e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]

A DESCRIPTIVE ANALYSIS ON SUSTAINABLE BUSINESS STRATEGY OF

ONLINE FOOD SERVICE INDUSTRY
Dsouza Prima Frederick*1, Sachin K. Parappagoudar*2
*1Research Scholar, College of Management & Commerce, Srinivas University,
Mangalore- 575001, India
Orcid ID: 0000-0003-2568-5619
*2Research Professor, College of Management & Commerce, Srinivas University, Mangalore, India
Orcid ID: 0000-0003-4190-3882
ABSTRACT
Food delivery services are now one of the most rapidly growing sectors of digital commerce. The scope of an
app between the end-user and the distributor has resulted in the most significant difference between
conventional and digital food ordering. The study uses secondary sources of data to analyze the external factors
influencing the business model of the online food delivery industry. Porter’s Five Force industry analysis model
and PESTLE framework is been used in the study with optimistic managerial implications. The analysis shows
online food industry has good growth opportunities but to sustain itself in the market, they require to adapt
more expansion or competitive strategies to widen their operation capabilities with an increasing customer
base. Implications of Online Food Service Industry are been discussed.
Keywords: Online food delivery, Porter’s Five Force Model, PESTLE Framework, Competitive Strategies.
I. INTRODUCTION
With the technological development, the commercial service of delivering food items from restaurants to
doorsteps of customers is experiencing a sea change as many online channels allow food aggregators to absorb
the markets and customers [1]. Restaurants provide electronic ordering via their online sites or mobile
platforms serving different restaurants and these restaurants receive orders by text messages, further, the
credit point and discount coupon are given to the sales level [2]. Customers are ravenous for such offerings of
the online food delivery industry which are discovering to their delight. The majority of the food eaters have
shown their proclivity to have food served at the touch of a button instead of waste long stretches swirling ladle
in the cup, causing industry growth rates to accelerate.
II. OBJECTIVES OF THE STUDY
The study has the following objectives:
(1) To identify the various environmental factors affecting the online food industry.
(2) To analyze the implication of Porter’s Five Force Model.
(2) To analyze the PESTLE Framework analysis.
(3) To formulate a line of action in areas where there is potential for enhancement of overall operational
efficiency.
III. RESEARCH METHODOLOGY
The study is descriptive. Current literature was systematically analyzed by the use of Porter’s Five Force Model
and PESTLE Framework, to comprehend the advances in the Online Food Delivery Industry. To outline and
describe various variables that influence the sustainability of food aggregators in the present market, strategies
and future demand were explored through the access of secondary data. Data for the study were collected from
published sources from sales reports from the official websites of different firms, survey reports, journal
research papers, reports issued by different marketing research agencies, and government agencies.
IV. ONLINE FOOD DELIVERY SERVICES IN INDIA
In 2019, the scale of India's online food distribution market reached US$ 2.9 billion and at present, it has made
up to a value of US$ 4.35 Billion in 2020 which indicates a good flourish in this industry. Ordering food through
an online platform refers to the method of using an application on mobiles or accessing a website to order food.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[545]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
These online platforms allow their customers to build a regular and hassle-free experience to get the food
items. These apps or websites offer various options for making the payments such as cash on delivery,
debit/credit card, net banking, and mobile wallets, etc. Customers use the online ordering app for convenience,
faster delivery, order, reliability, and ease of use, as per the experience of food operators delivering premium
online service and the operator's understanding of consumer taste and tastes after estimation [3].
In response to the high accessibility of the internet, facilities have resulted in a rapid increase in smartphone
sales. This, in combination with the increasing working population and inflating revenue levels, is driving
India's growth in this industry. Currently, many suppliers of online food are available in the market but they are
mainly concentrated in cities, with the three largest markets served by Bangalore, Delhi, and Mumbai. Vendors
are now also targeting smaller cities because they have strong growth potential. In addition to the growing
trend, these vendors offer a home delivery mechanism which provides ease, and inexpensive delivery choice to
the customers. During COVID-19, some of the chief delivery aggregators also launched contactless delivery
systems, such as McDonald's, Swiggy, Zomato, and Domino's Pizza Inc. [4].
Restaurants spend huge money in designing and furnishing to create a good pleasing ambiance for the
customers. Small corporations are constantly outsourcing non-core economic activities, such as food
distribution, which was formerly restricted to big corporations. As a result, an increasing number of
commercial owners and marketers are becoming aware of the significance of outsourcing food distribution
services and are looking into it [5]. Online food delivery system helps to reduce this fixed cost as the food is
reached to the customer's doorstep which does not require any investments on fixed cost. Moreover, during
busy hours if customers visit restaurants to dine, take more time to finish their meals then the restaurants have
to forego a lot of customers. The food distribution sector has phenomenal success in the last four to five years.
And this segment's income is rising year after year. As a result, young entrepreneurs are putting their money
into the food distribution industry. The below chart shows the revenue in the online food delivery industry.
Chart 1: Exhibits revenue in the Online Food Delivery Industry

