As PM for Amazon Fresh, would you expand Amazon Fresh delivery areas with longer delivery times, or maintain current Amazon Fresh coverage with faster delivery?

Introduction

The trade-off we're considering for Amazon Fresh is whether to expand delivery areas with longer delivery times or maintain current coverage with faster delivery. This decision involves balancing market expansion against service quality, which could significantly impact customer satisfaction, operational efficiency, and overall business growth. I'll analyze this trade-off by examining key factors, metrics, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking customer expectations for same-day delivery might be increasing. Could you share any data on how our current delivery times compare to competitors in our existing markets?

Why it matters: Helps assess our competitive position and urgency for improvement Expected answer: We're slightly behind in some markets, on par in others Impact on approach: Would influence whether to prioritize speed or expansion

• Considering our business model, I'm curious about the profitability of our current delivery areas. Can you provide insights into the unit economics of our existing operations?

Why it matters: Informs whether expansion or optimization should be prioritized Expected answer: Profitable in dense urban areas, challenging in suburbs Impact on approach: Would guide targeting strategy for potential expansion

• Looking at user behavior, I'm wondering about the correlation between delivery speed and order frequency. Do we have data on how faster delivery times impact customer retention and order volume?

Why it matters: Helps quantify the value of speed vs. reach Expected answer: Strong positive correlation in urban areas, less clear in suburbs Impact on approach: Would influence the weight given to delivery speed in decision-making

• From a technical perspective, I'm thinking about our current logistics infrastructure. How scalable is our existing system for handling increased delivery areas or faster turnaround times?

Why it matters: Determines feasibility and cost of each option Expected answer: Scalable for moderate expansion, would require significant investment for major speed improvements Impact on approach: Would impact timeline and resource allocation for implementation

• Considering our current team capacity, I'm curious about our ability to maintain service quality during expansion. Do we have the necessary workforce and training programs in place to support either option?

Why it matters: Ensures we can deliver on promises without compromising quality Expected answer: Current team stretched thin, would need hiring for expansion Impact on approach: Would influence timeline and phasing of implementation