Literature Review

Services are intangible products where in there cannot be any transfer of possession or ownership, and
they cannot be sold but come into existence at the time they are consumed or bought. Services cannot
be stored or transported. Eg: accounting, banking, cleaning, consultancy, education, etc. Digital services
on the other hand are services that are anything that can be delivered through an information
infrastructure such as the internet, in various forms i.e. applications, web pages, social media, etc. In the
paper the major focus will be on the various apps that are available either by 3rd party for delivery
purpose or by restaurants themselves for various purposes like delivery, pointing system, in house app
ordering, etc. Consumer behavior is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the
actions of the consumers in the marketplace and the underlying motives for those actions. From this
research paper we would understand the shift of consumer’s behaviors with the introduction of
technology and what are the different kinds of applications that consumers are satisfied with and what
makes them happy and satisfied about the service. The main objective of the paper is to understand the
relation between facilities and the purchase behavior. Secondly to find the most popular app in the food
delivery industry and understand as to how have technology played an important role in the restaurant
industry. Keywords: Consumer behavior, Food delivery app, zomato, fasso, e-commerce,

INTRODUCTION

In today’s world service sector contributes 64.80% in GDP. Zomato is one of the most popular
applications that provide services to the user to discover restaurants. The rise of digital technology is
reshaping the industries. With the increased use of technology, the number of people engaging into the
digital sector are rapidly increasing. Even Consumers are accustomed to shopping or even ordering
online through apps or websites, with maximum convenience and transparency, expecting the same
experience that they would get from the outlet itself. To match up with the consumer’s expectations
apps are providing increased facilities and services to the customers. This scenario doesn’t exist only in
one country but all across the globe. Being up to date with the customers’ expectations helps firm retain
customer’s to a greater extent. The Figure 1 below shows the average retention of customers with the
help of providing various kinds of facilities to the customers. Figure 1: Retention of Customers with the
Help of Digital Technology SDigital technology has just started growing, it will continue to grow at a
rapid rate and with the effect of this so will the various other industries, including the food delivery
industry. In the below figure we can see that the usage of online portals have been constantly increasing
and they are expected to increase at a rapid rate even in the near future. Our research indicates that
online penetration of the total food-delivery market broke 30 percent in 2016. It is also believed that the
penetration rates will grow further as the market matures, eventually reaching 65 percent per year. As
per another research the perceptions of the user regarding the service quality of ZOMATO is less than
his expectations of what an excellent service should be. So, ZOMATO cannot be categorized an excellent
service provider as per the responses we have received from the users. Figure 2: Expected Growth of
online and offline industry http://www.mckinsey.com The recent innovations in the global market are: 
Mobile ordering.  iPad order kiosks.  Facebook ordering.  Tabletop e-waiter & checkout.  Digital
 menu boards + smartphones.  Games while-u-wait.  Online coupons. Indian Food App Scenario With
all the boom in digital industry across the globe, it’s had its impact on the Indian economy too. The
online food ordering firms have sprouted up in bulk. The market size of food in India is expected to
reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the Indian food market is around $350 billion.
The space is coming up with a lot of innovation catering to their customer convenience, satisfaction and
retention. This has also built room for a lot of new players, who are targeting specific groups of people.
