online food delivery service essay

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In the midst of the global 2020 COVID-19 outbreak, the advantages of online food delivery (FD) were obvious as it facilitated consumer access to prepared meals and enabled food providers to keep operating. However, online FD is not without its critics, with reports of consumer and restaurant boycotts. It is therefore time to take stock and consider the broader impacts of online FD and what they mean for the stakeholders involved. Using the three pillars of sustainability as a lens through which to consider the impacts, this review presents the most up-to-date research in this field revealing a raft of positive and negative impacts. From an economic standpoint, online FD while providing job and sale opportunities has been criticized for high commissions it charges restaurants and questionable working conditions for delivery people. From a social perspective, online FD is affecting the relationship between consumers and their food as well as influencing public health outcomes and traffic systems. Environmental impacts include the generation of worrying amounts of waste and its high carbon footprints. Stakeholders must consider how best to mitigate the negative and promote the positive impacts of online FD to ensure that it is sustainable, in every sense, moving forward.

1. Definition

Online to offline (O2O) is a form of e-commerce in which consumers are attracted to a product or service online and induced to complete a transaction in an offline setting. An area of O2O commerce that is expanding rapidly is the use of online food delivery (online FD) platforms. All around the world, the rise of online FD has changed the way that many consumers and food suppliers interact, and the sustainability impacts (defined by the three pillars of economic, social and environmental [ 1 ] ) of this change has yet to be comprehensively assessed.

2. Introduction

Economic growth and increasing broadband penetration are driving the global expansion of e-commerce. Consumers are increasingly using online services as their disposable income increases, electronic payments become more trustworthy, and the range of suppliers and the size of their delivery networks expand.

3. Overview of the Online Food Delivery Sector

3.1. e-commerce market size.

The e-commerce market has experienced strong growth over the past decade, as customers increasingly move online. This shift in how consumers shop has been driven by a wide range of diverse factors, some being market or country dependent, others occurring as a result of worldwide changes. These changes include: an increase in disposal income, particularly in developing nations; longer work and commuting times; increased broadband penetration and improved safety of electronic payments; a relaxing of trade barriers; an increase in the number of retailers having an online presence; and a greater awareness of e-commerce by customers [ 2 ] .

The strongest growth of e-commerce over the last few years has occurred in China, where, in 2019, sales were worth US$ 1.935 trillion—an amount which was more than three times higher than that spent in the United States (US$ 586.92 billion), the second largest market. On its own, China represents 54.7% of the global e-commerce market, a share nearly twice the market share of the next five highest countries (US, UK, Japan, South Korea, Germany) combined [ 3 ] . The rise of e-commerce in the Asia-Pacific region is demonstrated in Table 1, which highlights the massive increase in the amount spent during key online shopping days between 2015 and 2019. Of particular note is the US$ 38.4 billion spent on Singles Day (11.11) in the Asia-Pacific region in 2019, an amount which is more than double the total sum of the US$9.4 billion spent on Black Friday in North America and much of Europe and the US$ 7.4 billion spent on Cyber Monday in North America. The leading e-commerce platforms worldwide differ by region and include platforms which are now household names, such as Amazon (U.S.), Alibaba (China), and Flipkart (India).

Table 1. Regional sales value of featured online shopping days from 2015–2019 [ 4 ] .

3.2. Online to Offline Business and Online FD

The rapid growth of e-commerce has spawned many new forms of business, such as B2B (business to business), C2C (customer to customer), B2C (business to customer), and O2O (online to offline) [ 5 ] [ 6 ] . The business of O2O is a marketing method based on information and communications technology (ICT) whereby consumers place orders for goods or services online and receive the goods or services at an offline outlet [ 7 ] [ 8 ] .

One of the significant developments driving the O2O commerce explosion has been the proliferation of smartphones and tablets and the development of infrastructures to support payment and delivery. In 2019 there were 5.2 billion smartphone connections, and by the end of 2020, it has been predicted that half of the people in the world will have access to mobile internet services [ 9 ] .

O2O services have emerged in various fields, including the purchase of diverse product and service categories, such as food, hotel rooms, real estate, or car rentals [ 10 ] . Online FD refers to the process whereby food that was ordered online is prepared and delivered to the consumer. The development of online FD has been underpinned by the development of integrated online FD platforms, such as Uber eats, Deliveroo, Swiggy, and Meituan. Online FD platforms serve a variety of functions including providing consumers with a wide variety of food choices, the taking of orders and the relaying of these order to the food producer, the monitoring of payment, the organization of the delivery of the food and the provision of tracking facilities (Figure 1) [ 11 ] . Food delivery applications, or ‘apps’, (FDA) function within the broader context of online FD as they enable the ordering of food through mobile apps [ 12 ] .

Figure 1. The functions associated with online food delivery (FD) platforms. Arrows indicate movement of information or logistic; lines indicate necessary routes; dotted lines indicate optional routes.

