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1 – 10 of 945Mark Ashton, Aarni Tuomi and Peter Backman
The rapid growth in volume and value of on-demand restaurant food delivery, accelerated by the COVID-19 pandemic, is causing a paradigm shift in the food service sector. However…
Abstract
Purpose
The rapid growth in volume and value of on-demand restaurant food delivery, accelerated by the COVID-19 pandemic, is causing a paradigm shift in the food service sector. However, there is a lack of hospitality management research into this emerging phenomenon. To address this gap, this paper defines and develops a novel conceptual model and typology and proposes a research agenda for ghost production in the context of food service.
Design/methodology/approach
This paper uses the Servuction model to explore, define and model the radical separation between food service production sites, points of sale and consumer interaction from the perspective of on-demand restaurant food delivery. A novel typology is developed and illustrated with eight industry examples from the UK and an accompanying cost benefit analysis. Future research priorities are identified.
Findings
In the hospitality literature, little attention has been paid to changes on-demand restaurant food delivery brings to production and business models of food service organisations, resulting in significant gaps between food service practice and theory. The knock-on effects to stakeholders include increased convenience for customers, uncertain employment status of riders and, for restaurants, striking a balance between capturing new markets and losing control of the customer. Additionally, for aggregators, there is a lack of profitability in existing models, despite holding the balance of power (and data).
Originality/value
The concept of “ghost production” and its associated typology is novel and offers a contribution to hospitality management literature by defining the term, scope and scale of this new phenomenon. Practical implications are proposed.
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The pervasive impact of the COVID-19 virus on the food services sector in India has created conditions for fundamentally altering the structure of the industry. This paper offers…
Abstract
Purpose
The pervasive impact of the COVID-19 virus on the food services sector in India has created conditions for fundamentally altering the structure of the industry. This paper offers a nuanced evaluation of the transfiguration of the market, explaining descriptive views supported by numerous secondary data sources.
Design/methodology/approach
This is a self-driven study grounded in secondary data. Qualitative and quantitative assessments are assimilated from credible market research reports of multiple agencies in the Indian context, as well as news developments during the pandemic period.
Findings
Digitally pivoted platforms such as cloud kitchens and delivery aggregators will eclipse all other formats due to the potential long-term prevalence of the COVID-19 virus. These formats would rise to a dominant position in the Indian food services sector in the coming decade.
Research limitations/implications
This study is entirely driven by secondary data due to the inherent difficulties of collecting sizeable and good quality primary data as a result of the lengthy and stringent lockdowns imposed across India. Future studies should consider collecting consumer responses to get a better picture of changing dining habits in the post-pandemic scenario.
Practical implications
The dynamic and evolving food services in India, catalyzed by the Internet and digital technologies will help academicians study the long-term implications of this change, and how it would impact society at large. The paper provides a rich body of contemporary data and analysis in the food services sphere.
Social implications
The COVID-19 pandemic and its long-term persistence would dramatically alter food service consumption across India. This will not only change how the industry is structured, but will reshape how food is consumed into the future.
Originality/value
The study is a holistic examination of the relationship between the coronavirus pandemic and the food services industry in India. The macro perspectives aided by news coverage and industry research would help generate potential research questions on its own merits.
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Ratna Achuta Paluri, Rishabh Upendra Jain and R. Sankara Narayanan
This case allows students to critically analyse the business model of Zomato which is a multi-sided platform/in the foodtech industry. It helps students to critically analyse how…
Abstract
Learning outcomes
This case allows students to critically analyse the business model of Zomato which is a multi-sided platform/in the foodtech industry. It helps students to critically analyse how firms enter into the global market to create value and maintain dominance over the local market (especially in a large market such as India). The case can also be used to introduce students to the business canvas model by analysing foodtech start-ups. The outcomes are as follows: to understand the Business Model Canvas as a tool to describe and analyse the foodtech business such as Zomato’s, based on its value proposition and the way it sells its services; to conduct a value chain analysis and analyse the business models adopted by foodtech companies; to understand how Zomato can aim at global value creation; and to design a clear growth strategy and evaluate Zomato’s options to internationalize or expand locally.
