Name: From Neighbourhood to Network. Role of Online Food Delivery Apps in Transforming Local Business
Price: 0.99 EUR
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Author: M. Arul Jothi
ISBN: 9783389139929

This study explores the role of food delivery apps in transforming local businesses by enhancing operational efficiency, expanding customer reach, and fostering digital adoption. A quantitative research methodology was employed, collecting survey data from Swiggy and Zomato users. Statistical analyses, including regression and factor analysis, were conducted to evaluate key business benefits. The findings reveal that while restaurants dominate food orders (44.7%), the increasing demand for grocery (30.3%) and pharmacy (22.4%) deliveries presents new growth opportunities. Delivery apps significantly improve operational efficiency (β = 0.294) by streamlining processes and reducing costs. Customer retention (β = 0.262) and delivery speed (β = 0.257) also contribute positively to business performance, whereas brand visibility and direct revenue impact remain limited. Furthermore, these platforms drive digital transformation, increasing customer exposure (0.700) and enhancing digital marketing skills (0.687). However, long-term user retention remains a challenge, with only 2.6% of users staying for over two years. The study concludes that food delivery apps serve as vital tools for business optimization, enabling market expansion and technological adaptation. Businesses must leverage these platforms strategically to maximize benefits and sustain long-term growth.

Excerpt

RESEARCH ABSTRACT

1. INTRODUCTION

2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS AND INTERPRETATION ANALYSIS :

5. FINDINGS & SUGGESTIONS

RESEARCH ABSTRACT

1. INTRODUCTION

The food delivery app industry has witnessed significant growth, reshaping the landscape of how consumers interact with local restaurants and food businesses. Over the last decade, digital platforms like Zomato and Swigg have revolutionized the way food is ordered, delivered, and consumed. In particular, these apps have become a cornerstone of the foodservice industry, offering convenience, speed, and accessibility to consumers while benefiting local businesses in numerous ways. Before the rise of food delivery platforms, consumers largely relied on traditional methods of dining out or calling directly to place an order. However, the rapid adoption of smartphones and the increasing demand for convenience have driven a shift toward online food ordering. This transition has proven to be especially valuable for small and local food businesses, which may lack the resources or infrastructure to establish their own delivery systems.

Food delivery apps act as intermediaries that connect customers with local restaurants, offering a vast selection of food options at the touch of a button. These platforms enable consumers to explore a variety of dining options, browse menus, and place orders without ever stepping foot inside a restaurant. Not only does this cater to busy lifestyles, but it also meets the growing

consumer desire for on-demand services. One of the most profound impacts of these apps has been seen post-pandemic. With social distancing and restrictions limiting in-person dining, food delivery apps provided an essential lifeline for local businesses. Restaurants, cafes, and other food outlets that once depended heavily on dine-in customers turned to delivery as a means to survive. In many cases, these apps allowed them to continue generating revenue when traditional dining models were no longer viable

Additionally, food delivery apps helped fill the gap for consumers who were hesitant to dine out due to safety concerns, enabling them to still enjoy meals from their favorite local spots from the comfort of their homes. The post-pandemic era also saw a more significant shift in consumer behavior, with many preferring the convenience of delivery over dining out even as restrictions lifted. This trend, combined with the sustained rise in mobile app usage, solidified food delivery services as a critical component of the modern food industry.

Evolution of Online food delivery and supply chain management.

Phase 1: The Early Stages of Online Food Delivery (Pre-2000s)

- Traditional Takeout Systems: Before the rise of online food delivery, customers would call restaurants directly to place takeout orders. Restaurants usually had a limited menu for takeout, and the process was often cumbersome. Deliveries were usually handled by the restaurant or through third-party services, and many small businesses didn’t offer delivery options due to logistical challenges.
- Early Digital Experimentation (Late 1990s): As the internet became more widespread, some early adopters in the restaurant industry began experimenting with offering online ordering options via simple websites. These were basic, and customers would need to go directly to a restaurant's website to place an order. The concept of online ordering was still relatively new and wasn’t widely adopted by the masses. Supply Chain Management (Early 2000s): The food supply chain management process was still highly dependent on traditional methods. Restaurants sourced ingredients from local suppliers, and most of the supply chain processes were handled manually or with rudimentary technology. There was limited automation, and managing inventory and demand forecasting was primarily done through physical record-keeping.

Phase 2: The Rise of Online Food Delivery Platforms (2000–2010)

- The Birth of Online Delivery Services: The early 2000s marked the beginning of a more structured shift toward online food delivery. Online platforms like Grubhub (founded in 2004) and Just Eat (founded in 2001) started to emerge, allowing customers to order food from a variety of local restaurants through a centralized website. This was a major step forward in terms of convenience, as it gave customers access to multiple restaurants in one place.
- Growth of Third-Party Delivery Services: Alongside this development, deliveryfocused companies like Uber Eats (launched in 2014) and DoorDash (founded in 2013) began offering more advanced solutions for food delivery. These platforms expanded rapidly, providing a more streamlined experience for consumers and restaurants alike. With third-party platforms, delivery was no longer solely the responsibility of the restaurant, allowing businesses to focus more on food quality while the app companies handled logistics.
- Supply Chain Advancements: During this phase, supply chain management within the food industry started to incorporate basic digital solutions. Many restaurants began using restaurant management software for inventory management, order tracking, and delivery logistics. However, much of the supply chain, including procurement and inventory management, was still largely based on traditional practices.

Phase 3: The Expansion of App-Based Food Delivery (2010–2020)

- Mainstream Adoption of Food Delivery Apps: By the 2010s, food delivery apps such as Uber Eats, DoorDash, Postmates, and Deliveroo gained widespread popularity. These platforms introduced highly efficient and user-friendly mobile applications, making it easier than ever for consumers to browse menus, place orders, track deliveries, and make payments—all through their smartphones.
- Rise of Ghost Kitchens and Cloud Kitchens: One of the most significant developments in this phase was the rise of ghost kitchens (or cloud kitchens). These are delivery-only kitchens that operate out of shared spaces and are not tied to a physical storefront. Ghost kitchens allowed entrepreneurs and established restaurant brands to enter the food delivery market with minimal upfront costs. This trend revolutionized the supply chain by enabling a more flexible approach to food preparation and delivery, catering directly to the increased demand for online food ordering.
- Integration of Advanced Technology in Supply Chain:
- Automation: Restaurants started implementing automated systems for order processing, inventory management, and customer tracking. This allowed businesses to respond quickly to fluctuating demand, especially during peak hours.
- Data Analytics and Demand Forecasting: The collection of data through delivery apps allowed restaurants to better understand customer preferences, which helped with demand forecasting and inventory management. Advanced analytics were employed to streamline operations and predict supply needs more accurately.
- Logistics Optimization: Delivery services began implementing better route planning and optimization tools for drivers, reducing delivery times and improving efficiency. Apps used real-time data and GPS to ensure faster and more accurate deliveries.
Phase 4: Post-Pandemic Growth and Hyper-Personalization (2020–Present)
- Explosion of Demand Due to the Pandemic: The COVID-19 pandemic fundamentally altered the food delivery landscape. Lockdowns, social distancing measures, and increased consumer demand for contactless services resulted in a massive surge in food delivery app usage. Restaurants that once relied on dine-in traffic
had to quickly pivot to delivery models, either by partnering with delivery services or by building their own online ordering systems.
- Enhanced Delivery Options: During this phase, food delivery platforms introduced a range of new options to meet customer demands. These included:
- Subscription Models: Platforms like Uber Eats and DoorDash introduced subscription plans (such as DashPass and Eats Pass), offering customers discounted delivery fees and other perks for a monthly fee.
- Multiple Delivery Types: Some apps started offering the option to choose different types of deliveries, including contactless delivery or scheduled deliveries at specific times.
- Hyper-Personalization of the Customer Experience:
- Food delivery apps now employ machine learning and AI to provide hyperpersonalized recommendations, adjusting suggestions based on past orders, preferences, and even time of day.
- Dynamic pricing and promotions are becoming more common, allowing restaurants to offer time-sensitive discounts based on real-time demand, which helps to optimize both customer satisfaction and profitability.
- Advanced Supply Chain Integration:
- Blockchain Technology: To increase transparency and trust, some players in the food delivery and restaurant industry have started exploring blockchain technology. This can help track the provenance of ingredients, ensuring food safety and reducing fraud in the supply chain.
- Real-Time Inventory Management: Restaurants now use integrated software that syncs with their delivery platforms, allowing them to update inventory in real time as orders are placed. This reduces food waste and ensures accurate availability of menu items.
- On-Demand Delivery Services: Some restaurants have adopted on-demand logistics providers, providing quicker and more flexible delivery options.
- Sustainability Focus: In recent years, sustainability has become a critical consideration in both food delivery and supply chain management. Companies are making strides in reducing packaging waste, using eco-friendly materials, and optimizing delivery routes to reduce carbon footprints. Some delivery platforms also promote eco-conscious choices, such as encouraging customers to choose environmentally-friendly packaging or offering incentives for using reusable containers.

