International Journal for Research in Engineering Application & Management (IJREAM)

ISSN : 2454-9150 Vol-05, Issue-10, Jan 2020

Customers’ Behavior towards Online Food

Delivery Apps (FDAs) in Pune
1
Dr. Varsha Bihade, 2Prof. Saylee Karande
1
Director and Professor, 2Asst. Professor, 1,2D.Y.Patil Institute of Management Ambi, Talegoan,
Pune India.

Abstract - A desire for an easy and comfortable lifestyle and busy schedules has boosted the demand for online food
delivery applications. To spare the value time, avoid rush in restaurants and waiting time, many working consumers
are now using the food delivery apps wherein they get ample of choices for food. And also they can compare the prices.
The main focus of this research paper is to findout satisfaction level of customers using these applications with
reference to pune and PCMC area. Most used popular apps such as ZOMATO, UBER Eats, Swiggy and Food Panda
are taken into consideration during survey. The survey, based on the non-probability convenience sampling method
was conducted by using the structured questionnaire. The study reveals that customers are satisfied with few factors
and not with many and want to use this application because of ease in ordering the preferred food from favorite
restaurants with reasonable perfections.

Key words:-customers, online food delivery, satisfaction, mobile, internet

I. INTRODUCTION II. REVIEW OF LITERATURE

Technology in The Indian market is growing rapidly. One 1..Nick Johns (2002), the study examined the foodservice,
of the areas of technological growth is online food ordering an under-represented area in terms of four section,
apps. Things are becoming easier and faster because of discussing survey work, experimental studies, and
technological advancements. The customers ordering food investigations of consumer behavior in the foodservice
Online have been increasing rapidly in metro cities. In industry
order to match-up with customer needs, keeping in view the
2..Priyadharshini (2017) states that India has more
busy schedule of customers; online delivery apps are
individuals between the ages of 10 and 24, making it the
providing better facilities for the convenience of the
world's biggest youth populace. With increasing youngsters
customers. Online food ordering is a process of delivering
entering the workforce every day, development in the
food from local restaurants with the help of mobile and
economy, a rising female work power, and expanded
internet applications.
portability among shoppers, the customarily troublesome
Food delivery applications like Swiggy, Uber Eats, Zomato, Indian market has changed and is needing for a
and Food Panda provides innumerable varieties in different progressively assorted menu
cuisines from different nearby restaurants. The payment for
3..H.S. Sethu& bhavya saini “Customer Perception and
the food ordered and service provided either by credit card
Satisfaction on Ordering Food”. (2016): The study revealed
or cash, the restaurant returns a percentage of payment to
that the online food ordering services were used by 100
the online food company/firm
percent of the respondents, and the buying decisions were
Upon ordering food Online/through a mobile application, it largely influenced by the opinions of a friend’s family and
provides a tracking system, wherein customers can track discussions on online forums. The study reveals that good
their food deliveries at each step. These applications are word of mouth and experiences by existing customers and
user-friendly, convenient and trusted. online forums decide the success of web based food
shopping
Sources reveal that there has been a significant increase in
restaurants and food businesses since users opt more for 4..According to Deepinder Goyal, Zomato CEO and co-
take-away and home delivery. Most users favor online apps founder told TechCrunch that he expects to reach 10,000
as the food-on- click feature makes it possible to get food restaurants in India in a few months. “We have a sales team
delivered right at their door instantly. This, in a way, has of around 300 in India and 5,000-odd advertisers… these
boosted the restaurant business widely. partners know the volume we bring to them so it is quite
easy for us to launch this new service.”

