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Online food delivery has been prevalent in recent years worldwide, especially during the COVID-19 pandemic, and people's consumption behaviors have changed significantly. This study aims to investigate the consumption behavior of young adults using online food delivery platforms during the COVID-19 pandemic and focuses on the dominant factors influencing their decision to use online food delivery platforms.

Semi-structured interviews including 14 young adults aged 18–25 living in Hong Kong were conducted to collect data about their perspectives on online food delivery platforms in five areas. This research adopted the stimulus-organism-response model (S-O-R model) to analyze how the factors influence young adult users' loyalty and satisfaction with online food delivery platforms.

Thematic analyses revealed that young adults were attracted to online food delivery platforms for their numerous benefits. They had a high frequency of usage and significant spending. Usability, usefulness, satisfaction and loyalty influenced young adults' behaviors on online food delivery platforms. Participants were overall satisfied with their experiences, but platforms still had room for improvement.

Few prior studies investigated the factors affecting the consumer experience and behavioral intention of online food delivery for young adults in Asia. This study contributes to understanding young adults' experiences and problems with online food delivery platforms. It provides practical insights for system engineers and designers to improve the current services and for the governments to enhance the existing regulatory loopholes.

This study investigates the motivation among customers to be more loyal to online food delivery applications (OFDA) services even after the COVID-19 epidemic by using perceived service quality aspects in Sri Lanka. The data were gathered by physically distributing a self-administrated questionnaire to clients in Sri Lanka who continue to use OFDA services on platform to customer (P2C) service delivery platforms to buy food despite the COVID-19 outbreak. Multiple regression is employed to analyse 287 effective observations, and the data revealed the significant positive effect of interaction, environment, outcome, and food qualities on customer loyalty to OFDA services. In fact, there is no impact from the delivery quality on customer loyalty to OFDA services due to outsourced food delivery. The findings suggest regular improvements in attributes such as interaction, environment, outcome, and food qualities in this hyper-competitive business environment. Further, this study sets substantial facts for the interested parties to establish an exemplary delivery system and other technological advancements to have a sustainable competitive advantage and solid customer base in the long run.

Online food delivery (OFD) has witnessed momentous consumer adoption in the past few years, and COVID-19, if anything, is only accelerating its growth. This paper captures numerous intricate issues arising from the complex relationship among the stakeholders because of the enhanced scale of the OFD business. The purpose of this paper is to highlight publication trends in OFD and identify potential future research themes.

The authors conducted a tri-method study – systematic literature review, bibliometric and thematic content analysis – of 43 articles on OFD published in 24 journals from 2015 to 2021 (March). The authors used VOSviewer to perform citation analysis.

Systematic literature review of the existing OFD research resulted in six potential research themes. Further, thematic content analysis synthesized and categorized the literature into four knowledge clusters, namely, (i) digital mediation in OFD, (ii) dynamic OFD operations, (iii) OFD adoption by consumers and (iv) risk and trust issues in OFD. The authors also present the emerging trends in terms of the most influential articles, authors and journals.

This paper captures the different facets of interactions among various OFD stakeholders and highlights the intricate issues and challenges that require immediate attention from researchers and practitioners.

This is one of the few studies to synthesize OFD literature that sheds light on unexplored aspects of complex relationships among OFD stakeholders through four clusters and six research themes through a conceptual framework.

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.

Pay-what-you-want (PWYW) is a pricing strategy implemented in a variety of settings like supermarkets and museums, in which consumers determine the price they are willing to pay for a product or service based on their perceived utility. The authors propose an analytical model to investigate the impact of PWYW delivery pricing on the online food delivery (OFD) platforms.

Using a game-theoretic model, the authors characterize the equilibrium as a function of the platform's average delivery cost and the consumer's social preferences parameters like fairness and reciprocity. The authors derive the parametric conditions under which PWYW generates higher profits for the platform compared to the traditional pay-as-asked delivery pricing.

For the PWYW strategy to be profitable, the average delivery cost to the platform should be low. Therefore, OFD platform managers should focus on reducing delivery costs. The authors also identify the feasible region in which the platform managers need to maintain the consumer's social preferences.

Under PWYW, the authors recommend that the platform managers impose a minimum delivery fee which consumers can use as a benchmark to minimize zero delivery fee payments and consumers' free-riding tendencies simultaneously. This allows OFD platforms to extract online orders from highly price-conscious consumers.

This is one of the first studies to explore the innovative application of PWYW to a particular segment of delivery pricing in OFD platforms. The authors establish that the overall consumer surplus and social welfare are higher under the PWYW strategy, forming a solid ground for its implementation in OFD platforms.

Online food delivery service has evolved swiftly and stretched the bounds of the catering business. In the gig economy, being a food delivery rider draws employees with the promise of flexibility and independence. To this end, the purpose of this paper is to explore the main themes shared in online reviews by food delivery riders and which of these themes are linked to positive and negative ratings.

The authors used 729 employee reviews posted on the Glassdoor website. In addition, they used content analysis to examine reviews of Uber Eats online food ordering company shared by food delivery riders on an online platform.

The results of this study include seven main themes: “earning,” “customers,” “orders,” “tips,” “car,” “flexible schedule” and “app” (navigation). Positive concepts are associated with “earning,” “orders,” “tips” and “flexible schedule.” Negative themes are linked to the “app” (navigation), “car” and “customers.”

Management should consider online reviews as employees’ opinions and voices. Specifically, management should provide financial support to employees for car maintenance, offer insurance for income stability and arrange training programs to enable them to use several tip-enhancing behaviors.

No research has been conducted using online reviews from an employment search engine to investigate employees’ experiences of online food delivery. To the best of the authors’ knowledge, this study is one of the first attempts using user-generated content from an employment search engine to explore employees’ experiences.

