International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962

Volume-10, Issue-2 (April 2020)

www.ijemr.net https://doi.org/10.31033/ijemr.10.2.15

Driving Forces for the Success of Food Ordering and Delivery Apps: A
Descriptive Study
C. Surendhranatha Reddy1 and Dr. Guru Basava Aradhya2
1
Associate Professor, Department of Management, Kristu Jayanti College, Research Scholar, Bharathiar University, INDIA
2
Associate Professor, Department of Management, Christ (Deemed to be University), Lavasa, Pune, INDIA
1
Corresponding Author: [email protected]

ABSTRACT needs of eaters and provide them a better service. This

Ever changing demographics customers demanded model is a huge success due to convenience to make
changes in practices of marketers and especially in food decision by the customer to select the food easily from
ordering and delivery sector. Revolutionary advancement in menu, convenience to place an order with service provider
information technology and communication has amended the and convenience to make payment through multiple
way customers interact with sellers and particularly in the
channels [16].
field of ready food. Customers can easily order the food and
get it delivered at their door steps than earlier with the help of The business of online restaurant food delivery is
food delivery apps. The industry is growing at a pace than the undergoing major changes as it creates new approaches to
expected due to many forces like convenience to customers, reach the end customer. Millennials being the key drivers,
cost benefit, flexibility, more options to choose, time saving etc. there are new delivery channels at hand with new delivery
The present study is based on previous researchers conducted methods like robots, drones etc. reaching new niche
on similar subject and it will emphasise on understanding the markets with the help of new technology like virtual and
reasons for success of food ordering and delivery applications. augmented reality and artificial intelligence [12].
Online food order and delivery applications and
Keywords— Food Ordering and Delivery Applications, website are definitely future of restaurant business as they
Ready Food, Information Technology, Flexibility can provide many benefits to both customers and service
providers. Digital platforms can enjoy a dominating
position in the market by offering customised services at
I. INTRODUCTION affordable prices to the target customers. The market also
will grow at rapid pace due to favourable conditions like
In the complex environment of serving customer, changing markets, high purchasing power of customers,
all the service providers thriving to maximize their technological advancements etc.
capabilities by increasing the customer base. Food industry
is not an exception to this scenario. Sellers engaged in food II. REVIEW OF LITERATURE
industry are looking for new opportunities to serve the
customers. In the process, we have witnessed a new Customer experience with food ordering apps is
platform in the form of food order and delivery system for not only influenced by performance expectancy, effort
food industry. Digital platforms have been evolved to cater expectancy, social influence, facilitating conditions, price
to the customized needs of the customers due to social and value, hedonic motivation and habits but also online
cultural changes. Changing family system, changing life reviews, online ratings and online tracking. Customer
style of people, double income, lack of time to prepare food satisfaction about mobile food ordering apps is determined
at home, increased disposable income, offers from greatly through customer experience and the above said
restaurants and delivery system are some of the reasons for factors [1].
evolution of food order and delivery apps. Customers may find many benefits from ordering
Online food delivery applications have become food through mobiles applications like comfort, time
popular because of reasons like visible menu with prices, saving, different options to buy, offers from sellers, avoid
complete information about service, real time tracking of travelling distances, door delivery and assured quality.
delivery, push notifications, multiple payment options, GPS There are few disadvantages like lack of face to face
searching of nearby restaurants, better interface and interaction with service provider, no replacement facility in
discounts and deals offered [15] case of bad taste or spoilage of food and no guaranteed taste
Online food ordering connects the eater and and hygiene [2].
restaurants through web or mobile applications. The There is a progressive awareness among customers
websites and applications are customized to cater to the about food delivery apps in the recent years. Buyers are
131 This work is licensed under Creative Commons Attribution 4.0 International License.

Electronic copy available at: https://ssrn.com/abstract=3589059

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume-10, Issue-2 (April 2020)
www.ijemr.net https://doi.org/10.31033/ijemr.10.2.15