102 | IJREAMV05I1058035 DOI : 10.35291/2454-9150.2020.0019 © 2020, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2454-9150 Vol-05, Issue-10, Jan 2020

5..J. Das(2018) has studied, analyzed and compared the top III. RESEARCH DESIGN
4 food delivery apps namely, Zomato, Swiggy, Foodpanda
and Ubereats. Providing better discounts” and “better The data has been collected from primary and secondary
choices of restaurants”, Zomato is positioned at the top by sources.
the customers. Zomato is also positioned at the top by the Primary data consists of information collected through a
customers while considering delivery on time and good structured questionnaire based on the satisfaction of
customer service. In both situations, customers ranked customers using food delivery apps in Pune and PCMC.
Ubereats at the last position
Secondary data consists of collecting information about
6..According to a January 28 report in The Times of India, various apps, the industry position, portals from the internet,
Rocket Internet-backed Foodpanda has not found a buyer journals, magazines etc.
even with a rock bottom price tag of $10-15 million. The
The survey was conducted in different areas of Pune and
company laid off 300 people in December 2015, about 15%
PCMC, and around 89 responses were d.. For all variables
of its workforce. In September 2015, TinyOwl had fired
used in the study, multi-item scales (5-point, Likerttype)
100 employees in its Mumbai and Pune offices. And in
ranging from strongly agree (5) to strongly disagree (1) are
October, Zomato sacked 300 workers
used.
The UK based Just Eat entered and exited the market faster
The population consist of the students, self-employed,
than you would order and receive pizza.
homemaker, private company employee and
7..Pathan et al. (2017) state that with the online food business owners of different areas in Pune
ordering system, a restaurant and mess menu online can be
The list (sampling frame) of on line buyers (> 3000 in
set up and the customers can easily place an order. Also
numbers) buying food items through FDAs in the Month of
with a food menu online, orders can be easily tracked, it
November 2019 was prepared by contacting FDAs offices
uphold customers’ database and develop the food delivery
in Pune.Out of these 3000 respondents, 89 respondents
service. The restaurants and mess can even modify the
were interviewed under the experience survey by using
online restaurant menu and upload images easily. Having a
convenience sampling technique. After interviewing 89
restaurant menu on the internet, potential customers can
respondents, it is realized that further interviews i.e. >89
easily access it and place an order at their convenience.
would be voicing of similar replies and hence it is costlier
Thus, an automated food ordering system is presented with
and time-consuming (and also wasteful too!) to examine an
features of feedback and wireless communication.
additional number of respondents. As a result the sample
8. Sainath Reddy K, Chaitanya KGK, Abhinav M and size is happened to be 89 respondents who are users of
Feiroz Khan TH(2016), the authors observed that the FDAs
system was successful in overcoming the problems by cost
For all variables used in the study, multi-item scales (5-
effective development in the field of on-line food service.
point, Likerttype) ranging from strongly agree (5) to
9. Anh Kim Dang (2018), the study suggested the strongly disagree (1) are used.
consumers whenever purchasing the desire food products
The sampling method is non-Probability convenience
on the Internet, to online food retailer to implement
sampling, the Research design is a mix of exploratory and
appropriate legislation regarding trading through legalized
Descriptive types.
way
10.According to Hong Lan, et al, (2016), online food IV. DATA ANALYSIS
delivery market is immature yet; there are some obvious Family size Table No:-1 Family size of sample
problems that can be seen from consumers‟ negative customers (n-89) using FDAs
comments. In order to solve these problems, we can neither
Sr.No. Family Size N=89
rely merely on the self-discipline of online food delivery
restaurants nor the supervision and management of online
food delivery platforms. Only by taking laws as the 1 Up to 3 34
criterion, with the joined efforts of the online food delivery 2 3-5 43
platforms and restaurants, the government departments 3 5 and above 23
concerned, consumers and all parties in the society, can Total 100
these problems be solved and a good online take away
environment can be created. Source: Field Survey
Objectives As pertains to the family size of the customers availing the
services of different FDA types, it is seen that the maximum
1. To study the significant behavioral fats of
43% of sample customers are from the family size 3-5 and
online buyers using FDAs

103 | IJREAMV05I1058035 DOI : 10.35291/2454-9150.2020.0019 © 2020, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2454-9150 Vol-05, Issue-10, Jan 2020

