Should Just Eat Takeaway prioritize expanding restaurant options or improving delivery speed?

Introduction

The trade-off between expanding restaurant options and improving delivery speed is a critical decision for Just Eat Takeaway. This scenario involves balancing customer choice with operational efficiency, both of which are crucial for growth and customer satisfaction in the food delivery industry. I'll analyze this trade-off by examining the business context, user impact, technical feasibility, and resource implications to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking our current market position might influence this decision. Could you share our market share compared to competitors and whether we're in a growth or consolidation phase?

Why it matters: Helps determine if we should focus on aggressive expansion or optimizing existing operations. Expected answer: We're the second-largest player with 25% market share, in a growth phase. Impact on approach: Would lean towards expansion if in growth phase, or optimization if consolidating.

• User Impact: Based on user feedback, I'm assuming delivery speed is a pain point. What's our current average delivery time compared to the industry standard?

Why it matters: Identifies if speed is a competitive disadvantage needing immediate attention. Expected answer: Our average is 45 minutes, industry standard is 35 minutes. Impact on approach: Significant lag would prioritize speed improvements over expansion.

• Technical Feasibility: I'm thinking improving delivery speed might involve complex logistics updates. What's the current state of our delivery management system?

Why it matters: Determines if we have the technical foundation to significantly improve speed. Expected answer: Recently upgraded system with AI-powered route optimization. Impact on approach: Advanced system would make speed improvements more feasible and potentially quicker to implement.

• Resource Allocation: Considering both options require investment, what's our current budget allocation for product development vs. partner acquisition?

Why it matters: Indicates organizational priorities and available resources for each option. Expected answer: 60% product development, 40% partner acquisition. Impact on approach: Higher allocation to partner acquisition might favor restaurant expansion.

• Timeline Pressure: I'm curious about any upcoming competitive threats or market events. Are there any significant launches or expansions planned by competitors in the next 6-12 months?

Why it matters: Helps prioritize short-term competitive positioning vs. long-term strategic development. Expected answer: Major competitor launching in 3 key cities within 6 months. Impact on approach: Imminent competitive threat might prioritize rapid expansion of restaurant options to secure market position.