BENEFITS OF FOOD DELIVERY APPS FOR LOCAL BUSINESSES

Food delivery apps have proven to be a game-changer for local businesses, particularly small restaurants and cafes, offering them numerous advantages that help drive growth, increase revenue, and expand their reach. These apps provide an efficient and cost-effective way for businesses to tap into new customer bases without needing significant investments in traditional marketing strategies or infrastructure

1. Increased Reach and Customer Base

- Broader Audience: By joining online food delivery apps, local businesses can tap into a larger, often global audience beyond their immediate geographical area. The app provides access to customers who may not have heard of the restaurant otherwise, helping businesses reach a broader customer base.
- Discoverability: Apps list businesses in searchable directories, making it easy for customers to find new dining options based on their preferences, location, or cuisine. This added visibility can attract new customers who may not have walked by or otherwise found the business.
2.Reduced Customer Walk-Ins and In-House Dining Pressure
- More Focus on Delivery: As many customers prefer to eat at home or the office, local businesses can alleviate the pressure on in-house seating by focusing on delivery orders. This ensures that smaller or less busy restaurants still have the chance to reach customers who would otherwise not be able to dine in.
- Efficient Resource Management: By outsourcing the delivery aspect, businesses can reduce operational pressure on kitchen staff, especially during peak dining hours. They can maintain a smoother workflow, which can improve both the dining and delivery experience.
3. Marketing and Promotion
- Increased Visibility with Minimal Effort: Being listed on popular food delivery apps automatically boosts a local business’s exposure to a much larger customer pool, often with no upfront marketing cost. Apps have built-in marketing tools, such as promotions, featured listings, and discounts, helping businesses get noticed without having to invest heavily in traditional advertising.
- Customer Reviews and Ratings: Positive reviews and ratings from customers on these platforms serve as a form of word-of-mouth marketing, helping new customers make purchasing decisions. The higher the ratings, the more likely new customers will trust the business and place orders.
- Special Promotions: Many apps allow businesses to run promotions or flash deals, which can attract new customers and encourage repeat purchases. These offers are also highly visible to users browsing through the app.

NEED OF THE STUDY

India's local businesses form the backbone of the economy, contributing significantly to employment and economic development. With the proliferation of delivery apps such as Zomato and Swiggy, these platforms have become a critical channel for local businesses to reach a wider audience, enhance operational efficiency, and remain competitive in a digitally evolving marketplace. However, there is a pressing need to understand how these apps benefit local businesses, influence their performance metrics, and drive digital transformation. This study is essential to provide actionable insights for local entrepreneurs, delivery app developers, and policymakers to harness the full potential of these platforms. It will also help identify challenges faced by local businesses in leveraging delivery apps and suggest solutions to optimize their use. In the context of India's growing digital ecosystem, understanding this dynamic is crucial to fostering sustainable growth and innovation in the local business landscape.

OBJECTIVES OF THE STUDY

1. To identify the benefits of delivery apps provide to local businesses.
2. To examine the impact of delivery apps on performance of local businesses.
3. To assess the role of delivery apps in fostering digital transformation among local businesses.

HYPOTHESIS OF THE STUDY

H₀₁: Delivery apps do not provide significant benefits to local businesses.

H₀₂: Delivery apps have no significant impact on the performance of local businesses.

SCOPE OF THE STUDY

The present study focuses on understanding the role of delivery apps in transforming local businesses, with a particular emphasis on customers and medium-sized local businesses in Hyderabad, India. The study specifically examines the impact of two prominent delivery apps, Zomato and Swiggy, which are widely used by local businesses and consumers alike. The scope of the study includes medium-sized local businesses such as restaurants or cafés, retail stores, grocery or convenience stores, and pharmacies, which rely on delivery apps to expand their customer base and enhance operational efficiency. Geographically, the study is limited to Hyderabad, a metropolitan city with a vibrant local business ecosystem and a significant adoption rate of digital platforms .

LIMITATION OF THE STUDY

1. The study is geographically restricted to Hyderabad, which may not fully capture the diverse experiences and impacts of delivery apps on local businesses across other regions of India. The findings may not be generalizable to areas with different demographics or levels of digital adoption.
2. The study is limited to a specific set of medium-sized local businesses, such as restaurants, retail stores, grocery stores, and pharmacies, which may not fully reflect the experiences of other industries that use delivery apps.
3. The study focuses only on two delivery apps, Zomato and Swiggy, excluding other delivery platforms that might also play a significant role in transforming local businesses. This limits the scope of insights to only these two platforms.

2. REVIEW OF LITERATURE

Samuel Anbu Selvan and Susan Anita Andrew (2021): The examine the growing popularity of online food delivery services in India, driven by technological advancements and changing consumer behave. The study highlights a shift from traditional "dining out" to an "eating in" culture, especially among youth (ages 15–34) in metropolitan areas, where factors like traffic congestion and population density discourage travel. The findings emphasize the critical role of technology in enhancing the consumer experience, suggesting that providers focus on user preferences and satisfaction to stay competitive. The authors conclude that understanding demographic needs and adapting services accordingly are key to succeeding in India's evolving food delivery market.

Asma Alotaibi and Fahad Alofan (2024) aims to explore consumer preferences and behaviors regarding online food delivery applications in Saudi Arabia, with a focus on identifying factors that influence the adoption and usage of such services. The research methodology involves data collection and analysis to examine key determinants impacting consumer choices, particularly the role of social media reputation, advertisements, and the proximity of restaurants. The study finds that while cost was not a major factor in driving consumers to online food delivery apps, the reputation of the app on social media and its proximity to customers were critical in shaping consumer preferences. Additionally, Jahez emerged as the preferred food delivery app, primarily due to its outstanding customer service. The paper concludes that customer satisfaction is significantly influenced by service quality and restaurant proximity, with social media reputation playing a key role in app selection. The authors suggest that food delivery services should focus on enhancing customer service and improving their social media presence to attract and retain users. They also recommend future research to further explore the dynamics of customer satisfaction and innovations in the online food delivery industry.

R. Raghavendra Rao (2024) particularly focusing on platforms like Zomato. The purpose of the study is to understand customer perceptions and identify factors influencing their satisfaction with online food ordering services, especially in the context of the growing ecommerce industry. The research methodology involves collecting data through structured questionnaires and interviews to gather insights from consumers. The findings indicate that despite the challenges posed by the Covid-19 pandemic, the online food delivery market continues to grow, with Zomato and Swiggy being the most popular platforms due to their widespread availability across India. The study reveals that ease of use, requiring minimal technical knowledge, and the convenience of door-to-door service are significant drivers of customer satisfaction. The paper concludes that the online food delivery sector is poised for continued growth, fueled by consumer demand for convenience and accessibility. The author suggests that service providers should focus on improving service quality, user experience, and availability to further enhance customer satisfaction and ensure long-term success in the competitive market.

