BACHELOR OF BUSINESS ADMINISTRATION WITH HONOURS

(SARJANA MUDA PENTADBIRAN PERNIAGAAN DENGAN KEPUJIAN)

SEMESTER SEPTEMBER / 2022

CBCT2203

BASIC CONCEPTS OF INFORMATION TECHNOLOGY

 TABLE OF CONTENT
NO PAGE

1.0 Introduction..................................................................................................1-2

2.0 How IT Assists Online Food Delivery..........................................................2-3

2.0.1 Justification and Support with Appropriate Examples...........................3

3.0 How Online Food Delivery Affects Malaysia’s Economy………………....4

3.0.1 Justify Answer and Support with Appropriate Examples……………..4-5

4.0 Online Food Application Delivery Application……………………………..5-6

4.1 Application 1 – Foodpanda .........................................................................6-7
4.1.1 Introduction and Background of the Application.................................6-7
4.1.2 Two Reasons I Used Foodpanda Application......................................7-8
4.1.3 Suggestion for Improving the Application Features.............................9
4.1.4 Detail Specification of Software and Hardware ...................................9
4.1.5 Support with screenshots, diagrams, or illustrations.............................10

4.2 Application 2 – Grab food..........................................................................11

4.2.1 Introduction and Background of the Application.................................11
4.2.2 Two Reasons Used Grabfood Application........................................10-11
4.2.3 Suggestion for Improving the Application Features..........................12-13
4.2.4 Detail Specification of Software and Hardware....................................14

5.0 Conclusion……………………………………………………………………15-16

6.0 Reference……………………………………………………………………...17-18

7.0 Online Class Participation……………………………………………………19-21

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PART 1
1.0 Introduction

Figure: 1.0- Online Food Deliver

Source: https://www.kenresearch.com/blog/2020/09/global-online-food-
delivery-services-market/

The purpose of this assignment is to gain exposure to the technology that supports
Online food delivery and to gain enlightenment about Online Food Delivery economics. IT
facilitates the delivery of meals over the network, the supply of the internet, the availability
of applications, the promotion of the service, and the use of social media for marketing. Food
delivery is still a relatively new and developing service that is poised to develop into a
separate sector. The majority of eateries now choose to create their applications and design
their delivery systems.

The way that food is delivered has been drastically changed by advances in digital
technology. In the past, receiving food required a direct physical exchange between the
consumer and the business they were ordering from. An increasing number of food delivery
services exist solely to act as middlemen between the buyer and the seller. These businesses
are in charge of sending customer orders to restaurants, picking them up, and delivering
them. These businesses are dependable because of their simple and open ordering procedures.

E-commerce has gained enormous popularity as a new trend and way of living that
makes life simple. Nowadays, individuals are accustomed to having anything they want to be
delivered to their homes anytime they want. For instance, you do not have to travel to a
restaurant to eat some fried chicken on a chilly and rainy afternoon. It can be delivered right
to their desk if they are working late and are unable to go for lunch. Restaurants have been

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forced to adapt and keep up with this new shift in client preferences. As the current
generation ages, it is projected that the following generation will adopt the same online
ordering habits and trends, indicating that the trend is here to stay and will always influence
how we order and consume meals.

2.0 How IT Assists in Malaysia Online Food Delivery

IT was really a great assist in Online Food Delivery in Malaysia in the year 2020
because most industries experienced significant losses as a result of during COVID-19
epidemic in Malaysia. The pandemic's restrictions on mobility, lockdowns, and other
restrictive precautions particularly affected the hospitality, food, and beverage sectors. For
instance, the food and beverage sector relied heavily on the sales of people who came in to
eat, drink, and pick up takeout. And then the pandemic struck, which caused the majority of
these enterprises to shut down. When most people on the planet are still confined to their
homes. Many businesses are looking for solutions to keep up with the potential economic
boom of 2020. They are looking to AI to support e-commerce, marketing, and
personalized services when this occurs. During this time, Online Food Delivery is much
needed and cannot be ignored either by business owners (Blog- Malaysia’s online food
delivery exploded with the help of the internet. Here’s why, 2021)