3.3. Online FD Providers and their Delivery System

Food delivery providers can be categorized as being either Restaurant-to-Consumer Delivery or Platform-to-Consumer Delivery operations [ 13 ] . Restaurant-to-Consumer Delivery providers make the food and deliver it, as typified by providers, such as KFC, McDonald’s, and Domino’s. The order can be made directly through the restaurant’s online platform or via a third-party platform. These third-party platforms vary from country to country, and include examples, such as Uber eats in the U.S., Eleme in China, Just Eat in UK, and Swiggy in India. Third-party platforms also provide online delivery services from partner restaurants which do not necessarily offer delivery services themselves, a process which is defined as Platform-to-Consumer Delivery.

Online FD requires highly efficient and scalable real-time delivery services. Restaurants can use existing staff for self-delivery, such as the use of waiters in some small restaurants or they may use specialized delivery teams who are specifically employed and trained for this role, as is seen with some of the big restaurant brands, such as KFC, Domino’s, and Xibei. Alternatively, restaurants can employ crowdsourcing logistics, a network of delivery people (riders) who are independent contractors, a model that provides an efficient, low-cost approach to food delivery [ 14 ] . Online FD platforms can either be responsible for recruiting and training professional delivery people, or they may also resort to crowdsourcing logistics, using delivery people who are not necessarily employed by the online FD platform. Professional delivery people are usually trained, and at least part of their salary is guaranteed, while a portion is commission-based. In contrast, the independent delivery people who are frequently known as “riders” are paid on a commission (per order) basis (Figure 2).

Figure 2. Online FD delivery retailers (Eleme in China, for example).

3.4. Growth of Online FD Worldwide

The rise of online FD is a global trend with many countries around the world having at least one major platform for food delivery (Table 2). China leads the way in market share for online FD, closely followed by the US with the developing markets of India and Brazil, showing rapid (> 9% compound annual growth rate (CAGR)) growth.

Table 2. Revenue of the Online FD segment in major countries [ 13 ] .

The online FD industry has been very proactive in the way it develops new markets and cultivates consumers’ eating habits. For example, in 2018, a promotion campaign by the India-based online FD company Foodpanda offered consumers large discounts, which resulted in Foodpanda increasing the number of users by a factor of 10 [ 15 ] . Moreover, in 2018, Eleme in China, spent three billion yuan (US$443 million) over three months in a successful marketing strategy to increase its market share to more than 50 percent of the Chinese market [ 16 ] . Despite online FD being very strong in some regions, as a whole across the world online FD is in the early stages of market development, and it will require considerable investment to fund promotions and campaigns and to provide subsidies to participating restaurants [ 17 ] [ 18 ] [ 19 ] [ 20 ] [ 21 ] . For example, a restaurant may hold a campaign on an FD platform, in which a consumer obtains ¥8 as a discount if the total amount ordered reaches ¥20. In fact, this discount may only cost the restaurant ¥2, as it will receive a ¥6 subsidy from the FD platform (the actual rules may vary from one platform to another [ 22 ] ). Such an approach is beneficial for a restaurant because it will attract more consumers and orders. It is crucial for the future of online FD to cultivate consumers’ eating habits by introducing them to the choosing and purchasing of food online. By providing consumers with the option of having a meal at a cheaper price or by providing other services, such as free delivery, online FD platforms and providers are encouraging consumers to abandon cooking at home or going out to a restaurant to eat.

Worldwide online FD is becoming increasingly well accepted and embraced by young adults, and nowhere is this trend more evident than in China. A survey in 2019 of 1000 university students in Nanjing, revealed that at least 71.45% of them had used online FD for at least two years and that 85.1% of them used online FD more than once a week [ 23 ] . Online FD has been reported to be popular with Chinese university students because it saves time (50.35% of 141 students in Hebei, China), is convenient (44.35% of 124 students in Jiangxi, China), and is able to provide options that were tastier (39.52% of 124 students) or simply different from canteen meals (36.17% of 141 students) [ 24 ] [ 25 ] . Of course, different populations around the world have different opportunities to purchase food online owing to cultural, technological and economic reasons and these differences can be responsible for the differing rates of uptake of online FD seen around the world. By way of comparison to China, for example, a 2019 survey of 252 Greek university students aged 18–23, reported that most of them cook at home and rarely eat out or have food delivery (45.6%), while others mostly eat at the student restaurant or cook at home (23.4%), with only 21% of the students surveyed stating that they had food delivered [ 26 ] .

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The changing market for food delivery

The business of delivering restaurant meals to the home is undergoing rapid change as new online platforms race to capture markets and customers across the Americas, Asia, Europe, and the Middle East. Although these new Internet platforms are attracting considerable investment and high valuations—already, five are valued at more than $1 billion—little real knowledge about market dynamics, growth potential, or customer behavior exists. Research from McKinsey, based on a six-month study covering 16 countries around the globe, provides insight into this fast-changing market.