Kavitha Thakur (2020) aims to examine consumers’ attitudes, preferences, and satisfaction with online food delivery services in India, driven by the rise of e-commerce and internet technology. The study seeks to understand how customers perceive and prefer these services compared to traditional dining out. The research methodology involves surveys to gather data on consumer behavior and satisfaction with various online food ordering platforms. The findings reveal that while dining out remains popular, the convenience of ordering food online has become a preferred choice for many consumers, offering the ease of home delivery without the need to visit restaurants. The paper concludes that the online food ordering industry has drastically transformed the restaurant business by providing a new level of comfort and convenience for consumers. The author suggests that businesses in this sector should continue to innovate, improve technology, and enhance customer service to align with changing consumer expectations and maintain satisfaction.

Abhishek Sharma, Nandani Sharma, and Dr. Ashish Baiswar (2022) ( explores the rapid growth of the food delivery app industry, particularly accelerated by the COVID-19 pandemic, and examines the technologies and features essential for successful app development. The purpose of the study is to understand the current trends in the food delivery market and provide guidance on creating competitive and efficient food delivery apps. The research methodology includes a review of industry trends, consumer behavior, and the technologies used in app development. The findings indicate that the demand for food delivery apps has significantly increased, with digital orders growing faster than traditional dine-in services. The paper concludes that despite the competitive nature of the food delivery market, new entrants can still succeed by identifying service gaps and offering innovative solutions. The authors suggest that to be successful, food delivery apps should focus on integrating advanced features, userfriendly interfaces, and technologies that enhance customer satisfaction. They recommend that businesses should closely monitor competitors and consumer preferences to develop strategies that improve sales and expand their customer base.

Chiara Rinaldi, Marlene D'Aguilar, and Matt Egan (2022) explores the impact of online food delivery services, particularly delivery-only 'dark kitchens' and rapid grocery delivery services (RGDS), on the availability of health-harming and health-promoting products. The purpose of the study is to analyze how these services affect the accessibility and promotion of various products, including food, alcohol, and tobacco, and their potential public health implications. The research methodology involves collecting and analyzing publicly available online data from a metropolitan area in London, UK, using descriptive statistics and qualitative assessment. The findings indicate that dark kitchens primarily operate as virtual restaurants, offering fast food and desserts, while RGDS focus on pre-packaged, unhealthy foods high in fat, salt, and sugar, along with alcoholic beverages and tobacco. These products are heavily promoted through offers and marketing language. Fruits and vegetables were less commonly available, mainly through grocery delivery apps. The paper concludes that these delivery services contribute to the increased availability and promotion of unhealthy products, raising concerns about their impact on public health. The authors suggest further research, expanding the geographic scope, to better understand the broader effects of these online food and product delivery services on health.

Hemant Chauhan (2019) explores the rapid growth of the online food delivery industry, focusing on Zomato's role in transforming food service delivery. The purpose of the study is to analyze how online food ordering platforms, particularly Zomato, have reshaped the food delivery sector by using mobile technology and aggregation services. The research methodology includes a review of market trends and the proliferation of food delivery apps, specifically in Indian metropolitan cities. The findings indicate that the demand for delivery services has significantly increased, driven by consumers' hectic schedules and the convenience of ordering food through mobile apps. This surge in demand has made food delivery services profitable, despite the rise of multiple competitors. The paper concludes that the food delivery industry is evolving due to consumer preferences for quick and easy meal options, and Zomato has become a key player by providing a convenient platform for food orders. The author suggests that food delivery businesses should focus on improving delivery speed, enhancing mobile app functionality, and expanding their reach to continue meeting the growing demand for fast and convenient food services.

V. Jaykumar, K. Balasubramanian, and G. Sangaran (2018) examines the emerging online food delivery market in Bangalore, specifically focusing on the breakfast aggregation business. The purpose of the study is to analyze the opportunities and competitive landscape for new entrepreneurs entering the online food delivery sector, particularly in the breakfast segment. The research methodology includes an analysis of market growth data, such as the 40% growth in the online food delivery market in India by 2014, and the impact of app-based delivery services. The findings highlight a significant surge in demand for online food delivery, with a notable rise in investments, as the industry has grown to account for 17% of the online services market. The paper concludes that the breakfast delivery aggregation market presents a promising opportunity for first-time entrepreneurs, especially as consumer preferences shift towards convenience and quick meals. The authors suggest that new entrepreneurs can capitalize on this growing demand by focusing on specialized, app-based services and creating a competitive edge through innovative business models and efficient delivery solutions.

Dsouza Prima Frederick and Sachin K. Parappagoudar (2021) explores the growing online food service sector, aiming to analyze the external factors affecting its business model and sustainability. The study utilizes secondary data, applying Porter’s Five Forces and the PESTLE framework to examine the industry’s competitive environment and market conditions. The findings suggest that while the online food delivery industry has substantial growth potential, it faces increasing competition and pressure to expand its operations to meet the growing customer base. The paper concludes that to remain competitive and sustainable, businesses in the online food service industry need to adopt adaptive strategies, focusing on expansion, operational efficiency, and customer-centric approaches. The authors recommend that companies should continuously innovate, embrace technological advancements, and implement sustainable practices to stay ahead in the market.

JW Nam, SN Kim, and H Lee (2016) examines the rapid growth of food delivery apps and the challenges associated with this expansion. The purpose of the study is to evaluate the dynamics of the online food delivery market, particularly focusing on the impact of excessive marketing strategies used by startups and their effect on consumer satisfaction. The research methodology involves analyzing the business models of food delivery apps, exploring market competition, and assessing consumer complaints. The findings reveal that while the market for food delivery services is thriving, the aggressive marketing practices employed to secure market dominance have led to a rise in consumer dissatisfaction.

W.P. Tyas, M. Damayanti, J.K. Hutama, and D.D. Saragih (2019) examines how online motorcycle taxi services, specifically food delivery services, contribute to the growth and success of culinary home-based enterprises (HBEs) in an educational and housing area in Semarang, Indonesia. The study aims to assess the impact of online motorcycle taxis on the development of these small-scale culinary businesses. The research adopts a mixed-methods approach, combining both quantitative and qualitative descriptive analysis. It explores the roles of these delivery services from the perspectives of culinary business owners, online motorcycle taxi riders, and consumers. The findings reveal that food delivery services play several crucial roles in the development of culinary HBEs, including maximizing business potential, aiding in business promotion, and providing easy customer access. These factors are reflected in the increased income from both online and offline transactions, as well as the expanded service coverage of the culinary businesses. The paper concludes that online motorcycle taxis significantly contribute to the growth and sustainability of home-based culinary enterprises, particularly in areas with high demand for food delivery services. The authors suggest that leveraging such services can be a key strategy for HBEs to enhance visibility, customer reach, and profitabilitysustainability of the food delivery app market may be jeopardized if these issues are not addressed. The authors suggest that companies in the industry should focus on improving customer service, moderating their marketing strategies, and enhancing the transparency and reliability of their services to better meet consumer expectations and reduce complaints.

PN Nanaiah in (2020), investigates consumer behavior and the impact of food delivery apps on college students in Bangalore, India. The study aims to understand the competitive landscape of food delivery apps in the city and identify the factors influencing students' frequency of using these services. The research methodology involves a survey conducted across six colleges in Bangalore, where students were asked about their preferences and behaviors towards food delivery applications. The study finds that key factors such as restaurant options, delivery time, offers/discounts, user interface, and minimum penalties significantly impact students' usage of these apps. The findings highlight that food delivery apps are particularly beneficial to students due to their convenience, wide range of payment options, fast delivery, and attractive offers. The paper concludes that the millennial population, particularly college students, is a crucial demographic driving the growth of food delivery apps in Bangalore. To maintain their competitive edge, the study suggests that food delivery apps should focus on improving restaurant variety, enhancing user interfaces, and providing better discounts and offers to attract and retain customers.

