Online Food Delivery App Distribution and Determinants of Jakarta's Gen Z Spending Habits

Online Food Delivery App Distribution and Determinants of Jakarta's Gen Z Spending Habits

Purpose: Considering the COVID-19 pandemic and the increasing number of online food delivery applications (OFDA), this study aims to assess the distribution of the presence of Indonesian OFDA and to measure the factors that influence the spending habits of OFDA users. Research design, data and methodology: Two hundred and nine OFDA users from Jakarta’s Generation Z were surveyed via a questionnaire. The data were analyzed using Structural Equation Modeling and SMART PLS 3.0. Results: OFDAs were introduced into Indonesia in the recent past with varying degrees of popularity determined by the number of downloads. Users’ intention to use was not determined by the speed of the introduction of an OFDA. This study also reveals that previous experience of the service, the orientation of time and price savings had a significant effect on spending habits. A moderating role of the saving variable on time and price was not demonstrated. Conclusions: The results of the study suggest that, in COVID-19 pandemic conditions, the spending habits of Generation Z are not based on impulse, thrift, or extravagance. The pandemic shaped specific motivations in spending habits, namely prioritizing need. This study has limitations, including the small sample size and the use of internal variables.