Online Food Ordering 1

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 numbers 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.

With the entire boom in digital industry across the globe, it’s had its impact
on the Indian economy too. 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.

Online food ordering Services are websites that feature interactive menu’s
allowing customers to place orders with local restaurants and food
cooperatives. Much like ordering consumer goods online, many of these
allow customers to keep accounts with them in order to make frequent
ordering convenient. A customer will search for a favourite restaurant,
choose from available items, and choose delivery or pick-up. Payment can
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be amongst others by credit card or cash, with the restaurant returning a

percentage to the online food company.

The first restaurants to adopt online food ordering services were corporate
franchises such as Domino’s and Papa John’s. Online food ordering could
be called the response of the internet to the desire for delivery food. It is a
growing trend especially in urban area students and on college campuses that
allows students to order from different restaurants, by use of their internet
connection.

There are several ways in which online food ordering from a restaurant may
occur. A restaurant can have its website with easy features for placing an
order for pick up or delivery. Some add a third option of being able to make
reservation. Instead of calling for a delivery, people just access the internet
to the restaurant site and make their order.

Food diversity in India is an implicit characteristic of India’s diversified

culture consisting of different regions and states within. However, with
times due to increasing awareness and influence of western culture, there is a
slight shift in food consumption patterns especially among urban students. It
started with eating outside and moved on to accepting a wide variety of
delicacies from world-over. Liberalization of the Indian economy in the
early 1990s and the subsequent entry of new players set a significant change
in lifestyles and the food tastes of Indians.
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PROBLEM OF THE STUDY:

In universities, the most common phenomenon is that owing to variable

timetable and study pressure during the examination process, it could be
more difficult for students to decide when and where to have their lunch and
because of the long queues that will be in the restaurant during dinner hours
or snack time, one for purchasing tickets and one for collecting food. For
example, there is just a limit time like 1hour in the lunch time that students
could not finish their lunch on time or they just want to have different dinner
served daily in their hostels. Thus, many online foods delivering requirement
fulfill the requirement of students able to order their food from the comfort
of their houses, classrooms, hostels and anywhere outside the school campus
without queuing.

Also, Some of the students who live in hostels face the problem where they
are not allowed to get out of hostels at night and no source is available in
hostels to fulfill their hunger in hostels either. So the Online Food ordering
systems which serve at nights come in picture to fulfill the requirements of
students.
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ONLINE FOOD ORDERING INDUSTRY

E-commerce in India is expected to grow from US $2.9 billion in 2013 to a

mammoth US $100 billion by 2020, making it the fastest growing e-commerce
market in the world! E-commerce is also witnessing a spurt in online food &
restaurant service companies, which is expected to reach $2.7 billion by 2019.

 India’s online food ordering sector saw a strong growth rate in the number of
daily orders, growing consistently at 15 per cent on a quarterly basis from
January to September last year.
 Revenue in the Online Food Delivery segment amounts to US$7,011m in
2018.
 Revenue is expected to show an annual growth rate (CAGR 2018-2023) of
10.5%, resulting in a market volume of US$11,569m by 2023.
 The market's largest segment is Restaurant-to-Consumer Delivery with a
market volume of US$6,527m in 2018.
 In global comparison, most revenue is generated in China (US$32,908m in
2018).

DEMAND DRIVERS:

 Encouraging Demographics Promising Income and Consumption Levels

 Favourable Lifestyle Changes
 Rising Number of Working Women
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SUPPLY DRIVERS:
 Expanding Variety of Cuisines
 Upgrading of Retail Formats
 Emerging of Logistics Providers
 Growing of Delivery - dedicated Formats
 Extension to Delivery Services in Existing Restaurants
 New Trends in the Delivery Sector
 Delivery-dedicated Websites
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KEY PLAYERS IN ONLINE FOOD ORDERING

INDUSTRY

 ZOMATO
 SWIGGY
 UBER EATS
 NEARBUY
 FOODPANDA
 DOMINO’S
 PIZZA HUT
 DINE-OUT
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OBJECTIVE OF THE STUDY

Primary Objective of this study:

To determine student’s perceptions of online food ordering in Chandigarh.

Secondary objective of this study were to identify:

 To know about the student preference level associated with different online
food ordering platforms.
 To find out the students satisfaction towards the various online food ordering
platforms.
 Factors that influence decision-making in purchasing food online.
 To find out how often they order
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RESEARCH METHODOLOGY

Research can be defined as the systematic and objective process of gathering,

recording and analysing data for aid in making business decisions. The basic task
of research is to generate accurate information for use in decision making.

Research Process for the Study of preference of online food ordering among
students.
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SAMPLING METHODOLOGY:

Sample Size –
150 respondents form different department of different Universities.

Sample Unit-
Students of Graduation and the Post Graduation of different Colleges and
Universities of Chandigarh region.

Sampling Area –
Panjab University

Sampling Technique –
Study is descriptive and quantitative in nature so Random Sampling technique is
used for this study from the population of more than 2000 students of both
universities from which all the respondents have equal chance to get included.