As per statistics, in 2021, the exponentially expanding online food distribution market is expected to hit
US$151,526. The online food distribution sector is forecast to expand at a 6.4 percent annual pace (CAGR 2021–
2024), resulting in a market volume of US$182,327 million by 2024 [6].
V. POTENTIAL PLAYERS IN ONLINE FOOD DELIVERY INDUSTRY
Online food ordering has become a popular business concept as people's fascination with digitization grows.
The conventional way of delivering food has been transformed by multi-restaurant food delivery apps. Below is
the table showing the list of companies in the online food delivery industry with their country of origin and
establishment year.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[546]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
Table-1: Exhibits the list of online food delivery companies
List of Companies Country of origin Year of establishment

Zomato Haryana, India 2008

UberEats San Francisco, California, U.S. 2014

FoodPanda Berlin, Germany 2012

Swiggy Bangalore, India 2014

Grubhub Chicago, Illinois, U.S. 2004

Deliveroo London, England, UK 2013

Domino’s Pizza Ypsilanti, Michigan, U.S. 1961

Just Eat London, England, UK 2001

DoorDash San Francisco, California, US 2013

Postmates San Francisco, California, US 2011

VI. PORTER’S FIVE FORCE ANALYSIS OF INDIAN FOOD DELIVERY BUSINESS

A business model is a set of concepts that generates a value proposition by accomplishing a long-term goal. By
defining an organization's position in the value chain, the business model describes how it generates profit. The
current challenge for organizations is identifying suitable business models that increase customer value and
income, as well as systematically analyzing the model [7]. Therefore, Porter's Five Forces model is used in the
study to analyze its competitive position. This theory was developed by Harvard's Michael Porter, who used
industrial organization economics principles to analyze five interacting factors that are important for a
company to become and stay competitive: Competitive rivalry, the threat of new entrants, threat of substitutes,
buyer bargaining power, and supplier bargaining power.

(1) Threat of new entrants

Competition increases with the increase of new entrants in the market. If more companies are commenced
offering a wide range of products then it may result in a threat to the existing online food suppliers in the
market. However, the quality of service, product differences, government policies, brand equity will define the
success of the new entrants. Currently, ten online food delivery aggregators are operating successfully in most
parts of the country.
The possibility of a new entrant is low because Zomato and Swiggy are the main players in the industry, with a
combined market share of 70–80 percent. Swiggy was the industry spearhead in terms of consumer numbers.
However, Swiggy is facing stiff competition owing to Zomato's takeover of Uber Eats. In comparison to Swiggy
and Zomato, Ola with Food Panda has decelerated on funds [8].