Cecilia Desvita Ratna Elvandari, Anggoro Cahyo Sukartiko, and Arita Dewi Nugrahini (2018) focuses on identifying the technical requirements needed to improve the quality of local online food delivery services in Yogyakarta, Indonesia, amidst rising competition from larger, national-scale companies. The study aims to identify consumer needs, assess service-quality satisfaction, and determine the technical requirements to improve delivery services. Using a combination of the Servqual model and Quality Function Deployment (QFD), the authors conducted an online survey with over 700 consumers, obtaining 213 responses. The research findings indicate that the most critical attributes of consumer needs include order conformity, politeness of delivery staff, cleanliness of food packaging, the condition of received food, and affordable delivery costs. In terms of technical requirements, the study identifies the need for skills training for messengers and administrative staff, regular service evaluations, the addition of more food outlets, a map feature on the website, and a more efficient ordering application. The authors conclude that implementing these technical requirements will help local food delivery services enhance their offerings and better compete with national-scale competitors. They suggest that local providers focus on these areas to meet evolving consumer demands and adapt to a competitive market environment.

Anirban Basak, Sagnik Dutta, Priyanka Ghosh, Pritam Das, Angshuman Rakshit, and Dr. Sudipta Basu Pal,(2024) presents MEALO an innovative online platform designed to connect cloud kitchens and home kitchens to the food delivery market. The primary purpose of the platform is to help home cooks and small-scale cloud kitchen businesses expand their reach by providing a user-friendly service for order management and delivery. The research methodology used in the study involved the design of an online system that facilitates easy menu management and food ordering for customers. Findings from the research indicate that MEALO provides an essential service to home cooks, enabling them to run their businesses without the need for physical restaurants. The platform also caters to the growing demand for affordable, home-cooked meals among students and bachelors living away from home, offering them a healthier and cost-effective alternative to dining out. In conclusion, the study highlights that MEALO supports local food businesses, increases access to fresh, homemade meals, and addresses the food delivery needs of individuals. Suggestions for improvement include expanding the platform's capabilities to include more diverse food options and enhancing its marketing efforts to attract a wider customer base.

The paper Joselina Rizki Bimantari, Noor Alamsyah, and Santi Ika Murpratiwi (2024) examines the adoption of GoFood, a food delivery application, among traditional Lombok cuisine restaurant owners during the COVID-19 pandemic. The research employs the Technology Acceptance Model (TAM) with a Partial Least Square (PLS) approach to explore factors influencing the acceptance of the app by restaurant owners. The study found that the adoption of GoFood played a crucial role in sustaining local businesses and preserving traditional dishes like Sate Rembiga amid the pandemic’s adverse effects on the culinary sector. The results highlight that the technological adoption was essential for the resilience of these businesses, enabling them to continue operations despite declining tourism and in-person dining. The paper concludes that understanding the dynamics of technology acceptance can help formulate strategies to improve the use of food delivery apps in traditional restaurants, ensuring their ability to adapt to unforeseen challenges. The authors suggest that encouraging further technological integration can support these businesses in facing future disruptions and expanding their customer reach.

The paper by BS Tarle, PK Rajendra, JR Manoj, A Sathyan, and KH Jagannath (2016) addresses the growing need for a more efficient system to discover and deliver home-cooked meals in smart cities. The authors propose an online platform or smart application aimed at providing users with quick access to home-cooked food providers like messes, dabbawalas, and takeaway systems. This platform replaces traditional methods of searching for such services, ensuring that meals are affordable, nutritious, and conveniently located. The research methodology involves the development of a logistical system that incorporates a Swarm Intelligence-based path-planning algorithm (ABC algorithm) for optimizing delivery routes. The findings highlight the effectiveness of this system in improving food delivery logistics, reducing search time for users, and providing small-scale food providers with a larger customer base. The paper concludes that the proposed platform can benefit local food businesses by expanding their reach and support users looking for affordable meals. Suggestions for future research include further optimization of the logistical system and expanding the platform’s capabilities to reach more users and providers in urban areas.

The paper Puneet Kaur, Amandeep Dhir, Shalini Talwar, and Karminder

Ghuman,(2021) investigates the factors that drive consumer behavior toward food delivery apps (FDAs) using the Theory of Consumption Value (TCV). The aim of the study is to extend TCV by adapting it to the FDA context, examining the values related to food consumption and consumer behavior. The research employs a mixed-method approach, beginning with focus group discussions to develop a questionnaire, followed by a cross-sectional survey of 423 FDA users aged 22–65 years. The collected data was analyzed through structural equation modeling.The study finds that the primary driver of purchase intentions is epistemic value (visibility), followed by conditional value (affordances), price (a component of functional value), and social value (prestige). Interestingly, concerns about food safety and health consciousness did not significantly influence purchase intentions.In conclusion, the research offers insights for FDA service providers on how to influence consumer choices and improve market competitiveness. It highlights that FDAs should focus on increasing visibility, providing affordable options, and enhancing the prestige associated with their services. The paper contributes to consumer behavior theory by adapting TCV specifically for the FDA industry and offers valuable implications for marketing and strategy development within the food delivery sector.

The paper titled "The Effect of Online Restaurant Menus on Consumers’ Purchase Intentions During the COVID-19 Pandemic" by Prawannarat Brewer and Angela G. Sebby (2021) aims to explore how the visual appeal and informativeness of online restaurant menus influence consumer purchase intentions during the pandemic. The study seeks to provide insights into how restaurant owners can modify their online menus to increase revenues when dine-in services are restricted. The research uses the Stimulus-Organism-Response (SOR) model to examine the causal relationship between the online menu characteristics, the perceived risk of COVID-19, and consumer behavior.The research methodology involved collecting data from U.S.-based populations and employing structural equation modeling to test the proposed model. The findings indicate that both the visual appeal and informativeness of the menu played significant roles in shaping consumers’ purchase intentions, particularly in the context of COVID-19. The study also found that consumers’ desire for food and the perceived convenience of online ordering acted as mediators in this relationship, influencing their likelihood of making a purchase.In conclusion, the study emphasizes the importance of creating engaging and informative online menus to enhance consumer purchase intentions during a crisis. The research suggests that restaurants should focus on content marketing strategies and consider consumer safety perceptions to remain competitive. The paper provides both theoretical and practical implications, urging restaurant owners to adapt their online presence in response to changing consumer needs during and after the pandemic.

The paper "A Study of Customer Satisfaction with Online Food Delivery Applications" by Ritu Rapariya (2023) explores the evolution of food technology and customer satisfaction with online food delivery services, specifically in India. The purpose of the study is to understand the role of food delivery applications like Zomato, Foodpanda, and Swiggy in shaping consumer preferences and enhancing the efficiency of restaurants. The research highlights how these platforms bridge the gap between customers and food establishments, providing users with the convenience of exploring various cuisines and placing orders with ease.The methodology employed in the study involves a review of the growth of online food delivery services in India and the impact of these services on customer satisfaction. The paper discusses how food delivery platforms have become integral to the food industry by reducing costs for businesses, helping with staffing, and improving delivery efficiency. It also addresses how customer satisfaction is influenced by the ease of use, variety of food choices, and timely delivery services.The findings reveal that online food delivery applications are highly popular in India due to their convenience, variety, and time-saving benefits. The platforms also serve as a competitive advantage for restaurants by attracting more customers and offering promotional discounts. However, challenges like delivery costs and customer expectations are also mentioned.In conclusion, the study underscores the significance of online food delivery applications in modernizing the food industry, making it easier for consumers to access a wide range of cuisines from the comfort of their homes. The paper suggests that platforms should continue to innovate to meet customer expectations, focusing on improving user experience, enhancing delivery efficiency, and offering personalized services to retain customer satisfaction.

