Introduction
The core trade-off we're examining is whether Grab should focus on improving its ride-hailing experience or diversify into new verticals like food delivery. This decision is critical for Grab's growth strategy and resource allocation. I'll analyze this trade-off by examining the current product landscape, potential impacts, and key metrics, then design an experiment to inform our decision.
I'd like to start by asking a few clarifying questions to ensure we're aligned on the context and constraints of this decision. Then, I'll walk you through my analysis framework, covering product understanding, trade-off impacts, metrics, experimentation, and ultimately, a recommendation with next steps.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps prioritize focus areas based on revenue impact Expected answer: Ride-hailing contributes 70-80% of revenue Impact on approach: Higher ride-hailing revenue would lean towards core improvement
Why it matters: Informs potential synergies and cannibalization risks Expected answer: 30-40% of ride-hailing users have tried food delivery Impact on approach: High overlap might favor diversification for user retention
Why it matters: Determines feasibility and cost of diversification Expected answer: Current infrastructure can handle 2-3x current load Impact on approach: High scalability would make diversification more attractive
Why it matters: Assesses our ability to execute on diversification Expected answer: 70% core ride-hailing, 30% new initiatives Impact on approach: Low capacity for new initiatives might favor core improvement
Why it matters: Influences the potential success of diversification Expected answer: Food delivery market is growing but has 2-3 established players Impact on approach: High saturation might favor focusing on core ride-hailing
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