Efficiency and Effectiveness of Food Delivery in Mati City

Chapter I

INTRODUCTION

Background of the Study

With the rapid growth of e-commerce, services have changed, and the food

industry has no exemption and gained its name on the market. It is no secret that there

have been several people who patronize food delivery services, especially now that the

global pandemic has not yet come to an end. According to a Business Wire article, it is

anticipated that the trend of international online food delivery services will continue and

that this market will expand at a rate of 11% per year to reach $192 billion by 2025 (as

cited in Posist, n.d.). This essentially means that almost everyone is utilizing this new

normal way of eating out with family and friends and is familiar with it in one way or

another.

In their research, Lau and Ng (2019) elaborated that although there are several

reasons why these customers utilize food delivery services, the most frequent one

appears to be the desire for quick and practical meals during or after a busy workday.

There is no denying that availing the food delivery services saves individuals time in

preparing food and gives opportunities for more work to get done. In addition, online

food ordering helps consumers save a ton of time (Ramesh et al., 2021). Also, Masigan

(2021) stated that the top three reasons for patronizing a restaurant are: first, inability to

satisfy demands for food at home; second, lack of time to prepare meals; and third,

convenience are the top three reasons people choose to eat out.
 Moreover, almost all countries have a substantial utilization of food delivery

services. Southeast Asia has a big market for food delivery. As a matter of fact, online

food delivery (OFD) services are a newly growing trend in Malaysia's food and beverage

business. (Lau and Ng, 2019). This proves that, with the rapid growth of this new

invention of placing an order online and delivering food, many people are acquainted

with and accustomed to it.

Furthermore, as mentioned above, food delivery services are spiking and

thriving because of the global pandemic. In fact, Keshner (2020) stated that orders for

online meal delivery services increased 20 percent in China just in January (as cited in

Collison, 2020). According to Lattanzi (2020), in the past five years, the global growth

rates of the online food industry have skyrocketed, demonstrating that millions of

consumers prefer to have their groceries and meals delivered at the touch of a button to

wasting time looking for a parking spot to go grocery shopping or spending their

evenings in front of the stove. This significantly means that food delivery is time-saving

and more convenient.

However, the problem lies in the efficiency and effectiveness of food delivery

services. According to First Orion's survey of 2000 customers, about 20% of the

matching clients experienced issues with their orders (as cited in Route4Me, 2020).

Nearly 50% of the customers polled said that the top issue was a problem with order

delivery delays. Having said that, when it comes to availing of online food delivery

services, experiencing delays in orders is inevitable. Still, it does not necessarily mean

that excuses are always reasonable, valid, and accepted. According to an American

Express report (as cited in Batra, 2022), 33% of US customers said they would move to
a rival after only one unpleasant experience, and 50% have given up on a purchase

because of subpar service. With that, decreasing sales due to the potential loss of

customers’ trust will eventually happen in no time.

Aside from that, despite the convenience of food delivery, challenges are

inevitable in the process. In their article, Posist editors (n.d) mentioned the seven most

prominent challenges that food delivery face today: (1) Shifting Customer Preferences;

(2) Unstable Market Prices; (3) Adhering to the Food Quality Standards; (4) Managing

Customer Expectations; (5) Improper Food Handling; (6) Threat Of Bigger Players; and

(7) The Logistics Dilemma. Needless to say, these challenges will significantly affect the

efficiency and effectiveness of food delivery services.

According to Doyle (2021), another problem that stems from food delivery

services would be mistakes in orders and incorrect or incomplete delivery instructions.

Unexpected traffic jams and forgotten food items are two other typical delivery issues.

With that, delays in orders and poor customer service experience are expected. In

addition, the online food delivery service FoodPanda is involved in yet another

controversy as social media users in the Philippines have started to go viral with their

complaints about its policies and the amount of money it charges its partner eateries

(Reyes, 2022).

