CHAPTER TWO

LITERATURE REVIEW

BY: TIMOTHY SILAMAN A/L RAMAN

2.1 INTRODUCTION

This chapter will be attempting to review the relevant literature and research related to
the involvement in online food delivery industry among undergraduate students in UUM. This
chapter will be starting discussing the definition and the concept of the investigated variables.

2.2 ONLINE FOOD DELIVERY

E- hailing is a concept of shared mobility which is adopted from the conventional method
of public transport, whereby e-hailing, ride sourcing and carpooling are provided to satisfy the
needs of customer. Providing a private car to paying passenger to their destination which is
assisted by the application and technology is known as e-hailing service in Asia. While in north
America and Europe this service is known as ‘ride sourcing’ or ‘ride hailing’. (Shaheen, 2015).
This type of sharing economy undeniably had become one of the biggest thrive as shared
mobility travel is one of the essential part of transportation industry today. (Todd, 2018).

DEFINITION OF E-HAILING Authors/ Research / Statute

App-based, On-demand ride service, (Rayle, 2014)
Third-party services (TNCs)
Pre-arranged on-demand transportation (Shaheen, 2016)
services, Smartphone-based mobile
application
The vehicle consisted of 4 passenger seats and (Malaysia, 2017)
not more than 11 passenger seats (inclusive
driver), used for transporting a passenger
in return for a fare, facilitated by an
electronic application, furnished by
intermediaries’ business operators.
On-demand ride/for hire service, using (NGO, 2015).
mobile smartphone-based apps, from a pool
of private passenger vehicles, driven by non-
 professional drivers.
Use of smartphone apps to connect (Shaheen, 2015)
passengers with drivers.
Ride-sourcing connected passengers to (Fassbender, 2016)
vehicles-for-hire through the use of a
mobile smartphone app, passengers
catalogued their location through GPS
positioning, matched with the nearest driver,
estimation cost (ride, drivers ratings, time)
were given, using a private vehicle.
A platform where individuals can hail and pay (Mishra, 2017)
for a ride from a professional or part-time
driver through an app.
Table shows the summary of e-hailing meaning.

E-hailing services offers a service where the price is so affordable compare to other
public transportation, where the rate is below the market sometimes. For example, grabcar price
is more cheap compare to taxi rate. Although, this type of approach is not advisable, e-hailing
industry continue to rise as a favorite modes of transportation selection in urban areas. (Sullivan,
2016). This had made most mobility shared services are seen as big challenges to the existing
transportation modes. (Neves, 2018).

2.4 E-HAILING IN SEREMBAN, MALAYSIA

In Malaysia, e-hailing services continue to gain popularity among drivers and commuters.
(Arumugamam, 2020). There are many success factors that contributed to this industry. There
are many factors that really support this industry. E-hailing application in smart phones had
really been a stepping stone for this industry. E-hailing service is readily available via mobile
apps with internet. (Arumugamam, 2020). . These features help e- hailing users to plan their
journey accordingly. (Arumugamam, 2020). Apart from that offers that they received from other
application can be used in paying in e –hailing. For example, e-wallet where we can straight
away pay our e-hailing fare.
 The e-hailing industry had been specially used to describe the shared mobility service
facilitated by apps (Malaysia, 2017). The service is started due to the ineffectiveness and
inefficiencies found among the local transportation method within the first and last mile
connectivity. Anthony Tan, the co-founder of Grab. Ltd, had come out with opinion that the
introduction of Grab is because of the complicated system of taxi service especially in the year of
2012 and 2013 (Freischlad, 2015). This services had opened a chance for the travelers with an
alternative transportation system which is much more cheap and convenient. This service started
to became people’s favorite as a direct result of high number of motor vehicle in the road,
massive traffics jam, parking problem where the fare of parking is high, and inadequate
infrastructure for public transport (Sullivan, 2016). Many e-hailing users have been using this
system as they exploit the connectivity of the transportation networks in getting their destination
on time and affordable (Sullivan, 2016). This research can provide information and knowledge
on adoption of e-hailing among the people in Seremban, Negeri Sembilan. There are several
factors which contributed to the rise of the e-hailing industry in Malaysia. E-hailing industry also
have some challenges that they need to overcome in order to keep moving forward.

