What makes an online food delivery platform successful?
Overview
Online food delivery is a food delivery service carried out by online delivery service sites
through delivery service applications such as GoFood or GrabFood (Kaur et al., 2020). In the
midst of the current Covid-19 pandemic, the use of online food delivery is highly favored by the
people of Indonesia. Nielsen Singapore research shows that around 58% of Indonesians buy
food through online applications via smartphones. On average, people buy food through food
delivery applications from smartphones online as much as 2.6 times per week. This transaction
has increased by 20% compared to before the Covid-19 pandemic (Jayani, 2021). When
consumers are satisfied with the use of online food delivery, consumers will repeatedly order
through the application (Ngoc & Uyen, 2015). Online food ordering meets the needs of busy
individuals living in cities who order online and receive delivery in minutes.
With the increasing use of online food delivery services in Indonesia, this study will
analyze what features make online food delivery services preferred by users. The study was
conducted on 10 Online Food Delivery (OFD) service user with the age of 20-30 years. 7 out
of 10 people have used OFD for more than 12 months and 90% of them use OFD within 1-5
times per week. The intention to use OFD is quite varied, but the biggest reason is wanting to
try food/drinks that have never been consumed. Other reasons include no food/drinks at home,
bored with food/drinks at home or work, lazy to visit places to eat, and the rest are either not
having time to go out while working or discount reasons. The study was conducted on a Likert
Scale with points 1 (not important) to 5 (very important) to show how important a feature is in
an OFD platform.
Key Feature
Regarding the quality of information that an online food delivery service must have, most
consumers agree that a food delivery service platform has information that is well-organized,
precise, accurate, and displays the page quickly. Through Park and Kim (2003), wider product
information leads to better purchasing decisions and levels of consumer satisfaction. Ballantine
(2005) also found a positive relationship between website information attributes and consumer
satisfaction.
In the design and system of the OFD, 7 people feel it is very important and 3 others
consider it important to have features that make it easier for users to find the food/drink they
are looking for. This is in line with research according to McKinney et al. (2002), “No matter
how thorough the information content of a site is, customers who have difficulty finding and
obtaining the information they need are more likely to leave the site” (p. 308). Most users agree
that online food delivery services should be easy to use, have an organized appearance, run
immediately when opened, and not experience crashes and buffering.
Intention to buy product from the OFD is influenced by the level of trust. Therefore,
security has become a major concern among online consumers. Mukherjee and Nath (2007)
also suggest that the perceived value of the privacy and security features is an important
antecedent of trust that ultimately positively influences user behavioral intentions. 9 out of 10
users feel that it is important for the OFD service they use to protect payment information and
not share personal information with other parties. The average user agrees regarding a
payment system that provides secure payment procedures, can complete transactions quickly,
provide accurate bills, and provide several payment options (e.g., using a debit card, Go-Pay,
Go-PayLater, ShopeePay, and OVO).
, During the search for this study and supported by several research results, showed that
the application quality that consist the quality of information, design, security, and
payment systems play an important role in determining customer trust in their online
experience. This trust is based on user satisfaction with OFD services.
The survey results show that most users agree that products are delivered in a timely
manner, quickly, and according to an important order in a food delivery service feature.
Cynthia, one of the users, said that when it comes to delivering food or drinks, she wants to
know the contact information of the delivery person to check their order. Through this feature,
according to her, it can easily reach delivery officers. Plus, from live tracking feature, users can
feel secure about their orders. Delivery time also plays an important role in satisfying and
retaining customers. Dholakia and Zhao (2010) found that time played an important influence
on the relationship between online service and satisfaction.
Customer service also has an important role in the online food delivery service feature.
All users mentioned that the OFD service that they often use has customer service available
online. Also based on the survey results, 70% of users feel that the compensation feature if a
problem occurs (balance refund) is very important. It is also supported by Reibstein (2002) who
found that perceived customer service support has a high correlation with the likelihood of
buying again.
