Evaluation and Selection of Online Food Delivery (OFD) Companies in Perlis Using Fuzzy Analytical Hierarchy Process (AHP

Abstract

The COVID-19 pandemic has accelerated the global expansion of online food delivery (OFD) services. Food delivery services are comparable to courier services in that the ordered food is delivered to customers by workers or rider delivery companies. As the number of OFD companies continues to rise, the selection of OFD companies, such as GrabFood, Foodpanda, Halo Delivery, and others, is extremely competitive. Customers must choose carefully which OFD companies offer the best services. The objectives of this research are to investigate the evaluation criteria for OFD companies, then evaluate the OFD companies based on the evaluation criteria and rank the best OFD companies that provide the best services to customers in Perlis based on certain criteria. As a result, this study proposes a solution to this problem by developing a technique from multi criteria decision making (MCDM) known as the Fuzzy Analytical Hierarchy Process (FAHP) to determine the relative importance of criteria used in ranking OFD services. This study’s findings indicate that Foodpanda is the most preferred food delivery service, followed by Grabfood and Halo Delivery. The most crucial main criteria is the economy, with discounts and offers as the priority sub-criteria. The second most important criterion is service quality, and the last is technology.

A Deep Dive Analysis of Online Food Delivery with A 6 PS of the Digital Marketing Mix-Based Framework

“…This is due to the fact that one customer may install more than one application, and the purchase is likely driven by variety of restaurants and discount offers. (Kasim & Rosli, 2022) Given that it is becoming more difficult to acquire a high-quality potential customers, online food delivery services must maximize their marketing mixes to attract the right target group and also retain good quality customers by encouraging them to spend more with the application by offering enough online services to become an everyday app. (Bluebik, 2022) Therefore, the emerging game-changing strategy is to move from being a specialized food delivery platform to becoming an all-in-one application that serves the needs of customers for courier, delivery, shopping, taxi, and financial services.…”

“…(McCain et al, 2021) Consumers perceive that all online food delivery vendors are indifferent, and the only way to create sustainable differentiation is through service quality and user-friendly technology in addition to occasional discounts. (Kasim & Rosli, 2022)…”

“…Similar challenges were experienced in other countries like Malaysia. (Kasim & Rosli, 2022) Secondly, the regular emergence of newcomers in the food delivery business and expansion to upcountry urban areas to increase customer base, for example, Robinhood, Gojek, Shopee Food and True Food, pose challenges. This led to price competition among food delivery platforms to gain short-term orders.…”

“…In addition, the spread of COVID-19 accelerated the growth of online food delivery business, owing largely to the country's lockdown restrictions and work from home policies formulated by the government. (Sobika & Raj, 2021;Kasim & Rosli, 2022) This has transformed the dining patterns of people away from offline and toward online food delivery service. The food delivery platforms themselves also strived to upgrade service quality by adding more varieties of food choices, vendors, and number of delivery personnel.…”

“…Most previous studies regarding online food delivery address: (1) factors driving adoptions, intentions and choices among online delivery platform (Ali et al, 2020;Shafiee & Wahab, 2021;Shah et al, 2021;Sobika & Raj, 2021;Wen et al, 2021;Kasim & Rosli, 2022;Park, 2022;Ambad et al, 2022); (2) consumer attitudes toward and satisfaction with performance and optimization of food delivery applications (Macias-Rendon et al, 2021;McCain et al, 2021;Gardan et al, 2021;Sungboonlue et al, 2022;Rowland, 2022;Michalikova et al, 2022); (3) the online food delivery landscape (Senthil et al, 2020;Keeble et al, 2021) However, a holistic analysis of online food delivery within the digital marketing perspective remains unaddressed. Hence, the aim of this article is to fill this gap by presenting key digital marketing perspectives of prominent online food delivery platforms in Thailand by leveraging the 6 Ps of the digital marketing mix.…”