Case overview/synopsis
The year 2018 was an important year for Zomato as it geared up to chart new heights amidst the changing dynamics of the industry on one hand and a co-founder exiting the company on the other hand. Zomato was incepted in 2008 as a restaurant discovery platform offering users the ability to access restaurant menus and post online reviews. It provided a range of value-added services for both its restaurant partners and end customers. Its vertical integration enabled it to grow its revenues across its three lines of business, namely, dining out, delivery and sustainability. Zomato was an early internet start-up that expanded rapidly in the international markets. In the past ten years, the company both scaled and rolled back its operations with unique lessons learned in each market that paved its path for success both locally and globally. The domestic market was being dominated by a few large players sharing the market. Reports by market intelligence firms showed that Swiggy, the closest competitor was starting to dominate Zomato in India [1]. Deepinder, CEO, Zomato’s dilemma for adding value and increasing revenues by weighing options of whether the company should strengthen its presence in the domestic market, or, venture into foreign markets or serve both local and foreign markets.
Complexity academic level
This case is appropriate for postgraduate courses in Strategic Management or International Business.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 5: International Business.
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Nkosivile Welcome Madinga, Jo Blanckensee, Lauren Longhurst and Nqobile Bundwini
In the wake of lockdown regulations and limited mobility during the COVID-19 pandemic, dining habits shifted towards usage of food delivery apps to avoid physical interaction…
Abstract
Purpose
In the wake of lockdown regulations and limited mobility during the COVID-19 pandemic, dining habits shifted towards usage of food delivery apps to avoid physical interaction. Nonetheless, it is unknown whether the COVID-19 pandemic had an influence on the adoption of food delivery apps. Therefore, this study examined factors influencing the adoption of food delivery apps during the COVID-19 pandemic, as well as the moderating effects of education and age.
Design/methodology/approach
Data were collected from 282 food delivery application users in South Africa using a web-based survey. Partial least square structural equation modelling analysis was used to test the hypotheses, while partial least squares multigroup analysis was used to examine the moderating effect of education level and age.
Findings
The results indicated that perceived ease of use has a significant impact on perceived usefulness and attitudes, perceived usefulness has an impact on attitudes and continuous intention, attitude influences continuous intention and social pressure and convenience influence attitudes. The perceived COVID-19 threat had no impact on attitudes, and education and age had no significant impact on any relationships. The findings are imperative for restaurants and mobile application designers, as they enable more effective strategic management planning.
Originality/value
This study is the first paper to empirically employ technology acceptance model to analyse the adoption of food delivery applications during the COVID-19 pandemic. Its uniqueness is in examining situational influence associated with the pandemic such as social pressure, perceived COVID-19 threat and convenience.
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Praveen Puram, Anand Gurumurthy, Mukesh Narmetta and Rahul S. Mor
This paper aims to explore the last-mile (LM) challenges faced by on-demand food delivery (ODFD) riders during the coronavirus pandemic. This study contributes to the literature…
Abstract
Purpose
This paper aims to explore the last-mile (LM) challenges faced by on-demand food delivery (ODFD) riders during the coronavirus pandemic. This study contributes to the literature on the less-explored domain of ODFD services.
Design/methodology/approach
A grounded theory methodology is used. Riders working for multiple ODFD firms in various urban and semi-urban areas of India were interviewed. Open, axial and selective coding of interview transcripts was done.
Findings
A grounded model is developed consisting of riders' challenges represented broadly under four core categories: Operational, Customer-related, Organisational and Technological issues. The study indicates that while some of the challenges are inherent to the ODFD supply chain, these have been visibly exposed and intensified by COVID-19, while other challenges are specific to the pandemic.
Research limitations/implications
The model is a qualitative proposition representing LM delivery issues in ODFD services faced by the riders in India's urban and semi-urban areas during the COVID-19 pandemic. Other countries may face similar problems, but further studies are necessary to confirm or refute the findings.
Practical implications
ODFD companies must address the riders' issues to better adapt to the current and future disruptions and improve riders' quality of work–life to achieve operational excellence.
