPs allow partners to have limited
liability as well as limited input with management decisions. These limits depend on the
extent of each partner’s investment percentage. The general partner of an LP will be
responsible for the management decisions and will be liable for actions of the partnership.

Joint Ventures (JV)

This type of structure acts as a general partnership, but for only a limited period of time or
for a single project. Partners in a joint venture can be recognized as an ongoing partnership
if they continue the venture, but they must file as such.

CONCLUSION & RECOMMENDATIONS (Words 400)

 Affective commitment is formed when a customer has positive feelings toward a product or
service provider. For instance, a customer has many pleasant dining experiences at a local
restaurant.
 Normative commitment forms when customers believe a company shares their same beliefs
and values. For example, a customer wants fast delivery and a company promises and follows
through on it.
 Economic commitment is based on a customer’s perceived investments in a company. For
instance, the customer stays committed because he values the rewards points in a loyalty plan.
 Forced commitment happens when customers don’t recognize an alternative to sticking with a
company. For instance, customers sometimes are only able to use one utility provider.
 Habitual commitment is based on repetitive and automatic behaviors. For instance, a customer
keeps buying from a company because that’s what he’s always done — not because the product or
service is superior or the best deal.
To form a partnership, you must register your business with your Secretary of State’s office.
You’ll also need to establish your business name. In general, the legal name for the
partnership is the name given in the partnership agreement. If you choose to operate
under a name different than the officially registered name, you will most likely have to file a
fictitious name (i.e, file a DBA). While every level of commitment manages to keep customers loyal to
an extent, affective commitment is the Holy Grail, researchers found. Customers’ satisfaction with the
performance of a product or service is the single largest contributor to loyalty. And affective commitment
has the largest positive impact on satisfaction and loyalty.
To build more loyalty through affective commitment, you might want to try to get more feedback on ease-
of-use for your products and services that support them. For instance, ask customers to be part of a focus
group and watch them use your products — or ask sales or technicians who visit customers in their
environment to watch for ease-of-use glitches.