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E-commerce is bringing changes to the traditional way of doing business. More and more enterprises are shifting
to online transactions for buying and selling of various types of goods. One such market which is gaining
popularity is the online food delivery service. Food supply is one such supply services where the online system
controlling the supply chain has to be dealt with a different approach because food is a perishable product.
Hence there is a need to deliver food on-time to the consumer. There are a number of companies working
on the food supply chain, delivering food door-to-door based on orders placed online. Some of the popular
companies working on such online food delivery system model are the Just Eat, Grubhub, Uber Eats, Swiggy,
Zomato, Food-Panda, Domino’s etc. This paper aims at analyzing the various critical services related to food
supply chain and exploring the possibility of integrating additional services that enhance the food delivery
services to ensure on-time food supply. The main linkage in the entire food supply chain is the delivery system
where the delivery agents play a key role. Data was collected randomly through a survey to get a general view
of the food service delivery system. The relationship between the various factors that affect the food delivery
process has been analyzed.
Introduction
E-commerce is transforming the way business gets done. Rapid digitization, the change in
buying and spending pattern of the consumers, the penetration of the mobile phones, etc.
are the major drivers of e-commerce. The Indian e-commerce market is expected to reach
$200 bn by 2026. The online food industry constitutes a major portion of
e-commerce. It is expected to reach $8 bn by 2022 as per the report of Boston Consulting
Group and Google.
The online food ordering and delivery is one of the fastest growing industries in India.
This sector has seen a tremendous growth over the past few years ever since the first
online food order, which was a pizza by the Pizza Hut. A number of factors have
contributed to this growth. The general public plays a huge role. The convenience of the
consumers, the growing use of smartphones, the spending capacity of the public, etc. have
contributed a lot towards the establishment of this business.
1
MBA Student, Operations & Supply Chain Management, SOM, Presidency University, Bengaluru, India.
E-mail: priyapj150@gmail.com
2
MBA Student, Operations & Supply Chain Management, SOM, Presidency University, Bengaluru, India.
E-mail: aswathyashok508@gmail.com
3
MBA Student, Operations & Supply Chain Management, SOM, Presidency University, Bengaluru, India.
E-mail: getjishnumj@gmail.com
4
Associate Professor, SOM, Presidency University, Bengaluru, India; and is the corresponding author.
E-mail: anilbgowda@presidencyuniversity.in
The Influence
© 2020 of Rights
IUP. All VariousReserved.
Factors on Online Food Delivery Services 7
The online ordering and delivery system provides the consumers with a large number
of restaurants to choose from. The option to compare the food menus, price and decision
based on review of consumers makes it an attractive option. The option of getting food
delivered from your favorite restaurant at a lesser price within a fixed time at your doorstep
excites the consumers more and tempts them to take up the offer. Also, the consumers
are provided with the option of paying online or cash on delivery. The main target of these
delivery providers are teenagers, working couples and office-going people.
The inclination of the people towards the use of technology is another driving factor
which helps in the growth of this sector. The food delivery giants are making the lives
of people simpler. The accessibility and the timely delivery of the food items make them
the consumer’s favorites and help them to increase their consumer base. The delivery
agents of these food giants ensure that food is delivered on time. The incentive structure
and the added benefits of on-time delivery make them do so. The companies also try to
recruit candidates who are interested in riding to do so as the delivery process can get
hectic. This is one factor which gives them competitive advantage over their rivals.
Through e-commerce on-demand model, enterprises mainly aim to achieve consumer
loyalty through consumer satisfaction. So, they provide the best services to increase their
consumer base and to survive in the long run. The restaurants also benefit from this model
as this helps them to attract more consumers.
The major companies that dominate the Indian market in this sector are Zomato and
Swiggy. These companies provide a convenient app for the consumers to browse through.
Once the restaurant accepts the order the consumers can trace all the other activities like
the food preparation time, food pick-up by the delivery agent, route followed by the
delivery agent, etc. Figure 1 shows the conceptual diagram of online food ordering and
delivery system.
Restaurant accepts
the order and starts
preparing the food
8 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
The supply chain of the enterprise plays a major role in delivery quality service to the
consumers. The delivery agents are the vital factor that makes the delivery process
smooth. The timely delivery by these agents more or less helps in consumer retention. But
the plights of these agents are not given priority. They face lots of problems or challenges
in delivering the food items. Waiting time at the restaurants, traffic, harsh climatic
conditions, etc. are some of them. They even face health issues due to continuous working.
This paper aims to address some of the issues faced by these delivery agents.
Literature Review
Various researchers have carried out research in the area of food supply chain. Some of the
works are reviewed and a brief outline of each work is given. Jadhav (2018) analyzed the
impact of the online food delivery applications and the benefits as well as the challenges
faced by the restaurant owners and the consumers in using these apps through a
questionnaire survey. Adithya and Pathan (2017) proposed an IoT-based food ordering
system wherein the consumers can order food online from restaurants and messes as per
their convenience. Jacob et al. (2019) found that youngsters are more inclined towards
ordering food online because of the ease and convenience and the fast delivery of food
items. Gupta (2019 summarized the benefits that are being availed by the consumers on
using the various food delivery applications. Raina et al. (2019) studied the consumer
loyalty towards online food delivery apps like Zomato, Swiggy and Uber Eats in Ludhiana.