Originality/value
This study builds on the extant ODFD literature by focusing on one of its less addressed aspects: the working conditions of the riders. This work is conducted amid the COVID-19 pandemic in the context of a developing country and aims to study the challenges in ODFD operations.
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Asha K.S. Nair and Som Sekhar Bhattacharyya
Consumers shopping motives may differ across products/services categories, retail formats and channels. In the context of m-Apps-based commerce, this study aims to explore…
Abstract
Purpose
Consumers shopping motives may differ across products/services categories, retail formats and channels. In the context of m-Apps-based commerce, this study aims to explore different shopping motives of consumers in three different categories of app, namely, food delivery, ride sourcing and digital payments. Using motivation literature, the study extends the theory of consumer motives by including sustainability as a key motive to buy in the context of m-App channel. Further, the authors undertake a comparative analysis of the identified motives across the three mobile applications (m-Apps).
Design methodology/approach
The research methodology involved two stages (qualitative research followed by quantitative research). In qualitative research, personal interview was conducted to extract items for survey questionnaire development. Subsequently, quantitative analysis was carried out. The data were subjected to exploratory factor analysis and confirmatory factor analysis (CFA). The study sample comprised 201 young Indian managers.
Findings
Using principal component analysis and CFA, the study validates the existence of different motivations in the three categories of m-Apps considered. Transaction-oriented and sustainability-oriented motivation is found to be a major motive to use m-Apps for food delivery, ride sourcing and mobile payments. Additionally, in digital wallet applications for mobile payments, consumers exhibit innovation-oriented motivation. Value-oriented motivation was identified as a motive in food delivery apps.
Research limitations/implications
The scale developed and the comparative study done extended the theoretical conversation on young consumer motives in the context of m-Apps channel and extended it by including sustainability motive, which needs further in-depth study.
Originality/value
This is one of the first studies to explore sustainability motives in the context of m-Apps channel.
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Debadyuti Das and Chirag Yadav
The present work attempts to determine an appropriate number of different categories of Delivery Persons for a Hyper-local Food Delivery Organization for different intervals…
Abstract
Purpose
The present work attempts to determine an appropriate number of different categories of Delivery Persons for a Hyper-local Food Delivery Organization for different intervals within a day and across days within a week which would provide a satisfactory level of service to the target customers and at the same time would become cost-efficient.
Design/methodology/approach
Currently the firm estimates the required number of Delivery Persons for “lunch peak” and “dinner peak” of the next week's weekdays and weekend based on the maximum number of orders occurring during the same period of both weekdays and weekend in the current week. The proposed approach involves determining the projected demand in every four-hourly interval of both week-days and weekend in the next week. Subsequently, the study has developed a simple integer programming model for determining the optimum number of Delivery Persons based on the projected demand data.
Findings
The existing approach followed by the firm indicates that the Delivery Persons remain unutilized during periods of low demand. The proposed model demonstrated savings to the tune of 21.4% in manpower cost without any erosion in the service level.
Originality/value
The study has made three tangible contributions. First, the development of a simple methodology for estimating the demand of next period allows the Managers to utilize dynamic demand data. Second, the development of a simple integer programming model helps managers determine an appropriate number of Delivery Persons in different intervals in both weekdays and weekend. Third, the development of a framework of hiring strategy aids managers in adopting a particular hiring strategy under a particular context keeping in mind the magnitude of demand for food, demand for delivery service and the cost of providing the service.
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Keywords
Aasha Jayant Sharma and Debopriyo Dey
Marketing; Business Expansion Strategy
Abstract
Subject area
Marketing; Business Expansion Strategy
Case synopsis
Rahul Hazarika, the owner of One Stop Kitchen (OSK), was convinced that expansion of his cloud kitchen had to be aligned at various fronts to compete. He was juggling with thoughts of expanding from B2C to B2B model, whether to expand in the same city or other cities or to introduce new variants in existing B2C so as to use and leverage the existing customer base and network. The competition was growing ablaze, and most of the orders were procured from the third-party aggregators, leaving little chance for OSK to connect to its customer base directly. The growth potential in this upcoming sector was undeniable, and Hazarika was continually trying to bring in relevant business practices to maintain the momentum. The case deals growing cloud kitchen business problems and covers business concepts such as business expansion strategy, product profiling and marketing strategies.
