INF3708
Assessment 3
Due date: 26 July 2024
, Question 1 (Analyzed Answer)
1.1. Risks Associated with the Food Delivery Business in Low Socioeconomic
Neighbourhoods
Infrastructure Conditions: The condition of roads and street lighting may be poor in
areas with low socio-economic conditions. This may lead to delivery delays or even
damage to the vehicle on duty. For instance, streets not so well-lit become very
difficult to ride/drive through at night and may end up in an accident or possible
delays.
Safety Concerns: This, therefore, may involve greater incidences of crime,
particularly in cases of theft and vandalism. There might also be risks of the delivery
staff or their vehicles being hijacked, which again leads to the loss of goods and
concerns for staff safety.
1.2 Risk Mitigation Features of the Service Delivery Application
Integrated navigation with safety alerts: Incorporate in the app features that keep
users informed on navigation in real-time with safety alerts. For example, the app
can possess features that enable routing functionality to work with live GPS data to
recommend safer routes and alert drivers to impending dangers or crime hotspots.
Enhanced Security Measures: Display of real-time order tracking information and
panic buttons for delivery staff could be included. The app would have an emergency
response system wherein the trigger in case of trouble to the delivery person would
reach the emergency authorities in the locality.
1.3. Cost Implications of Risk Materialization
Increased Operational Costs: Operational costs may increase if certain risks, such
as infrastructure problems or security issues, actually occur. For instance, the cost of
maintaining and repairing vehicles du e to bad road conditions or the expenditure of
hiring additional safety measures.
Insurance Premiums: The occurrence of higher risks could mean an increase in
insurance premiums against theft or damage, thus adding to the overall cost of
delivery operations.
1.4.1. Features to Cover Travelling Costs