The shape of the market today

Worldwide, the market for food delivery stands at €83 billion, or 1 percent of the total food market and 4 percent of food sold through restaurants and fast-food chains. It has already matured in most countries, with an overall annual growth rate estimated at just 3.5 percent for the next five years.

By far, the most common form of delivery is the traditional model, in which the consumer places an order with the local pizza parlor or Chinese restaurant (although many other kinds of restaurants, particularly in urban areas, now offer delivery) and waits for the restaurant to bring the food to the door. This traditional category has a 90 percent market share, and most of those orders—almost three-quarters—are still placed by phone.

However, as in so many other sectors, the rise of digital technology is reshaping the market. Consumers accustomed to shopping online through apps or websites, with maximum convenience and transparency, increasingly expect the same experience when it comes to ordering dinner.

Two tiers for online food delivery

Two types of online platforms have risen to fill that void. The first type is the “aggregators,” which emerged roughly 15 years ago; the second is the “new delivery” players, which appeared in 2013. Both allow consumers to compare menus, scan and post reviews, and place orders from a variety of restaurants with a single click. The aggregators, which are part of the traditional-delivery category, simply take orders from customers and route them to restaurants, which handle the delivery themselves. In contrast, the new-delivery players build their own logistics networks, providing delivery for restaurants that don’t have their own drivers.

Aggregators

Aggregators build on the traditional model for food delivery, offering access to multiple restaurants through a single online portal. By logging in to the site or the app, consumers can quickly compare menus, prices, and reviews from peers. The aggregators collect a fixed margin of the order, which is paid by the restaurant, and the restaurant handles the actual delivery. There is no additional cost to the consumer. With their asset-light model, aggregators post earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of 40 to 50 percent. Although investment continues to pour in (Delivery Hero and Foodpanda, for example, both attracted €100 million in new investment in 2015), most of the consolidation in this subcategory has already occurred. Four players—Delivery Hero, Foodpanda, GrubHub, and Just Eat—have achieved global scale. These four players tend to focus on different regions. On a national level, there are typically two or three competitors that dominate, mostly driven by their ability to build a large user base. Consolidation is advanced in most markets and will likely continue. McKinsey research shows that just 26 percent of traditional-delivery orders are made online today, but we expect this share to increase rapidly.

New delivery

Just like the aggregators, new-delivery players allow consumers to compare offerings and order meals from a group of restaurants through a single website or app. Crucially, the players in this category also provide the logistics for the restaurant. This allows them to open a new segment of the restaurant market to home delivery: higher-end restaurants that traditionally did not deliver. The new-delivery players are compensated by the restaurant with a fixed margin of the order, as well as with a small flat fee from the customer. Despite the higher costs of maintaining delivery vehicles and drivers, the new-delivery players achieve EBITDA margins of more than 30 percent. Players include brands that operate globally such as Deliveroo and Foodora, which are continuing to capture new regions. We believe the addressable market for new delivery will reach more than €20 billion by 2025.

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The new-delivery business model.

As the newest online category, new delivery offers advantages (as well as some disadvantages) for restaurants, customers, and deliverers.

The restaurant

For restaurants, the new model offers an additional source of revenue and a higher utilization rate of existing kitchen facilities, as well as the chance to build relationships with a new pool of customers. The platforms offer free marketing and a logistics network for restaurants that previously were not able to deliver meals. While an estimated 1 percent of current on-premises customers will migrate to home delivery, total restaurant spending by high-income households will increase by an estimated 10 percent. However, there is potential for greater disruption if more high-end customers opt to consume restaurant meals at home. Another downside: the restaurant has little control over the customer experience.

The customer

Here, the advantages are convenience, greater choice, and more restaurants than previously were available for meal delivery. This is especially attractive to customers looking for healthier alternatives to pizza. The customer also benefits from the ability to track delivery in real time.

The deliverer

New-delivery operators can control the complete customer experience. In addition, with their wide portfolio of restaurants that previously served meals only on their premises, new-delivery players are able to tap into a new tier of consumers for home delivery of meals. By working with higher-end restaurants, new-delivery players achieve a higher average order size than the aggregators. The biggest disadvantage is the need to invest in a delivery fleet and drivers, which can quickly turn into a cash drain if the operators cannot achieve a high rate of utilization.

Both aggregators and new-delivery players have attracted significant investment, allowing them to advertise widely and build recognition for their brands quickly. GrubHub and Just Eat, for example, each reported marketing budgets of about €70 million in 2015. Since there is no limit to the number of restaurants these platforms can sign up, once they enter a market, they can grow rapidly (see sidebar, “The new-delivery business model.”)

