Ateneo de Manila University

The Effect of Food Aggregators on the Consumer Behavior

of College Students

Densel M. Macalintal

Hans De Los Santos

Luigi Ledesma

Applied Statistics: Tools and Applications

PJ Talosig

April 2018
 Chapter I

Introduction

Background of the Study

Although cooking or going out to eat will always remain the ideal way to eat, in

this day and age, they’ve been relegated as luxuries for those with time—or energy after

a long day at work. This is because food delivery entered the scene, which has

revolutionized our lives in many ways, allowing us to enjoy a fresh, hearty meal from the

comfort of our own home. The idea of taking out food dates back to Ancient Rome

(Cain, 2019). When Romans who didn’t have the luxury of having their own kitchen,

they could get ready-to-eat food in street kitchens dubbed thermopolia.

Fast forwarding a little bit to something a bit more familiar, the first pizza delivery

was made in 1889 (Conradt, S., 2017). It was when King Umberto I of Italy and Queen

Margherita of Savoy were visiting Naples and decided to swap their mostly French food

diet for more local fare: pizza. They had Napoli pizza chef Raffaele Esposito prepare

their pie—and aside from exceeding expectations by making not one nor two but three

different pies, he also went out of his way to take the pizzas to them himself .

The dawn of the Internet shook up the world—and by extension, the world of

food delivery—in the 1990s. Although many people still placed their orders by phone, by

1997, several entrepreneurs started putting up their menus on websites. In 1999, online

food service Seamless was established, allowing customers to order whatever they
craved with a few clicks of a button. By 2004, food ordering and delivery marketplace

Grubhub was put up, linking diners with takeout restaurants around the U.S. From

there, the world of online food delivery services only began to grow along with the

increasing popularity of smartphones and transportation services like Uber and Grab

(Baes, P., 2020). Grab has even taken the initiative to further invest in the food delivery

industry and created a specialized service called Grab Food.

Food delivery has come a long way all the way from Ancient Rome to the food

aggregators we have now such as Grab Food and FoodPanda, that lets us order food

with ease from anywhere and at any time. But it wasn’t until just last year, when

Covid-19 took the world by storm that these food aggregators would truly get their

chance to shine.

Statement of the Problem and Objectives

When the world went into lockdown because of Covid-19, people were not

allowed to leave their homes. Both households and businesses alike were severely

impacted by the lockdown. But one of the industries that was affected the most was the

food industry. They had no choice but to completely halt their dine-in services which in

turn hurt their sale performance. However, food establishments without delivery services

were impacted the most because their dine-in services were their entire operation. But

in this time of pandemic, a certain industry was able to flourish. Food aggregators such

as Grab Food and FoodPanda were able to step up to the task and satisfy both the
consumers’ and food establishments’ needs. Consumers were able to order food and

food establishments were able to operate and continue their services.

The purpose of this research is to determine the impact that food aggregators

have had on the consumer behavior of college students. It further aims to:

● Determine if the respondents started using food aggregators during or after the

pandemic and which ones they use;

● Determine if the respondents still make use of in-house delivery services and

which ones they use;

● Identify which food aggregators or in-house delivery services the respondents

have used;

● Determine the respondents’ frequency of usage of both food aggregators and

in-house delivery services;

● Determine how satisfied the respondents are with food delivery services;

● Determine the respondents’ intent of using both food aggregators and in-house

delivery services in the near future;

● Find out which food delivery service the respondents prefer to use and why;

Significance of the Study

The researcher finds this research to be beneficial to the following:

1. Consumers – As the primary targets of the food industry, the consumers have a

responsibility to continue their patronage to food establishments during the pandemic as

a response to their continued services. This research will encourage the consumers
who have yet to try using food aggregators to do so and make them aware to the

advantages of doing so.

2. Food Establishments – This research will be beneficial to food establishments

because it may allow more people, who were previously unable to do so, access to their

services. In the same way, it will help show food establishments the advantages of

making use of food aggregators by partnering with them to further extend their market,

especially during this pandemic. This research may even provide the food

establishments with in-house deliveries the necessary information to improve upon their

delivery services.

3. Food Aggregators – This research will be beneficial to food aggregators because

it might bring more consumers to make use of their services. It may also help them

improve their current services by letting them know why consumers make use of their

services and what they expect.

Scope and Limitation

The coverage of this research will be the impact of food aggregators on the

consumer behavior of its respondents. It will include the factors that affect the

respondents’ preferences in food delivery services and their behavior when using them.

It will not include anything related to comparing whether one delivery service is better

than the other. This research will consider the data from at least 50 respondents. The

respondents of this research will be limited to undergraduate college students that make

use of food delivery services. They will be selected randomly and will come from

different universities.
 Chapter II

Review of Related Literature

Food delivery applications have seen a surge in growth over the past decade.