Many new players joining the segment with innovative business models such as delivering food for
health conscious people, home cooked meals, etc. Food tech is the hot talk in the startup town. After
technology startups have made their mark in the e-commerce, taxi & real estate sectors, now the ever-
hungry Indian entrepreneurs are looking to satiate the appetite of others. Food tech is a vast market and
food delivery startups are just a part of it. Various apps in the Indian market are:  Food Panda  Zomato
 Swiggy  Box8  Fasoos  Fast food delivery apps Figure3: The various food apps available in India
Services Provided Apps Originated Delivery Online Menu Expanded Delivery Charges Food Panda
Singapore Yes Yes 12000 Restaurants Yes Zomato Portugal Yes Yes 10000 Restaurants No Beer Café
India No Yes 33 Restaurants No Box8 India Yes Yes 60 Stores Yes Fasoos India Yes Yes 125 Centers No
Dominos India Yes Yes 800 outlets No Just Eat Denmark Yes Yes 2000 Restaurants No Swiggy India Yes
Yes 5000 Restaurants Yes Pizza Hut Delivery US Yes Yes 1300 Outlets No Fasoos India Yes Yes 200 Stores
No Source: Author created with the help of secondary data LITERATURE REVIEW A research on the
changing market for food delivery (Carsten Hirschberg et al 2016) 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. According to gloria food the advantage
of online ordering and the reasons for the growth of food delivery app industry are Convenience,
Simpler menu to manage, significant savings, no hassels etc FoodPanda is an introduction to the newest
food sensation that’s here to stay (Shiyin Chan , 2015) Foodpanda is a global online food delivery
marketplace headquartered in Berlin, Germany. Fun fact - they’re also known as hellofood in other
places in the world. Bhavna Singh (2015) said that Foodpanda has been present in the Indian market
since May 2012. Foodpanda first major move was acquisition of TastyKhana, which was launched in the
city of Pune in 2007. Together with TastyKhana and JUST EAT, it is now present in over 200 cities and
partners with over 12,000 restaurants. She also talked about JUST EAT was launched in Denmark in 2001
and was traded publicly on the London Stock Exchange. Their Indian business was launched as Hungry
Bangalore in 2006. It was renamed in 2011 when JUST EAT acquired a majority share in the business.
Today, the company partners with over 2,000 restaurants. According to Deepinder Goyal, Zomato CEO
and co-founder told TechCrunch that he expects to reach 10,000 restaurants in India in a few months.
“We have a sales team of around 300 in India and 5,000-odd advertisers… these partners know the
volume we bring to them so it is quite easy for us to launch this new service.” According to a recent
sectoral report published by IBEF (Indian Brand Equity Foundation), food has been one of the largest
segments in India’s retail sector, valued at $490 billion in 2013. The Indian food retail market is expected
to reach Rs 61 lakh crore ($894.98 billion) by 2020. The Indian food processing industry accounts for 32
percent of the country’s total food market, one of the largest industries in India and ranked fifth in
terms of production, consumption, export and expected growth. The online food ordering business in
India is in its nascent stage, but witnessing exponential growth. The organised food business in India is
 worth $ 48 billion, of which food delivery is valued at $15 billion. Investment in food startups, which
mainly include food ordering apps, has increased by 93 percent to $130.3 million, comprising 17 deals
till September 2015, as against only five deals in 2014. According to a January 28 report in The Times of
India, Rocket Internet backed Foodpanda has not found a buyer even with a rock bottom price tag of
$10-15 million.The company laid off 300 people in December 2015, about 15% of its workforce. In
September 2015, TinyOwl had fired 100 employees in its Mumbai and Pune offices. And in October,
Zomato sacked 300 workers. UK based Just Eat entered and exited the market fasteRESEARCH
METHODOLOGY Objectives  To analyse factors affecting attitude of customers regarding food delivery
apps  To find the most popular app in the digital food delivery app  To analyze the relationship
between food delivery aap and the facilities provided by the same. DATA COLLECTION AND ANALYSIS
The data has been collected by both ie primary and secondary sources. Primary data includes
information collected through questionnaire based on attitude and perception of customers using food
delivery apps in India. Secondary data included collecting information about various apps, the industry
position, etc from the variousportals from the internet, journals, magzines etc Sample size The total
sample size was 129 respondents, out of which a major portion was Gen Z i.e. people of the age group
20-25 years. Research Tools Following research tools were used to do analyses and to draw conclusions
 Cronbach alpha  Chi square  Weighted average  Descriptive analysis HYPOTHESIS  Ho: There is no
significant relationship between factors affecting usage and the food apps H1: There is a significant
relationship between factors affecting usage and the food apps  Ho: There is no association of
popularity with the awareness methods used. H1: There is association of popularity of an app with the
awareness methods used.  Ho: There is no most popular app for food delivery among samples H1:
There is a most popular app for food delivery among samples ANALYSIS AND INTERPRETATION To
understand the behavior of customers regarding usage of food delivery apps, socioeconomic