RESEARCH DESIGN: -

 Will visit the students across University & will gather the information
required as per the questionnaire.
 Some Questionnaire will be filled by students online as the link of
questionnaire will be send to them.
 The research design is probability research design and is descriptive research
which will be quantitative in nature.
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DATA COLLECTION:

• Primary data has been used by me in the form of Questionnaire & Observation,
which are the two basic methods of collecting primary data, which suffices all
research objectives.

• Secondary data sources like catalogue of the company, product range book of
the company & various internet sites.

HYPOTHESIS FORMULATION AND SIGNIFICANCE LEVEL

The Null Hypothesis is:

H0 = Students prefer Online Food Ordering most of the time.
Alternative Hypothesis is:
H1 = Students do not prefer Online Food Ordering among students.
The significance level selected is 0.01 i.e. 1 %
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Review of Literature:
The research on student’s perception on online food ordering and other topics in
the Indian context are limited as the online food ordering services has entered into
Indian market only a few years back. The literature reviewed relates to the studies
conducted outside India where online food ordering is a big hit. As taken the case
that online food ordering has just entered the Indian market and it is still on its way
to being a big hit.
The study found that the emergence of online food ordering services is high.
Study explains that perceptions toward online shopping and intention to shop
online are not only affected by its nature of ease in usefulness and enjoyment, but
also by exogenous elements like consumer traits, situational factors, product
characteristics, previous online shopping experiences, and trust in online shopping.

Key Success Factors of Online Food Ordering Services:

An Empirical Study Reveals that online food ordering companies have to give
attention on the quality of information, Mobile Application and website design,
security and privacy for payment systems towards their customers in order to
provide them full satisfaction experience. Customer buying decision process using
an online platform for online food ordering in Thailand - In this study it shows that
the online platform has drastically changed the food delivery service industry. It
has also helped to improve the customer experience with traditional food delivery
service companies, such as major fast food restaurant chains, thereby impacting the
consumer perception toward the food delivery service industry as a whole.
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Results and Conclusions:

1) How often do you order food online?
According to the survey, out of 97 respondents, the majority of people with
28.9% respondents prefer to order weekly, while the 26.8% of respondents
chose thrice a week and Daily with 15.5% and finally, 27.8% of them chose
rarely.

2)

According to the survey, out of 97 respondents - 33% of the respondents prefer

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Uber Eats, 41.2% prefer Zomato followed by Swiggy with share of 19.6% and
then Foodpanda with very less preference by respondents of 15.9% and finally the
4.7% of them responded that they prefer other company.
3)

Out of 97 respondents, the most was given to More restaurant options available:
25.8%,20.6% was given to speed of delivery, 18.6% was given to on-time
delivery,17.5% was given to Price constraints followed by convenience of placing
their order with the least preference.
4)
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According to the survey conducted, perfect on-time delivery is provided by

Zomato and least is provided by swiggy followed by food panda.

5)

Talking about Offers and Promotions, 44.3% of respondents said that Uber eats has
the best offers and promotions, Closely followed by the Zomato with 37.1% of
respondents, 16.5% of them chose Swiggy while 12.7% of them chose Foodpanda
and remaining 3.2% chose other.
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6)

In this study, while choosing the best quality services provided by the company,
out of 97 respondents – 43.3% of respondents chose Zomato, 34% chose Uber
Eats, 18.6% chose Swiggy followed by 4.3% respondents who chose Foodpanda .

7)
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In this study, 60.4% of the respondents said they order food online at their dinner
meal and percentage decreases to 21.9% of respondent who preferred to order food
online for their snacks followed by lunch for 12.5% of respondents and rest of the
respondents preferred for breakfast with the least share.

CONCLUSION:
The consumer’s perception on online food ordering varies from individual to
individual and the perception is limited to a certain extent with the availability of
the proper connectivity and the exposure to the online food services. The
perception of the consumer varies according to various similarities and difference
based on their personal opinions.
The study highlights the fact that youngsters are mostly poised to use online food
ordering services. The study also reveals that the price of the products, discounts
and special offers have the most influencing factor on online food ordering. The
second most influencing factor is the convenience; the next most influencing factor
is on-time delivery.
The study highlights that respondents often prefer to order on weekly basis, the
type of meals which were mainly preferred to order was the Dinner followed by
Snacks. The study also revealed that a major proportion of respondents uses either
Zomato or Uber Eats to order their food online. It was also observed that a less
percentage of respondents were inclined towards the use of Swiggy and Food
Panda.
In a nutshell, through this study, it is found that majority of students of Chandigarh
region are well aware of the online food ordering and mostly all of them have used
online food ordering services which indicates the growing popularity of the online
food ordering within the youngsters. Transformation in the trends of food ordering
is occurring because of the changing lifestyle of the consumers in India and
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expansion in online activity in sector including online food ordering.

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