Sustainable Strategy:
The Strategies that may be used to stay competitive to combat the new entrants are as follows:
(1) Since the threat of new entrants is limited for established players, companies in this industry may pursue an
expansion strategy to promote market share by expanding deeper into the Asian economy.
(2) They can introduce organic food to promote more turnover.
(3) The strategy must expand its partnerships with as many restaurants and cafes as possible.
(4) Private brands can manage inorganic development through their cloud kitchens. This concept not only
generates inorganic growth but also contributes to the bottom line (profit margins) [9]. Cloud kitchens may be
set up in far-flung cities to provide access to healthy food catering zones. This does not necessarily entail a close
vicinity venue, nor does it necessitate restaurant repair costs or employee responsibility outside the kitchen
apprentices and assistants.
(5) Food aggregators will also have their Brands, which can be conveniently exhibited on their e-platforms and
display posters, owing to this limited operations model. For instance, Zomato has proven to be a broad, user-

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[547]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
friendly portal for getting food across multiple regions, with well-organized content about hotels, nightclubs,
cafes, and restaurants, and haute cuisine that is popular among millennials and foodies [10].
(6) Menu choices may be created based on information about regional food tastes.
(7) With fewer opportunities for potential competitors, the primary emphasis of corporate strategies should be
on maintaining market share over the viable competitor.
(8) Customer and customer satisfaction are a central component of the strategy. Data on consumer preferences
and instances for buying food from outside outlets could be used to create business models [11].

(2) Threat of substitution

The nature of the product determines there is a lot of substitution. Substitution becomes more likely when
identical goods are readily available. It is higher due to the widespread availability of related goods. The
possibility of substitution can be reduced by having a particular product with distinguishing characteristics.
This review allows you to work on product categories and features ahead of time. On these fronts,
differentiating goods from the competition will help to mitigate the challenge. There is more rate of risk of
substitution as many food delivery apps render similar services on the same network platform. Even though
many options are present at the same time, the customers can quickly move from one app to another. If a
particular customer surfs for ‘Pizza,' online, they can compare both platforms side by side to decide on serving
sizes, cost, requirements, and brands. As a result, switching between apps is a critical element of substitution.
Substitution risk is inversely related to loyalty towards the brand and negatively impacts its growth. In such a
situation, the brand ranking goes hand in hand with cash burns. Higher cash burns lead to higher biggest-
grossing, but sustainability remains a major challenge. Therefore, 'Promos' is the main motivation for searching
for alternative apps [12]. Food aggregators giving more discount rates are preferred by customers especially
for the few who are brand conscious hunt for different apps only to get the promos for their preferred brand.
This strategy was adopted by many aggregators but it has further led to more substitution rates.
Simultaneously, few popular aggregators do not share their customer details with the restauranteurs and these
aggregators establish their relationship with customers therefore it enhances their database of consumer
dining habits and also expands its enterprise, which restaurants may see as a contradiction [13].

Sustainable Strategy:
The strategy to sustain the threat of substitution is as follows:
(1) Creating a product or service with distinct characteristics will discourage the customer from switching to
other brands. For instance, Swiggy has established a differentiator in the form of a live delivery tracking
program based on routing algorithms. Their logistics personnel only handle one order at a time, ensuring that
customers get safe and timely orders [14].
(2) Programs to Reward Loyalty should be introduced to the customers who repeatedly use the services. This
concept can help to retain the customers at large.
(3) Campaigns to Promote awareness of the services offered should be designed uniquely. Customers must be
made aware of the different products and discounts offered or loyalty points.
(4) Relatedness with customers should be given a priority. It could be implemented by designing customer-
oriented policies.
(5) To maintain the ordering system's consistency, restaurants can coordinate with consultants to ensure that
the interface is available and works well reliably [15].

(3) Bargaining power of the Buyer

This aspect series from moderate to high. Bargaining power increases as the number of alternatives to the
consumer soars. Doorstep Service is the most motivating driver for customers, followed by Comfort and
Efficiency. When consumers earn some Rewards & Cashbacks, they are most driven, followed by Region [16].
Promotional deals, discounted rates, and a wide range of products provide the customer with many
preferences. When it comes to the threat of substitution in online food, the accessibility of comparable items is
more important. Similarly, it enhances the customer's bargaining power. Customers are often given more and

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[548]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
more deals by businesses to generate a larger number of customers. However, much of the time, once the deal
expires, certain customers leave. This demonstrates the strength of the bargaining position.