characteristics of the customers were studied. They are the important variables as they decide the
consumption pattern and customer behavior regarding these apps. Generally it is believed that, as the
income, age and education of the customer varies impact the usage pattern of mobile apps. The
following table 4 represents the socio-economic pattern of the selectedSpecific Information Relating to
Customer Behavior The responses of the customer about the usage and the factors affecting usage were
tabulated and analyzed to understand their behavior. A. Frequency of usage of Food Delivery apps The
Table 5 below shows the usage of different food delivery apps among the selected samples. As per the
data collected we can analyze that food panda and fast food delivery app are among the most preferred
food apps by consumers followed by Swiggy and Zomato. Table 5: Usage of apps as per the respondents
Source: Author with the help of primary data Graph 1: Factors affecting usage of the Food Delivery apps
Source: Author with the help of primary data The main objective of this research is to find out factors
influencing customers regarding usage of food delivery apps. From Graph 1 we can analyze that speed of
delivery is the highest attractive feature on Food Panda, swiggy, box8 and fast food delivery apps. The
second highest feature preferred by the consumers is the quality of service provided by the apps and
the ordering experience. Discount is considered one of the most important factor while ordering from
food panda and fassos. B. Marketing effectiveness Chart 1: Source of information regarding mobile App
Source: Author with the help of primary data An examination of data reveals that being majority of the
responds from Gen Z, the source of information regarding mobile food apps, there is usage is basically
via social media platform or friends and families. Chart 2: the most commonly available payment options
for food app customers Further analysis says that majority customers prefer credit/debit card payment
or cash on delivery, very few customers prefer online payment mode. The payment options open to
customers are cash on delivery, net banking, payment portals and debit or credit cards. Out of these
from our research we find that cash on delivery is most preferred by the customers40% followed by
debit/ credit card payments- 26%. C. Special Apps Special apps are those apps which can be used in the
restaurant; they are not basically the delivery app but restaurant apps. Agent jacks bar, Beer café and
15cafe coffee day are among the most used special apps. Gen Z use beer café app because of easy
access whereas agent jacks bar because comfort in using. Similarly they prefer 15cafe coffee day for
loyalty points Graph 2: Comparison of the most attractive feature between all the special apps Source:
Author with the help of primary data APPS USAGE FoodPanda 72% Zomato 62% Swiggy 65% Box8 47%
Fasoos 58% Fast food delivery apps 76%

Graph 3: Weight Average of Factors Affecting Usage of Mobile Food Apps Source: Author with the help
of primary data From the data collected we can generate that according to the weighted averages of the
factors the highest weight is given to comfort in ordering and good condition of food at the time of
delivery. Thus restaurants must concentrate on these services more as compared to others. Other than
these two factors, customers prefer to check restaurants available nearby in the app and expect correct
order with no faults in totaling. Chi Square test between Factors and Food apps The research also tries
to test the relationship between factors affecting usage of food apps with different apps available in
market. Cronbach alpha is used to check reliability of the data set. The Cronbach alpha of the data
came .967 which is considered to be good. The Chi square test between factors affecting the usage and
the apps comes somewhere around 73.7 with 5% level of satisfaction and 30 degree of freedom. The chi
square comes more than table value therefore we reject null hypothesis and accept alternative which
says that there is significant relationship between factors affecting usage and the food delivery apps. Chi
square 73.7 Df 30 Table value 29.33 P value 0.000

. Overview of the Online Food Delivery Sector 2.1. 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$7.4 billion spent on Cyber Monday in North America. The leading e-commerce platforms worldwide
differ by region and include platforms which are now household names, such as Amazon (U.S.), Alibaba
(China), and Flipkart (India). Table 1. Regional sales value of featured online shopping days from 2015–
2019 [4]. Sales volume (US$ billion) 2015 2016 2017 2018 2019 Black Friday (North America and much of
Europe) 2.7 3.3 5.0 6.2 7.4 Cyber Monday (North America) 3.1 3.4 6.6 7.9 9.4 Singles Day (Asia-Pacific
region) 14.3 17.8 25.3 30.8 38.4 2.2. 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 fiellds, 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 Sustainability
2020, 12, 5528 3 of 17 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. According to Serhat Murat Alagoz & Haluk Hekimoglu (2012), e-commerce is
rapidly growing worldwide, the food industry is also showing a steady growth. In this research paper
they have used the Technology Acceptance Model (TAM) as a ground to study the acceptance of online
food ordering system. Their data analysis revealed that the attitude towards online food ordering vary
according to the ease and usefulness of online food ordering process and also vary according to their
innovativeness against information technology, their trust in eretailers and various external influences.
