Factors responsible for failure of food tech start-ups in India
by Tahir Sufi; Satinder Pal Singh
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 47, No. 2/3, 2022

Abstract: Information technology brought radical innovation to the catering industry. The internet has led to the growth of the online food delivery start-up. The use of smartphones and the internet transformed how food is ordered and consumed. The mobile applications enabled customers to order food from restaurants located at distant locations. However, a large number of the start-ups failed, although most of such start-ups received funding from investors. This paper identifies the factors that led to the failure of such companies. Such factors were identified through a review of literature, company reports and business news portals. The study used a questionnaire method to gather the data and used descriptive statistics to list the top failure factors. An independent sample t-test was used to compare the strategies of the failed and successful start-ups.

Online publication date: Thu, 03-Nov-2022

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