Sustainable Strategy:
Higher client bargaining power necessitates planning to have less impact on the upper management and
bottom-line. The strategies that may be used to prevent that from happening are as follows.
(1) Organizations must strive to acquire even more potential customers regularly.
(2) Customers' bargaining power is reduced as the number of customers continues to grow as such, to address
this problem, the product offering ought to be exclusive in terms of quality service and offers.
(3) Premium subscriptions will aid in the retention of market influence for star players. At an annual cost of INR
1800, Zomato is promoting gold membership to its customers, which includes free shipping and special
promotions [17]. This subscription not only provides discounts on orders but also on dining at Zomato's
affiliate outlets.
(4) With lower operating expenses, a food aggregator can deliver cheaper prices. Models such as cloud kitchens
may have these benefits [18]. This is an alternative that prevents restaurant upkeep costs and allows food to be
delivered at a reduced amount. Providing these cost savings to the consumer will enable you to achieve a
competitive advantage over rivals.
(5) In rural areas, the scope is must be widened. When more technical opportunities open up, the company
must take advantage of them by vigorous ads [19].
(6) The inability of the consumer to review products online poses a danger to the service. Customers are
concerned that an open network on the Internet would cause their data to be hacked, resulting in security risks.
Online food aggregators should ensure privacy and protection towards payment remitted by online
transactions [20].

(4) Bargaining power of supplier:

This characteristic also ranges from moderate to high. Suppliers have the upper hand in most cases when it
comes to raw materials. Annual contracts are essential to ensure the uninterrupted supply of expected output
[21]. The increase in supplier bargaining power could contribute to higher operating costs. Food galleys, bars,
cafes, delicatessens, and fast-food restaurants are examples of vendors in the online food delivery business.
When it comes to enrolling providers, standardization is a must. Since India's geography is so diverse, it's
critical to consider supply chain issues when evaluating the bargaining power of the supplier. Owing to the
smaller volume needs, direct shipments face logistical difficulties in reaching rural areas. Due to multiple
handling and long transit times, shipping goods in portion bundles may have an impact on the quality of the
product. Spillages and damages also eat into margins, impacting manufacturers' overall compliance. In the
regions with low-density logistics, the cost of logistics often increases. When a provider has a national deal with
an aggregator, the logistical factor must be taken into account when determining the contract price [22]. It
becomes much more essential in the case of low-shelf-life goods, as an uptick in shipping days decreases the
product's shelf life. Suppliers also arrange destination prices, making the aggregator's job harder. Paying higher
raw material costs in some places for a dish that is priced similarly around the world started to detract from the
overall business model. Geographic location, the consumer wants the same flavor of a specific food commodity.
While obtaining raw materials is easier in Metropolitan areas, it may be challenging in other cities. Owing to
supply chain challenges, suppliers' bargaining power is also considered moderate. With the proliferation of
many private logistic networks, logistics and supply platforms can now be considered capable of satisfying
customer expectations for speed and timeliness [23]. Besides, large and small restaurants both start whining
that they are being propelled to embrace terms and conditions that benefit the aggregators. This entails funding
a substantial portion of the discounts solely by the aggregators' service delivery, a significant decrease in meal
planning time, and a complete lack of clarity on how in-app reviews work [24].

Sustainable Strategy:
Organizations should use the following techniques to reduce supplier bargaining power:
(1) Establishing a product range that includes several vendors.
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[549]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
(2) Designating at least two vendors to prevent reliance and a sense of powerlessness.
(3) Fixed-price annual arrangements with suppliers can help mitigate and control operating expenses.
(4) To mitigate mistakes in unusual price hikes and supply, timely analysis of the price is critical.
(5) Choose vendors which have a professional sales force to help with pricing agreements, distribution issues,
and cost-cutting, and new product recommendations.
(6) Establish inventory standards in a way that allows you to plan ahead of time for supplies from unreliable
sources.