The paper "Lokart: Empowering Local Artisans through Mobile E-commerce" by Ch. Venkata Kalyan, V. V. S. N Akhila Sree Rajeswari, Y. Sri Deepak Phaneendra, and S. Ravi Kishan (2024) presents Lokart, a mobile application developed to support local artisans, particularly small-scale jewellers in Machilipatnam. The purpose of the study is to create a platform that empowers these artisans by facilitating direct sales to customers, eliminating intermediaries, and reducing marketing expenses. The research methodology involved the development of the app using Flutter SDK and Google Firebase, focusing on offering a seamless and secure e-commerce experience with a real-time database for transactions.The findings suggest that Lokart allows artisans to showcase their products efficiently and reach a broader market, providing a more cost-effective way to sell high-quality products. Additionally, the app includes a B2B feature that enables artisans to sell raw materials and goods to businesses, further expanding their market reach. This app enhances the economic opportunities for small-scale artisans and improves their business operations by offering them control over their sales processes.In conclusion, Lokart has the potential to revolutionize the ecommerce landscape for local artisans, helping them grow their businesses and access wider markets. The study suggests that similar mobile platforms can greatly contribute to economic empowerment in local communities. Future work should focus on expanding the app's functionalities, reaching a larger number of artisans, and scaling it to other regions to maximize its impact.

3. RESEARCH METHODOLOGY

The research methodology outlines the systematic approach used to investigate the role of delivery apps in transforming local businesses in Hyderabad.

Research Design

The study adopts a quantitative research approach, enabling the collection and analysis of numerical data to draw objective conclusions. This design is suitable for evaluating the benefits, impacts, and role of delivery apps in fostering digital transformation among local businesses.

Geographic Scope

The research is conducted in Hyderabad, a metropolitan city in India with a thriving local business ecosystem and widespread use of delivery apps. The city's diverse demographics and growing digital infrastructure make it an ideal location for the study.

Target Population

The target population includes customers of Zomato and Swiggy, as well as medium-sized local businesses such as restaurants or cafés, retail stores, grocery or convenience stores, and pharmacies. These businesses were selected due to their significant dependence on delivery apps for market expansion and operational efficiency.

Sampling Methodology

The study employs convenience sampling, a non-probability sampling technique. This method ensures ease of access to respondents within the specified geographic area, allowing for efficient data collection. While this approach may limit generalizability, it is practical given the study's resource and time constraints.

Sample Size

The sample size for the study is 80 respondents, comprising customers and representatives from the selected local businesses. This sample size is deemed sufficient to provide reliable statistical insights into the research objectives.

Data Collection Method

Data is collected using a Likert scale-based questionnaire, which captures respondents' perceptions, preferences, and opinions on various aspects of delivery apps. This method allows for quantifiable insights into the benefits, performance impacts, and digital transformation facilitated by delivery apps.

STATISTICAL TOOLS

Frequency Distribution

Frequency distribution is used to analyze and interpret the demographic profile of the respondents and assess the role of delivery apps in fostering digital transformation among local businesses. This tool provides a detailed breakdown of demographic characteristics such as age, gender, income level, and business type, offering insights into the diversity of the sample population. Additionally, it helps in summarizing the responses related to digital transformation, such as the extent of app usage, adoption of digital tools, and improvements in technological capabilities. This statistical method organizes the data in a way that highlights patterns and trends, making it easier to understand the characteristics and digital evolution of the local businesses in Hyderabad.

Discriminant Analysis

Discriminant analysis is applied to identify the benefits delivery apps provide to local businesses. Discriminant analysis helps classify businesses into distinct groups based on their responses and identifies the most significant benefits that differentiate these groups. This insight is critical in understanding how various types of businesses perceive and utilize delivery apps differently.

Regression Analysis

Regression analysis is utilized to examine the impact of delivery apps on the performance of local businesses. It establishes the impact of independent variables facilitated by delivery apps on dependent variable (business performance). By quantifying the strength and direction of these relationships, regression analysis provides a clear understanding of how delivery apps contribute to business success. This tool also allows for predictions of performance outcomes based on changes in the influencing factors, offering actionable insights for local businesses and app developers.

RESEARCH GAP

While the global rise of delivery apps has transformed consumer behavior and business operations, there is a lack of focused research on their impact on local businesses, particularly in the Indian context. Existing studies primarily highlight the consumer benefits and logistical efficiencies brought by these platforms but fail to delve into their specific advantages for small and local businesses. Moreover, the role of delivery apps in fostering digital transformation among these businesses remains underexplored, especially in a country like India, where the penetration of digital tools varies significantly across regions and industries. Additionally, while global research highlights revenue growth and market expansion due to delivery apps, there is limited evidence on how they influence operational performance, customer retention, and competitive positioning for local businesses in India. This gap necessitates a deeper exploration of how delivery apps support local businesses' growth and adapt them to the digital economy.

4. DATA ANALYSIS AND INTERPRETATION ANALYSIS :

What type of business do you operate ?

TABLE 1.1

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The survey results indicate that the majority of Swiggy and Zomato customers primarily order from restaurants or cafes (44.7%), reaffirming the core focus of these platforms on food delivery. Grocery or convenience stores (30.3%) also see significant demand, highlighting the growing reliance on these services for essential items. Interestingly, pharmacy orders (22.4%) are higher than retail store orders (2.6%), suggesting that customers increasingly use delivery apps for healthcare needs. This trend indicates potential opportunities for Swiggy and Zomato to expand their grocery and pharmacy delivery services to meet evolving customer preferences.

GRAPH 1:

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How long have you been using delivery apps for your business ?

TABLE 1.2

Illustrations are not included in the reading sample

GRAPH 2 :

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The survey data indicates that the majority of Swiggy and Zomato customers (61.8%) have been using these platforms for 6 months to 1 year, reflecting a strong adoption rate in the recent past. Additionally, 18.4% of respondents have been using the services for less than 6 months, highlighting a steady influx of new users. Meanwhile, 17.1% have been customers for 1–2 years, and only 2.6% have remained loyal for more than 2 years. This suggests that while these platforms continue to attract new users, long-term retention remains relatively low, possibly due to evolving consumer preferences, competition, or changes in usage behavior over time.

What percentage of your total revenue comes from delivery app orders ?

TABLE 1.3

Illustrations are not included in the reading sample

GRAPH 3 :

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The survey results indicate that real-time delivery tracking is considered an important feature by Swiggy and Zomato customers, though opinions vary in intensity. A majority of respondents rate it as either moderately important (35.5%) or very important (32.9%), highlighting that tracking enhances convenience and reliability in food delivery. Meanwhile, 31.6% of customers consider it slightly important, suggesting that while useful, it is not a critical factor for all users. The overall distribution shows that while real-time tracking is valued by most customers, its significance varies, with some placing higher emphasis on other aspects of food delivery, such as speed or order accuracy.

Frequency distribution of Benefits of Delivery Apps for Local Businesses

TABLE 2.1

Providing real time delivery tracking

Illustrations are not included in the reading sample

The survey results indicate that real-time delivery tracking is considered an important feature by Swiggy and Zomato customers, though its significance varies among respondents. A majority (68.4%) perceive it as either moderately important (35.5%) or very important (32.9%), emphasizing its role in enhancing convenience and reliability. However, 31.6% of customers consider it slightly important, suggesting that while tracking adds value, other factors such as delivery speed, food quality, and order accuracy may have a stronger influence on customer satisfaction. This indicates that while real-time tracking is beneficial, food delivery platforms should focus on a holistic service experience to meet diverse customer expectations.

Increasing customer base

TABLE 2.2

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The survey results indicate that increasing the customer base is a key factor for Swiggy and Zomato customers when choosing food delivery services. A significant 44.7% of respondents consider it very important, while 34.2% rate it as moderately important, emphasizing its relevance. Additionally, 18.4% view it as extremely important, further highlighting the strong demand for platforms that help businesses reach more customers. Only 2.6% find it slightly important, indicating that nearly all users recognize the value of customer base expansion. These findings suggest that Swiggy and Zomato's ability to connect businesses with a broader audience is a major driver of their popularity among users.

Boosting sales and revenue

TABLE 2.3

Illustrations are not included in the reading sample

The survey results indicate that boosting sales and revenue is a highly valued benefit of food delivery apps among Swiggy and Zomato customers. A majority (50.0%) of respondents consider it very important, while 23.7% rate it as extremely important, highlighting its critical role in business growth. Additionally, 26.3% find it moderately important, suggesting that while some users prioritize other factors, revenue generation remains a key expectation from these platforms. With no respondents rating it as unimportant, the findings emphasize that Swiggy and Zomato play a significant role in driving sales and financial success for businesses through their widespread customer reach and digital marketing support.