The new-delivery opportunity

The opportunity for new delivery is to extend food delivery to a new group of restaurants and customers. Rather than competing directly with the aggregators, new-delivery players are expanding the overall market. However, it is possible that in the future even lower-end traditional-delivery restaurants will migrate to new delivery because they will find it more cost efficient to outsource logistics; thus, new delivery poses at least a potential threat of disruption to the aggregators.

The growth in new delivery is driven by two sources of consumer demand. This first is as a substitution for dining in a restaurant. With new delivery, consumers can dine at home with the same quality food they would enjoy at a fine restaurant. Some platforms even include Michelin-starred establishments in their offerings in selected cities. The second source of demand is as a substitution for meals prepared and consumed at home.

Customer behavior

Customers drawn to the new online food-delivery platforms have a different set of needs and expectations from the traditional pizza customer. Our study uncovered the following important traits:

• Platforms are sticky. New-delivery platforms, which personalize the ordering experience by storing relevant customer data, are sticky (Exhibit 1). Once customers sign up, 80 percent never or rarely leave for another platform, creating a strong winner-take-all dynamic, in which the reward goes to the player who can sign up the most customers in the shortest amount of time.
• Time is critical. Speed of delivery is the biggest variable in customer satisfaction, with an average 60 percent of consumers across markets citing it as a key factor. The optimal wait time is no more than 60 minutes.
• Meals are for home. Most orders—82 percent—were placed from home, while only 16 percent were placed from the workplace.
• Orders spike on weekends. The highest-volume days for the online platforms were Friday, Saturday, and Sunday, when 74 percent of orders were placed.

Channel migration

With the new online platforms making inroads around the world, the food-delivery market is in the midst of a dramatic channel migration. We expect online delivery to grow by 25.0 percent per year from 2015 to 2018 in key markets, after which it will taper off to 14.9 percent per year until 2020 (Exhibit 2).

Our research indicates that online’s penetration of the total food-delivery market broke 30 percent in 2016. We believe penetration rates will grow further as the market matures, eventually reaching 65 percent per year. This is the pattern we’ve seen, for example, in the more mature flight-booking category, which has seen a dramatic channel migration over the past 10 to 15 years, as well as for selected food-delivery players, such as Domino’s Pizza in the United States. It is quite likely that the food category will follow these patterns.

We’ve already seen much of that growth pattern play out in Europe, where online penetration rates run from 56 percent in Sweden to 43 percent in Austria. At the other end of the spectrum, Asia, Latin America, and the Middle East are at the beginning of the growth cycle. The key catalysts for the adoption of online food delivery are the overall level of funding for the industry and the size of marketing budgets. Technology penetration—mainly smartphone and online penetration—has only been slightly relevant to the speed of adoption so far due to the geographic expansion of food players. We believe that the food category will grow in line with the smartphone category as new smartphone users adapt their behavior to take full advantage of the technology.

How a tech unicorn creates value

With the top five global players having reached a combined valuation of more than €10 billion, the key question is what a sustainable level of profitability will be for the online-food-delivery business models. The market has become more bullish on the sector, giving the players that are still private significantly higher valuations and higher levels of funding than earlier companies achieved at the same stage (Exhibit 3). Two of the top five online deliverers, GrubHub and Just Eat, made their IPOs in 2014. They raised moderate total funding, of less than €100 million, before their IPOs. In contrast, Delivery Hero and Deliveroo, which could see their own IPOs in the next year or two, already have high valuation-to-equity ratios: Delivery Hero has €2.7 billion valuation versus €1.2 billion funding (a ratio of 2.2:1) and Deliveroo has an estimated valuation of €1 billion versus total funding of €400 million (2.5:1). Clearly, the market believes there is still rapid growth ahead for these players. The challenge now is for them to deliver on that belief.

Carsten Hirschberg is a senior partner in McKinsey’s Berlin office, Alexander Rajko is a consultant in the Cologne office, Thomas Schumacher is a partner in the Düsseldorf office, and Martin Wrulich is a partner in the Vienna office.

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Online Food Delivery Review

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Home delivery of prepared meals.

Home delivery of a grocery., drive-through pick-up., truck delivery of vegetables and meat products, challenges in online food delivery service, quality of food.

From traditional purchasing methods to online food delivery system many alternative systems have been offering the consumer more convenience such as online shopping, phone based ordering, home delivery, pick up and drive through in the food industry (Hossain and Adelaja, 2000). Today the food industry has been influence by technology and internet. According to Hirschberg, Rajko, Schumacher & Wrulich (2016) around 15years ago the traditional delivery category (aggregators) took place, simply take orders from customers and route them to restaurants although only 26% traditional delivery orders are made online today. After that the concept of ‘New Delivery’ players which appears in 2013 builds their own logistics network, providing delivery for restaurants. New Delivery services are taking over the market because of the growing demand. Around the world, the food delivery service account for €83billion where 1% is for food market and 4% includes restaurants and fast-food chains, found in different matured countries and predict that the growth of food delivery industry will increase by 3.5% in the next five years (Hirschberg, Rajko, Schumacher & Wrulich, 2016).

