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The purpose of this study is to understand the evolution, current competitive scenario, and future direction for the food-tech business in the Indian market.

The paper is based on press reports, industry reports, and secondary information about companies based on interviews of CEOs, analysts, industry trend watchers, and academicians.

The incumbents are competing on the basis of various parameters such as capital infusion (especially, funding), tie-ups with restaurants, customer loyalty, fleet size and management, and management of employees. High growth is driving volumes for all companies, although there is lack of differentiation in offerings. Companies need to build customer loyalty and seek diverse monetization models for profitability in the future.

First, food-tech companies need to identify means of differentiation to gain competitive advantage. Second, customer loyalty is the key to long-term profitability and firms need to identify ways to build it. Promotions and offers cannot build loyalty. Third, firms would need to expand into different types of monetization methods, such as cloud kitchens, B2B food delivery services, to build revenues and profits.

Incumbents and prospective entrants in the food-tech industry need to understand the structure of the industry and the structure of competition to be able to succeed in the long term. They need to understand that promotions cannot be a differentiator and that funding will dry up. Therefore, it is critical to identify means of differentiation to build a loyal customer base.

The food-tech industry in India has strong social foundation. More than 50 per cent of the Indian population is below the age of 25, the percentage of working population is increasing in India and so are income levels. In this context, the food-tech business is important as order outs are increasing. This, however, has also led to problems in the workforce for such startups as companies do not want to invest in employee training, safety or work conditions owning to high attrition rate because of the standardized nature of the job.

This paper makes an attempt to assimilate information about the progress of the food-tech industry in India in the last few years. It attempts to identify various factors that decide the nature of competition among incumbent players. It also identifies what factors these incumbents need to bear in mind while looking ahead.

The purpose of this paper is to demonstrate applicability of design thinking in creating employee centric HR solutions. This application is studied in the context of a food tech company. A design thinking process for arriving at an HR solution for employee experience management is proposed.

The study uses a single case study method. The HR professionals of a food tech company were interviewed to relate their narratives with the existing conceptual framework on design thinking.

It was found that the firm focused on the technological supremacy as well as developed an engaged and motivated team of delivery boys. This provided the required competitive advantage and growth. The first step in implementing the HR solution was to collect primary data for insights into the pain and gain points in employee’s day to day routine. Using the lens of empathy, multiple touch points through incentive policies, rewards, work engagement tools, feedback, inclusive decision making, and technology enabled learning solutions were designed. These signaled a caring and employee centric leadership and built future orientation and engaged the employees.

By demonstrating the applicability of design thinking and linking it to the HR solutions, a conceptual model relevant to the Food Tech industry was proposed. By integrating the process used to reach the solution, a modified model can be developed by other HR professionals working in any other Food tech company, aggregator/ service providers or logistics companies.

The study is among the initial studies to approach design thinking for HR solutions in a food tech industry.

The learning outcomes are as follows: to understand and examine the strategies that help platforms fight competition and manage networks; to analyse the role of platform governance in the management of the networks and partners’ trust; and to evaluate the strategic risks of disintermediation and multi-homing firms face while trying to sustain profits and capture value.

The case presents the dilemma faced by Deepinder Goyal, the young founder and CEO of Zomato in formulating the growth strategy for its food delivery platform, struggling to retain its market leadership position amid intensifying competition and other challenges during the COVID-19 pandemic. Zomato has become a public company with an IPO announced in mid of July 2021. Therefore, there is growing expectation for profitability among its shareholders and investors considering tailwinds of COVID-19 crisis, which have given the push towards adoption of food delivery among the customers. This has also resulted in increased competition in the industry. On other hand, there is growing dissatisfaction among its restaurant partners who have been hit hard by COVID-19 and struggling for survival. CEO Deepinder has to find how he will ensure the long-term growth for Zomato to tap the growing food delivery market in India and regain its restaurant partner’s trust.

The case is intended for post-graduate courses (MBA, PGDM) on digital business strategy or strategic management of technology-oriented businesses. The case can be used to understand the nature of competition and different strategies for platform-based businesses in the digital world. The case can also be used to study the role governance can play in efficient value creation and capture on the platform by the partner entities. Finally, the case also highlights how are platform businesses are coping with the Covid challenge. There are no specific prerequisites but knowledge on basic strategy concepts and platform business concepts will be good for better understanding. Level of difficulty is medium.

Teaching notes are available for educators only.

CSS 11: Strategy.