According to H.S. Sethu & Bhavya Saini (2016), their aim was to investigate the student‟s perception,
behavior and satisfaction of online food ordering and delivery services. Their study reveals that online
food purchasing services help the students in managing their time better. It is also found that ease of
availability of their desired food at any time and at the same time easy access to internet are the prime
reasons for using the services. According to Sheryl E. Kimes (2011), his study found that perceived
control and perceived convenience associated with the online food ordering services were important for
both users and non-users. Non-users need more personal interaction and also had higher technology
anxiety to use the services. According to Leong Wai Hong (2016), the technological advancement in
many industries have changed the business model to grow. Efficient systems can help improve the
productivity and profitability of a restaurant. The use of online food delivery system is believed that it
 can lead the restaurant‟s business grow from time to time and will help the restaurants to facilitate
major business online. According to Varsha Chavan, et al, (2015), the use of smart device based interface
for customers to view, order and navigate has helped the restaurants in managing orders from
customers immediately. The capabilities of wireless communication and smart phone technology in
fulfilling and improving business management and service delivery. Their analysis states that this system
is convenient, effective and easy to use, which is expected to improve the overall restaurant business in
coming times. According to Hong Lan, et al, (2016), online food delivery market is immature yet; there
are some obvious problems that can be seen from consumers‟ negative comments. In order to solve
these problems, we can neither rely merely on the self-discipline of online food delivery restaurants nor
the supervision and management of online food delivery platforms. Only by taking laws as the criterion,
with the joined efforts of the online food delivery platforms and restaurants, the government
departments concerned, consumers and all parties in the society, can these problems be solved and a
good online take away environment can be created. Positioning Study (Perceptual Map) Perceptual
mapping is a diagrammatic technique used by asset marketers that attempts to visually display the
perceptions of customers or potential customers. Perceptual Map is a graphical representation of the
positioning of various brands on the mind of customers with respect to some major factors such as
Better choice of restaurants, Better discounts, On-time delivery, and Customer services. Figure 2
Interpretation From the above analysis it can be concluded that:  ZOMATO is best in terms of providing
„Better Discounts‟ and good in terms of providing „Better Choice of Restaurants‟.  SWIGGY is good in
terms of providing „Better Discounts‟ but lag in terms of providing „Better Choice of Restaurants‟. 
FOODPANDA is good in terms of both providing „Better Discounts‟ and „Better Choice of Restaurants‟. 
UBER EATS is average in terms of providing „Better Discounts‟ and „Better Choice of Restaurants‟ due to
their location constraints. For this reason, consumers opt to other service provider. Swiggy Zomato Uber
Eats Foodpanda 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00
3.50 4.00 Better choice 4.50 5.00 of restaurants Better discounts Consumer Perception Towards „Online
Food Ordering and Delivery Services‟: An Empirical Study http://www.iaeme.com/IJCIET/index.asp 159
editor@iaeme.com Figure 3 Interpretation From the above analysis it can be concluded that:  ZOMATO
is the best in terms of providing on time delivery and good in terms of customer service. For this reason
most of the consumers opt to choose ZOMATO over other online food delivery service portal.  SWIGGY
is good in terms of providing on time delivery and best in terms of customer service which acts as a
motivator for the consumers. This helps in strong presence & demand in & around Pune.  FOODPANDA
is good in terms of providing on time delivery and customer service.  Uber EATS is average in terms of
providing on time delivery and customer service. As they are new in the Pune market, they might
require some more time to expand their service availability to entire Pune and achieve better responses
in near future. 7.2. Reliability Test to Analyse the Internal Consistency among the Factors that
Encourages to opt for Online Food Delivery Services H0: There exists no internal consistency among the
six factors. H1: There exists an internal consistency among the six factors. Six factors considered during
analysis are:  Ease & Convenience  Cost Effectiveness  24x7 Availability  Easy Mode of Payment 
Doorstep Delivery  Choice of Restaurants Swiggy Zomato Uber Eats Foodpanda 0.00 0.50 1.00 1.50
2.00Interpretation From the above analysis, it can be concluded that: „Doorstep delivery‟ of online food
delivery services is the most important parameter which encourages consumers to use the services
 followed by „Ease & Convenience‟. 7.3. Analysis of Most Preferred Online Food Delivery Service Portal
Figure 4 Interpretation From the above analysis, I can conclude the following:  54% of the total
respondents using the online food delivery services prefer Zomato over other online portals.  Swiggy
with 34% is the second most preferred online portal by the consumers.  Foodpanda is preferred by 10%
of the respondents using the services.  Whereas, Uber Eats is least preferred by the consumers with 2%
preference from the total respondents.