Even though Mobile online food delivery apps were introduced a long ago in
Malaysia and these were around before the Coronavirus. But for an exceptionally long time,
in Malaysia, online food delivery went mostly unrealized by many people. According to Lee
Wick Kee,(2020) Director of Epic Food Hall, a cloud kitchen under The Epic Food
Kitchen Sdn Bhd.  With the aid of technology firms like Food Grab and Foodpanda,
online meal deliveries in Malaysia were a growing trend in only metropolitan areas before
the Covid-19 outbreak. The application was well-liked among millennials but had trouble
attracting the other, more experienced segments. This was due in part to the fact that most
business owners were content with the way things were going and were unwilling to invest in
this side project, as well as the fact that some other companies lacked the technical and
financial resources necessary to develop and administer these apps.

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2.1 Justification
During the periods of restricted movement that we have seen since the start of the
COVID-19 pandemic people were unable to dine in to enjoy their meals, this is where the
Malaysian online food delivery apps have thrived more than ever, sending a fleet of
delivery guys flying to citizens throughout the nation to save the day. The majority of
firms now offer services digitally, which customers access through applications on their
smartphones. Restaurants are now responding to this trend, and high-end eateries that were
previously reluctant to offer meal delivery are now compelled to do so in order to survive.
The option of working from home has grown in popularity. The personnel continues to work
from their homes or rented residences while the business premises are closed. Even after the
COVID-19 crisis, it is anticipated that the trend of remote work will persist. For employees’
busy work schedules, cooking their own food becomes an additional burden. Therefore, they
choose to order their online food delivery for convenience's sake and also time safe.
Therefore, creating online food delivery apps helps in satisfying the needs of customers.
According to the survey conducted by Rakuten Insight in Malaysia, Approximately 58
percent of Malaysian respondents used food delivery apps more frequently during the
COVID-19 outbreak. Only 2% of the respondents said they had never used a food delivery
app.

Figure-2.0: Usage of Online Food Delivery App

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Source:https://www.statista.com/statistics/1143406/malaysia-food-delivery-apps-usage-
during-covid-19/
3.0 How Online Food Delivery Affects Malaysia’s Economy
Due to the COVID-19 pandemic, which prevented dine-ins, the online food delivery
sector is changing and growing dramatically in 2020. Online food ordering is becoming
increasingly popular with consumers, which has altered how many consumers and food
businesses interact(Van Veldhoven et al., 2021). Covid-19 has altered the commercial scene
and sparked a surge in digitalization, with many business owners switching to e-commerce
platforms. Even though this was an important tactic for restricting the disease, on the other
hand, it also improved Malaysia's economy to a height.

According to Datuk Seri Mustapa Mohamed that is Minister in the Prime Minister’s
Department, Malaysia’s e-commerce and online food delivery market, which has 6.2 million
customers, was most recently assessed at US$192. As a result, online food delivery services
in Malaysia significantly expanded in 2020, by 45.9% from 2019. He also said that the
country's market for online food delivery services is anticipated to expand by 17.9% yearly
and generate US$370 million in sales in four years (Moneycompas,2020). In addition, as
demand increased, online food delivery services created a variety of new work opportunities
for those who lost their job during the pandemic. It can be seen that the number of food
delivery service workers is increasing because job opportunities in other sectors are limited
and many have been laid off to balance their company's economy. In order to maintain their
daily life, many people have made the prudent decision to use food delivery services.

3.1 Justification
The online food delivery market under F&B merchants has increased to the top because
of the of shifting to the online platform. Due to its extensive geographic reach, online
transactions are raising the demand for food delivery services. As per figure 3.0 research was
conducted by Android Market Research, In 2017, the size of the online food delivery market
in Malaysia was estimated at USD 66.3 million. Due to their propensity to spend a larger
portion of their finances on prepared food for older generations, millennials make up a
priority audience for food delivery services offered in that fast-paced live online
environment. Consumer appeal to the idea of online meal delivery is inevitable given their
increased purchasing power and evolving lives. It is also said that the trend of buying food
online is found to be increasing significantly use since March 2020 which is during the
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Movement Control Order period (MCO) began to be enforced in Malaysia. This sudden
increase is caused by behavior consumer behavior that takes full advantage of e-commerce
platforms during the MCO to curb the spread of COVID-19. It was predicted that The online
food delivery service industry in this country is expected to continue to grow by 17.9 percent
or RM1.59 trillion by 2024 and 2025(Malaysia Online Food Delivery Market by type and
region global forecast 2021 to 2028, n.d.)