Digital ordering represents half of all food delivery visits, expanding beyond traditional

dinner delivery to encompass breakfast and lunch delivery. Digital orders, ordered via a

mobile app, Internet, or text message, have grown 23% over the past 4 years

representing a $26.8 billion dollar industry (Militello et al., 2020). It comes as no

surprise, as since we have been continuously advancing into a digital age, that people

would make use of such a convenient service.

With busyness on the rise and a greater demand for convenience, it’s no wonder

why food delivery is so popular these days. According to recent research, the rise of

food delivery has become a major trend among consumers across all demographics. In

2018, Frost and Sullivan estimated the food delivery service industry generated $82

billion in gross revenue and predicted that this number will more than double by 2025.

Today, the COVID-19 pandemic has necessitated delivery for businesses—and 65% of

restaurants say they were able to increase profits during COVID-19 by offering delivery

via DoorDash (McCarthy, 2020).

But even before the pandemic hit the world and even before the lockdown, food

aggregators have been garnering a lot of success. This is because they were able to

cater to the growing demand for better delivery services. They were able to capitalize on

this because according to an article by the Asian Age, there are 9 reasons why

consumers prefer to order online. Availability of vast food choices, simplicity and
convenience, real-time updates on your order, better customer satisfaction, star ratings

and reviews, discounts and offers, accurate order delivery service, hassle-free payment

options, and personalized dining experience.

 Chapter III

Methodology

Participants

The survey respondents should be college students of any university and any

school year. They may be of any gender, of ages 18 to 22, and belonging to the

socioeconomic classes A, B, and Upper C. Thus, their average household income

should be at least Php 30,000 and above. The survey will be distributed to a minimum

of 50 undergraduate university students who have made use of food aggregators.

Material

The first question of the survey would ask for their university to ensure that all

respondents are college students. The next question ensures that the respondent is fit

to give valid answers to our survey as it is important that all of our respondents have

already experienced using food aggregators. The next question will regard the

consumer behavior of food aggregators before and after the pandemic began in order to

figure out whether the pandemic has affected their behavior. Moreover, the following

questions will focus on their consumer behavior. Questions regarding their purchasing

frequency and product and service satisfaction will be asked to determine their opinions

on such matters. Furthermore, the same set of questions will be applied in regards to

in-house delivery services instead of food aggregators. This set of questions will allow

us to see the consumer’s buying behavior in comparison. Lasty, the respondents will be

asked to conclude their opinions by explaining and answering whether they prefer food
aggregators or in-house delivery services more. The entire questionnaire contains 15

questions that will help us to analyze the purchasing behavior of college students when

it comes to food aggregators and in-house delivery services.

Procedure

Due to the current situation with COVID-19, the group has decided to conduct the

survey purely online through Google Forms. This also allows for the group to have an

instant and accumulated copy of the results all in one Google Sheet. The sampling

method to be used should be simple random sampling since there is no variable that

can heavily affect the survey. Therefore, every undergraduate student of any university

has an equal chance of being selected. These surveys will be sent out through

Facebook groups or Facebook Messenger in order to reach plenty of respondents

quickly.
 Chapter IV

Analysis and Interpretation of Data

From the data gathered, most of the survey’s participants had come from Ateneo

de Manila University at 26 people, with the next highest number of entries being from

Meridian International College and the University of the Philippines at 9 and 8

respectively (see Figure 1 in Appendix). Ateneo is known as one of the top private

schools in Quezon City, who promotes quality education with expensive tuition costs.

Likewise, the Meridian International College is a private institution that has produced

various actors and musicians (Mendoza, 2021), and the University of the Philippines is

one of the top 500 universities in the world. From this, it can be inferred that more than

50 percent of participants come from at least middle-class families.

There were 54 participants in total, but 4 of them did not use food aggregators.

Out of the 50 participants who were familiar with food aggregators, 39 have already

been using their services before March 2020 and the arrival of COVID 19 (see Figure 2

in Appendix). Additionally, 46 people out of the 54 have answered that they have prior

experience with in-house delivery services before (see Figure 6 in Appendix).

Considering that the food delivery market had been growing significantly for the past

few years, the data shown is not as surprising as one might expect.

All participants who are familiar with food aggregators are also familiar with

GrabFood, and a good majority of them use FoodPanda as well (see Figure 3 in
Appendix). Grab has become an important service in the Philippines due to providing

easily accessible transportation anywhere as long as you have their mobile app. Their

income has only increased significantly upon opening food delivery services in 2019. On

the other hand, FoodPanda has been in the particular market since 2014 and has

delivered good service ever since. In comparison, people who use in-house deliveries

have ordered from an array of restaurants, McDonald’s being the most prominent

choice followed by Jollibee and Shakeys (see Figure 7 in Appendix).

