Table of Contents
From traditional purchasing methods to online food delivery system many alternative systems have been offering the consumer more convenience such as online shopping, phone based ordering, home delivery, pick up and drive through in the food industry (Hossain and Adelaja, 2000). Today the food industry has been influence by technology and internet. According to Hirschberg, Rajko, Schumacher & Wrulich (2016) around 15years ago the traditional delivery category (aggregators) took place, simply take orders from customers and route them to restaurants although only 26% traditional delivery orders are made online today. After that the concept of ‘New Delivery’ players which appears in 2013 builds their own logistics network, providing delivery for restaurants. New Delivery services are taking over the market because of the growing demand. Around the world, the food delivery service account for €83billion where 1% is for food market and 4% includes restaurants and fast-food chains, found in different matured countries and predict that the growth of food delivery industry will increase by 3.5% in the next five years (Hirschberg, Rajko, Schumacher & Wrulich, 2016).
According to the Kimes (2011), 50.8% of customers prefer food delivery services as the people are lazy to cook and have meals delivered straight to their home or office. Online food ordering systems is a self-service system which allows the customers to self-order their meals (Ryue, Shiun-Yi &Lily, 2017). Online food ordering satisfies the busy customer’s needs living in the city who place their order online and receive delivery within a few minutes (Kedah, Ismail, Haque &Ahmed, 2015). Since then researchers from all over the world studied, the concept of food delivery by two different perspectives: the seller (supply) and the consumer (demand)(Ghajargar, Zenezini & Montanaro, 2016).
Increasing growth of technology (internet, mobile applications) provides opportunities to the customers to search the market more easily than 10 years ago. However, customers have variety of choices to decide what types of food customers want to consume and from which restaurant with the help of smartphones (Zissis, Aktas & Bourlakis, 2016). According to Ryue, Shiun-Yi and Lily (2017) electronic ordering is becoming popular among both customers and restaurants as it provides significant benefits while taking an order. Grub Hub, Uber Eat, Delivery Hero, and Food Panda and are the most well-known online food delivery companies.
127 our experts are availableright now
According to Hossain and Adelaja (2000) customer’s shows there interest in alternative food delivery systems.
Home delivery of prepared meals.
Food is a basic need for all human being (Zety, Fadzilah & Yusnidawati, 2016).Food items is mostly demanded and frequently delivered items in the market because the lifestyle of the people is working long day and only spent little time at home (Lopez & Ferrandiz, 2016). The order is taken from the telephone or websites. Today most of the people are showing interest in the concept on food delivery because it is quick and easy to order from mobile application rather than visiting and buying food from restaurant (Zety, Fadzilah & Yusnidawati, 2016). Home meal delivery required vehicles to deliver the meals to customers (Braysy, Nakari, Dullaert & Neittaanmaki, 2009). Mainly home delivery service of prepared meals is useful for student’s studying in different cities and who keep travelling from cities to cities (Adithya R., Singh, Kanade & Pathan, 2017)
Home delivery of a grocery.
U.K is the second largest online grocery market over the world. The total grocery market size of U.K was £174.5 billion in 2014 and £177.5 in 2015 whereas predict to be increase more than £200 billion in 2019 (Zissis, Aktas & Bourlakis, 2016). Today there is competition between the retail sectors of groceries around the world, not only in the prices but also in the service. The grocery market of U.K has seen increase yearly around 17% while the total grocery market has an annual growth of less than 5% in the last 10years. In term of grocery delivery the customers selects a day and a time slot to delivered the order in the customer’s house. Grocery is perishable and high rotation goods, which require fast and flexible transport (Lopez & Ferrandiz, 2016).
Drive-through pick-up.
Online grocery is adopting drive through pick-up service where the customers can order online and collect groceries without getting off from their vehicles.
Many food industry have started to offer pick-up services to customers (Gao &Su, 2016)
Truck delivery of vegetables and meat products
To deliver the fresh food the demand of vehicles includes refrigerate, cold boxes or cabinets have been increasing in urban areas where the temperature of food (perishable goods) need to be constant during delivery even not changed in the temperature during door openings. Therefore the delivery companies required food storage, own vehicles and temperature control equipment while delivery food to customers (Hsu & Chen, 2014).