Figure: 3.0 -Malaysia Online Food Delivery Market

Source:https://www.adroitmarketresearch.com/industry-reports/malaysia-online-food-
delivery-market

4.0 Online Food Application Delivery Application

As attached the figure below is Malaysia’s 12 top online food delivery platforms
for F&B merchants. Foodpanda, and Grabfood, are Malaysia's top two meal delivery
services, FoodPanda and GrabFood have both enjoyed significant market dominance
in other nations for a number of years. Other platforms that are increasing their market
share in Malaysia's food delivery businesses are Beep, Air Asia Delivery, and Delivery Eat.
I use Foodpanda and Grabfood as these two platforms are available at the place were
I am staying. I will discuss all the requirements of these two online food delivery
applications
in detail according to my experience.

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Figure: 4.0 – List of Top 12 Online Food Delivery Platforms

Source: - https://www.yellowbees.com.my/top-food-delivery-platforms-malaysia/

4.1 Application 1 – Foodpanda

4.1.1 -Introduction and Background of the Application

Figure : 5.0- Foodpanda Logo

Source: https://www.sparrowsph.my/blog/foodpanda-malaysia.html

Foodpanda is an online platform where customers can order meals online and have
local restaurants deliver them. Ralf Wenzel and Benjamin Bauer established the German
food delivery service Foodpanda in 2012 with the assistance of the incubator Rocket
Internet. The headquarters of Food Panda is in Berlin, Germany. Food Panda has increased
its clientele in nations throughout the world, including those in Asia, Europe, Africa, Latin
America, and the Middle East. Because of its user-friendly, functional, and high-quality
interface, Foodpanda has achieved immediate success on a global scale. To grow their web
traffic, they have strived to improve numerous services over the years.

Customers of Foodpanda can order their preferred cuisine using either the website or the
app. The website and app both work more or less. To get the greatest value, customers can
use user-friendly platforms to browse various menus and place orders. Food lovers can order
a variety of delectable delicacies online with just a few clicks on their smartphones and enjoy
having a variety of foods and flavors delivered directly to their door. The below screenshots
of the app show the variety of food that can be ordered (Foodpanda, 2022).
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Figure: 6.0 – Foodpanda Application Screenshot from Smartphone

4.1.2 Two Reasons Used Foodpanda Application

1st Reason - The first reason that I like to use the Foodpanda application is that there
are so many options for bakeries and restaurants. An example scenario is last month for my
son’s birthday he wanted to celebrate his birthday with his friend in school and I was unable
to buy and send it to his school since I was working. I decided to order from one of the most
well-known bakery shops at my place and placed an order for a cake to be delivered to his
school to celebrate with her friends. I also informed his teacher about the order I made. My
son received the cake in 15 minutes, and I was pleased to hear from my son that the rider
wished my son birthday wishes. Happy with their service.

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Figure: 7.0- Variety Options of Bakery and Restaurant

2 nd Reason – The second reason that I like to use Foodpanda is usually when the
food that I prefer to eat and the shop is closed but still able to take pre-orders. I will order the
food that I really want. An example scenario, 2 days back I really wanted to order my
favorite meal for lunch and I was unable to go out because busy with an assignment, the shop
will only open at 12 p.m., so decided to do a pre-order and state the time for delivery. The
moment the shop opened, my order was prepared, and I received the order at the stated time.

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Figure: 8.0 – Pre-Order Later Page

4.1.3 Suggestion for Improving the Application Features

My suggestion for the Foodpanda application is to have “Must-Try” features.
These features will help the customer to find the best of everything that the restaurant offers
that they were not aware of. Sometimes, customers don't know what food to order. This is
because they always order fast food like KFC and Pizza Hut. In addition, they also want to
try new or different foods. So, the Foodpanda application needs to have "Must-Try"
features. "Must-Try" features can also make it easier for customers to make food choices

4.1.4 Detail Specification of Software and Hardware

The software application works on Android, iOS, and Windows. The hardware
usages are handphone and laptop. All of the website and application functionalities are
available online. Users must have a reliable internet connection that is 4G/5G/Wifi with a
speed of 5MB to download, update, and use the application.