Enhancing brand awareness

TABLE 2.4

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The survey results indicate that enhancing brand awareness is considered important by Swiggy and Zomato customers, though with varying levels of significance. A notable 28.9% of respondents rate it as very important, while 39.5% consider it moderately important, suggesting that brand visibility plays a key role in business growth. However, 31.6% of respondents find it slightly important, indicating that while branding is beneficial, other factors like service quality and pricing may hold greater weight in customer decision-making. Overall, the findings suggest that while food delivery apps contribute to brand awareness, their primary value may lie in operational efficiency and customer acquisition rather than direct branding efforts.

Simplifying order management

TABLE 2.5

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The survey results indicate that simplifying order management is a key benefit for Swiggy and Zomato customers, with 43.4% considering it very important and 32.9% rating it as moderately important. This suggests that streamlined order processing significantly enhances user experience by reducing effort and improving efficiency. However, 23.7% of respondents find it slightly important, implying that while order management is valuable, other aspects like delivery speed and pricing may also influence customer satisfaction. Overall, the findings highlight that efficient order management is a crucial factor in enhancing convenience and usability for food delivery app users.

Offering marketing and promotional tools

TABLE 2.6

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The survey results indicate that offering marketing and promotional tools is an important feature for Swiggy and Zomato customers, with 36.8% considering it very important and 26.3% rating it as moderately important. This suggests that promotional strategies, such as discounts and special offers, play a crucial role in attracting and retaining customers. However, 34.2% of respondents view it as slightly important, and 2.6% consider it the least important, indicating that while marketing tools are beneficial, other factors like pricing, food quality, and delivery efficiency may have a greater impact on customer preferences. Overall, the findings suggest that while promotions enhance customer engagement, their influence varies among users.

Frequency distribution of impact of delivery apps on performance

Operational efficiency (E.g reduced costs)

TABLE 3.1

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The survey results indicate that operational efficiency, such as reduced costs, has seen notable improvements for businesses using Swiggy and Zomato. A majority of respondents (39.5%) reported a significant improvement, while 22.4% experienced exceptional improvement, highlighting the strong impact of delivery apps in optimizing operations. Additionally, 30.3% observed a moderate improvement, suggesting that while efficiency gains are evident, the extent varies across businesses. However, 7.9% reported only a slight improvement, indicating that some businesses may still face challenges in cost reduction and operational streamlining. Overall, these findings suggest that Swiggy and Zomato contribute positively to operational efficiency, though the degree of impact depends on individual business models and operational structures.

Sales / revenue growth

TABLE 3.2

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The survey findings indicate that sales and revenue growth has been positively impacted by Swiggy and Zomato for most businesses. A significant 47.4% of respondents reported a significant improvement, while 30.3% experienced exceptional improvement, emphasizing the strong role of delivery apps in boosting business earnings. Additionally, 22.4% observed a moderate improvement, suggesting that while most businesses benefit from increased sales, the extent of growth varies. Overall, these results highlight that Swiggy and Zomato contribute significantly to revenue generation, helping businesses expand their market reach and improve financial performance.

Order accuracy and efficiency

TABLE 3.3

The survey results suggest that order accuracy and efficiency have improved for businesses using Swiggy and Zomato, though the extent of improvement varies. A majority (46.1%) reported a moderate improvement, while 31.6% experienced a significant improvement, indicating that delivery apps have streamlined operations and minimized errors. Additionally, 19.7% of respondents noted an exceptional improvement, further emphasizing the role of these platforms in enhancing order management. However, 2.6% of respondents observed only a slight improvement, suggesting that some businesses may still face challenges in ensuring accurate and efficient deliveries. Overall, these findings highlight the positive impact of Swiggy and Zomato in optimizing order fulfillment processes.

Speed and timeliness of delivery

TABLE 3.4

Illustrations are not included in the reading sample

The survey findings indicate that speed and timeliness of delivery have improved for businesses using Swiggy and Zomato, though the level of improvement varies among users. A significant portion of respondents (47.4%) reported a significant improvement, while 32.9% experienced a moderate improvement, suggesting that delivery apps have largely enhanced efficiency in order fulfillment. Additionally, 15.8% of respondents noted an exceptional improvement, highlighting the effectiveness of these platforms in ensuring timely deliveries. However, 3.9% of customers observed only a slight improvement, indicating that some delivery inefficiencies may still persist. Overall, these results suggest that Swiggy and Zomato have had a positive impact on delivery speed, but further enhancements may be needed to achieve consistently high performance.

Brand visibility and awareness

TABLE 3.5

Illustrations are not included in the reading sample

The survey findings indicate that brand visibility and awareness have significantly improved for businesses using Swiggy and Zomato. A large proportion of respondents (39.5%) reported an exceptional improvement, while 34.2% observed a significant improvement, suggesting that these platforms effectively enhance brand recognition. Additionally, 22.4% of respondents experienced a moderate improvement, indicating that while visibility has increased, the extent varies among businesses. However, 3.9% of customers noted only a slight improvement, implying that some businesses may still struggle to leverage these platforms for brand growth. Overall, the results highlight the positive impact of delivery apps on brand visibility, though further marketing efforts may be required for businesses to maximize their reach and recognition.

Customer loyalty and repeat orders

TABLE 3.6

Illustrations are not included in the reading sample

The survey results suggest that customer loyalty and repeat orders have improved for businesses using Swiggy and Zomato, though the impact varies. 18.4% of respondents reported an exceptional improvement, while 36.8% observed a significant improvement, indicating that these platforms play a key role in fostering repeat purchases. Additionally, 34.2% experienced a moderate improvement, suggesting that while loyalty has strengthened, it is not uniform across all businesses. However, 10.5% of respondents noted only a slight improvement, highlighting that some businesses may still face challenges in retaining customers. Overall, the findings indicate that while food delivery apps contribute to enhancing customer retention, businesses may need to implement additional strategies such as personalized promotions and loyalty programs to further boost repeat orders.

Business performance

TABLE 3.7

Illustrations are not included in the reading sample

The survey results indicate that business performance has generally improved for those using Swiggy and Zomato, though the extent varies. 30.3% of respondents reported a significant improvement, while 42.1% observed that their performance somewhat improved, suggesting that food delivery platforms contribute positively to business growth. However, 22.4% of respondents noted no noticeable change, indicating that some businesses may not have experienced a direct impact. Additionally, 5.3% reported that their performance somewhat worsened, highlighting potential operational or financial challenges. Overall, while food delivery apps appear to benefit many businesses, sustained growth may require additional strategies such as better cost management, targeted marketing, and enhanced customer retention efforts.

Frequency distribution of role of delivery apps:

Delivery apps have encouraged me to use digital tools

TABLE 4.1

Illustrations are not included in the reading sample

The data indicates that a majority of Swiggy and Zomato customers acknowledge the role of delivery apps in encouraging digital tool usage. Specifically, 51.3% of respondents agreed, while 21.1% strongly agreed, highlighting that over 72% of users recognize the impact of these platforms in promoting digital adoption. Meanwhile, 27.6% of respondents remained neutral, suggesting that while a significant portion of users have embraced digital tools due to these apps, some may not perceive a direct influence. This trend underscores how food delivery services facilitate technological engagement, potentially driving a shift toward digital transactions, app-based interactions, and e-commerce participation among users

Delivery Apps have improved my digital marketing skills

TABLE 4.2

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The data suggests that a significant proportion of Swiggy and Zomato customers believe that delivery apps have enhanced their digital marketing skills. A combined 68.4% of respondents either agreed (47.4%) or strongly agreed (21.1%) that these platforms have contributed to their marketing capabilities. Meanwhile, 26.3% remained neutral, indicating that some users do not perceive a direct impact. Only a small portion (5.3%) disagreed with the statement. These findings highlight that food delivery apps not only facilitate transactions but also expose users to digital marketing strategies, such as promotions, customer engagement, and data-driven decision-making, thereby fostering digital literacy and business growth.