Their study also focused on the quality of the packaging material and the service provided
by the delivery staff. The analysis of the business model of Zomato by Salunkhe and Singh
(2019) showed the factors that led to the success of the model and the strategies used by
the company to sustain in the market. Tiffany and Sangeetha (2020) studied the delivery
system with respect to Zomato and revealed that ease of access and delivery speed are the
factors that led to the success of Zomato. The logistic regression model used by Modak
and Sinha (2019) found that consumer satisfaction used eight dimensions, namely, the
quality of food items, the choice of restaurants, food packaging, better delivery service,
pricing, discounts offered, consumer service, and the payment method. The major factors
that influenced the supply chain were choice of restaurant, food quality and mode of
payment. Kumar and Alam (2020) analyzed the effect of consumer satisfaction and the
benefits obtained by the delivery agents on the success of online food delivery business.
The authors found that satisfaction of the consumers and job potential contribute to
improving the supply chain performance.
Nasreen et al. (2019) concluded that the delivery agents are the only physical factor
in the whole delivery business, hence measures should be taken to improve the skills of
the delivery agents who are the backbone of this industry. Du et al. (2005) developed a
dynamic vehicle routing system to collect information about certain indices which can be
used to combine the existing vehicle routing algorithms for routing vehicles in an efficient
manner in a business-to-consumer environment. Ricker and Kalakota (1999) discussed
the fulfilment strategies that the e-commerce businesses should focus on in order to serve
10 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
necessary to determine the factors that affect the on-time delivery of food. Once the
factors are determined, it is possible to enhance the food delivery services which will
improve the rating of the food delivery system.
Objectives
The objectives of the paper is:
• To determine the factors responsible for on-time delivery of food to the
consumers;
• To find out the factors that affect the food delivery system; and
• To understand the relationship between consumers and delivery agents that
influences on-time delivery of food.
Methodology
The research aims at determining the factors that affect the food delivery system. Primary
data was collected through random sampling in one of the major districts of Kerala,
Ernakulam, which was chosen as the area of study because many employees in the IT
companies work for long hours and prefer to place the order for food through online mode.
The popular companies preferred for placing the order were Swiggy and Zomato. The
primary data was collected through a survey in the form of personal interview and
structured questionnaire. The questionnaire was circulated through google forms. A
sample of the questionnaire used is furnished in the Appendix.
The target population comprised respondents well connected to online food delivery
chains operating in various locations in Ernakulam. A sample size of around 50 was
considered. The results are represented in the form of tables and statistical graphs. Various
factors are considered to understand if the relationship between consumers and delivery
agents influences on-time delivery of food. Statistical analysis was done to understand the
relationship. It is believed that politeness and friendly attitude towards consumers
enhance the services rating, which in turn influences and motivates the delivery agent to
ensure on-time delivery of food. Hypothesis test is carried out to validate the sample
results. For the purpose of this research, the following hypotheses are formulated.
Hypothesis 1: Attitude towards consumers and service rating are related which influences
on-time delivery of food.
Hypothesis 2: The proper packaging of the food items by the restaurant enhances the rating
of the food delivery system.
Number of Respondents
30 36
30
25 30
20
20
15
10 8
18
10 2 2
5 0
0
0-24 25-30 31-36 37 and
Full Time
1st Qtr Part
2ndTime
Qtr Above
Service Type Age (Years)
14
12 10 10 26% 0-5 min
10 9
25% 5-10 min
8 6
6 10-15 min
4
2 Above 15 min
0
0-40 40-80 80-120 120-160 Above 42%
160
km
12 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
inhouse awareness program to the delivery agents. Figure 3 represents some of the
important characteristics of delivery link in the food supply chain system. The quickness
of delivery of food depends on the location of the restaurant in the vicinity of the
consumers, easy location finding through the mobile App, timely tracing of the
restaurants, availability of the packed food at the restaurant counters to the delivery
personnel and the impact of the ratings marked by the consumer on the service.
Only 12% of the delivery agents stated that the consumers provide correct location.
Around 65% stated that only 50 to 75% of the time the consumer provides correct
location. Around 2% feel that only 25% of the time the location is specified correctly.
From the responses obtained, it can be seen that buyers do not regularly provide ratings
on the app, as observed from Figure 3. Around 42% of the respondents have stated that
only 25-50% of the time the ratings are provided. Around 39% stated that 50-75% of the
time, consumers provided rating. Regular rating analysis and good rating enhance the
motivation and influence the performance of the delivery system.