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4.1.5 Support with screenshots, diagrams, or illustrations.

Below is the app information screenshot for the Android

Figure: 9.0- Application Info

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4.2 Application 2 – Grab food

4.2.1 Introduction and Background of the Application

Figure : 8.0 – Grabfood Logo

Source: https://food.grab.com/my/en/

Grab Food provides a food delivery service and a digital payment solution. Grab Food
worked in partnership with a wide variety of eateries to offer the quickest meal delivery
service in Malaysia. Grab Holdings Inc. is also known as Grab. It is an international
corporation that Anthony Tan and Tan Hooi Ling formed and launched in 2012. It
originally began as the Kuala Lumpur-based My Teksi application, and in 2013 it became
Grab Teksi. After then, it continued to grow, adopting the “super app” approach. Finally, it
changed its name to Grab and moved its headquarters to Singapore in 2014. In addition to
providing transportation services, Grab now also offers meal delivery, courier, and payment
options.

Through the Grab mobile app, Grab food aims to provide clients with various options
while letting them pick up their favorite foods from their favorite restaurants to satisfy
customers’ cravings. The fastest-growing food delivery service in Southeast Asia, GrabFood,
offers delicious meals to consumers, ranging from street cuisine to fine dining. Get food and
beverages delivered to you, wherever you are, with “Just a Tap”(Grab (company), 2022).

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Figure:9.0 - Grabfood Application Screenshot

4.2.2 Two Reasons Used Grabfood Application

1st Reason – The first reason I liked using the Grabfood application is that they are
usually fast in delivering orders. They usually will deliver before the estimated time they will
give the moment we order the food at any restaurant. So, for me, it is worth using this
application as I do need to wait too long for my food. An example scenario is, last week I
ordered my breakfast at Subway around 9.41 a.m. they gave an estimated delivery time of
10.05 – 10.20 a.m. but I received my food much earlier at 9.59 a.m. Below is the screenshot
of the scenario.

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Figure:10.0- Order Delivery Detail Screenshot

2 nd Reason - The 2nd reason that I like to use Grabfood is you don’t need to wait for
your order to be delivered in order to place a new order. You can go back to the GrabFood
home page and place more orders while your current order is being delivered. You can use
GrabFood to place up to four orders at once. The orders can come from the same restaurant or
from various ones, and you can choose to have them delivered to the same or different
addresses. In order to keep track of all the orders ongoing, we can simply retrieve them from
our order history tab. An example scenario, I have to order dinner from one of the
restaurants and my children wanted to have food from a different restaurant. So, I order my
dinner and at the same time, I when back to the app and ordered food for my children
immediately. I did not wait until my first order was delivered, in fact, bother both orders
came in within a few minutes difference.

4.2.3 Suggestion for Improving the Application Features

My suggestion for the Grabfood application is to have a “Dine-in” feature,
making this feature by giving benefits of discounts for example 30 % for the customers to
enjoy during their dine-in in their favorite restaurants. These features will help rebuild the
economy. Particularly now that Malaysians can leave their houses and get back to their
routine of dining, this will give the finest experience to enjoy their meal at their favorite
restaurant with the exclusive benefits of discounts.

4.2.4 Detail Specification

The application works on Android, iOS, and Windows. The hardware usages
are handphone and laptop. All of the website and application functionalities are available
online. Users must have a reliable internet connection that is 4G/5G/Wifi with a speed of
5MB to download, update, and use the application.

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4.1.5 Support with screenshots, diagrams, or illustrations.

Below is the app information screenshot for the Android.

