E-commerce itself is very broad and has been around for a long time. Bridging the gap between food and the Internet took longer (adoption of a Western concept) and is a revolution in e-commerce. Huge efforts have been made in food retailing in India by multinational companies like Rocket Internet GBMH and Justeat. Many small entrepreneurs invest in this type of business because of the low operating costs and high revenue it generates. Food and grocery retailing is a major part of e-commerce. Today, the massive growth of food e-commerce is giving rise to new business models through which retailers manage their delivery services. A large number of restaurants and food outlets have started outsourcing their delivery services to online food service providers called third-party distributors. These distributors offer an online business model like web portals to sell the products. Consumer preferences play a very important role in shopping on online stores. These preferences are formed when the consumer experiences various attributes and features provided on the web portals which will lead to purchase intention. There are seven most important dimensions that customers look for in online retail stores: merchandise, convenience, reliability, interactivity, navigation, layout and promotional offers. Previously, entrepreneurs were involved in marketing and retailing of electronic items, books, CDs, DVDs, etc. However, nowadays we can see perishable products like food items and groceries selling online which shows great innovation in today's market. Besides all the advantages, the payment system poses a big challenge for online businesses. People are feeling somewhat reluctant... middle of paper ... the menu will be posted on the website. These companies usually operate on a commission model – that is, the restaurant pays them 5-20% of the order value for all orders generated through the portal. • Customers can choose from the various restaurants listed on the website. They can search by location, restaurant and cuisine type and place an order online. Customers can pay by cash online or opt for cash on delivery. • Upon receiving the order, the company representative calls the restaurant and places the order. • The restaurant then fulfills the order, just as it would a normal delivery order. They deliver the food and collect the money. • At the end of the month, the company sends an invoice to the restaurant listing all the orders placed by them along with the commission payable and collects the money/check from the restaurant. (Narayanan, 2011)