The format of home delivery or the takeaways have gained plenty additional customers in locations like
malls, offices and big-party orders for residential complexes. Individuals missing breakfast on the thanks
to work, order-in. People, United Nations agency want a higher selection of company lunch or party,
order in too. Everybody appears to be in awe of the net food order and delivery possibility for the
convenience and immediate supply of food reception. Besides, the convenience of ordering groceries
from your mobile app or application program has definitely alienated some market share from the trusty
‘kirana’ or the mom-n-pop stores. Asian country is that the sixth largest grocery market within the
world, however the organized sector as travel by a number of the net businesses mentioned on top of
makes up just for 5-8% market share of the grocery business. The overwhelming majority remains in
hand by these native markets and also the mom-npop stores. This has some obvious impacts on the
brick-and-mortar formats of in-dining restaurants as additional individuals opt to have restaurant-style
cuisines right within the privacy of their homes or workplaces; however the impact isn't such a lot
because it could seem to be. The nutrition business in Asian country is simply concerning a pair of
decades recent, and remains mostly unorganized. Given the speed at that the organized sector is quickly
growing, it's solely a matter of your time and a way larger chunk of world investments before a
extremely massive impact is formed on in progress eating house businesses that will not have a delivery-
focused format of their own. The demand of online ordering is real. It conveys to the customer base that
you are a modern growing restaurant and very challenging to others that wants to be a convenient and
accessible for all the guests who used to ordered regularly. The most important that which will always
need to contact the quality of enhancing online food ordering ever is the only one that has to be
maintain the customer as a regular customer, In the sense provides good qualities and quantities of
food, time maintain, delivery asap. This will give you the perfect result for online food ordering system
fulfilled. Offering online ordering lets your guests place an order more conveniently. Without feeling
pressure to wrap up their order, customers are more inclined to explore all of their menu options, and
even end up spending more than they would when ordering over the phone or in person. With no line
behind them, the pressure for your guests to make speedy orders is gone, and they'll be more inclined
to get that extra item. Most of the people knows about swiggy, zomatoetc , they are growing online
food ordering apps now a days. they provide good servicing for the customers from different areas,
places and clients along with fabulous taste. Objective 1. To know the impact of food delivery start-ups
like zomato and swiggy on restaurant business 2. To know the strategies of food delivery app zomato
and swiggy. Literature Review A research on the changing market for food delivery (Carsten Hirschberg
et al 2016) indicates that online’s penetration of the total food-delivery market broke 30 percent in
2016. We believe penetration rates will [ VOLUME 6 I ISSUE 1 I JAN.– MARCH 2019] E ISSN 2348 –1269,
PRINT ISSN 2349-5138 890 IJRAR- International Journal of Research and Analytical Reviews Research
Paper grow further as the market matures, eventually reaching 65 percent per year. According to gloria
 food the advantage of online ordering and the reasons for the growth of food delivery app industry are
Convenience, Simpler menu to manage, significant savings, no Hassels etc. Food Panda is an
introduction to the newest food sensation that’s here to stay (Shiyin Chan, 2015) Foodpanda is a global
online food delivery marketplace headquartered in Berlin, Germany. Fun fact - they’re also known as
hellofood in other places in the world. Bhavna Singh (2015) said that Foodpanda has been present in the