34% from family size 3-5 while a smaller percentage of 3 5-10 24

23% are from the family size 5 and above. Thus, the 4 10 and above 42
families having a large size are less inclined to in using Total 100
FDAs as compared to other smaller size families
Source: Field Survey
Educational level
 Note:-Online users of FDA is assumed as any
Table No :-2 Educational Level of the sample customers member in family buying the food by using the
(n-89) using FDAs income of the family
Sr.No Educational Level N=89
It is seen from the above table that the larger Proportions of
1 Below high school 6%
customers using FDAs are in the higher annual income
2 High School 4% group; thus 42% of sampled customers are from the annual
3 Graduation 26% income group of Rs. 10 lakhs+ followed by 24% from Rs.
5 Post-Graduation 34% 5-10 , 22% from Rs. Rs.3-5 and 12% from annual income
6 Professional degree 30% group of up to Rs. 3 lakhs
Total 100%
Domicile of customers
Source: Field Survey Table No.:-5 % of sample customers from different
It is seen from the above table and graph that the maximum domiciles using FDAs
number of customers using the FDAs are having Sr.No Domicile N=80
graduations (26%), Post-Graduation (34%) or professional 1 Abroad 02%
degrees (30%); while customers percentages having high 2 Out of state 44%
school( 4%) or below high school (6%) education appear
3 within Maharashtra 32%
petite. It means that mostly FDAs Users are from the highly
4 Pune it-self 24%
educated category.
Total 100%
Occupation Source: Field Survey
Table No:-3 Occupational Sectors of sample customers FDAs are used by the maximum number of customers
using FDAs (44%) having domiciles out of the state followed by
Sr. Working n=89 Domicile status as within Maharashtra (32%), Pune itself
No Sectors (24%) and 2% of customers at abroad (02%).Thus Punait, as
1 Govt. 34% compared to respondents having domicile either outside
2 Private 31% Pune or Sate are less in proportion for making the use of
FDAs while foreigners stand with negligible proportion
3 Service 23%
5 Farming 12% Customer Loyalty
Total 100% Table No.:-6 APIs wise Distribution of customer’s
Source: Field Survey loyalties towards various FDAs
FDAs are used by the maximum number of customers Sr.No FDAs APIs in %(n=89)
(34%) from the Govt. sector followed by Private (31%), 1 Swiggy. 56%
service (23%) and Farming (12%) sector.
2 Zomato Order. 78%
Financial position 3 Uber Eats. 67%
The financial position of a person plays a crucial role in 4 Foodpanda. 47%
promoting an individual to avail the services of different 5 Domino's. 37%
types of hotels. On the basis of their incomes, the sample 6 Pizza Hut. 36%
Customers using FDAs are grouped into three categories 7 Just Eat. 67%
as shown in the following table 8 Faaso's. 47%
Table No.:-4 Income Level of the sample customers (n = Source: Field Survey
8 9 ) using FDAs for ordering
Note:-each respondent is asked to quote an Average
Perceive Intensity (API) of purchasing through given FDA
Sr. Annual Income N=89
where zero % means “Nil” purchasing Loyalty and 100%
No. Rs. in lakhs
mean “full “ Purchasing Loyalty and any % in between
1 Up to 3 12
these two extremes unveils the level of loyalty in the
2 3-5 22 percentage towards given FDA .The ultimate Average

104 | IJREAMV05I1058035 DOI : 10.35291/2454-9150.2020.0019 © 2020, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2454-9150 Vol-05, Issue-10, Jan 2020