(5) Competitive Rivalry:

Global competition has increased in magnitude. In each of the food categories, the rising potential of Indian
markets draws many domestic and foreign participants. In India, the e-commerce industry is booming. For the
last three years, the online food distribution industry is growing by more than 100 percent [25]. Zomato
purchased Uber Eats to gain a leg up on the competition. Zomato made 206 million dollars in revenue in FY19.
However, they managed to spend $500 million on marketing. “We are losing Rs.25 for every delivery,” they told
reporters [26]. All of this is aimed towards winning market share from Swiggy, the company's primary
opponent. Customer satisfaction must be a primary emphasis. If online customers are dissatisfied, they quickly
move to competitors because the alternatives are numerous and switching costs are low. As a result, customer
engagement is a problem for all companies operating online, necessitating more commitment and solutions to
have higher levels of customer loyalty [27].

Sustainable Strategy:
Economic performance is suffering at the hands of the increasing rivalry. It depletes a significant amount of an
organization's resources in the fight for market dominance. The below are few strategies for dealing with
competitors.
1. Recognizing and merging disparities in customer perception by creating positive awareness about the brand.
2. Online food delivery service providers must make sure that the food delivers in a reasonable amount of time,
and the lead time can be as minimal as possible to prevent customers from using alternative delivery methods
[28].
3. Creating a varied offering portion to provide distinction and gain a competitive advantage through
differentiation strategy. In comparison to others, Zomato is proactive in its promotions as it incorporates
guerrilla marketing [29].
4. The top priority should be innovation. Shoppers are particularly attracted to innovation.
5. Enhancing the quality of service provided to customers by offering many promos, discounts, etc.
VII. PESTLE ANALYSIS FRAMEWORK
Companies use PESTLE analysis to monitor the world in which they work or to schedule the introduction of a
new project/product/service, etc. The system offers the view of an entire ecosystem from a range of viewpoints
that one may want to review and keep track of when considering a particular concept or strategy. Each of the
factors varies depending on the sector, but the PESTLE analysis is needed for any strategy a business wishes to
develop because it is a much more detailed version of the SWOT analysis [30]. It is used for a qualitative report
on a company's or industry's external environmental analysis. Such models/techniques make it simple and
comprehensive to define various factors/issues that affect a person's individual or an organization's system, as
well as offer areas of improvement [31].

(1) Political
Every food industry experiences a wide regulatory structure from the government around the world. This
includes the hygiene of industrial scullery and kitchens, the criteria for storage and conveying products, and
also the specifications for staff. This makes the food industry, without a doubt, one of the most closely
controlled industries of all. On the positive side, this means that customers are not subjected to low-quality
nutrition, but the regulatory complexities are certainly eliminated from the food sector margins. In addition to
the regulations, online food aggregators also need to follows certain terms and conditions in respect to a
background check of the workforce, proper training in delivering the food within the prescribed limits.
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[550]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
(2) Economic
According to the Boston Consulting Company, India's food sector was worth about 23 trillion rupees in 2015,
and it is projected to cross 42 lakh crores by 2020 [32]. This is consequential due to an increase in population.
Amidst the growing population, the majority of them belong to the young crowd which demands more fast food
in their appetite leading to the growth of this industry. The young generation is mostly placed in information
technology, tourism, finance sector, and hospitality which has increased their standard of living and made them
wealthier. Many places witness some changes in the social pattern which is again responsible for the boom in
this industry. This has a positive impact on the growth of restaurateurs, distributors of food, and even the
workforce of these online food delivery industries.

In addition to population growth and employment opportunities, the disposable income of citizens is growing
rapidly resulting in a better standard of living. Moreover, the laborers are earning more money, and overall, in
all sectors, the cost of recruiting employees is growing which has triggered not only increasing demand for jobs
but also higher and higher government minimum wage standards. The result of growing labor costs is clear, as
in many other businesses: less margin for the owner of the company, and therefore less benefit. During COVID-
19 many food distributors were running under loss due to non-operations of the restaurant businesses. As the
market conditions improved, with the upliftment of lockdown, slowly restaurants were operating with
contactless delivery as per government regulations which boosted some opportunities for food aggregators.
Post-COVID – 19 many restaurants got listed as member participants to offer food online as demands from
more people to dine in with family in caution to safety issues. This has led to a boom in the online food industry.
In addition to this, the companies in these industries would need to raise additional money to expand globally.
Since the financial system is different, it takes time to set up bank accounts and conduct transactions [33].