Indian market since May 2012. Foodpanda first major move was acquisition of TastyKhana, which was
launched in the city of Pune in 2007. Together with TastyKhana and JUST EAT, it is now present in over
200 cities and partners with over 12,000 restaurants. She also talked about JUST EAT was launched in
Denmark in 2001 and was traded publicly on the London Stock Exchange. Their Indian business was
launched as Hungry Bangalore in 2006. It was renamed in 2011 when JUST EAT acquired a majority
share in the business. Today, the company partners with over 2,000 restaurants. According to Deepinder
Goyal, Zomato CEO and co-founder told TechCrunch that he expects to reach 10,000 restaurants in India
in a few months. “We have a sales team of around 300 in India and 5,000-odd advertisers… these
partners know the volume we bring to them so it is quite easy for us to launch this new service.” Data
Collection This research is totally based on Secondary data. Secondary data included collecting
information about various apps, the industry position, etc from the various portals from the internet,
journals, magazines etc. Indian Food App Scenario With the boom in digital industry across the globe, it’s
had its impact on the Indian economy too. The online food ordering firms have sprouted up in bulk. The
market size of food in India is expected to reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the
Indian food market is around $350 billion. The space is coming up with a lot of innovation catering to
their customer convenience, satisfaction and retention. This has also built room for a lot of new players,
who are targeting specific groups of people. Many new players joining the segment with innovative
business models such as delivering food for health conscious people, home cooked meals, etc. Food tech
is the hot talk in the startup town. After technology start-ups have made their mark in the e-commerce,
taxi & real estate sectors, now the ever-hungry Indian entre-preneurs are looking to satiate the appetite
of others. Food tech is a vast market and food delivery start-ups are just a part of it. Various apps in the
Indian market are: Food Panda Zomato Swiggy Box8 Fasoos Fast food delivery apps The various food
apps available in India Services Provided Apps Originated Delivery Online Menu Expanded Delivery
Charges Food Panda Singapore Yes Yes 12000 Restaurants Yes Zomato Portugal Yes Yes 10000
Restaurants No Beer Café India No Yes 33 Restaurants No Box8 India Yes Yes 60 Stores Yes Fasoos India
Yes Yes 125 Centers No Dominos India Yes Yes 800 outlets No Just Eat Denmark Yes Yes 2000
Restaurants No Swiggy India Yes Yes 5000 Restaurants Yes Pizza Hut Delivery US Yes Yes 1300 Outlets No
Fasoos India Yes Yes 200 Stores No Benefit of food delivery app 1. Easy to use The food ordering mobile
apps are easy to use and offers high convenience with time and effort saving for the customers. This has
encouraged more users to use the mobile apps and order their favourite food online, [VOLUME 6 I ISSUE
1 I JAN. – MARCH 2019] e ISSN 2348 –1269, Print ISSN 2349-5138 http://ijrar.com/ Cosmos Impact
Factor 4.236 Research Paper IJRAR- International Journal of Research and Analytical Reviews 891 to get
them delivered to their houses. The UI/UX of these apps, along with the ease of navigability and efficient
search options enhances the convenience of the food ordering apps. 2. Flexible payments The food
ordering mobile apps offer flexible payment options for the customers to be able to pay using various
modes of payments, best suitable for them. The integration of various popular payment gateways offers
flexibility and cashless transactions to the customers, thus encouraging them to use the food delivery
 app. 3. Real time tracking The food ordering software is equipped with real time GPS tracking systems,
such that the customers can track the delivery boy bringing their food, along with helping the delivery
boys to track down the exact address of the customers. 4. Loyalty points Online food ordering often
offer loyalty points to the customers for encouraging them to use the mobile app even more often.
