Beruflich Dokumente
Kultur Dokumente
We would also like to convey our sincere thanks to Mrs. Archana Shrivastava
(Director - BIMM) who helped us and motivated us whenever required.
TABLE OF CONTENTS
The survey and its results, followed by the findings and conclusions on how the
consumer’s satisfaction depends upon various factors and how it can be helpful for improving
the services offered to consumers and how they can build a loyalty of the consumers towards
online food delivery app.
CONTEXTUAL BACKGROUND
INDUSTRY SCENARIO
From the age of bullock cart to the age of high speed car, from the age of telephone to the
age of smart phones, technology has changed with the change of human perceptions, behavior
and approach. And looking at the current scenario, technology is playing a very vital role in
revolutionizing the food delivery service with the new ONLINE FOOD DELIVERY APP. The
rise of digital technology is reshaping industries. With the increased use of technology, the number of
people engaging into the digital sector are increasing rapidly. 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 customers to a greater extent.
The recent development of internet has boosted the extension of online food services by
enabling people to search, compare prices and conveniently access this services. This leads to
increase in total market size of online food delivery app, which in 2018 stands at Rs 50,000
crore. With increase in market size, many new players are also joining this segment with
innovative business models.(livemint.com)
MARKET SCENARIO
SWIGGY:
Swiggy is online food ordering and delivering company, founded by techpreneurs Nandan
Reddy, Sriharsha Majety and Rahul Jaimini in August 2014. It provides a single window for ordering
food from a wide range of restaurants and have their own exclusive fleet of delivery personnel to pick up
orders from restaurants and deliver it to customers. It is a complete food ordering and delivery solution
that connects neighborhood restaurants with urban foodies. Swiggy began its journey from Bengaluru
with six delivery executives and 25 restaurants on its platform. The platform, which manages customer
orders and delivers the food using its own fleet now has close to 12,000 partner restaurants in eight cities.
On average Swiggy fulfills 100,000 orders every day and plans to utilize this capital for hiring
engineering talent and developing technology for better demand prediction, consumer preferences and
delivery efficiencies. A part of the raised capital will also be leveraged to increase the service offerings of
Swiggy to restaurant partners. Earlier this year Swiggy has also started cloud kitchens, which are kitchen-
only operations with no dine-in facility, as part of its offerings to restaurant partners looking to serve in
areas where they do not have a physical presence.(economics times,2019)
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. To
differentiate themselves from their competitors, Zomato concentrated on adding approx. 18,000 new
places to search from they have also added special features, such as pointed to particular dishes or
opening times. To be the largest resource in food supply market, Zomato bought urbanspoon, a leading
restaurant service providing portal for $52 million to enter US, Canada and Australia to leverage local
insights and experience and to expand their business in overseas market considering its future goals and
objectives. (www.forbesindia.com)
FOOD PANDA:
It is one of the most leading food delivery in India. It was found in the year 2012 and its
headquarters is in Berlin, Germany. Soon after that it started its operations in India. It has tied up with
many restaurants such as Haldirams, Dominos, Ammis Biriyani etc. and has started operations in around
24 cities across India and is still growing. It has both vegetarian and non-vegetarian menu. One can order
food items either through app (Android and IOS) or through the website. Payment can be done either by
Cash on Delivery or Online through cards and wallets. (www.forbesindia.com)
FAASOS:
Faasos is an Indian "food on demand" company that was incorporated in 2011. Faasos
operates in 16 of the largest cities in India and takes customer orders via its mobile app and also the
website. It is the only vertically integrated food business in India and operates all three stages of a "food
on demand" business: ordering, distribution and order fulfillment. Faasos receives 10,000 orders a day
across India and has recorded a growth rate of 20-25 per cent month-on-month. (www.forbesindia.com)
UBER EATS:
UberEats views India as a game changer for its business, with the food delivery unit
of the world’s largest ride-hailing company expecting the country to drive its global growth and
outpace other markets in attracting investment. Since Uber launched its food-delivery business in
India a year and half ago, its growth here has been “incredible”, Droege said. It has grown seven
fold in order volume in the past six months in India where it adds over 4,500 delivery partners
each week, he said. Globally, it has 400,000 active delivery partners
Uber CEO Dara Khosrowshahi had said in May that the food-delivery business
was growing at over 200 per cent a year and had a gross booking run rate of more than $6 billion
— which means as per the rate of booking in the first quarter, its gross booking value would be
$6 billion for the year.