This study aims to demonstrate that the Dynamic Performance Management (DPM) framework, integrating performance management with system dynamics modelling, enables decision-makers to identify sustainable strategies in online food delivery platforms, thereby avoiding company failure.

This study undertakes a multistep methodological approach. After the literature review, a retrospective case study approach was used. To build the DPM framework and the system dynamics simulation model, primary and secondary data were collected and analysed.

This study by adopting the DPM perspective highlights the critical role performance drivers play to assess the viability of alternative growth strategies in food delivery digital platforms. As such, the findings complement extant studies which highlighted the need for adopting a dynamic perspective in Performance Measurement and Management (PMM), particularly in complex and turbulent environments. Findings also highlight that in food delivery platforms, network effects may result insufficient to reach a critical volume of users and factors such as key drivers impacting platform attractiveness must be considered to design effective PMM.

Future studies may apply the DPM framework here suggested to multiple digital platforms, to validate this study's findings.

This paper offers a guidance to practitioners and scholars to design effective PMM in food delivery digital platforms.

This study offers an innovative perspective to analyse the interdependences among main mechanisms underpinning the performance of food delivery platforms. As such, it contributes to enrich prior PMM literature and addresses the call for more empirical and theoretical PMM contributions in fast-changing and turbulent environments.

Information technology-enabled gig platforms connect freelancers with consumers to provide short-term services or asset sharing. The growth of gig economy, however, has been accompanied by controversy, and, recently, food delivery platforms have been criticized for using data-driven techniques to set strict delivery time limits, resulting in negative externality. This study aims to provide managerial implications on the decisions of delivery time and subsidy for food delivery platforms.

The authors develop an analytical framework to investigate the optimal delivery time and subsidy provided to delivery drivers to maximize the gig platform's profit and compare the results with those of a socially optimal outcome.

The study reveals that it is optimal for the platform to shorten the delivery time and raise the subsidy when the food price becomes higher; nevertheless, the platform should shorten the delivery time and lower the subsidy in response to a higher delivery fee. Increases in the food price or delivery fee have non-monotonic effects on the number of fulfilled orders and the platform's profit. In addition, the authors solve the socially optimal outcome and find that a socially optimal delivery time is longer than the platform's preferred length when the delivery fee is high and the negative externality is strong.

The food delivery platform's optimal decision on delivery time is derived after taking negative externality into account, which is rarely considered in the prior literature but is a practically important problem.

The learning outcomes of this case study are as follows: It presents an opportunity for the instructors to introduce the concept of decision-making on matters involving risk (like scaling the business) using in-depth market research techniques. The case’s central idea is to make the students understand the growth of the online service delivery model, with a specific example of home-cooked food that also improves social welfare. It is expected to provide the participants with an opportunity to understand the decision-making by the leaders in newly established companies. It enables future managers to analyze a venture’s pros and cons before deciding to expand.

Chef Junction is an online food delivery platform that allows customers to order hygienic home-cooked food prepared by handpicked home chefs in Bhubaneswar. This city in eastern India is one of the fastest-growing metros, is regarded as a study hub, and provides ample employment opportunities making it one of the sought-after destinations for the migrant youth population. The idea behind Chef Junction is to cater to the healthy food needs of the young by utilizing the culinary productivity of the home cooks, empowering the latter by opening up an extra source of income. These chefs prepare delicious healthy food, usually not listed for sale with online food delivery apps. Chef Junction earned revenues by adding an order-dependent commission on the price quoted by chefs and accepting a flat delivery charge from the customers. This offer was very lucrative for home chefs who could join the platform with zero investment and flexible working hours. The customer’s pockets were also handled when several offers and discounts were rolled out through an attractive pricing strategy. Chef Junction expected to improve its patrons’ health quotient by ensuring the nutrition of the home-cooked food, thus contributing to social welfare. With food being delivered from home to home amalgamated with social welfare and empowerment of home chefs, especially women, this case study is an apt example of a sustainable work-from-home model that has proved effective in crisis times. The pertinent question is: “How feasibly can CJ’s business model grow towards an expansion as the demand increases?”

This case study has been prepared keeping in mind the teaching pedagogy for graduate and postgraduate management programs in strategic management, operations research, entrepreneurship and marketing management. It is also expected to be useful for training courses such as management development programs, faculty development programs and executive programs, in discussing service operations in general and online delivery logistics, in particular for working executives and industry practitioners.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

The core idea of this paper was to empirically evaluate the factors affecting the choices of consumers while ordering food online. The goal was to explore consumer behavior in the emerging industry of online food delivery business in an emerging economy, Bangladesh.

This paper used a qualitative and exploratory approach through the collection and analysis of data from a total of 177 survey respondents. Statistical analyses of all collected data (utilizing t-tests and factor analysis) were used to conclude the factors important to consumers in ordering food online through online food delivery intermediaries.

Results showed delivery time, service quality, price and condition of food delivered as factors constitute the first factor considered to be directly affecting the success of online food delivery. Variety and number of restaurants, menu, delivery tracking service and attitude of a delivery person are found to constitute the second factor and considered as indirect factors.

Online food ordering has been a very emerging sector globally and also a recent phenomenon in Bangladesh. The development and the availability of the internet combined with the busy life schedule has prompted businesses to address another need among consumers, the need to deliver foods at consumers' doorsteps. Understanding the consumer landscape better would help realize the full potential of the e-commerce platform as it can influence the economy, businesses and the quality of life of people.

The online food delivery business is new and growing and demands greater researches for better understanding by academicians and practitioners. This paper expands the limited existing research related to the online food delivery business and explores consumer behavior in the industry. From a managerial perspective, the paper contributes to understanding the consumers more broadly.