(3) Social
With the changes in lifestyle and diet, people are aware that there exists a relationship between diet and our
bodies. There is a direct relationship between the food we consume and one’s well-being. As a result, many
people are searching for healthy ways to source their bodies. The failure to view or handle the product
physically, as well as concerns regarding the mechanisms of terms and conditions of food supply and thereof,
refunds, and the distribution of credit card number sharing over the Internet, are all seen as shortcomings [34].
This does not inherently have a positive or negative impact on the food industry, but it ensures that to remain
competitive, food industry players in the market will have to change. Quick food firms, for instance, would
probably have to switch away from conventional, high-calorie fried foods to healthier alternatives such as
salads. Moreover, in connection to a higher standard of living, some lifestyle changes have been noticed
especially in urban India with dual family earners who find difficulty on managing quality time for spending
with family members leading to a drastic shift of food habits giving a rising demand for quick access to food
items at reasonable prices, especially cooked food products. Currently, in many cities, more women have
become earning supporters. Therefore, much of the women’s productive hour is spent on traveling and at jobs.
As a result, working females have less time to prepare proper food at home. Thus, these women usually spent a
substantial portion of their discretionary income to have food ordered from out to dine in with family members.
Online food delivery services can reduce home cooking, which may have an impact on customers' balanced diet
quality. As a consequence, it's difficult to maintain customers [35].

(4) Technology
As a result of rising consumer access internet and smartphones, many players are penetrating the Indian food
market sector. The customer has a hassle-free experience when the whole process is made easy. Paper wasting
can be eliminated while dining at the restaurant because it is done on a tablet and no paperwork is needed [36].
The performance of any business, as a general rule, lies in certain critical variables. The choice of advanced
technology and the company's future vision are most critical to conduct a comprehensive market analysis.
Advanced technology interface has led to advancing market share, increase in potential profits, and structuring
competitive advantage. In this digital era, Information and Communication Technology has been proven to be a
critical tool to gain and sustain a competitive advantage over other troupes in the industry. Indian customers
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[551]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
find it very easy and convenient to operate digital applications for browsing online shopping sites, as such they
expect the same experience with online food ordering[37]. Food providers need to analyze the issues on
operations of digital apps and focus on solving the difficulties faced by online users. They need to structure a
platform that offers a 'user appealing experience' that eventually improves the level of satisfaction of the
customer. Food aggregators must use low-cost technology and find new methods and designs to create sites
that most appealing to the customers to increase their desire to order food online. Currently, the demand is to
create value for the customers. For instance, to produce more sales, Zomato is one of India's foremost food
aggregators which began offering a variety of goods and services, besides this, they too render services such as
Zomato Foundation, Zomato Book, and Zomato White which has made the revenue model more sustainable,
along with business consulting services.

(5) Legal
The food industry faces high expectations for safety problems. In each country, in particular, there are many
rules about how food should be transported, processed, and prepared, including guidelines on what
temperatures different types of food should reach, how to clean them, and so on. While this is still primarily a
political issue, if any of these laws are ever broken, it becomes a legal matter. As such, to avoid expensive
litigation, those in the food industry need to be exceedingly alert to ensure that they remain within the limits of
these regulations. Therefore, food aggregators must consider fulfilling all the conditions in respect to delivering
quality food and list only those restaurants that strictly adhere to government rules in food preparation. The
Internet's erratic existence, which is out of the control of its owners and users, poses a threat to the
environment. It raises a financial risk as well as privacy concerns [38]. Many online sites design food items
exaggerating their appearance and quality, if false information and description of the food is given to mislead
any customer, will lead to litigation charges.