Given all these points, this study intends to identify factors for patronizing food

delivery services in Mati City (Convenience of the Services, Time Consumption,

Comfort and Safety); determine the efficiency and effectiveness of food delivery

services in different aspects (Quantity and Quality of Food, Delivery Time,

Communication, Deliveryman’s Behavior); discover various productive ways to render

more efficient and effective food delivery services. With the rapid growth of availing

such services, it is of prime importance to find out whether it satisfies customers and

provides an excellent experience. Through this study, we will examine customers’

personal experiences using a survey questionnaire. As a future ____, we are interested

in delving deeper into food delivery services and their crucial role in today's world,

specifically here in our locality, Mati City.

Statement of the Problem

As researchers, we want to determine the efficiency and effectiveness of food

delivery in Mati City. Thus, this study aims to answer the following questions:

1. What are the factors for patronizing food delivery services in Mati City?

1.1 Convenience of the Services

1.2 Time Consumption

1.3 Comfort and Safety

2. How efficient and effective are food delivery services in the different aspects?

2.1 Quantity and Quality of Food

2.2 Delivery Time

2.3 Communication

2.4 Deliveryman’s Behavior

3. What are the various productive ways to render more efficient and effective

food delivery services?

Objectives of the Study

This study aims to meet the following objectives:

1. To identify factors for patronizing Food Delivery services in Mati City.

1.1. Convenience of the Services

1.2. Time Consumption

1.3. Comfort and Safety

2. To determine the efficiency and effectiveness of Food Delivery services in different

aspects:

2.1. Quantity and Quality of Food

2.2. Delivery Time

2.3. Communication

2.4. Deliveryman’s Behavior

3. To discover various productive ways to render more efficient and effective Food

Delivery services.

Significance of the Study

Food delivery offers many benefits to both customers and companies. It provides

many features not present on other platform types and is quick and convenient (Blog-

manager, 2020). As this type of service continuously grow and influence the public, the

result of this study is of immense help to the following:

For the Community (locality) who wants to learn more about the food delivery

services in the locality before availing them, the result of this study will provide them

with the idea they want to know about and guide them to make a decision.
 For Food Delivery Businesses themselves who aim to have a research-based

evaluation of food delivery services performance and want to hear customer service

experience, which is significant to improve services.

For Future Researchers who wish to expand their knowledge about the

efficiency and effectiveness of food delivery in Mati City, the result of this study will give

them additional information and can be used as a reference for further investigation.

Scope and Limitation of the Study

The scope of the study revolves around the efficiency and effectiveness of food

delivery services in Mati City, considering the different aspects mentioned above. In

addition, we will also focus on learning the factors that essentially affect the patrons'

continued use of the services. Since we consider their personal experience vital to the

study's success, we want to discover various productive ways to render more efficient

and effective food delivery services. We aim to gather their answers to yield a

comprehensive result.

Our study has limitations as it will be conducted amidst the COVID-19 pandemic.

Despite the ease of some protocols, we will still consider the wellness and safety of our

respondents. To begin with, we will communicate with our respondents through email

for formal purposes and messenger for fast, easy, and convenient transactions. We will

let them choose if they are comfortable doing the survey using printed materials or

google forms. So, our data gathering will depend on the respondents’ agreement. Also,

our study will have limitations concerning the number of respondents, despite the

increasing number of food delivery service patrons.

Definition of Terms

The following are the key terms in this study that are defined operationally and

conceptually to attain a common understanding:

Efficiency is the maximum level of performance that requires the fewest inputs

and produces the greatest amount of output. Efficiency calls for fewer unnecessary

resources, such as one's own time and energy, being spent to create a particular

outcome. Simply put, if there is no waste and all procedures are optimized, something is

efficient (Banton, 2022).

Effectiveness is the extent to which something succeeds in achieving the

anticipated outcome; success (Gager, n.d.). It is the degree of outcomes from manager

and staff actions. Effective coworkers and managers contribute to achieving high-quality

outcomes (Liszka, 2018).

Food Delivery Services are somewhat similar to courier services in that the

consumer receives the ordered meal from the restaurant by delivery personnel working

for the restaurant or a third-party food ordering service (FarEye, n.d.). Simply put,

Stores, restaurants, or third-party applications can provide food to customers on

demand through a food delivery service (Viktor, n.d.).