When it comes to how often people requisition food aggregators, most people

seem to do this once a month. Significant portions of the participants have also

answered as to using food aggregators once a week or less than once a month (see

Figure 4 in Appendix). For in-house deliveries, more than 50 percent of consumers use

these services less than once a month. About a third has answered to using in-house

deliveries once a month (see Figure 8 in Appendix). The statistics seem to show that

food aggregators are generally more utilized compared to in-house deliveries.

Both food aggregators and in-house delivery have generally positive reception

from the consumers (see Figure 5 and Figure 9 in Appendix). However, it is worth noting

that food aggregators have 84 percent who are concisely satisfied. In-house delivery

shows a 65 percent satisfaction rate in comparison.

Amongst the possible areas for improvement for food aggregators (see Table 1 in

Appendix), payment methods are the least in need of change according to the data. On
the other hand, the availability and location of food aggregators have gathered the most

concern amongst the participants as having at least a need for improvement, 18 and 13

participants in total respectively. For in-house delivery services, a good majority of the

participants generally consider these to not require any significant improvements (see

Table 3 in Appendix). The notable exception would be concerning delivery time, where

there are an equal number of people who think that it needs some improvement with

those who think it absolutely does not.

According to the data, at least 17 people out of 50 are extremely likely to use

food aggregators in the next six months (see Table 2 in Appendix). 9-12 people are only

most likely to use the service across the months, and there is a steady increase in

people who might probably do it in the future. There are equal numbers of people who

would be extremely likely to use these services and those who are more ambivalent

about it after 5 and 6 months. On the other hand, there would only be a constant of one

person who would not use the service for the next six months.

For in-house delivery, the numbers are less favorable (see Table 4 in Appendix).

Only at least 9 people would be extremely likely to use such delivery services for the

next six months. The numbers for ‘2’ and ‘3’ (representing a lack of interest and mixed

response respectively) jump to being the first and second most picked choices by the

participants. There’s also a bigger number of people who would absolutely not use

these services again; 4 participants across all months except the third.
 Finally, despite all previous answers selected, most participants preferred food

aggregators over In-House delivery at a 38-14 ratio (see Figure 10 in Appendix). The

total sum over 50 is due to some participants who have no experience with food

aggregators like FoodPanda choosing to answer the question regardless due to having

experience with in-house deliveries instead.

It is interesting to note that due to FoodPanda and GrabFood being the two major

food aggregators in play, it can be inferred that most of the feedback for improvement

relates to these two brands. In-house deliveries have many used brands in comparison,

which makes the feedback for improvement across a wider and more general scale.

Another thing is that despite there being only two brands of food aggregators that

are incredibly well-known amongst the participants, they are still generally preferred

over the various different and known in-house delivery options. However, the data

shows that in-house delivery services have people less concerned over areas of

improvement compared to food aggregators. People who overall prefer food

aggregators generally agree that their websites/apps are easier to use, they offer a

wider selection compared to in-house deliveries, and costs are cheaper. Those who

prefer in-fouse deliveries cite that they are more convenient for those without androids

or internet access, the quality is more consistent and delivery does not involve any third

parties. Data for areas of improvement under food aggregators have less major

differences between data points, with payment methods and ease of use being big

exceptions in a positive way. Yet despite consumers being more critical of this, a good
majority have food aggregators as their major preference. This can be because since

consumers use food aggregator services more frequently than in-house delivery, they

are more aware of the flaws in the system. In comparison, consumers do not see much

need for improvement for in-house deliveries in most areas. However, a good majority

of users only use their services less than once a month.

 Chapter V

Conclusions and Recommendations

Conclusions

This research was conducted with the aim to determine the effects of food

aggregators on the consumer behavior of college students. Specifically, it intended to

find out if the respondents started using food aggregators before the lockdown and

which ones they’ve used, if the respondents still made use of in-house deliveries and

which ones they’ve used, the respondents’ frequency and intent of usage of both, their

satisfaction with their experience using both, and which one of the two they prefer.

This research shows that a majority of the respondents have already used food

aggregators even before the lockdown. This just means that while the lockdown and

pandemic did push some of the respondents to use food aggregators, it is not the

primary factor that made the majority of the respondents to use them. It also proceeds

to show that Grab Food and FoodPanda respectively are two most popular food

aggregators among the respondents. This coincides with the fact that Grab Food and

Food Panda are the top two food aggregators in the Philippines (Figueroa, 2020).

Then interestingly enough, the respondents are very evenly distributed in terms

of frequency of usage. There is a collective 42% that uses them often while there is a

collective 52% that rarely use them. This makes sense since Covid-19 is still very much

prevalent. It can be assumed that this is because the respondents would still like to limit

contact from the outside, in spite of the stellar performance of food aggregators.
However, the respondents are still very much satisfied with their experiences with food

aggregators, with a collective 84% of the respondents saying that they are satisfied.