The majority of users consider it important for OFD to have many choices of healthy,
clean, and delicious food/drinks. All agree that guarantees on OFD services (e.g., orders are
guaranteed to arrive in good condition, fresh, etc.) must be in the feature. Previous researchers
(Qin et al., 2010) found that three factors, namely food quality, perceived value and service
quality all had a direct and positive relationship with satisfaction.
With several features that exist in several OFD service in Indonesia, 10 people are
satisfied using OFD even from their last ordering experience. 80% of them feel that their trust
in OFD services will be difficult to change, and even have the desire to recommend OFD to
friends or family. However, what is slightly different is the desire to continue using OFD even
if the price increases and the possibility to switch to another OFD service provider. 5 out of 10
people say they will switch to another OFD service provider if the price increases. Some of the
reasons mentioned are that there are no attractive offers, vouchers and promos. The other 5
people will still use OFD even if the price increases because they have subscribed to a certain
package for several days (e.g.,14-day subscription at a price of Rp19,900 in Go-Food) and
have a membership status that provides convenience such as membership status of Citizen,
Boss, Owner, and Anak Sultan (Sultan’s Child) on Go-Food which provides no busy-hour fee
and cash back rewards. The push notification feature helps to stay connected with customers
also useful in increasing user engagement.
As mentioned above, the quality of service provided by OFD companies has a great
influence on customer satisfaction. Based on the discussion, the three dimensions of service
quality have been identified as important for satisfying and retaining customers, namely
delivery, customer service and food quality. Caruana (1999) explains that loyalty is the
degree to which consumers show a repeat purchase attitude, recommend, and are even willing
to pay more. Many of the previous studies confirmed a significant relationship between
repurchase intention and customer satisfaction (Mittal and Kamakura, 2001; Oliver, 1997; Yu
and Dean, 2001). Cass (2001) stated that satisfied customers are expected to show loyalty
and customer loyalty is influenced by satisfaction (Yoon, 2002). In conclusion, OFD that
have several key features as mentioned above are very possible to gain consumer trust and
satisfaction which have a positive impact on user loyalty. User loyalty is a form that food
delivery services are considered successful.
Overview
Online food delivery is a food delivery service carried out by online delivery service sites
through delivery service applications such as GoFood or GrabFood (Kaur et al., 2020). In the
midst of the current Covid-19 pandemic, the use of online food delivery is highly favored by the
people of Indonesia. Nielsen Singapore research shows that around 58% of Indonesians buy
food through online applications via smartphones. On average, people buy food through food
delivery applications from smartphones online as much as 2.6 times per week. This transaction
has increased by 20% compared to before the Covid-19 pandemic (Jayani, 2021). When
consumers are satisfied with the use of online food delivery, consumers will repeatedly order
through the application (Ngoc & Uyen, 2015). Online food ordering meets the needs of busy
individuals living in cities who order online and receive delivery in minutes.
With the increasing use of online food delivery services in Indonesia, this study will
analyze what features make online food delivery services preferred by users. The study was
conducted on 10 Online Food Delivery (OFD) service user with the age of 20-30 years. 7 out
of 10 people have used OFD for more than 12 months and 90% of them use OFD within 1-5
times per week. The intention to use OFD is quite varied, but the biggest reason is wanting to
try food/drinks that have never been consumed. Other reasons include no food/drinks at home,
bored with food/drinks at home or work, lazy to visit places to eat, and the rest are either not
having time to go out while working or discount reasons. The study was conducted on a Likert
Scale with points 1 (not important) to 5 (very important) to show how important a feature is in
an OFD platform.
Key Feature
Regarding the quality of information that an online food delivery service must have, most
consumers agree that a food delivery service platform has information that is well-organized,
precise, accurate, and displays the page quickly. Through Park and Kim (2003), wider product
information leads to better purchasing decisions and levels of consumer satisfaction. Ballantine
(2005) also found a positive relationship between website information attributes and consumer
satisfaction.
