Is it better for Cabify to invest in improving the core ride-hailing experience or diversifying into adjacent services like food delivery?

Introduction

The core trade-off we're examining is whether Cabify should focus on enhancing its primary ride-hailing service or expand into adjacent markets like food delivery. This decision is crucial for Cabify's growth strategy and resource allocation. I'll analyze this trade-off by considering market dynamics, user needs, and operational implications.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Cabify's current market position is crucial. Could you share insights on our market share compared to competitors like Uber or local players?

Why it matters: Helps determine if we need to defend our core business or have room to expand Expected answer: Moderate market share with strong regional presence Impact on approach: If market leader, might favor core improvements; if challenger, could justify diversification

• User Impact: Based on user feedback, I'm assuming ride frequency is a key metric. How often does our average user book a ride?

Why it matters: Indicates potential for increasing engagement in core business Expected answer: 2-3 rides per week for active users Impact on approach: Lower frequency might suggest room for core improvements; higher could indicate saturation

• Technical Feasibility: Considering our existing infrastructure, I'm curious about our backend scalability. How easily could our current systems adapt to handling food delivery logistics?

Why it matters: Determines the technical effort required for diversification Expected answer: Moderate adaptability with some required investments Impact on approach: High adaptability could favor diversification; low might prioritize core improvements

• Resource Allocation: Looking at our team structure, I'm wondering about our current product development capacity. What percentage of our engineering team is dedicated to new feature development versus maintenance?

Why it matters: Indicates our ability to take on new initiatives Expected answer: 60% new development, 40% maintenance Impact on approach: Higher new development capacity could support diversification

• Timeline and Urgency: Considering market trends, I'm thinking about the competitive landscape. Are there any imminent threats or opportunities in the food delivery space we need to address quickly?

Why it matters: Helps prioritize short-term versus long-term strategies Expected answer: Growing competition but no immediate disruptors Impact on approach: Imminent threats might push for faster diversification; stable market could allow focus on core improvements