 Chapter II

REVIEW OF RELATED LITERATURE

This chapter presents the related literature and studies about (1) the rapid growth

of food delivery service patrons and (2) the challenges of food delivery services. The

studies explored in this review will serve as a foundation for the issues that will be

discussed in this research.

Rapid Growth of Food Delivery Service Patrons

Food Delivery Services are somewhat similar to courier services in that the

consumer receives the ordered meal from the restaurant by delivery personnel working

for the restaurant or a third-party food ordering service (FarEye, n.d.). Simply put,

Stores, restaurants, or third-party applications can provide food to customers on

demand through a food delivery service (Viktor, n.d.). Customers use online platforms to

make orders, which are then sent to restaurants where the food is prepared and

delivered to customers by couriers employed by the restaurant or the online food

delivery service (Keeble et al., 2020).

Looking back to when these food delivery services started, according to

Grubtech (2021), it is thought that the first documented meal delivery occurred in

Naples, Italy, in 1889. While visiting Naples, King Umberto I and Queen Margherita of

Savoy wanted to sample the local cuisine, which included the mouthwatering pizzas

made by renowned pizza maker Rafaele Esposito. This means that such services'

history can be traced back a long time ago. It is then a piece of common knowledge to
almost everyone that the services are thriving as manifested in todays’ patronization

from one community to another.

While the history of food delivery services dates back to 1889 with only the

mentioned individuals involved, it is now popular with everyone, especially those who

want convenience. With just the press of a button today, we can have practically

anything delivered to our home in minutes (Grubtech, 2021). Food delivery services

offer advantages and benefits to both customers and companies. Airspeed (2020)

stated that there are five food delivery service benefits: expand your customer base;

convenient; variety of options; multiple payment methods; and cost-effective

promotions. In his article, Sims (2021) also emphasized various reasons why food

delivery is popular with customers. These are convenience, trends, payment options,

time, online research, and customization. Also, a narrative examination turned up

company reports that supported the findings from Malaysia and Indonesia, saying that

convenience and the ability to choose a food establishment were likely factors in people

using online meal delivery services (as cited in Keeble et al., 2020).

Moreover, as the global pandemic, COVID-19 happened, safety protocols were

implemented to avoid spreading the disease, one of which was to stay at home. The

survey discovered a significant rise in food delivery services in the U.K., which

experienced a string of "stay at home" orders from March 2020 to December 2021

(Jaracz, 2022). With that, it is essential to note that the rapid growth of food delivery is

spiking. Internationally, according to an e-commerce business research company

Edison Trends study, the U.S. food delivery service industry grew by 85% between

January 2018 and February 2020 before the pandemic (as cited in Jaracz, 2022).
Despite such growing growth, the pandemic became a significant industry turning point

that surprisingly led to much bigger rises than expected.

In comparison, nationally, following a spike in demand last year, online delivery

service foodpanda Philippines has amassed an estimated 70% market share among

food delivery mobile apps in the nation, a company official said (as cited in Ibañez,

2021). In an online interview, foodpanda's managing director, Daniel Marogy said,

“Suddenly, everyone was locked down, and no one could go out. If you wanted food,

you only only really had two to three services you could choose from at the time.” The

lockdown caused a spike in demand for delivery services, which resulted in an eight-fold

increase in the company's user base from the figure in February of the previous year.

With the increase of patrons, it is then crucial to improve the services. According

to a survey by the U.S. National Restaurant Association, to improve the convenience of

ordering takeout and delivery, more than 60% of millennials in the U.S. want restaurants

to embrace technology (as cited in Cottong, 2022). In his article, Singh (2021)

mentioned the “Top 10 Successful Online Food Delivery Apps in the World,” Zomato,

UberEats, FoodPanda, Swiggy, Grubhub, Deliveroo, Domino’s Pizza, Just Eat

Takeaway, DoorDash, and Postmates. Nationally, Cadiz (2019) mentioned “7 Must-

Have Food Delivery Apps in PH”: Foodpanda, Zomato, GrabFoodPH, Lalafood PH,

Mangan PH, Delivery Guy PH, and MetroMart PH. These applications show that the

services are flourishing as these applications continue to thrive and become successful.