Figure :11.0 – Application Info

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5.0 Conclusion
In conclusion, this assignment includes the reason of assignment is to gain exposure to
the technology that supports Online food delivery and to gain enlightenment about Online
Food Delivery economics. IT facilitates the delivery of meals over the network, the supply
of the internet, the availability of applications, the promotion of the service, and the use of
social media for marketing. Food delivery is still a relatively new and developing service that
is poised to develop into a separate sector. The way that food is delivered has been drastically
changed by advances in digital technology. In the past, receiving food required a direct
physical exchange between the consumer and the business they were ordering from. IT was
really a great assist in Online Food Delivery in Malaysia in the year 2020 because most
industries experienced significant losses as a result of during COVID-19 epidemic in
Malaysia. The pandemic's restrictions on mobility, lockdowns, and other restrictive
precautions particularly affected the hospitality, food, and beverage sectors.

It is justified during the periods of restricted movement that we have seen since the start
of the COVID-19 pandemic people were unable to dine in to enjoy their meals, this is were
the Malaysian online food delivery apps have thrived more than ever, sending a fleet of
delivery guys flying to citizens throughout the nation to save the day. Due to the
COVID-
19 pandemic, which prevented dine-ins, the online food delivery sector is changing and
growing dramatically in 2020. Online food ordering is becoming increasingly popular with
consumers. It justifies that the online food delivery market under F&B merchants has
increased
to the top because of the of shifting to the online platform.

Malaysia has 12 top online food delivery platforms for F&B merchants. Foodpanda, and
Grabfood, are Malaysia's top two meal delivery services, FoodPanda and GrabFood have
both enjoyed significant market dominance in other nations for a number of years. For this
assignment, I discuss the top online food delivery Foodpanda and Grab food. Foodpanda is
an online platform where customers can order meals online and have local restaurants
deliver
them. Ralf Wenzel and Benjamin Bauer established the German food delivery service
Foodpanda in 2012. The reason I like to use Foodpanda first is there are so many options for

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bakeries and restaurants and the. Second, the reason is that if I prefer to eat and the shop is
closed but still able to take pre-orders. My suggestion for the Foodpanda application is to
have
“Must-Try” features. This is like a recommendation for the customer who was not aware of
any famous restaurant. The application works on both Android and iOS. The hardware
usages are handphone and laptop. Grab Food provides a food delivery service and a digital
payment solution. It is an international corporation that Anthony Tan and Tan Hooi Ling
formed and launched in 2012. The reason that I like to use is the first reason is that they are
usually fast in delivering orders. They usually will deliver before the estimated time they will
give the moment we order the food at any restaurant. The second reason is you do not need
to
wait for your order to be delivered in order to place a new order. My suggestion for the
Grabfood application is to have a “Dine-in” feature, making this feature by giving benefits
of
discounts for example 25 % for the customers to enjoy during their dine-in in their favorite
restaurants. The application works on both Android and iOS. The hardware usages are
handphone and laptop.

(Number of Words 3361)

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6.0 Reference

Blog – Malaysia’s online food delivery exploded with the help of the internet. Here’s why. (2021,

October 15). Allo Technology - The Smarter Connection. https://www.allo.my/blog-malaysia-

online-food-delivery-exploded-with-the-help-of-the-internet/

Foodpanda. (2022, October 21). Wikipedia, the free encyclopedia. Retrieved November 29, 2022,

from https://en.wikipedia.org/wiki/Foodpanda

Grab (company). (2022, October 28). Wikipedia, the free encyclopedia. Retrieved November 29,

2022, from https://en.wikipedia.org/wiki/Grab_(company)

MCO is a big win for online food deliveries and cloud kitchens. (2020, June 19). The Edge Markets.

https://www.theedgemarkets.com/article/mco-big-win-online-food-deliveries-and-cloud-

kitchens

Moneycompass. (2020, August 7). Online food delivery market to see robust growth over next 4

years. Money Compass. https://moneycompass.com.my/2020/08/07/online-food-delivery-

market-to-see-robust-growth-over-next-4-years/

Malaysia online food delivery market by type and region global forecast 2021 to 2028. (n.d.). Adroit

Market Research: Market Research Report & Knowledge Partner.

https://www.adroitmarketresearch.com/industry-reports/malaysia-online-food-delivery-

market

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Van Veldhoven, Z., Aerts, P., Ausloos, S. L., Bernaerts, J., & Vanthienen, J. (2021). The impact of

online delivery services on the financial performance of restaurants. 2021 7th International

Conference on Information Management (ICIM).

https://doi.org/10.1109/icim52229.2021.9417153

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