(6) Environmental
There is a lot of social awareness regarding the health effects of any food we consume and how it affects the
environment. Some of the foodstuffs like red meat processing use more water and it releases a large carbon
footprint. Moreover, this meat processing farm setup requires a huge manufacturing plant. The effect of this is
that more and more people are transitioning to diets based on plants, and policymakers are increasingly taking
an interest. Again, for food producers, this is not inherently negative, but they will have to consider the long-
term effect of this change. Besides, packed foodstuff is delivered by use of plastic waste. Therefore, online food
aggregators must consider the demands of customers and insist the restaurant member cook healthy food and
go for eco-friendly packaging.
VIII. CONCLUSION
In India, one of the most common new trends in online food delivery. The average Indian's modern social
lifestyle pattern is substantial enough to stimulate the development of food-on-the-go and swift online delivery
platforms. The ever-increasing population especially in congested metro cities, longer travel times, ready-to-
eat, and less expensive alternative of getting food delivered to one's door are all driving factors for the growth
of this online food industry. Porter’s Five Force analysis and PESTLE analysis were used in the study to find
different strategies for sustainability. The study reflects that the online food delivery industry must introduce
new features by upgrading their apps and offer more promos or discounts to retain the existing customers and
also for increasing their customer base. However, the boom in this industry has increased the level of work
openings for youngsters in the sector and has raised the quality of living. India's GDP will rise as a result of
emerging trends in the online foodservice industry.
XI. REFERENCES
[1] Thamaraiselvan, N., Jayadevan, G. R., & Chandrasekar, K. S. (2019). Digital food delivery apps
revolutionizing food products marketing in India. International Journal of Recent Technology
and Engineering, 8(6), 662–665.
[2] T, Deepa., & P, Selvamani. (2018). Online Food Ordering System. Journal of Emerging
Technology and Innovative Research (JETIR), 5(12), 143–148.
[Link] @International Research Journal of Modernization in Engineering, Technology and Science
[552]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
[3] Kimes, S. E. (2011). Customer Perceptions of Electronic Food Ordering. Cornell Hospitality
Report, 11 (10)(10), 6–15.
[4] [Link] retrieved on 30-01-
2021.
[5] Sonfield, M. C. (2014). Outsourcing Strategies for Small Businesses: Issues, Theoretical Bases,
and Guidelines. Small Business Institute® Journal, 10(2), 35–43.
[6] [Link]
app-here-is-how-to-build-it-7069a2f3c51 retrieved on 07.03.2021.
[7] Aithal, P.S. (2016). Study on ABCD Analysis Technique for Business Models, business
strategies, Operating Concepts & Business Systems. International Journal in Management and
Social Science (IJMSS), 04(1), 98–115.
[8] [Link]
delivery-business-445d600b43b8 retrieved on 07.03.2021.
[9] [Link]
[Link] retrieved on 07.03.2021.
[10] Alagoz, S. M., & Hekimoglu, H. (2012). A Study on Tam: Analysis of Customer Attitudes in
Online Food Ordering System. Procedia - Social and Behavioral Sciences, 62(1), 1138–1143.
[11] [Link]
ai-to-improvecustomer-experience/ retrieved on 07.03.2021.
[12] [Link]
ubereats-reducediscounts-as-food-delivery-market-grows-
cold/articleshow/[Link]?from=mdr retrieved on 07.03.2021.
[13] [Link]
building-loyalty-rather-than-giving-discounts/[Link] retrieved on 08.03.2021.
[14] Bhotvawala, M. A., Bidichandani, N., Balihallimath, H., & Khond, M. P. (2016). Growth of food
tech: A comparative study of aggregator food delivery services in India. Proceedings of the
International Conference on Industrial Engineering and Operations Management, 140–149.
[15] See-Kwong, G., Soo-Ryue, N., Shiun-Yi, W., & Lily, C. (2017). Outsourcing to online food
delivery services: Perspective of F&B business owners. The Journal of Internet Banking and
Commerce, 22(2), 1-18.