In fact, the market for food delivery services worldwide achieved a valuation of $106.1

billion in 2021 and is anticipated to reach a value of $223.7 billion by 2027 (Cottong,

2022).
Challenges of Food Delivery Services

In today’s situation in the industry of restaurants, food delivery ease the work of

the people in preparing the food and as well as makes them safe from crowded places.

According to the Business Process Incubator (2021), the food delivery industry is

currently dominating the online market and expanding rapidly. The number of clients

who order food online grows significantly every day. Due to consumer demand and

potential growth, most startups and entrepreneurs are now working in this sector. It

makes running a firm that develops meal delivery apps challenging and difficult. The

number of startups has been rising daily, which has increased the level of

competitiveness.

These are some critical challenges the food delivery market should be aware of:

1. Pricing
2. Food Quality Maintenance
3. Retain Customer Loyalty
4. Food delivery
5. Customer demand management
6. Payment option
7. Time management
8. Channel of communication
9. Product update
10. Market price fluctuation
11. Delivery partners
12. Customer base
13. Finding the right advertising platform
14. Huge number of delivery options
However, it cannot change the fact that there are different challenges in delivering the

food in which will affect the services of the resaurants. Further, according to the

Route4Me (2020), while the demand for food delivery has gone up, so have the

associated challenges. In the First Orion’s survey among 2000 customers, almost 20%

of the corresponding consumers faced problems with their orders. Some of the major

problems reported by the customers surveyed revolved around late deliveries, incorrect

orders being delivered, orders not being delivered at all, rude customer service, cold

food being delivered, and the driver requiring a lot of guidance to find the delivery

location.

While facing some challenges, some of the restaurants took the risks in making

the delivery. Many of the choices you need to make come with risks that need to be

mitigated. How you address these risks can make a huge difference on how profitable

your takeout and delivery services will be (Wasserstrom, 2020).

In addition, there are different challenges faced of food delivery services in many

places or countries depending on the situations. Globally, in the study of Chowdhury,

N.R (n.d), he shows findings with regards to the problems encountered in the food

delivery services in Sylhet.

These are the following:

 Low Quality Management

 Lack of time efficiency because of natural and other

 Inconvenience in reporting complain

 Unsustainable business expansions

Moreover, according to the American Barcode and RFID (2022), the following are the

delivery challenges:

PROOF OF DELIVERY

There is no itemized list of products that are delivered to each location. The ability to

print a receipt at each delivery location would ensure that the customer and delivery

company agree on what is being dropped off and what is being returned.

SIGNATURE CAPTURE

Having the customer sign the route sheet is inefficient for providing proof of delivery at a

later date. The ability to capture a recipients signature electronically saves time and

ensures proof of delivery.

DELIVERY STATUS

Some items are time sensitive. To find out the status of a delivery, the company must

call their driver, ask them to stop their route and search for a specific package. When a

customer service representative can see the status of a delivery in real time, it

increases customer satisfaction and assists in route efficiency.

PAPERWORK OVERLOAD

With multiple drivers and multiple routes per driver, route sheet paperwork and three-

part form receipts are difficult and expensive to manage. A customer with a simple

billing question can result in having to sort through thousands of pages of information.

An automated system would lessen the manpower and space needed to manage the

paperwork and reduce the material costs of forms and printing supplies.
PRIVACY AND SECURITY

With printed materials traveling into and out of multiple facilities and traveling all around

town, maintaining customer confidentiality and complying with regulations is extremely

challenging. A secure wireless system that captures delivery and customer information.

Then it relays it back to a secure center at the home office would ensure privacy and

eliminate the possibility of sensitive information from falling into the wrong hands

Regardless, although there may be a high demand for meal delivery, you must be ready

to give your clients the greatest support. While many other companies are fighting to

survive, you have clients banging on your door to place orders.

 Chapter III

METHODOLOGY

This chapter covers the academic methodologies that will be applied to this

study. The research design, sources of data, research locale, respondents of the study,

sampling technique, sample size and the data collection procedure are all part of it.