E-Commerce
E-commerce provide experience to customers to shop online not just electronics, books, cosmetics products or cloths but food products as well (Zissis, Aktas & Bourlakis, 2016). Today the customers can purchase a product online which can be delivered within to our homes (Lopez & Ferrandiz, 2016). According to Alagoz and Hekimoglu (2012) online shopping is a new trend in the market where the customers are able to reach the products on internet and vendor can reach to customers on internet. On the other hand customers are enables to compare variety of products, compare prices and shop at the same time. While e-commerce is growing rapidly around the world, there are more than 1.46 billion internet users and with the help of e-commerce, customers have a wider variety of products to choose from in the online environment where food industry also started to adopt online environment (Alagoz &Hekimoglu, 2012). Worldwide internet has covered huge market area for exchange of goods and services (Zety, Fadzilah & Yusnidawati, 2016). At least 55% of internet users make online order in Poland (Moroz &Polkowski, 2016). In Turkey Yemeksepti.com is the popular online food ordering website where 28 million portion of food was order online just in 2011 (Alagoz & Hekimoglu, 2012).
In the restaurant there are several producers for taking order where firstly the customers starting from browsing the paper based menu and then inform to the waiter to take order and wait for food to serve. Due to the influence by the internet and the technology, several opportunities are entering in the market where many restaurants have take advantages to provide quick and speedy delivery of orders inspite of dining experience (Chavan, Jadhav, Korade &Teli, 2015). In recent time the online food ordering system tries to reduce the traditional queuing system and also improve the process of taking order from customers by setting the food menu online along sswith prices and the wide range of restaurant where customer can easily place the order as per their wish and also able to track the orders (Adithya R., Singh, Kanade & Pathan, 2017). According to Chavan, Jadhav, Korade and Teli (2015) everyone from anywhere can order goods through the internet and have the delivered to the selected location. With the help of mobile applications, all the food items order is displayed in the screen along with the corresponding options and delivery details in the restaurant website. Online food ordering system also provides the feedback system to the customers where the customers can rate the food items and also the facilities of payment through online or pay-on-delivery system. Many deliveries companies provide ID and a password for each user to secure the order (Adithya R., Singh, Kanade & Pathan, 2017). Today there are many business sectors that have adopted e-commerce for effective business (Zety, Fadzilah & Yusnidawati, 2016). Online food ordering is growing rapidly because of increasing use of smart phones /android devices.
Challenges in Online Food Delivery Service
Food delivery business is rapidly growing business which is influence by the internet and technology. At first we should understand the market size, competitor, customer behavior, and delivery platforms. Food delivery industry is operating through website platforms where a customer can select a restaurant from a list, view its menu, price and place order on the platform.
On-time delivery
With the increasing demand of food delivery and the growth in vehicles on the roads that cause traffic problems make companies think thoroughly about the future (Lopez & Ferrandiz, 2016). According to Braysy, Nakari, Dullaert and Neittaanmaki (2009) companies may customers if the service operation is slow and late delivery due to the vehicle route problem. The concern can be managed through the development of delivery route model or application of shortest path and provide tracking of food delivery vehicle facilities to customers (Siregar, Gunawan, Andayani, Lubis & Fahmi (2016). During lunch time the delivery companies receive maximum order which can be deliver at different location at same time (Lan, Ya’nan, Shuhua, 2016).
Technology
According to Willingham (2017) technology is a key element of online food ordering system as it allows for communication to take place between consumers and employees through mobile application software which is easily accessible by both parties. Still some customers feel uncomfortable with technology because they are not familiar with technology and mobile application and also have technology anxiety (Kimes, 2011). Sometime there will be problem with the machine and it will lead to delivery failure because the order was not receive by the restaurants (Ryue, Shiun-Yi & Lily, 2017).
Manpower
There is always been difficulty with staffing due to the fluctuation in the demand of food delivery (Kanyan, Ngana & Voon, 2016). In food delivery service if the companies have enough vehicles to do deliveries, throughout the day, food can be delivered in time even in peak hours. On the other hand if the number of vehicles is limited for the time of less demand there would be loss in revenue during the demand in peak hours (Hsu & Chen, 2014).
Quality of food
According to Lan, Ya’nan and Shuhua (2016) customers are concerned about food quality and safety. While delivering the food sometimes the food have been cold, squeezed, not fresh, low quality and rotten where cooked meals and beverages are not properly sealed and spills is frequent occurring. During lunch time the restaurants become busy so the food is packaged in hurry without much care. The delivery vehicles boxes have poor thermal insulation and cushioning which impacts on the warmth or coolness of the food when it reaches the customer. Delivering foods with a constant temperature control is an important aspect for logistics carriers who deliver food (Hsu & Chen, 2014).