According to the Kimes (2011), 50.8% of customers prefer food delivery services as the people are lazy to cook and have meals delivered straight to their home or office. Online food ordering systems is a self-service system which allows the customers to self-order their meals (Ryue, Shiun-Yi &Lily, 2017). Online food ordering satisfies the busy customer’s needs living in the city who place their order online and receive delivery within a few minutes (Kedah, Ismail, Haque &Ahmed, 2015). Since then researchers from all over the world studied, the concept of food delivery by two different perspectives: the seller (supply) and the consumer (demand)(Ghajargar, Zenezini & Montanaro, 2016).

Increasing growth of technology (internet, mobile applications) provides opportunities to the customers to search the market more easily than 10 years ago. However, customers have variety of choices to decide what types of food customers want to consume and from which restaurant with the help of smartphones (Zissis, Aktas & Bourlakis, 2016). According to Ryue, Shiun-Yi and Lily (2017) electronic ordering is becoming popular among both customers and restaurants as it provides significant benefits while taking an order. Grub Hub, Uber Eat, Delivery Hero, and Food Panda and are the most well-known online food delivery companies.

According to Hossain and Adelaja (2000) customer’s shows there interest in alternative food delivery systems.

Food is a basic need for all human being (Zety, Fadzilah & Yusnidawati, 2016).Food items is mostly demanded and frequently delivered items in the market because the lifestyle of the people is working long day and only spent little time at home (Lopez & Ferrandiz, 2016). The order is taken from the telephone or websites. Today most of the people are showing interest in the concept on food delivery because it is quick and easy to order from mobile application rather than visiting and buying food from restaurant (Zety, Fadzilah & Yusnidawati, 2016). Home meal delivery required vehicles to deliver the meals to customers (Braysy, Nakari, Dullaert & Neittaanmaki, 2009). Mainly home delivery service of prepared meals is useful for student’s studying in different cities and who keep travelling from cities to cities (Adithya R., Singh, Kanade & Pathan, 2017)

U.K is the second largest online grocery market over the world. The total grocery market size of U.K was £174.5 billion in 2014 and £177.5 in 2015 whereas predict to be increase more than £200 billion in 2019 (Zissis, Aktas & Bourlakis, 2016). Today there is competition between the retail sectors of groceries around the world, not only in the prices but also in the service. The grocery market of U.K has seen increase yearly around 17% while the total grocery market has an annual growth of less than 5% in the last 10years. In term of grocery delivery the customers selects a day and a time slot to delivered the order in the customer’s house. Grocery is perishable and high rotation goods, which require fast and flexible transport (Lopez & Ferrandiz, 2016).

Online grocery is adopting drive through pick-up service where the customers can order online and collect groceries without getting off from their vehicles.

Many food industry have started to offer pick-up services to customers (Gao &Su, 2016)

To deliver the fresh food the demand of vehicles includes refrigerate, cold boxes or cabinets have been increasing in urban areas where the temperature of food (perishable goods) need to be constant during delivery even not changed in the temperature during door openings. Therefore the delivery companies required food storage, own vehicles and temperature control equipment while delivery food to customers (Hsu & Chen, 2014).

E-commerce provide experience to customers to shop online not just electronics, books, cosmetics products or cloths but food products as well (Zissis, Aktas & Bourlakis, 2016). Today the customers can purchase a product online which can be delivered within to our homes (Lopez & Ferrandiz, 2016). According to Alagoz and Hekimoglu (2012) online shopping is a new trend in the market where the customers are able to reach the products on internet and vendor can reach to customers on internet. On the other hand customers are enables to compare variety of products, compare prices and shop at the same time. While e-commerce is growing rapidly around the world, there are more than 1.46 billion internet users and with the help of e-commerce, customers have a wider variety of products to choose from in the online environment where food industry also started to adopt online environment (Alagoz &Hekimoglu, 2012). Worldwide internet has covered huge market area for exchange of goods and services (Zety, Fadzilah & Yusnidawati, 2016). At least 55% of internet users make online order in Poland (Moroz &Polkowski, 2016). In Turkey Yemeksepti.com is the popular online food ordering website where 28 million portion of food was order online just in 2011 (Alagoz & Hekimoglu, 2012).