Learning objectives
Students will understand strategies for a Online startup Business in the Cloud Kitchen category. The concept of Product Profiling is also dealt with in the case.
Complexity academic level
Suitable for PG- and Executive-level courses.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 8: Marketing.
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Sumeet Gupta and Sanjeev Prashar
This case is designed to facilitate students to comprehend the challenges an e-commerce firm faces when it attempts to monetize data network effects. The challenges faced by…
Abstract
Learning outcomes
This case is designed to facilitate students to comprehend the challenges an e-commerce firm faces when it attempts to monetize data network effects. The challenges faced by Zomato are ideal for in-class debate and discussion. The following learning objectives can be fulfilled through this case: understanding the promises and issues raised by data network effects; comprehending the problems an e-commerce firm faces in re-configuration; illustrating the responsibility of an established e-commerce firm towards its stakeholders; and discussing how a firm should navigate its relationship with its stakeholders.
Case overview/synopsis
Zomato.com, the largest Indian food aggregator and delivery platform, was contemplating the launch of Zomato Instant, a 10-min food delivery. Currently, the company’s delivery model pivoted around delivering food within 30 min. Recently, Zomato acquired Blinkit, an online grocery shopping app that was positioned to deliver groceries in 10 min. Deepinder Goyal of Zomato felt that customers would soon be more discriminant in demanding quicker services, as they might not be comfortable with 30-min deliveries. Hence, Zomato’s business model must also be re-configured to provide 10-min deliveries. Armed with access to customer data, Goyal predicted items that could be prepared and delivered within 10 min from its dark stores and automated kitchens. Although the model seemed promising and the company was upbeat about it, Zomato Instant faced challenges on several fronts. From the human angle, the decision was criticized on social media, mainly around the violation of road regulations, road safety issues and pressure on the delivery personnel to perform. Many delivery personnel had fled this gig work to join their pre-COVID jobs. Even the Competition Commission of India had established an inquiry into Zomato’s anti-competitive practices using customer data.
Complexity academic level
This case is best taught as part of a curriculum in management programmes at the post-graduate level, in courses such as e-commerce, e-retailing, business models for electronic commerce and online entrepreneurship/new age entrepreneurship. In terms of the positioning in the course, this case could be used to demonstrate the challenges of re-configuration of an online platform.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 3: Entrepreneurship.
Details
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Vikas Gupta and Shelley Duggal
This study aims to identify various risk and benefit perceptions related to the consumers’ use and selection of online food delivery applications (OFDAs) in India. It also…
Abstract
Purpose
This study aims to identify various risk and benefit perceptions related to the consumers’ use and selection of online food delivery applications (OFDAs) in India. It also discovers the reasons behind consumers’ OFDAs selection behaviour and how it influences their inclusive attitudes and behavioural intentions (word of mouth and re-use intentions).
Design/methodology/approach
Responses from 337 OFDAs users were subjected to exploratory factor analysis for 5 risk and 2 benefit factors which were tested on a factor model using 31 constructs followed by the structural model.
Findings
It was found that consumers’ usage and selection behaviour related to OFDAs are not only influenced by the perceived risk and benefit factors but are also responsible for their overall attitudinal and behavioural variations. It was also found that a decrease in risk perception or an increase in benefit perception of consumers will positively influence their overall attitude towards the use of OFDAs.
Originality/value
Though a lot of studies related to OFDAs have been conducted in India, but they were limited to identifying the technology used in the apps, analysing the user interface or promoting them as start-ups. Moreover, previous literature related with the risk/benefit perceptions linked with the OFDAs is addressed towards Western countries such as USA, Italy and UK. To the best of the authors’ knowledge, this is one of the first studies that explored the risk/benefit perceptions related to the use and selection of OFDAs in the context of India. Besides, it may also help the stakeholders in OFDA business to align their OFDA features as per the needs of the consumers.
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