UberEats contributed about 13 per cent of Uber’s overall gross bookings in the
first quarter of 2018 from 10 per cent during the same period last year.(Economoics Times)
PROBLEM STATEMENT
The main point of developing this system is to help the customers through
online medium to connect with different restaurants. This project is being developed because
customers were often switching the food aggregators due to various factors, some of them are
delivery time, packaging, offers and discounts.
This project will help to find out which factor is most responsible for frequent
switching between food aggregators and help in providing solutions to these problems.
OBJECTIVES OF THE STUDY
The main objective of this research is to find out, what are the factors which are
affecting consumer’s satisfaction in terms of online food delivery.
PURPOSE: This report focuses on the factors that are responsible for the growing popularity of
online booking and ordering of food in India, expectations of the users and their satisfaction
levels with the popular apps such as Foodpanda, Swiggy, and Zomato, UberEats etc.
To find out which is the most important factor which affects most on customer satisfaction when
ordering food online through apps: -
1. DELIVERY TIME
2. PACKAGING
3. DISCOUNTS AND OFFERS
HYPOTHESIS
1. H0- Customer satisfaction does not depends upon delivery time taken by food aggregators.
2. H0- Customer satisfaction does not depends upon packaging of food provided by food
aggregators.
3. H0- Customer satisfaction does not depends upon discount &offers provided by food
aggregators.
H1- Customer satisfaction depends upon discounts &offers provided by food aggregators.
LITERATURE REVIEW
A research on the changing market for food delivery (Carsten Hirschberg,
2016) indicates that online 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.
Bhavna Singh (2015) said that Foodpanda has been present in the Indian
market since May 2012. Foodpanda’s 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.
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 and expected growth. The online food ordering business in India is
in its nascent stage, but is witnessing exponential growth. The organized 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.
Even with these high growth prospects some startups are struggling to
stay afloat in the market. 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 faster
than you would order and receive pizza.(TOI,Jan 28,2018)
According to a report by Live Mint, a food technology survey was conducted
by Red Seer Management Consulting Pvt. Ltd. According to the Red Seer Food Tech Leadership
Index (FLI), Swiggy tops in trust and customer satisfaction in food delivery services. Swiggy
was given 96 as a score and Zomato stands second with 82 points out of 100. This survey was for
the period of October to December 2018. Bagging the third and fourth position with 73 and 70
points respectively were Uber Eats and Food panda. The survey conducted by Red Seer was over
20 parameters divided amongst three important categories. One was the most trusted brand,
second was the one with maximum value for money and third was the best buying experience.
Assessing the leading food delivery services, scores based on these parameters were given to
each of them. Red Seer has surveyed more than 900 customers from cities like Delhi, Mumbai,
Bengaluru, Hyderabad, Pune, Chennai and Kolkata to come to this conclusion. Another
important thing revealed by the survey was that, with respect to value for money, all companies
have almost the same score. According to the article published on live mint, trust is shown as the
most vital factor in terms of building a customer’s relation in online food delivery services. In
which swiggy tops in terms of trust .But the sample size taken here is very less i.e. 900, so this
survey cannot stand true as it is an industry of Rs.50,000 crore.(livemint.com)
1. DISCOUNT
Discount
Strongly
disagree Disagree Neutral Agree Strongly agree Total
Satisfaction Strongly disagree 3 5 5 21 36 70
Disagree 2 1 2 6 5 16
Neutral 1 1 12 11 10 35
Agree 10 3 3 37 47 100
Strongly agree 4 3 2 5 35 49
Total 20 13 24 80 133 270
CHI-SQUARE TESTS
Asymp. Sig.