And since they are satisfied, they don’t have much to say about anything that could be

improved with food aggregators’ services. None of the aspects of food aggregation

services reached even the middle mean of 3. And as previously mentioned before, the

lockdown and pandemic were not the primary factors that the respondents chose to use

food aggregators. It only makes sense, that they intend to make use of them even after

the lockdown and furthermore after when the pandemic blows over.

A lot of the respondents have used in-house delivery systems. This is only

natural as they were the precursors to food aggregators. The in-house delivery services

of fast food restaurants such as McDonald’s, Jollibee, and KFC, along with the delivery

services of pizza places such as Pizza Hut, Yellow Cab, and Shakey’s are the most

popular ones among the respondents. With the success of food aggregators, it’s not

surprising to see that a collective 87% of the respondents barely use in-house delivery

services anymore. In spite of this though, a majority of the respondents at 61% were still

satisfied with their experiences, even if they no longer make use of them as much as

food aggregators.

In terms of what the respondents think needs improvement, again there isn’t

anything that stood out. Nothing reached the middle mean of 3, but ease of use was the

closest. And finally in terms of using in-house delivery services in the foreseeable

future, the respondents feel that it is very unlikely that they would still use them. In the

end, when all is said and done, a big majority of the respondents prefer to use food

aggregators over in-house deliveries. Despite both food aggregators and in-house
deliveries having similar effects on the behavior of the consumers, food aggregators still

trumped in-house deliveries in terms of the respondents’ preferences.

Considering the current status of the country, it is likely that a demand has been

created for cheap cost of service, easy-to-use order systems with wide variety and

accessibility. Food aggregators fulfill these conditions simultaneously, which attracts

consumer behavior into using their services. People still use in-house deliveries and are

generally satisfied, but not as often due to not satisfying the current demand and

environment of the food industry as much as food aggregators.

Recommendations

1. Consumers - For the consumers who have not yet tried using food aggregators,

the researchers definitely recommend that they give it a try. On top of food

aggregators already proving to be effective, this research shows that they

provide very good customer service and garner some well satisfied users.

2. Food Establishments - To the food establishments who have yet to take

advantage of the extended market that food aggregators provide, the

researchers absolutely recommend them to start doing so. For those with their

own in-house delivery services, the researchers recommend looking at the

aspects that the respondents deemed lacking in their services, and cross

reference them against the aspects that the respondents deem lacking in the

services of food aggregators to see what could be improved upon to keep up with

the popularity of food aggregators.

3. Food Aggregators - The researchers recommend that the food aggregators

should make an even bigger effort in marketing their services, not only to

possible consumers but to also food establishments that could be possible

partners. The researchers also recommend that they look at what the

respondents’ of this research deem lacking in their services, or even which ones

they think are satisfactory, and look for ways to improve upon it since this

research has shown that consumers plan to use food aggregators for the

foreseeable future.
 Appendix

A. Survey

a. Which college do you attend?

b. When did you start using food aggregators?

c. Which food aggregators have you used? (Check all that apply)

d. How often do you use food aggregators?

e. How satisfied are you with your experience with food aggregators?

f. Which aspects of the service provided by food aggregators do you feel

needs improvement? Please rate each aspect with 5 being “extreme need

for improvement” and 1 being “no need for improvement”

g. How likely would you still be using food aggregators in the next 6 months

and beyond?

h. Have you used any in-house delivery services?

i. Which in-house delivery services have you used? (Check all that apply)

j. How often do you use in-house delivery services?

k. How satisfied are you with your experience with in-house delivery

services?

l. Which aspects of the service provided by in-house delivery services do

you feel needs improvement? Please rate each aspect with 5 being

“extreme need for improvement” and 1 being “no need for improvement”

m. How likely would you still be using in-house delivery services in the next 6

months and beyond?

 n. In spite of your answers in the previous questions, which do you prefer?

Why?

B. Tables and Charts

Figure 1. Which college do you attend?

Figure 2. When did you start using food aggregators?

Figure 3. Which food aggregators have you used?

 Figure 4. How often do you use food aggregators?

Figure 5. How satisfied are you with your experience with food aggregators?
 Table 1. Which aspects of the service provided by food-aggregators do you feel

needs improvement?

Table 2. How likely would you still be using food aggregators in the next 6 months

and beyond?

Figure 6. Have you used any in-house delivery services?

 Figure 7. Which in-house delivery services have you used?

Figure 8. How often do you still use in-house delivery services?

 Figure 9. How satisfied are you with your experience with in-house delivery

services?

Table 3. Which of the following aspects of in-house delivery services do you feel

needs improvement?
Table 4. How likely would you still be using in-house delivery services in the next

6 months and beyond.

Figure 10. Which do you prefer? Food aggregators or in-house delivery services?
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