The case tracks Dineout's evolution into a full-scale tech solution provider for restaurants. In 2020, the COVID-19 pandemic struck the world. Several countries, including India, implemented complete lockdowns to control the spread of the virus. Stringent measures to ensure social distancing, night curfews and restrictions on social gatherings continued, which were a severe blow to the restaurant industry. The restaurants' revenue streams dried up as the diners avoided dining out and preferred food deliveries, which was against Dineout's core business model. The case ends with the questions on how Dineout should wade through the pandemic when its entire business model was being challenged.

Food ordering apps have registered phenomenal growth during the pandemic and will continue to register high growth in the years to come. This paper has three objectives: first, to differentiate between the sales funnel of traditional vs platform businesses; second, to understand the sales funnel optimization strategies of a leading food ordering app in India; and third, to draw lessons from these strategies to enable food ordering apps in particular, and platform businesses in general to achieve the goals of customer acquisition and retention in a highly competitive market.

The study is based on interviews conducted with company officials of two leading food delivery platforms in India, and a rich qualitative analysis of secondary data sources including news reports, government policies, reports and statistics from global consultancy firms. The interviews were analyzed to understand various stages of the sales funnel for the food ordering apps and the strategies implemented by the companies based on their understanding of the customer journey.

The findings of the study reveal that the sales funnel of a food ordering platform can be divided into three stages – top of the funnel (ToFu), middle of the funnel (MoFu) and bottom of the funnel. In the ToFu stage, the goal of the food ordering app is to create awareness about their brand and induce app download, which results in customer acquisition. In the MoFu stage, the food ordering app initiates personalized promotion strategies to trigger maximum orders via the app. The customer is then targeted for retention and referrals. Customer app navigation and order data are the most crucial inputs for navigating the sales funnel effectively.

First, app-based service firms, especially food ordering platforms, can understand how the digital sales funnel can be optimized to generate an appropriate customer mix. Second, they need to understand various interventions at different stages of the sales funnel to move the customer from the app download to loyalty. Third, the food ordering platforms and app-based service firms need to understand how to use customer data to design customer relationship management strategies that can convert retention into referral strategies to expand the funnel.

Incumbents in the intensely competitive food ordering industry need to understand the process of customer acquisition and retention. An understanding of the digital sales funnel can enable them to achieve the right mix of customers in their fold. Other companies that offer app-based services can also understand various stages of the digital sales funnel, and how customers can be moved from one stage to the next one by planning appropriate interventions using app data.

The research contributes by offering clear insights on how food delivery platforms in India acquire and retain customers through an understanding of the digital sales funnel. The paper also offers insights on the interventions that are adopted by such firms to move customers from one stage of the sales funnel to the next one. The paper clearly brings out the value of the 3Rs for a food ordering platform – revenue, retention and referral.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

This research paper performs a sentiment analysis on the tweets of three food delivery app companies operating in India – UberEats, Zomato, and Swiggy. Most of the incoming tweets from customers concerned ordering and the delivery tracking experience, as well as the quality of the food. The public nature of Twitter means data about competitors can be analyzed to carve out a competitive advantage. Leaders and managers are therefore advised to create a strategy for social media-based competitor monitoring and competitor analysis, and to boost the opportunities for customers to experience positive emotions when interacting with the company on Twitter.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

After working on the assignment questions, the learners can achieve the following learning outcomes: to deliberate on the emerging cloud-based business models in the food-tech sector; to scrutinize the challenges faced by a start-up while selecting an expansion model; and to purpose strategies and solutions for scaling up the business.

Ms Megha Bafna, the founder, conceptualized starting Keep Good Shape (KGS) in the year 2017. She started the business with a seed capital of INR 3,500 (US$54.13) from her savings. The idea stuck to her mind as she was working with a real estate firm, and every day, she packaged salad for her lunch. Bafna thought that if someone makes the salad available, she will buy it. Based on this this unmet need of the consumers, KGS started as a passion in 2017 and became a full-fledged business in 2021 with 400 daily customers and 38 full-time employees. Today, she serves 22 different salads, including customized salads for customers with lifestyle diseases based on a subscription model. She grew her organization using social media tools such as Facebook and WhatsApp without using any traditional promotion tools. COVID-19 pandemic has increased her orders by almost 10% as healthy meals emerged as people’s choice in 2021. In 2021, she has to choose between expansion through cloud-based kitchen business models across India. She has been confused about selecting the suitable cloud-based kitchen business model and contemplating about funding if she has to expand the business.

An instructor can use this case in the courses of entrepreneurship/strategy subject of a graduate/MBA program. The case study sensitizes the students about setting up a new business and organizing to scale it up further.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

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.

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.

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.

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.

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.

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.

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.