using the food delivery apps for a quite time as they offer experience and negative influence by friends and family are
advantages like convenience to use, multiple payment the factors which can negatively influence the decisions of
options, better customer service, tracking order, receiving customers to buy food through apps [10].
expected order and providing information. Though there are Customers who are young and working group are
benefits, customers are worried about risks like loss of more inclined towards online food delivery apps. Among
financial and personal information [3]. the gender, male is dominating compared to women in
Online food delivery has its pros and cons based ordering food online. More married customers preferred to
on the perception of customers. This system helps the order food online than the unmarried. Many preferred to
customers to order and deliver food more conveniently and buy food from a restaurant through delivery apps due
in less time. It provides complete information about the various advantages but few rejected due to hygiene and
order to enhance customer experience. It also helps quality concerns [11].
customers to track the delivery of food. Customer database Millennials are the drivers for food delivery
maintained by service providers can improve the service to services as they highest share of their budgets compared to
customers [4]. other generations. Food delivery companies funding new
Restaurants enjoy benefits like more orders from ways to distribute the services to end customers. They are
customers, increase in sales, increase in customer base, using different platforms like social media, virtual assistant,
opportunity to retain the existing customers and order smart watch etc. Drones, robots and parachutes are used to
accuracy from food delivering apps. The online food deliver the food to the door steps of customers in selected
buying decision of customers is influenced by factors like markets. The food delivery business is also finding the
ease of payment, availability of different options, time niche markets to serve it [12].
saving and convenience in ordering the food [5]. Popular food delivery apps are mostly preferred by
Growth in usage of smart phones has triggered the customers as they can provide better services. Food
growth in the use of digital food delivery applications. The delivery apps provide only limited information as the
major driving forces for growth in digital food delivery customers look for more comprehensive information. There
platforms are changes in social status of people, increasing is perception among customers that online food delivery
nuclear families, changing role of women as they start apps charge a bit higher delivery charge [13].
pursuing their career, increased ready food culture, more Changing customer preferences triggered the
restaurants are set up and less time to cook at home [6]. increase in sales for online food delivery apps. High income
The quality of information provided by service provider has group and millennials are the major target group for digital
huge influence on preferring food delivery apps by the food ordering services. Independent platforms are picking
customers. Website design can get the trust of the up as the restaurants investing in creating customer base.
customers while they use apps for food ordering. Better Third party platforms are able to bridge the gap between
customer service, security and effective payment system restaurants and food lovers [14].
also can influence the decisions to buy food from delivery
apps [7]. III. OBJECTIVES
Most of the people using digital food delivery apps
are the young customers. The frequency of buying food The current research has the following objectives
using delivery apps is also increasing among the customers. to achieve.
Customers also prefer to make online payment using digital 1) To understand and identify driving forces for the success
wallets and UPI platforms. Offers provided by the delivery of online food order and delivery applications
apps is also one of the factors influencing customers [8]. 2) To develop a conceptual model to understand the
With rapid urbanisation, the food delivery system and dynamics of digital food delivery business.
restaurants are thriving for more sales and higher customer
base. Stupendous growth in use of smartphones and IV. METHODOLOGY
applications in smart phones, there are opportunities for
food delivery apps in the market. Social media and different The present study is based on secondary data from
payment options can help the service providers to attract previous studies conducted on selected research problem.
more buyers in the market in the present scenario [9]. Articles similar to the research problem were collected from
Door delivery of food is the prime reason for available sources and they were reviewed to understand the
success of food delivery apps apart from ease of buying and dynamics of digital food order and delivery business. The
convenience. Rewards and cashback offered by service driving forces for the success of online food delivery
provider can also influence the buying decision of business were understood from previous researches.
customers. Location is also a driving force while ordering Based on that a conceptual model was developed
food from a restaurant through apps. Previous bad to understand the driving forces. This study could be a basis
132 This work is licensed under Creative Commons Attribution 4.0 International License.

Electronic copy available at: https://ssrn.com/abstract=3589059

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume-10, Issue-2 (April 2020)
www.ijemr.net https://doi.org/10.31033/ijemr.10.2.15

for further study on online food delivery applications to VI. DISCUSSIONS

understand the dynamics of business and to understand the
consumer behaviour about the same. As the markets change due to changes in
customer preferences, there will be opportunities for
V. CONCEPTUAL MODEL marketers to grab from the market. Digital food delivery
business is expected to grow very fast as the market offers
A conceptual model was developed to understand potential growth in the near future. The major driving
the driving forces for the success of online order and forces for the success of this business could be convenience
delivery applications. After analysing few available models to place an order at any time and from anywhere, different
on online food delivery system, a conceptual model was options to make payment ranging from net banking to
developed with two major components namely quality of digital wallets, more variety of food items to choose from
service and quality of application and factors contributing different restaurants, searching the restaurant nearby, saving
to the better experience of customers while they order food time, discounts from sellers, free delivery and safe secured
from online platforms. transactions and comprehensive information about services.
Quality of service and quality of application are
considered to be most important factors contributing to the VII. CONCLUSION
success of online food delivery business.
Quality of service in digital food delivery This conceptual research paper can give inputs
business is influenced by time taken to deliver food at the for further study on understanding the reasons for growth of
door step of the customers, quality of food served by the online food delivery business in the market. Marketers can
restaurants, quality of information disseminated to the explore the future opportunities in this segment and design
customers and the way customer complaints handled by the their marketing programs. We can see more updates and
service provider. new technologies in this business as it is growing
Quality of mobile application has an impact on exponentially. Marketers need to invest their resources
trust of customers about food delivery apps. This quality of cleverly as the competition in the segment also intensifying.
application can be determined by ease of using the app, Digital food delivery business can flourish in the future due
security provided, multiple modes of payment offered and to demographic and economic advantages in the market.
live tracking of delivery of food.
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International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume-10, Issue-2 (April 2020)
www.ijemr.net https://doi.org/10.31033/ijemr.10.2.15

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134 This work is licensed under Creative Commons Attribution 4.0 International License.

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