These loyalty points can be used by the customers to place future orders, thus helping them to use the
app more often. 5. Effective customer support With 24/7 customer support facilities, the mobile apps
can offer the best customer supports, answering to their queries and assisting them in any need or
complaints. Customer support has effectively become even more efficient, since the customers can
connect to the executives, with just a few clicks on their apps. Zomato Zomato initially named as
Foodiebay was started in 2008 by Mr. Deepinder Goyal. It is a restaurant searching platform providing
in-depth details with autonomous reviews and ratings. Foodiebay, the initial name was changed to
Zomato in November 2010 to increase their reach among people. Vision To expand to more 50 countries
Success Factor: First mover advantage Strong content platform Efficient employees Good rating
mechanism and social platform Funding from experienced source Strategy of Zomato: Zomato works
with keen interest on various strategies to achieve their goal. It includes Financial strategy: To increase
their fund and revenue Marketing strategy: To tap their customers from across the globe Growth
strategy: To grow continuously and increase their customers and page traffic Globalization strategy: To
expand themselves across the whole globe as a leading service provider Marketing Strategy Featured
and user friendly website Global mobile app Focusing on digital marketing channels for potential
customers Acquire the competitors: To be the largest resource in food supply market, Zomato bought
urbanspoon for $52 million to enter US, Canada and Australia Simpler review and rating system
Integrating other tools in their marketing strategy has given them wonderful hike in their business. Sales
promotion: Coupons and price-offs Direct Marketing: Phone call and direct mail Swiggy Founders:
Swiggy was founded by Nandan Reddy, SriharshaMajety, and Rahul Jaimini in August 2014. Nandan
Reddy aged 29 and SriharshaMajety aged 31 both are both alumni of Birla Institute of Technology and
Science (BITS) Pilani while Rahul Jaimini aged 31 is an alumnus of IIT Kharagpur. Swiggy began its
Journey from Bengaluru with six delivery executives and 25 restaurants on its platform. In the time of 3
years, it has scaled up with over 6,000 delivery executives across India in more than 8 cities like Delhi-
NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune. Swiggy Business Model: Swiggy has
two major revenue streams. [ VOLUME 6 I ISSUE 1 I JAN.– MARCH 2019] E ISSN 2348 –1269, PRINT ISSN
2349-5138 892 IJRAR- International Journal of Research and Analytical Reviews Research Paper 1. The
major part of Swiggy’s revenue from commission it collects from restaurants for lead generation and for
serving as a delivery partner. 2. Swiggy also charges a nominal delivery fee from customers on orders
below a threshold value which 200 rupees for most cities. Swiggy Funding: Swiggy is backed by one of
best investors available in the market. Swiggy has raised a total of 75.5 million dollars in funding from
various investors, including Bessemer Venture Partners, Norwest Venture, Accel Partners, SAIF Partners,
Harmony Venture Partners, RB Investments and Apoletto. Swiggy Marketing Strategies Swiggy’s
marketing strategy consists of both online and offline marketing campaigns.It promotes its campaigns
via Facebook, Twitter, Youtube, Pinterest, and Instagram. Some of its campaigns include
Secondtomom,#DiwaliGhayAayi, #SingwithSwiggy and Know your food series of pictures and food walks
in a local area. The company has successfully built its brand awareness and connects with its audience
through these channels. Their Facebook page is quite active with regular updates, averaging to one post
 a day. Swiggy uses its Social media not only for campaigning but to engage with its customers from
solving the grievances to taking the feedback. Impact on restaurant. Customer Experience 1. It is a fact,
if your customers like your service, they will come back and also recommend you to their world. They
will become your best advertisers. So, you need to commit to a service that keeps them coming back. 2.
People don’t want to spend 5-6 minutes as they place their order over the phone by looking at the
ordering catalogue and pausing whatever work they were doing. 3. One thing online ordering will
certainly do is“up your game” when it comes to providing a better service by making the ordering
process convenient for your customers. 4. When your customers pick up their smartphones to use your
online ordering system, they will do it at their own convenience. 5. Remember, this time they will look at
your online menu more carefully and select items after reading descriptions from the menu. Your
customers can order their favourite food by clicking on the screen a few times and they do it from the
comfort of their homes. Sales 1. When customers order online, there are fewer distractions. They don’t
have to decide quickly on the items as there is no-one waiting to take the order. 2. Usually, there is no
pressure to order.Hence, your customers spend more time on the menu. And, this is good for your
business. 3. Online ordering platforms are inbuilt for cross-selling items. As they spend more time on the
menu, they order appetizers that they wouldn’t order in the store. Add-On items in the menu see better
sales, online. Savings 1. Your online ordering system also takes care of your margins. Since your
restaurant’s orders don’t go through a third party platform, you will notice a change in your operating
margins. 2. Other available options don’t work in a similar way, to avail their services you have to use
their portal which delays processing and also charges a commission on every processed order. 3. Getting
your own online ordering system will provide you a competitive edge. Positive and negative Effects of
food delivery app on restaurant Positive When done right, delivery can help restaurant operators
cultivate customer loyalty, enhance profitability, and expand into new market segments. Overall,
customer-facing technology is poised to deliver a distinguishing, competitive edge – for a price. Some
chains, facing poor traffic numbers, are hoping delivery will help garner them new or lapsed customers.