Value Df (2-sided)
Pearson chi-square 54.048a 16 0.0000051
Likelihood ratio 47.335 16 .000
Linear-by-linear .282 1 .595
association
N of valid cases 270
A. 12 cells (48.0%) have expected count less than 5. The
minimum expected count is .77.
Delivery time
Strongly
disagree Disagree Neutral Agree Strongly agree Total
Satisfaction Strongly disagree 0 5 10 27 28 70
Disagree 2 1 3 3 7 16
Neutral 4 0 6 11 14 35
Agree 8 5 3 34 50 100
Strongly agree 4 2 2 13 28 49
Total 18 13 24 88 127 270
CHI-SQUARE TESTS
Asymp. Sig.
Value Df (2-sided)
a
Pearson chi-square 26.339 16 .049
Likelihood ratio 32.647 16 .008
Linear-by-linear .384 1 .535
association
N of valid cases 270
A. 12 cells (48.0%) have expected count less than 5. The
minimum expected count is .77.
Cases
Valid Missing Total
N Percent N Percent N Percent
Satisfaction * 270 99.6% 1 .4% 271 100.0%
packaging
Packaging
Strongly
disagree Disagree Neutral Agree Strongly agree Total
Satisfaction Strongly disagree 0 3 12 28 27 70
Disagree 1 1 4 5 5 16
Neutral 2 1 8 13 11 35
Agree 5 7 18 33 37 100
Strongly agree 2 4 11 13 19 49
Total 10 16 53 92 99 270
CHI-SQUARE TESTS
Asymp. Sig.
Value Df (2-sided)
a
Pearson chi-square 8.417 16 .935
Likelihood ratio 10.996 16 .810
Linear-by-linear 1.691 1 .193
association
N of valid cases 270
A. 10 cells (40.0%) have expected count less than 5. The
minimum expected count is .59.
Strongly Strongly
disagree Disagree Neutral Agree agree
1 2 3 4 5 TOTAL
Discounts and
offers 4 5 19 76 132 236
Packaging 1 5 46 86 98 236
Faster
delivery 1 6 26 80 123 236
Multiple
payment
option 2 8 31 65 130 236
Garett
Rank position Rank value
1 13% 73
2 38% 57
3 63% 44
4 88% 28
The study found that 99% of the respondents were aware of online food delivery apps. It was
further found that 6 to 9 pm is the peak time for ordering food online, which is considered to be
the dinner time for all Indians. At this time online food aggregators find it difficult to deliver
food on time. So after the collection of data, chi-square test was conducted to analyze that the
factors are affecting the customer’s satisfaction or not.
It was found that delivery time and offers & discounts were the two factors that are affecting the
customer’s satisfaction. Than Garrett ranking was done to find out that which is the most
important factor among the selected factors. Offers & discounts was ranked 1st among various
factors.
So at last it can be concluded that demand of customers can be shifted by providing better
discount and offers on non-peak time.
REFERENCES
1. (Source-www.livemint.com published on 17th Jan 2019).
2. (Source-http://www.forbesindia.com/article/leaderboard/swiggy-launches-sustainable-
food-packaging-marketplace/)
3. (Source-https://www.hindustantimes.com/delhi-news/food-app-in-a-pickle-netizens-
grossed-out/story)
4. Source:(//economictimes.indiatimes.com/articleshow/67447097.cms?Utm_source=conten
tofinterest&utm_medium=text&utm_campaign=cppst)
5. Http://www.indianjournalofmanagement.com/index.php/pijom/article/view/119401/0
6. (economictimes.indiatimes.com/articleshow/66384076.cms?utm_source=contentofinteres
t&utm_medium=text&utm_campaign=cppst)