In the restaurant there are several producers for taking order where firstly the customers starting from browsing the paper based menu and then inform to the waiter to take order and wait for food to serve. Due to the influence by the internet and the technology, several opportunities are entering in the market where many restaurants have take advantages to provide quick and speedy delivery of orders inspite of dining experience (Chavan, Jadhav, Korade &Teli, 2015). In recent time the online food ordering system tries to reduce the traditional queuing system and also improve the process of taking order from customers by setting the food menu online along sswith prices and the wide range of restaurant where customer can easily place the order as per their wish and also able to track the orders (Adithya R., Singh, Kanade & Pathan, 2017). According to Chavan, Jadhav, Korade and Teli (2015) everyone from anywhere can order goods through the internet and have the delivered to the selected location. With the help of mobile applications, all the food items order is displayed in the screen along with the corresponding options and delivery details in the restaurant website. Online food ordering system also provides the feedback system to the customers where the customers can rate the food items and also the facilities of payment through online or pay-on-delivery system. Many deliveries companies provide ID and a password for each user to secure the order (Adithya R., Singh, Kanade & Pathan, 2017). Today there are many business sectors that have adopted e-commerce for effective business (Zety, Fadzilah & Yusnidawati, 2016). Online food ordering is growing rapidly because of increasing use of smart phones /android devices.

Food delivery business is rapidly growing business which is influence by the internet and technology. At first we should understand the market size, competitor, customer behavior, and delivery platforms. Food delivery industry is operating through website platforms where a customer can select a restaurant from a list, view its menu, price and place order on the platform.

On-time delivery

With the increasing demand of food delivery and the growth in vehicles on the roads that cause traffic problems make companies think thoroughly about the future (Lopez & Ferrandiz, 2016). According to Braysy, Nakari, Dullaert and Neittaanmaki (2009) companies may customers if the service operation is slow and late delivery due to the vehicle route problem. The concern can be managed through the development of delivery route model or application of shortest path and provide tracking of food delivery vehicle facilities to customers (Siregar, Gunawan, Andayani, Lubis & Fahmi (2016). During lunch time the delivery companies receive maximum order which can be deliver at different location at same time (Lan, Ya’nan, Shuhua, 2016).

According to Willingham (2017) technology is a key element of online food ordering system as it allows for communication to take place between consumers and employees through mobile application software which is easily accessible by both parties. Still some customers feel uncomfortable with technology because they are not familiar with technology and mobile application and also have technology anxiety (Kimes, 2011). Sometime there will be problem with the machine and it will lead to delivery failure because the order was not receive by the restaurants (Ryue, Shiun-Yi & Lily, 2017).

There is always been difficulty with staffing due to the fluctuation in the demand of food delivery (Kanyan, Ngana & Voon, 2016). In food delivery service if the companies have enough vehicles to do deliveries, throughout the day, food can be delivered in time even in peak hours. On the other hand if the number of vehicles is limited for the time of less demand there would be loss in revenue during the demand in peak hours (Hsu & Chen, 2014).

According to Lan, Ya’nan and Shuhua (2016) customers are concerned about food quality and safety. While delivering the food sometimes the food have been cold, squeezed, not fresh, low quality and rotten where cooked meals and beverages are not properly sealed and spills is frequent occurring. During lunch time the restaurants become busy so the food is packaged in hurry without much care. The delivery vehicles boxes have poor thermal insulation and cushioning which impacts on the warmth or coolness of the food when it reaches the customer. Delivering foods with a constant temperature control is an important aspect for logistics carriers who deliver food (Hsu & Chen, 2014).

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Online Food Delivery Review. (2022, May 14). Retrieved from https://samploon.com/online-food-delivery/

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Please note you do not have access to teaching notes, factors affecting online food delivery service in bangladesh: an empirical study.

British Food Journal

ISSN : 0007-070X

Article publication date: 15 September 2020

Issue publication date: 20 January 2021

The core idea of this paper was to empirically evaluate the factors affecting the choices of consumers while ordering food online. The goal was to explore consumer behavior in the emerging industry of online food delivery business in an emerging economy, Bangladesh.

Design/methodology/approach

This paper used a qualitative and exploratory approach through the collection and analysis of data from a total of 177 survey respondents. Statistical analyses of all collected data (utilizing t -tests and factor analysis) were used to conclude the factors important to consumers in ordering food online through online food delivery intermediaries.

Results showed delivery time, service quality, price and condition of food delivered as factors constitute the first factor considered to be directly affecting the success of online food delivery. Variety and number of restaurants, menu, delivery tracking service and attitude of a delivery person are found to constitute the second factor and considered as indirect factors.

Practical implications

Online food ordering has been a very emerging sector globally and also a recent phenomenon in Bangladesh. The development and the availability of the internet combined with the busy life schedule has prompted businesses to address another need among consumers, the need to deliver foods at consumers' doorsteps. Understanding the consumer landscape better would help realize the full potential of the e-commerce platform as it can influence the economy, businesses and the quality of life of people.

Originality/value

The online food delivery business is new and growing and demands greater researches for better understanding by academicians and practitioners. This paper expands the limited existing research related to the online food delivery business and explores consumer behavior in the industry. From a managerial perspective, the paper contributes to understanding the consumers more broadly.