For those in the foodservice industry that don’t offer delivery, they are certainly missing out on a
multitude of opportunities. 1. Its just one click away Today, more than ever, people can easily order
online thanks to the smartphones and tablets. Studies conducted by the Interactive Advertising Bureau
and Viggle show that about 69% of customers order food online using a mobile device.Whetheron a
break, stuck in traffic, or riding the bus, virtually anyone will place an order quickly and painlessly. In
fact, this is a better, and highly desirable alternative to waiting until getting home and placing the order
over the phone. [VOLUME 6 I ISSUE 1 I JAN. – MARCH 2019] e ISSN 2348 –1269, Print ISSN 2349-5138
http://ijrar.com/ Cosmos Impact Factor 4.236 Research Paper IJRAR- International Journal of Research
and Analytical Reviews 893 2. Its fast, easy and comfortable In a nutshell, your customers choose to
order food online because it’s literally at their fingertips. Virtually anyone with a smartphone can order
food online from your restaurant. Negative The outlook for fine dining restaurants is strong because
they place a premium on taste, while new ordering and delivery platforms mainly focus on convenience
and price, The delivery business is growing so fast, it's giving restaurants cause to rethink their
expansion strategies too. Conclusion The customers comfort is simply the primary facet good thing
about such, whereas on the second facet these system also are helpful for the expansion of eating place
and food provide trade, as by the utilization of digital food ordering system a eating place owner are
ready to attract the users attention by permitting them see the whole food menu in conjunction with
dish name, image, specialty, and price. Integration a web food ordering system isn't any doubt are the
simplest, cheap and helpful call for a eating place business owner. With constant deluge of experts in
urban areas and fast urbanization of Indian scene, the food delivery and eatery portion is currently
flourishing at a rankling pace. Adding to this situation is an expanding number of cell phones and food
delivery applications. Food delivery applications have now turned into a major hit with well-informed
people crosswise over India. There are a few food delivery applications in India that one can download
on advanced cells to arrange food in a hurry and from the solace of homes. The changing urban way of
life of the normal Indian is sufficiently emotional to be ideal for the food-on-the– go and fast home
delivery models to develop at higher rates. The regularly expanding populace swarmed metro urban
communities and longer travel times are drivers for the helpful, prepared to eat and less expensive
alternatives of having food and foodstuffs conveyed at your doorstep. Organizations that know about
the colossal potential for development may wander straight in, yet just the fittest will endure.
Organizations who keep their offer and their image dynamic in purchaser's brains, will take the greatest
offer of the Indian online food benefit pie

CONCLUSION
With continuous influx of professionals in cities and rapid urbanization of Indianlandscape, the food
delivery and restaurant segment is now thriving at a blistering pace. Adding to this scenario is an
increasing number of smartphones and food delivery apps. Food delivery apps have now become a big
hit with tech-savvy individuals across India. There are several food delivery apps in India that one can
download on smart phones to order food on the go and from the comfort of homes. The present study
found a significant relationship between factors considered important while selecting a food delivery
app. And from the analysis it was also found that the facilities offered play a major role in making a
purchase from an app. Social media should be the most desired tool for marketing by firms. Currently
cash on delivery is the most preferred option of payment by the respondents but other digital
techniques are also in the growth stage. Firms must also make sure that the apps are comfortable and
user friendly. The special apps are a convenient way for the consumers to place orders and for the
company to attract further more consumers but the comfort of usage must be given a higher
preference.