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By Charlene Li Charlene Li Scilit Preprints.org Google Scholar 1, 2 , Miranda Mirosa Miranda Mirosa Scilit Preprints.org Google Scholar 1, 2 and Phil Bremer Phil Bremer Scilit Preprints.org Google Scholar 1, 2, *
Received: June 10, 2020 / Revised: June 30, 2020 / Accepted: July 6, 2020 / Published: July 8, 2020
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During the global outbreak of COVID-19 in 2020, the benefits of online food delivery (FD) were seen as it made it easier for consumers to access ready meals and allowed food providers to continue operations . However, FD Online is not without its critics, with reports of consumer and restaurant boycotts. Therefore, it is time to review and evaluate the wider implications of online FDs and what they mean for shareholders. Using the three pillars of sustainability as a lens through which impacts are considered, this review presents the most up-to-date research in the field, revealing a range of positive and negative impacts. Economically, while online FD provides employment and sales opportunities, it has been criticized for the high commission it charges restaurants and questionable working conditions for delivery people. From a societal perspective, online FD affects the relationship between consumers and their food, as well as public health outcomes and transportation systems. Environmental impacts include significant waste generation and a high carbon footprint. In the future, stakeholders should consider how they can reduce the negative effects of online FD and promote its positive effects to ensure its sustainability in all senses.
Economic growth and increased broadband penetration are driving the global expansion of e-commerce. Consumers are increasingly using online services as their disposable income increases, electronic payments become more trusted, and the range of suppliers and the size of their delivery networks expand.
Online-to-offline (O2O) is a form of e-commerce where consumers are attracted to a product or service online and are forced to complete the transaction in an offline environment. A rapidly expanding area of O2O business is the use of online food delivery (online FD) platforms. The emergence of online FD has changed the way many consumers and suppliers of food around the world communicate, and the effects of this change on sustainability (defined by three pillars – economic, social and environmental [1 ]) should be more complicated. checked. Part of the difficulty in evaluating its impact is that researchers from different disciplines approach the topic. Therefore, the goals of this review are threefold: (1) conduct an interdisciplinary review that brings together academic research in a range of domains affected by the increasing use of online FD; (2) Discuss the opportunities and challenges of these effects. and (3) highlight opportunities for action by all stakeholders, including online FD industry professionals, policymakers, consumers, and academia, to maximize its positives and minimize its adverse effects. Before presenting the report, it is important to review the section on online food delivery (Part 2) to help put the findings outlined in the report into context (Part 4, Part 5 and Part 6).
The e-commerce market has grown dramatically over the past decade as more and more customers go online. This change in the way consumers shop is driven by a wide range of factors, some of which are market or country specific, while others are the result of global changes. These changes include: increasing disposable income, especially in developing countries; more work hours and commuting time; Increasing bandwidth penetration and improving the security of electronic payments; reducing trade barriers; Increasing the number of retailers with an online presence; and more customer awareness of e-commerce [2].
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The strongest e-commerce growth in the last few years has occurred in China, where sales reached $1.935 trillion in 2019 — more than triple the amount spent in the United States ($586.92 billion). , the second largest market. China alone accounts for 54.7% of the global e-commerce market, almost double the market share of the next top five countries (US, UK, Japan, South Korea, Germany) combined [3]. The growth of e-commerce in the Asia-Pacific region is shown in Table 1, which shows a significant increase in the amount spent on major online shopping days between 2015 and 2019. Notable is the $38.4 billion spent on the Day of Singles. 11/11) In the Asia Pacific region in 2019, over $9.4 billion was spent on Black Friday in North America and most of Europe, and $7.4 billion was spent on Cyber Monday in North America. The world’s leading e-commerce platforms vary by region and include popular platforms such as Amazon (US), Alibaba (China), and Flipkart (India).
The rapid growth of e-commerce has brought many new forms of business, such as B2B (business to business), C2C (customer to customer), B2C (business to customer) and O2O (online to offline) [5, 6 ]. O2O business is a form of marketing based on information and communication technology (ICT) in which consumers order goods or services online and receive the goods or services in an offline store [7, 8 ].
One of the key developments that led to the explosion of O2O commerce was the proliferation of smartphones and tablets and the development of infrastructure to support payment and delivery. In 2019, there were 5.2 billion smartphone connections, and by the end of 2020, it is predicted that half of the world’s population will have access to mobile Internet services [9].
O2O services have emerged in various fields including the purchase of different categories of products and services such as food, hotel rooms, real estate or car rental [10]. Online FD refers to the process by which food ordered online is prepared and delivered to the consumer. The development of online FD is supported by the development of integrated online FD platforms such as Uber eats, Deliveroo, Swiggy and Meituan. Online FD platforms perform various functions including providing a wide range of food options to consumers, receiving orders and sending orders to the food manufacturer, tracking payments , arranging food delivery and providing services. Monitoring devices (Figure 1) [11]. Food delivery applications or “apps” (FDA) work in the broader context of online FD as they enable food ordering through mobile applications [12].
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Food delivery providers can be classified as restaurant-to-consumer delivery or platform-to-consumer delivery [13]. Restaurant-to-consumer delivery providers prepare and deliver food, as is common for providers such as KFC, McDonald’s, and Domino’s. The order can be placed directly through the restaurant’s online platform or through a third-party platform. These third-party platforms vary from country to country and include examples such as Uber eats in the US, Eleme in China, Just Eat in the UK and Swiggy in India. Third-party platforms also offer online delivery services from partner restaurants that do not necessarily provide delivery services themselves, a process defined as delivery from the platform to the consumer.
Online FD requires highly efficient and scalable real-time delivery services. Restaurants can use existing staff for their deliveries, such as waiters in some small restaurants, or they can use specialist delivery teams specifically recruited and trained for this role, as seen in to some big restaurant brands. KFC, Domino’s and Xibei. Alternatively, restaurants can use crowdsourcing, a network of delivery drivers (riders) who are independent contractors, a model that provides an efficient and inexpensive approach to food delivery [14]. Online FD platforms can be responsible for recruiting and training delivery professionals, or they can use crowdsourcing using delivery people.
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