• Online food delivery
• Consumer behavior
• Online retailing
• Factor analysis

Saad, A.T. (2021), "Factors affecting online food delivery service in Bangladesh: an empirical study", British Food Journal , Vol. 123 No. 2, pp. 535-550. https://doi.org/10.1108/BFJ-05-2020-0449

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Food Delivery Services in Malaysia Essay Sample

The food delivery industry is a booming business in Malaysia. It’s not hard to see why – people are too busy nowadays to cook their meals, and they want the food delivered right to their doorstep. But what does it take for your company to be successful?

What is a food delivery service?

A food delivery service is a company that sends lunch to hungry employees, usually by running the orders through restaurants nearby.

Food delivery services are up-and-coming in the world of business. We  provide an alternative to brown bag lunches or selecting unhealthy fast food nearby for meeting deadlines. It takes about 10 minutes on average from ordering online to having hot and tasty lunch delivered to your doorstep; there’s no need to spend time walking down the street searching for a momentary distraction while you’re ravenous and ready for something satisfying!

For Malaysian companies that depend heavily on people’s ingenuity and ability to work sharp despite long strenuous hours, this alternative does not only save money but also fulfils workers’ hunger during their working hours.

Importance of food delivery service in pandemic

From a Malaysian governmental standpoint, alternative food delivery services are helpful during pandemics because they can provide people with the resources needed to survive. When access to groceries is severely limited, alternative suppliers can assist by providing critical resources.

Alternative supply chains that deliver goods on-demand or on as-needed basis offer benefits for increasing public health and safety during pandemic events. These services have the potential to improve both preparedness for future events and how individuals manage through these difficult times.

##Impact of food delivery services

Online food delivery is currently booming, with its increasing adoption by restaurants and customers. According to research group IBISWorld, revenue for this Malaysian market will increase at an annualized rate of 13% between now and 2020. The potential drivers behind this growth are the convergence of technologies (e.g., car or bike-sharing services) that allow consumers to satisfy their food needs more easily; lifestyles that prioritize convenience; and significant advancements in mobile payment systems.

Since 2011, investment in online food ordering has grown exponentially globally. Analysts predict that it will continue to grow as people order regularly from home or work rather than waiting for their takeaway meal until they arrive home after a long day of work/school play.

##How does food delivery service work?

Now a business in Malaysia can offer online food ordering and delivery, managing customer orders from start to finish. A restaurant administers the menu, deals with customer orders, prints menus and other materials does marketing for the business by offering coupons via third-party search engines, and provides reports on how well he or she is doing at attracting customers all from behind a computer screen.

In addition to the time saved by the Malaysian company’s employees not having to take each order individually over the phone or in person, there are other benefits as well. The company saves money on payroll hours spent fielding phone calls and waiting on customers who walk in person – which isn’t a problem that CafeMom has right now!

##Food delivery business model

The business model of food delivery services depends on the type of food service. For over-the-counter services, different models are possible.

One example is franchising, where a franchiser sets up an individual restaurant company in all major metropolitan areas for exclusive rights to sell its franchised restaurant locations within that franchiser’s territory.

Restaurants may be either self-owned locations or franchised locations depending on the agreement with the franchiser. The majority of restaurants in western countries are franchisee operations, motivated by economic benefits offered by establishing a centralized management system that minimizes commercial risks involved in opening their restaurant location compared to starting an independent establishment).

##Demand for food delivery service

Malaysia is experiencing a huge boom in the demand for food delivery services, with one industry report projecting that 300,000 employees could be employed to meet this demand.

One reason for this surge in demand is the increase in city population due to globalization. The other reason for this trend is that Kuala Lumpur has gone through rapid modernization over the past few years, which has resulted in employment opportunities shrinking even as the cost of living grows higher and higher (for instance, it’s now possible to buy smartphones delivered directly to your home).

Food delivery services in Malaysia grew from a market size of 73.5 million in 2015 to 115 million in 2016, an increase of 41%. In 2016, catering is the most popular category, doubling its share from 8.4% to 16.9%. Spurred by the hyped-about restaurant scene in Kuala Lumpur and KL has been touted as hitting a tipping point with consumers demanding more cuisines with a range of prices and flavours at their fingertips, according to industry experts.

Among the factors driving this growth is that many people have migrated into urban centres with less space for food preparation or storage amenities available on-site including cooking equipment and refrigerators even microwaves.

##Pros and cons of food delivery service

The pros and cons of food delivery service are too many to list.