Research Design

This study is a descriptive quantitative method that will able to assemble

quantifiable data. Quantitative methods place an emphasis on precise measurements

and the statistical, mathematical, or numerical analysis of data gathered through

surveys, polls, and other types of research, as well as the manipulation of statistical

data that has already been obtained using computing methods.

Sources of Data

This study will be collecting data using one of the primary sources of data which

is the survey questionnaire.

Research Locale

This study will be conducted in Mati City. The chosen respondents will be

comtacted through messenger and will be given a link of google form to answer the

survey.
Respondents of the Study

This study will be conducted in Mati City. The respondents of this study are fifty

(50), residing at Mati City. The chosen respondents are the customers since they

witnessed the food and services of the restaurants.

Sampling Technique

This study will be using a simple random sampling method. Simple random

sample is a randomly selected subset of a population. In this sampling method, each

member of the population has an exactly equal chance of being selected (Thomas,

2020). This means that the researchers will select particpants randomly from the

patrons of food delivery services.

Data Collection Procedure

This study's primary data collection method is survey questionnaire which will be

distributed online through Google Survey Forms. The researchers will collect the

facebook names of the respondents in order to send the link of the questionnaire. The

researchers will make a self-made survey questionnaire. The questionnaire is

composed of three (3) parts which are: 1. To identify factors for patronizing Food

Delivery services in Mati City; 2. To determine the efficiency and effectiveness of

Food Delivery services in different aspects; and 3. To discover various productive

ways to render more efficient and effective Food Delivery services. The

respondents will choose their responses based on the 5-point Likert scale as shown in

the table below. This is to make sure that the researchers can easily gather and

interpret the data with the use of Likert scale.

Table.

Table 1. 5-Point Likert Scale Interpretation

Response Points

Strongly Disagree 5

Disagree 4

Neutral 3

Agree 2

Strongly Agree 1
 QUESTIONNAIRE:

1. To identify factors for patronizing Food Delivery services in Mati City.

Questions Strongly Disagre Neutral Agre Strongly
Disagree e e Agree
A. Convenience of the Services
1. The variety of food choices
can satisfy my cravings.
2. It is easy to order food than to
prepare.
3. The ordered food is much
tastier.
B. Time Consumption
1. Ordering is way faster than
going to restaurants.
2. The food is delivered in almost
record time.
3. It saves time for other work to
do.
C. Comfort and Safety
1. Food delivery protects against
the spread of the disease
COVID-19.
2. It feels more comfortable
when food is shared at home.
3. Eating at home is much safer
than going out.

2. To determine the efficiency and effectiveness of Food Delivery services in

different aspects:
Questions Strongly Disagre Neutral Agre Strongly
Disagree e e Agree
A. Quantity and Quality of Food
1. The ordered food checks the
“what you see is what you get”
quantity and quality.
2. The ordered food is well-
prepared and in good condition.
3. The ordered food is correct
and meets expectations.
B. Delivery Time
1. Food delivery estimated time
is exact.
2. In any case, it is not late by
more than five minutes.
3. The ordered food arrives on
time.
C. Communication
1. The deliveryman
communicates well through the
online messaging app or mobile
phone texting/calling.
2. The communication line is
always available and stable for
further updates.
3. The food delivery application’s
updates are accurate (time and
process).
D. Deliveryman’s Behavior
1. The deliveryman stays calm
and responsible for any
undesirable situations.
2. The deliveryman is friendly
and responsive.
3. The deliveryman shows
competence in food handling and
constantly updates.

3. To discover various productive ways to render more efficient and effective

Food Delivery services.
Productive Ways Strongly Disagre Neutral Agre Strongly
Disagree e e Agree
A. Quantity and Quality of Food
The food must adhere to quantity
and quality standards.
The ordered food must be
checked for accuracy and
condition.
B. Delivery Time
The estimated time updates
must be accurate and
reasonable for the customer’s
guidance.
C. Communication
The online messaging app and
the deliveryman must stay active
for further information and
updates.
D. Deliveryman’s Behavior
The deliveryman’s behavior must
be trained for excellent service.
The deliveryman must maintain
professionalism and positive
attitude.