0-25%
Slice 1 0-25%
Slice 1
25-50%
Slice 2 25-50%
Slice 2
Slice 3
50-75% Slice 3
50-75%
75-100%
Slice 4 75-100%
Slice 4
Slice
0-25%1 Slice
0-25%1
Slice 2
25-50% Slice 2
25-50%
Slice 3
50-75%
Slice 3
50-75%
Slice 4
75-100%
75-100%
Slice 4
Others 7
Customers Attitude 12
Software Issues 17
Network Problem 8
Climatic Conditions 14
Traffic 25
0 5 10 15 20 25 30 35 40
From Figure 5, it is observed that from a health point of view, there are certain issues
that affected the performance of the delivery system. Through proper care, it is possible
to mitigate these health-related problems.
A majority of the delivery agents who are on two-wheelers had backbone problems. 28
respondents (58.33%) indicated that back-related problems affect the delivery speed.
Another concern was the problems faced due to excessive exposure to radiation from
sunlight. 22 respondents (45.8%) indicated that sunburn-related problems like itching
and cracks affected their performance. It also causes allergic problems and affects the
mental health.
14 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
Figure 5: Health Factors that Influence the Delivery System
in the Food Supply Chain
Others 12
Sunburn 22
Allergic Problems 7
Back Pain 28
Mental Stress 9
Hypothesis Testing
Hypothesis 1: Attitude towards consumers and service rating are related which influences
on-time delivery of food.
Table 1 shows the attitude rating towards consumers. Table 2 shows the result of
Fisher’s exact test conducted. If the p-value obtained in the Fisher’s Exact test is less than
the designated alpha level (0.05), then the null hypothesis gets rejected and vice versa.
Fisher’s exact test value 0.033 is obtained. This shows that there is a relationship between
the attitude towards consumers and the service rating, which in turn influences the on-
time delivery of food.
Consumers 50-75% 2 13 10 1 26
Total 8 20 19 1 48
Note: a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is 0.17.
16 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
Hypothesis 2: The proper packaging of the food items by the restaurant enhances the rating
of the food delivery system.
Table 3 shows proper packing of food-on-delivery service rating. Table 4 shows the
sample chi-square value as 9.07641(9.08). The tabular value of the chi-square at 4 degrees
of freedom at an alpha level of 0.05 is 9.49. Here the calculated value is lesser than the table
value. Hence, we accept the null hypothesis. And it can be concluded that proper packaging
of the food items by the restaurant enhances the rating of the food delivery system.
Food in 25-50% 5 6 2 13
Restaurant 50-75% 2 13 16 31
Total 8 20 20 48
Total 9.07641
18 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
network. There can be a graphic user interface in the App to enable easy
maneuvering to trace the location.
• The delivery system is also affected by factors such as traffic, software issues,
consumers’ attitude towards them and network problems. Traffic is a major
problem in developed cities. The delivery system can be enabled with
indications of traffic density so that routes that are less dense can be chosen for
commuting. They should be educated more about effectively using Google Maps.
• About 70% of the respondents state that they face health issues like back pain,
sunburn and allergic problems. Some even feel mentally stressed by the work.
The multiple linear regression analysis was conducted to find out the
relationship between on-time delivery of food items and the effectiveness in
locating the restaurant and the consumers. It is found that locating the
restaurant on-time plays an important role. The correlation analysis between
the two factors indicated that the two variables are related. This indicates that
companies can come up with a process of allotment of delivery agents which can
improve the food delivery system.
• The Fisher’s exact test shows that the rating given by the consumers on the food
application and the attitude of the consumers are closely related. The rating
provided depends on the attitude of the consumers. This can affect the delivery
agents emotionally. It can also reduce their chance of earning incentives based
on rating.
• It has also been found out that proper packaging of food items by the restaurant
does not have an impact on the rating provided by the consumers. The rating
is provided on the basis of various other factors. From the analysis, it can be seen
that the success of the online food delivery system is a collective process. It
requires contribution from various factors. The consumers, the online agents,
the restaurants, and the delivery agents play a huge role in enhancing the
performance of the food supply chain network. Care may be taken to ensure that
the food items are properly packed.
Limitations: The data for this particular study was limited only to the Ernakulam region.
Most of the respondents referred to either Swiggy or Zomato. Other online food suppliers
could not be covered. The problems and issues faced by the delivery agents alone were
considered. The consumers’ opinion and the opinion or problems of the restaurant people
were not adequate to draw a conclusion about their influence on the food supply chain
delivery system. In the paper, only the food delivery system is considered. Other links in
the food supply chain related to the supplier of raw materials, logistics, storage and many
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Questionnaire
1. Name:
2. Age (Years)
Above 160 km
7. How long do you usually wait at the restaurant to receive the order?
8. How often is the food for delivery properly packed by the restaurant?
22 The IUP Journal of Supply Chain Management, Vol. XVII, No. 2, 2020
Appendix (Cont.)
12. Did you experience a situation wherein the buyer received the food without paying
for it?
Yes No
14. Specify the factors that affect you more during the delivery:
Others
Yes No
Yes No
Yes No
Sunburn Others
Reference # 34J-2020-06-01-01