Delivery apps have made it easier to take my business online

TABLE 4.3

Illustrations are not included in the reading sample

The data indicates that a majority of Swiggy and Zomato customers acknowledge the role of delivery apps in facilitating the transition of businesses to an online platform. A combined 59.2% of respondents either strongly agreed (22.4%) or agreed (36.8%) that these apps have simplified the process of taking their business online. However, a significant portion (36.8%) remained neutral, suggesting that while some users recognize the benefits, others may not have directly experienced or leveraged these opportunities. Only 3.9% disagreed, indicating minimal resistance to the idea. Overall, the findings suggest that delivery apps play a crucial role in helping businesses establish an online presence, streamline operations, and reach a broader customer base.

Delivery apps have increased my exposure to new customers

TABLE 4.4

Illustrations are not included in the reading sample

The data suggests that a majority of Swiggy and Zomato customers believe delivery apps have significantly increased their exposure to new customers. A total of 69.8% of respondents either strongly agreed (23.7%) or agreed (46.1%) that these platforms have helped expand their customer base. Meanwhile, 28.9% remained neutral, indicating that while they may not have directly benefited, they do not dismiss the potential impact. Only 1.3% disagreed, showing minimal opposition to this viewpoint. These findings highlight the effectiveness of delivery apps in enhancing customer reach and market visibility, making them a valuable tool for businesses seeking to grow their consumer base.

Delivery apps have simplified managing orders and inventory

TABLE 4.5

Illustrations are not included in the reading sample

The data indicates that a significant portion of Swiggy and Zomato customers believe that delivery apps have simplified order and inventory management. A combined 69.7% of respondents either strongly agreed (42.1%) or agreed (27.6%) with this statement, suggesting that these platforms have effectively streamlined business operations. Additionally, 21.1% remained neutral, implying that while they may not have experienced major improvements, they acknowledge the potential benefits. Only 9.2% of respondents disagreed, indicating minimal dissatisfaction. These findings emphasize that delivery apps play a crucial role in reducing operational complexities, making it easier for businesses to manage their orders and inventory efficiently.

Delivery apps have reduced my operational challenges

TABLE 4.6

Illustrations are not included in the reading sample

The data reveals that a majority of Swiggy and Zomato customers perceive delivery apps as effective in reducing operational challenges. A total of 69.8% of respondents either strongly agreed (31.6%) or agreed (38.2%) that these platforms have streamlined their business processes, making operations more efficient. Additionally, 26.3% of respondents remained neutral, suggesting that while they may not have faced significant challenges, they acknowledge the potential benefits of delivery apps. Only 3.9% disagreed, indicating minimal dissatisfaction. These findings highlight that delivery apps contribute to reducing operational difficulties, improving workflow efficiency, and enhancing overall business management.

OBJECTIVE 1: To identify the benefits of delivery apps provide to local businesses.

This objective aims to examine the benefits that delivery apps provide to local businesses. To achieve this, the study applies discriminant analysis to identify the core advantages that delivery apps offer to local businesses. The following is the hypothesis

Null hypothesis : Delivery apps do not provide significant benefits to local businesses.

Discriminant Analysis

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The discriminant analysis results indicate that the most significant benefit delivery apps provide to local businesses is simplifying order management (0.330), suggesting that streamlined operations are a key advantage. This is closely followed by increasing the customer base (0.311), highlighting the role of these platforms in expanding business reach. Additionally, boosting sales and revenue (0.234) and offering marketing and promotional tools (0.232) further contribute to business growth by enhancing visibility and driving customer engagement. In contrast, enhancing brand awareness (0.068) and providing real-time delivery tracking (0.057) show weaker correlations, implying they are less influential in distinguishing the benefits for local businesses. Overall, the analysis suggests that delivery apps primarily support local businesses by optimizing order management, expanding their customer base, and driving sales, with branding and tracking playing a more secondary role. Hence, it indicates reject the null hypothesis and accept the alternative hypothesis.

OBJECTIVE 2: To examine the impact of delivery apps on performance of local businesses.

This objective aims to examine the impact of delivery apps on the performance of local businesses. To achieve this, the study applies regression analysis to assess the extent of this impact. The following is the hypothesis

Null hypothesis: Delivery apps have no significant impact on the performance of local businesses.

Regression Analysis

Illustrations are not included in the reading sample

The regression analysis examines the impact of delivery apps on the performance of local businesses, highlighting key factors that influence their effectiveness. Among the predictors, operational efficiency (β = 0.294) has the highest positive impact, indicating that reduced costs and streamlined processes significantly enhance business performance. This is followed by customer loyalty and repeat orders (β = 0.262), suggesting that delivery apps play a crucial role in retaining customers. Speed and timeliness of delivery (β = 0.257) also contribute positively, emphasizing the importance of fast service in business success. However, sales/revenue growth (β = 0.028), brand visibility and awareness (β = -0.058), order accuracy and efficiency (β = -0.105), and overall business performance (β = -0.020) show weak or negative effects, indicating that these factors are less significant in determining the performance benefits of delivery apps. Overall, the findings suggest that delivery apps primarily enhance local business performance through improved operational efficiency, customer retention, and fast delivery rather than direct revenue growth or brand visibility. As the p-value seems to be less than 0.05, indicates reject the null hypothesis and accept the alternative hypothesis i.e., Delivery apps have a significant impact on the performance of local businesses.

OBJECTIVE 3: To assess the role of delivery apps in fostering digital transformation among local businesses.

The study applied Exploratory Factor Analysis (EFA) to identify the core features of delivery apps that foster digital transactions among local businesses.

Exploratory Analysis

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The factor analysis identifies key aspects of how delivery apps foster digital transformation among local businesses, with the highest contributing factor being increased exposure to new customers (0.700), emphasizing that these platforms significantly expand market reach. This is followed by improved digital marketing skills (0.687) and encouragement to use digital tools (0.560), indicating that delivery apps play a crucial role in enhancing businesses' online presence and technological adaptability. Additionally, simplified order and inventory management (0.792) highlights operational improvements as a major digital transformation benefit. Reduced operational challenges (0.628) further reinforces this by showcasing how digital tools streamline processes. These findings suggest that delivery apps primarily drive digital transformation by enhancing customer outreach, improving marketing and digital skills, and optimizing business operations, making them essential tools for local businesses navigating the digital landscape.

5. FINDINGS & SUGGESTIONS

1. The study indicates that most orders come from restaurants (44.7%), followed by groceries (30.3%) and pharmacies (22.4%), while retail store purchases remain low (2.6%),it specifies while food delivery remains the core service, increasing demand for groceries and pharmacy items presents growth opportunities for these platforms.
2. The study implies that the majority of users (61.8%) have been using the platform for 6 months to 1 year, whereas only 2.6% have remained active for over 2 years, Although customer acquisition is strong, lower long-term retention indicates the need for enhanced loyalty programs and service quality to sustain engagement.
3. The study observes that while 68.4% of customers consider real-time delivery tracking important, 31.6% view it as less significant, although tracking enhances convenience, factors such as delivery speed and order accuracy may have a greater influence on customer satisfaction.
4. The study found that simplified order management (0.330) is the most significant benefit delivery apps provide to local businesses, streamlining order processes reduces manual effort, enhances workflow efficiency, and improves overall service management.
5. The study indicates that expanding the customer base (0.311) is another major benefit, as delivery apps help businesses attract new customers, increased visibility through these platforms enables businesses to reach a broader audience and grow their market presence.
6. The study observes that delivery apps contribute to sales growth (0.234) and marketing support (0.232), helping businesses generate revenue and engage customers, the promotional tools provided by delivery apps allow businesses to drive sales, strengthen customer engagement, and enhance brand outreach.
7. The study implies that brand awareness (0.068) and real-time tracking (0.057) have weaker impacts on local businesses, while these features add value, they are secondary to operational efficiency and customer acquisition in driving business success.
8. The study found that operational efficiency (β = 0.294) is the strongest factor influencing business performance,by reducing costs and streamlining processes, delivery apps help businesses manage resources more effectively, improving profitability.
9. The study indicates that customer retention (β = 0.262) significantly contributes to business success, as repeat orders strengthen revenue stability, delivery apps foster customer engagement, encouraging long-term relationships and sustainable business growth.
10. The study observes that delivery speed (β = 0.257) positively affects business performance, as faster service improves customer experience, timely deliveries enhance satisfaction, increasing repeat orders and positive customer reviews, which are crucial for business reputation.
11. The study implies that revenue growth (β = 0.028) and brand visibility (β = -0.058) have limited influence on performance,while delivery apps improve operational efficiency and customer retention, they do not directly drive revenue increases or significantly enhance brand recognition.
12. The study found that delivery apps significantly increase customer exposure (0.700), helping businesses reach a larger market,greater visibility through these platforms enhances customer acquisition, boosts sales, and strengthens brand awareness.
13. The study indicates that businesses using delivery apps report improved digital marketing skills (0.687), enabling them to promote their services more effectively,exposure to digital tools allows businesses to enhance their online presence and stay competitive in the evolving market landscape.
14. The study observes that many businesses have adopted digital tools (0.560) due to their engagement with delivery platforms,the integration of digital solutions helps businesses improve operational processes and adapt to modern technological trends.
15. The study implies that operational efficiency is further strengthened through simplified order and inventory management (0.792) and reduced operational challenges (0.628),by streamlining operations and minimizing errors, delivery apps enhance productivity and reduce the administrative burden on businesses.