In the design and system of the OFD, 7 people feel it is very important and 3 others
consider it important to have features that make it easier for users to find the food/drink they
are looking for. This is in line with research according to McKinney et al. (2002), “No matter
how thorough the information content of a site is, customers who have difficulty finding and
obtaining the information they need are more likely to leave the site” (p. 308). Most users agree
that online food delivery services should be easy to use, have an organized appearance, run
immediately when opened, and not experience crashes and buffering.
Intention to buy product from the OFD is influenced by the level of trust. Therefore,
security has become a major concern among online consumers. Mukherjee and Nath (2007)
also suggest that the perceived value of the privacy and security features is an important
antecedent of trust that ultimately positively influences user behavioral intentions. 9 out of 10
users feel that it is important for the OFD service they use to protect payment information and
not share personal information with other parties. The average user agrees regarding a
payment system that provides secure payment procedures, can complete transactions quickly,
provide accurate bills, and provide several payment options (e.g., using a debit card, Go-Pay,
Go-PayLater, ShopeePay, and OVO).
, During the search for this study and supported by several research results, showed that
the application quality that consist the quality of information, design, security, and
payment systems play an important role in determining customer trust in their online
experience. This trust is based on user satisfaction with OFD services.
The survey results show that most users agree that products are delivered in a timely
manner, quickly, and according to an important order in a food delivery service feature.
Cynthia, one of the users, said that when it comes to delivering food or drinks, she wants to
know the contact information of the delivery person to check their order. Through this feature,
according to her, it can easily reach delivery officers. Plus, from live tracking feature, users can
feel secure about their orders. Delivery time also plays an important role in satisfying and
retaining customers. Dholakia and Zhao (2010) found that time played an important influence
on the relationship between online service and satisfaction.
Customer service also has an important role in the online food delivery service feature.
All users mentioned that the OFD service that they often use has customer service available
online. Also based on the survey results, 70% of users feel that the compensation feature if a
problem occurs (balance refund) is very important. It is also supported by Reibstein (2002) who
found that perceived customer service support has a high correlation with the likelihood of
buying again.
The majority of users consider it important for OFD to have many choices of healthy,
clean, and delicious food/drinks. All agree that guarantees on OFD services (e.g., orders are
guaranteed to arrive in good condition, fresh, etc.) must be in the feature. Previous researchers
(Qin et al., 2010) found that three factors, namely food quality, perceived value and service
quality all had a direct and positive relationship with satisfaction.
With several features that exist in several OFD service in Indonesia, 10 people are
satisfied using OFD even from their last ordering experience. 80% of them feel that their trust
in OFD services will be difficult to change, and even have the desire to recommend OFD to
friends or family. However, what is slightly different is the desire to continue using OFD even
if the price increases and the possibility to switch to another OFD service provider. 5 out of 10
people say they will switch to another OFD service provider if the price increases. Some of the
reasons mentioned are that there are no attractive offers, vouchers and promos. The other 5
people will still use OFD even if the price increases because they have subscribed to a certain
package for several days (e.g.,14-day subscription at a price of Rp19,900 in Go-Food) and
have a membership status that provides convenience such as membership status of Citizen,
Boss, Owner, and Anak Sultan (Sultan’s Child) on Go-Food which provides no busy-hour fee
and cash back rewards. The push notification feature helps to stay connected with customers
also useful in increasing user engagement.
As mentioned above, the quality of service provided by OFD companies has a great
influence on customer satisfaction. Based on the discussion, the three dimensions of service
quality have been identified as important for satisfying and retaining customers, namely
delivery, customer service and food quality. Caruana (1999) explains that loyalty is the
degree to which consumers show a repeat purchase attitude, recommend, and are even willing
to pay more. Many of the previous studies confirmed a significant relationship between
repurchase intention and customer satisfaction (Mittal and Kamakura, 2001; Oliver, 1997; Yu
and Dean, 2001). Cass (2001) stated that satisfied customers are expected to show loyalty
and customer loyalty is influenced by satisfaction (Yoon, 2002). In conclusion, OFD that
have several key features as mentioned above are very possible to gain consumer trust and
satisfaction which have a positive impact on user loyalty. User loyalty is a form that food
delivery services are considered successful.