Perceived intensities (APIs) for given FDA reveal an 2. 43% of respondents are above 25 years and 33%
average value for the sample group (n=89) ( This mapping respondents are above 35 years.
logic is based on Likert extended 100 point scale )
3. 12% of students and 23% of service people use
It is seen from the above table customer loyalty APIs is the FDAs as a necessity
highest for Zomato Order(78%) followed by Uber Eats
(67%),Just Eat
4. 42% of respondents find these FDAs excellently
user-friendly, 43% consider food quality and
(67%),Swiggy(56%),Foodpanda(47%),Faaso's
hygienist as excellent, while 45% of respondents
(47%)Domino's,(37%), and the last Pizza Hut (36%).
perceive time efficiency.
Reasons for using FDAs
5. Normally and approximately, 5% of respondents use
It is observed that, the customers using FDAs are coming FDAs for breakfast, 42% respondents for Lunch
with varied Reasons other than simply food consumption. while 50% for dinner
Table No.:-7 Distribution of sample FDAs’ customers
6. Quality of food is considered to be very good by
(n=89) as per major Reasons
78% of respondents
Sr.
No. 7. The tracking system is considered excellent by 82%
respondents
1 Well packed 22%
2 Quality 32% 8. Available Payment options are good according to
3 Convenience 74% 56% of respondents, still many use COD due to
4 Reasonableness in 32% security reasons
price
5 Just Pleasure 14% 9. 64% of respondents consider they may have more
6 Test change 32% options for restaurants
7 Necessity 24%
10. 59% of respondents are not aware of offers/
8 Fast delivery 43% discounts on FDAs
9 Economical in55%
sharing V. CONCLUSION
10 Variety in food
Online services are gaining fast platform in all the sectors,
11 User Friendly App 42%
and, food delivery Apps is one among them. These Apps
12 Tracking system 82%
are mostly chosen by higher income group, mostly by
13 Usage of digital56%(find options are
youth. Swiggy and Uber Eats food delivery Apps have
Payment Options insecure)
14 Awareness of 59%(not Aware) captured market to large extent in Pune and PCMC areas.
Discounts and Though popular still these Apps are not able to deliver food
Offers in estimated time,Moreover online payment modes are used
very less by customers due to fear of insecurity towards
Source: Field Survey online fraud. Food Delivery Apps give many
offers/discounts in order to attract customers, but they are
There are a number of reasons endorsed by respondents for not known/ less awareness is among the customers
purchasing through FDAs ;Thus well gpacking
(22%),Quality(32%),Convenience (74%),Reasonableness in VI. SUGGESTIONS
price (32%),Just Pleasure(14%),Test
1. Though most of the respondents are satisfied with the
change(32%),Necessity(24%),Fast delivery(43%) and
services of Food delivery Apps, still the majority of
Economical in sharing economics is the dominant reason
them are not using Apps, Companies should promote,
while buying through FDA
everyone to use the App
Other equally important Derivations from the data
2. Apps are user-friendly, but, most of them using are
Looking the need to keep limited length and breadth of the youth. Even older age group people should be
research papers in printable version, the researchers, unlike encouraged to use the apps
forgoing (Table No-1 to 7) has endeavored to condense the
3. Respondents are not comfortable paying online, they
findings from the duly tabulated data in nutshell as ahead:-
should be educated on the security of digital payments
89 sample Customers using FDAs are instrumental /
4. The focus should be more on the timely delivery and
informative to arrive at the following findings:-
quality of food.
1. 73% of the respondents are male.

105 | IJREAMV05I1058035 DOI : 10.35291/2454-9150.2020.0019 © 2020, IJREAM All Rights Reserved.

 International Journal for Research in Engineering Application & Management (IJREAM)
ISSN : 2454-9150 Vol-05, Issue-10, Jan 2020

5. Most of them are not aware of offers/discounts on

applications, the focus should be more on promoting
them to increase the usage.

VII. LIMITATIONS
Research is limited to Pune only and covers a small number
of respondents (>3000) who used FDAs in the Month of
November 2019. However, the population of respondents is
fairly homogeneous in conformity to objectives and hence
the derivations /conclusions/suggestions are universal in
any analogs environment.

REFERENCES
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ssue3/PartD/3-3- 54-357.pd
[3] H.S. Sethu, Bhavya Saini,“Customer Perception and
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[4] Das J., 2018, Consumer perception towards online food
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106 | IJREAMV05I1058035 DOI : 10.35291/2454-9150.2020.0019 © 2020, IJREAM All Rights Reserved.