Platform Economy and the Food Service Sector

Economic Analysis of Food Delivery Apps in Kollam District, Kerala

Abstract

Food delivery applications such as Swiggy and Zomato have significantly altered food consumption patterns in urban and semi-urban areas like Kollam, Kerala. This study explores the economic implications of these platforms on three major stakeholder groups: consumers, delivery partners, and food establishments including restaurants, hotels, and eateries. The objectives include examining shifts in consumer spending and youth consumption behaviour, increased adoption of digital payments, economic benefits and constraints faced by delivery workers, effects on the revenue and operations of food businesses, and environmental concerns due to packaging-related plastic waste. Primary data was collected from 130 respondents using structured questionnaires and interviews. The study found a rise in impulse spending, especially among younger consumers, driven by ease of access, app-based discounts, and digital transactions. Digital payment systems like UPI and mobile wallets have become the dominant modes of payment, contributing to a cashless local economy. Delivery partners enjoy income flexibility but face long working hours, job insecurity, and limited social protection. Restaurants benefit from higher visibility and order volumes but are negatively affected by high commission fees and stiff competition, impacting profitability. Additionally, increased use of single-use plastic packaging has raised environmental concerns. The study concludes that food delivery platforms are reshaping Kollam’s food economy, offering new opportunities while presenting economic and environmental challenges that warrant regulatory attention.