CONCLUSION

The study highlights the transformative role of food delivery apps in reshaping local businesses by enhancing operational efficiency, expanding customer reach, and fostering digital adoption. While restaurants remain the primary beneficiaries, the increasing demand for grocery and pharmacy deliveries suggests emerging growth opportunities. Delivery apps have proven instrumental in simplifying order management, improving customer retention, and driving sales through promotional tools, though their direct impact on revenue and brand visibility remains limited. Additionally, their influence extends beyond transactions, encouraging businesses to adopt digital tools and enhance their marketing capabilities. Despite strong user acquisition, long-term retention remains a challenge, emphasizing the need for loyalty programs and service improvements. Overall, food delivery apps are not just service facilitators but key enablers of digital transformation, helping local businesses thrive in an evolving marketplace

SUGGESTION

1. The study suggests that local businesses should leverage delivery apps to streamline order management, as it is the most significant benefit. By reducing manual effort and improving workflow efficiency, businesses can enhance overall service management and optimize their operations.
2. The study suggests that delivery app platforms should focus on expanding customer reach and improving marketing support, as these features significantly contribute to business growth. Offering more targeted promotional tools and customer engagement strategies can help businesses attract and retain a broader audience.
3. The study suggests that businesses should prioritize operational efficiency and customer retention strategies, as these factors have the strongest impact on performance. Implementing streamlined processes and fostering long-term customer relationships can enhance profitability and sustainability.
4. The study suggests that delivery speed should be improved to enhance customer satisfaction and repeat orders, as faster service positively affects business reputation and revenue stability. Ensuring timely deliveries and optimizing logistics can strengthen customer loyalty and competitive advantage.
5. The study suggests that businesses should invest in digital marketing and technology adoption, as using delivery apps has been linked to improved digital marketing skills and the integration of modern tools. Training and resources should be provided to help businesses maximize their online presence and competitiveness.

REFERENCES

Jaykumar, V. (2018). Online breakfast delivery aggregation business landscape in Bangalore: A first move advantage narration of first-time entrepreneurs. European Journal of Business and Management, 10(16), 75-89.

Alofan, F. (2024). The customer perspective on food delivery applications: Insights from Saudi Arabia. Archives of Business Research, 12(1), 120-135.

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Rao, R. R. (2024). A study on customer satisfaction and perception towards food delivery services of Zomato with reference to Hyderabad City. Journal of Multidisciplinary Studies, 18(3), 121-135.

Thakur, M. (2020). Customers' attitude and preference towards digital food apps services. International Journal of Recent Technology and Engineering, 9(3), 214-220.

Rinaldi, C., D'Aguilar, M., & Egan, M. (2022). Understanding the online environment for the delivery of food, alcohol, and tobacco: An exploratory analysis of ‘dark kitchens’ and rapid grocery delivery services. International Journal of Environmental Research and Public Health, 19(6), 12-25.

Frederick, D. P., & Parappagoudar, S. K. (2021). A descriptive analysis on sustainable business strategy of the online food service industry. Social Science Research Network. https://doi.org/10.2139/ssrn.3716891

Nam, J., & Kim, S. (2016). Study on the improvement of online food information services.

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Chauhan, H. (2019). Managing the services sector: The case of Zomato delivery services. Turkish Online Journal of Qualitative Inquiry, 10(4), 89-101.

Tyas, W. P., & Damayanti, M. (2019). The role of food delivery services by online motorcycle taxi on the development of culinary home-based enterprises. IOP Conference Series: Earth and Environmental Science, 353, 012037. https://doi.org/10.1088/1755-1315/353/1/012037 Nanaiah, P. (2020). A study on consumer behaviour and the impact of food delivery apps on the college students in Bangalore. Journal of Business and Social Studies, 7(2), 97-104.

Elvandari, C. D. R., Sukartiko, A. C., & Nugrahini, A. D. (2018). Identification of technical requirement for improving quality of local online food delivery service in Yogyakarta. Journal of Engineering and Technology Management, 9(2), 66-74.

Basak, A., Dutta, S., Ghosh, P., Das, P., Rakshit, A., & Basu Pal, S. (2024). Online food delivery app: MEALO. International Journal of Engineering Research and Applications, 14(3), 32-40.

Bimantari, J. R., Alamsyah, N., & Murpratiwi, S. I. (2024). Analyzing technology acceptance model for Lombok traditional food restaurant in GoFood application. Jurnal Nasional Pendidikan Teknik Informatika (JANAPATI), 12(1), 57-66.

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Kaur, P., Dhir, A., Talwar, S., & Ghuman, K. (2021). The value proposition of food delivery apps from the perspective of the theory of consumption value. International Journal of Contemporary Hospitality Management, 33(9), 3310-3330.

Abraham, A. (2021). A study on the effectiveness of online food applications on registered restaurants. International Journal of Management and Applied Science, 7(10), 85-92.

Rapariya, R. (2023). A study of customer satisfaction with online food delivery applications.

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Title: From Neighbourhood to Network. Role of Online Food Delivery Apps in Transforming Local Business

Research Paper (postgraduate) , 2024 , 53 Pages , Grade: A

Autor:in: M. Arul Jothi (Author)

Business economics - Offline Marketing and Online Marketing

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Title: From Neighbourhood to Network. Role of Online Food Delivery Apps in Transforming Local Business
Course: Information Systems
Grade: A
Author: M. Arul Jothi (Author)
Publication Year: 2024
Pages: 53
Catalog Number: V1583324
ISBN (PDF): 9783389139929
Language: English
Tags: from neighbourhood network role online food delivery apps transforming local business
Product Safety: GRIN Publishing GmbH

Quote paper: M. Arul Jothi (Author), 2024, From Neighbourhood to Network. Role of Online Food Delivery Apps in Transforming Local Business, Munich, GRIN Verlag, https://www.grin.com/document/1583324

From Neighbourhood to Network. Role of Online Food Delivery Apps in Transforming Local Business

Excerpt

Table of Contents

RESEARCH ABSTRACT

1. INTRODUCTION

BENEFITS OF FOOD DELIVERY APPS FOR LOCAL BUSINESSES

NEED OF THE STUDY

OBJECTIVES OF THE STUDY

HYPOTHESIS OF THE STUDY

SCOPE OF THE STUDY

LIMITATION OF THE STUDY

2. REVIEW OF LITERATURE

3. RESEARCH METHODOLOGY

4. DATA ANALYSIS AND INTERPRETATION ANALYSIS :

5. FINDINGS & SUGGESTIONS

CONCLUSION

REFERENCES

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