[16] Das, J. (2018). Consumer Perception Towards “Online Food Ordering and Delivery Services”:
An Empirical Study. Journal of Management (JOM, 5(5), 155–163.
[17] [Link] retrieved on 07.03.2021.
[18] [Link]
delivery-platform53456 retrieved on 07.03.2021.
[19] Bhanot, T. (2020). Assessing the Emergence of Zomato as the Market Leader in the Online
Food Service Segment in India in Terms of Marketing and Consumer Perception. International
Journal of Science and Research, 9(7), 1729–1735.
[20] Bhatnagar, A., & Ghose, S. (2004). Segmenting consumers based on the benefits and risks of
Internet shopping. Journal of Business Research, 57(12), 1352-1360.
[21] Kucheriya, D., Saraswat, S., Puranik, S. B., & Kumar, V. (2020). Five Force Analysis of Indian
Food Delivery Business. International Journal of Pharmacy & Pharmaceutical Research, 17(4),
567–580.
[22] [Link]
[Link] retrieved on 07.03.2021.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[553]
Electronic copy available at: [Link]
 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
Volume:03/Issue:03/March-2021 Impact Factor- 5.354 [Link]
[23] Pinto, N. L. (2013). Understanding the Barriers To Online Shopping Among Indian Consumers.
IMPACT: International Journal of Research in Humanities, Arts and Literature (IMPACT:
IJRHAL), 1(3), 35–44.
[24] [Link] retrieved on
07.03.2021
[25] [Link]
294-mn-loss-forfy19-revenue-up-3-fold-to-usd-206-mn/articleshow/[Link]
retrieved on 07.03.2021.
[26] Sethu, H. S., & Saini, B. (2016). Customer Perception and Satisfaction on Ordering Food via
Internet , a Case on Foodzoned .Com, in Manipal. Seventh Asia-Pacific Conference on Global
Business, Economics, Finance and Social Sciences (AP16Malaysia Conference), 15(17), 1–13.
[27] Chai, L. T., & Yat, D. N. C. (2019). Online Food Delivery Services : Making Food Delivery the
New Normal. Journal of Marketing Advances and Practices, 1(1), 62–77.
[28] Madhuram, P. (2019). Original Research Paper Management Research Paper on Consumer
Behavior Towards Food. Indian Journal of Applied Research, 9(7), 22-24.
[29] Aithal, P. S., & Kumar, P. M. (2015). Applying SWOC Analysis to an Institution of Higher
Education. International Journal of Management, IT and Engineering, 5(7), 231–247.
[30] Aithal, P. S. (2017). Industry Analysis – The First Step in Business Management Scholarly
Research. International Journal of Case Studies in Business, IT and Education (IJCSBE), 2(1),
1–13.
[31] Raina, A., Rana, V. S., & Thakur, A. S. (2018). Popularity of Online Food Ordering and Delivery
Services- A Comparative Study between Zomato, Swiggy and Uber Eats in Ludhiana.
International Journal of Advanced in Management, Technology and Engineering, 8(1), 350–
355.
[32] Harshleen Kaur Sethi. (2017). Product and Brand Strategy of Zomato. International Journal of
Engineering Research and Technology, 6(6), 711–716.
[33] Levin, A. M., Levin, I. R., & Heath, C. E. (2003). Product Category Dependent Consumer
Preferences for Online and Offline Shopping Features and Their Influence on Multi-Channel
Retail Alliances. J. Electron. Commerce Res., 4(3), 85–93.
[34] Keeble, M., Adams, J., Sacks, G., Vanderlee, L., White, C. M., Hammond, D., & Burgoine, T.
(2020). Use of online food delivery services to order food prepared away-from-home and
associated sociodemographic characteristics: A cross-sectional, multi-country analysis.
International Journal of Environmental Research and Public Health, 17(14), 1–17.
[35] Bhargave, A., Jadhav, N., Joshi, A., Oke, P., & Lahane, S. R. (2013). Digital ordering system for
restaurants using Android. International journal of scientific and research publications, 3(4),
1-7
[36] Kapoor, A. P., & Vij, M. (2018). Technology at the dinner table: Ordering food online through
mobile apps. Journal of Retailing and Consumer Services, 43(1), 342–351.
[37] Zhou, L., Dai, L., & Zhang, D. (2007). Online shopping acceptance model-A critical survey of
consumer factors in online shopping. Journal of Electronic commerce research, 8(1), 41.

[Link] @International Research Journal of Modernization in Engineering, Technology and Science

[554]
Electronic copy available at: [Link]