• Little to no prep work. All ingredients are automatically included in the package, you just have to open and eat! Some websites even offer to grab lunch for you when they deliver.
• No need to figure out what your coworkers want.
• Time saved: because of the convenience and simplicity of food delivery services, the frequency with which dinner is eaten outside has risen dramatically in recent years.
• Pricey compared to cooking at home, especially for those with less disposable income and smaller budgets. Food delivery service companies may be able to offer low prices because of their volume purchasing power but even then the price is often higher than what you would pay if you shopped around or bought in bulk from an online grocer like BigBasket.
• Less customer control over ingredients depending on how picky your dietary requirements are could be a pro!
• Relying on someone else’s schedule can become frustrating when it doesn’t work well with yours (especially true if it’s not pre-negotiated). This isn’t quite as much of an issue if you are ordering lunch or breakfast where typically there is less urgency about when the food needs to be delivered.
• Food delivery services require a high level of trust on both sides for customers who have no idea how long it will take before their order arrives and whether what they receive is exactly as they ordered, and vice versa with staff at restaurants that may not know anything about them or even see the final details of their order until moments before it’s being prepared/delivered.
• Today many busy professionals rely on food delivery services to save time and money, with the average Malaysian spending $151 per month on them.

##Food delivery industry analysis

The food delivery industry is in the growth stage. It is predicted that by 2022 it will be worth $200 billion, which is a 41% increase from 2016.

Food delivery companies, specifically startups like UberEats are taking advantage of America’s notorious work-from-home culture and getting people to order their next meal straight from their couch. Why not save money with Taco Bell or get fancy with Yelp/Eat24? You don’t have to leave the house! And you can make someone else do your grocery shopping for you which Google searches for “grocery store” corroborate Americans’ low self-care standards when buying groceries (have kids who hate vegetables?).

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Savvino-storozhevsky monastery and museum.

Zvenigorod's most famous sight is the Savvino-Storozhevsky Monastery, which was founded in 1398 by the monk Savva from the Troitse-Sergieva Lavra, at the invitation and with the support of Prince Yury Dmitrievich of Zvenigorod. Savva was later canonised as St Sabbas (Savva) of Storozhev. The monastery late flourished under the reign of Tsar Alexis, who chose the monastery as his family church and often went on pilgrimage there and made lots of donations to it. Most of the monastery’s buildings date from this time. The monastery is heavily fortified with thick walls and six towers, the most impressive of which is the Krasny Tower which also serves as the eastern entrance. The monastery was closed in 1918 and only reopened in 1995. In 1998 Patriarch Alexius II took part in a service to return the relics of St Sabbas to the monastery. Today the monastery has the status of a stauropegic monastery, which is second in status to a lavra. In addition to being a working monastery, it also holds the Zvenigorod Historical, Architectural and Art Museum.

Belfry and Neighbouring Churches

Located near the main entrance is the monastery's belfry which is perhaps the calling card of the monastery due to its uniqueness. It was built in the 1650s and the St Sergius of Radonezh’s Church was opened on the middle tier in the mid-17th century, although it was originally dedicated to the Trinity. The belfry's 35-tonne Great Bladgovestny Bell fell in 1941 and was only restored and returned in 2003. Attached to the belfry is a large refectory and the Transfiguration Church, both of which were built on the orders of Tsar Alexis in the 1650s.  

To the left of the belfry is another, smaller, refectory which is attached to the Trinity Gate-Church, which was also constructed in the 1650s on the orders of Tsar Alexis who made it his own family church. The church is elaborately decorated with colourful trims and underneath the archway is a beautiful 19th century fresco.

Nativity of Virgin Mary Cathedral

The Nativity of Virgin Mary Cathedral is the oldest building in the monastery and among the oldest buildings in the Moscow Region. It was built between 1404 and 1405 during the lifetime of St Sabbas and using the funds of Prince Yury of Zvenigorod. The white-stone cathedral is a standard four-pillar design with a single golden dome. After the death of St Sabbas he was interred in the cathedral and a new altar dedicated to him was added.

Under the reign of Tsar Alexis the cathedral was decorated with frescoes by Stepan Ryazanets, some of which remain today. Tsar Alexis also presented the cathedral with a five-tier iconostasis, the top row of icons have been preserved.

Tsaritsa's Chambers

The Nativity of Virgin Mary Cathedral is located between the Tsaritsa's Chambers of the left and the Palace of Tsar Alexis on the right. The Tsaritsa's Chambers were built in the mid-17th century for the wife of Tsar Alexey - Tsaritsa Maria Ilinichna Miloskavskaya. The design of the building is influenced by the ancient Russian architectural style. Is prettier than the Tsar's chambers opposite, being red in colour with elaborately decorated window frames and entrance.

At present the Tsaritsa's Chambers houses the Zvenigorod Historical, Architectural and Art Museum. Among its displays is an accurate recreation of the interior of a noble lady's chambers including furniture, decorations and a decorated tiled oven, and an exhibition on the history of Zvenigorod and the monastery.

Palace of Tsar Alexis

The Palace of Tsar Alexis was built in the 1650s and is now one of the best surviving examples of non-religious architecture of that era. It was built especially for Tsar Alexis who often visited the monastery on religious pilgrimages. Its most striking feature is its pretty row of nine chimney spouts which resemble towers.

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