2.5 LOWER FARE AND COMFORTABLE VEHICLE

This are the first factor that contributed to the rise of e-hailing in Seremban, Negeri
Sembilan. The fare of the e-hailing services are far cheaper compare to some public vehicle. This
e-hailing service also offers a comfortable private vehicle. For example, bus services here are
worst because they are not comfortable as many foreigners are using it. Other than that public
transport here is not on time mostly. This problem had lead people in Seremban use the e-hailing
service.

The public had widely acknowledged and accepted the e-hailing services as a mean of an
alternative mode of transport (Sullivan, 2016). E-hailing services also offered better fares
structure, affordability and convenience, which was lacking in other modes of public transport
(Mae, 2017). This factor is so essential in the rise of this industry.
2.6 MASSIVE TRAFFIC JAMS

The second factor that plays a big role in the rise of this industry is massive traffic jam in
Seremban area. According to (Hashmita, 2018). An increase in population will also result in
increasing the number of vehicles in urban areas causes problems with highways and traffic
itself, especially on major roads. The existence of road side activities often causes problems.
Traffic jam often occurs in big cities. This situation mainly happens during the peak time where
a massive bumper to bumper traffic jam will occurred. This really annoy people because they
have to wait for a period of time before going back home.

This e-hailing had started to reduce the traffic jams as a group people started to share
vehicle and they managed to reduce the rate of vehicle in the road during the peak hours. The
launch of e-hailing applications in Malaysia was viewed as a solution for alleviating
transportation problems in big cities. (Kadir, 2016) . The waiting time to move from one public
vehicle to another public vehicle takes quite a long time as well as a factor causing people to be
reluctant to take e-hailing services. (Hashmita, 2018).

2.7 LIMITED PARKING LOT WITH HIGH PARKING FARE

The next factor which lead to the success of this industry is limited parking lot and high
parking fares in the town area. This had push people to use e-hailing because of the fare that they
need to pay per day. People started to accept e-hailing as one of the solution because they tend to
pay more at parking fare compare to e-hailing service. (Jaafar, 2011). Other than that people who
drive their own car had struggles on parking their car encase of very limited parking area in
Seremban town. Parking in restricted are also could bring them fine from the authorities. Parking
is a really headache to the parking patrons with cost and frustration. (Jaafar, 2011)

2.8 GOVERNMENT POLICY

Government had plays a big part in the success of this industry. The government had tried
to find a best approach in order to manage this industry in early 2016. The Land Public Transport
Agency and the Ministry of Transportation had work so closely in order to make this industry
success. This is because formerly e-hailing were declared as illegal by the government itself.
(Sukumaran, 2015). Finally, after several amendments the government had officially legalize this
industry in our country.
 By legalizing this industry, the government was able to solve issues regarding labor
regulation, consumer protection and property rights. (Sahir, 2020). Through these specific
regulatory bodies, the Land Public Transport Agency (APAD) could impose specific
requirements for both the e-hailing company and e-hailing drivers to operate legally.
(Sahir, 2020) .

2.9 CAN GENERATE HIGH INCOME

The main factors that keep man people involve and sustain in this business is the Income. This
incentive is expected to generate a potential income for the low income people (B40 Segment)
between RM2,000 to RM8,000 per month depending on a number of trips and passenger
booking. (Omar, 2019). This industry had been a helpful in generating income for the low
income group. This situation had sustained many drivers from leaving this industry. Many
people live had been changed by joining this in this kind of sector where they already boost their
economics. However, till to date, the preferences for Malaysian citizens to opt for the ridesharing
jobs as a driver were still in the shadow as no study is conducted on this phenomenon. (Omar,
2019).