Should Glovo prioritize expanding its restaurant selection or improving delivery speed?

Introduction

The trade-off between expanding Glovo's restaurant selection and improving delivery speed is a critical decision that could significantly impact our growth trajectory and user satisfaction. This scenario touches on the core value proposition of our food delivery platform and requires careful consideration of various factors. I'll analyze this trade-off by examining its implications for our business, users, and overall ecosystem.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share how we're performing relative to our competitors in terms of restaurant selection and delivery speed?

Why it matters: Helps understand our competitive advantage or areas for improvement Expected answer: We're lagging in restaurant selection but competitive in delivery speed Impact on approach: Would prioritize restaurant expansion if we're significantly behind

• Business Context: Based on our revenue model, I assume we take a percentage of each order. Is expanding our restaurant base or improving delivery speed more likely to increase our average order value?

Why it matters: Aligns solution with revenue growth strategy Expected answer: Expanding restaurants likely increases order value more Impact on approach: Would lean towards restaurant expansion if it has a higher revenue impact

• User Impact: I'm curious about our user segments. Do we see different behaviors or preferences between frequent users and occasional users regarding restaurant variety vs. delivery speed?

Why it matters: Helps tailor solution to most valuable or growth-potential segments Expected answer: Frequent users value variety more, occasional users prioritize speed Impact on approach: Would consider a segmented strategy based on user preferences

• Technical Feasibility: Considering our current infrastructure, which option - expanding restaurants or improving delivery speed - would require more significant technical changes?

Why it matters: Assesses feasibility and potential implementation challenges Expected answer: Improving delivery speed requires more complex technical changes Impact on approach: Would factor in development time and resources required for each option

• Resource Allocation: How flexible is our budget and team capacity for taking on either of these initiatives?

Why it matters: Determines scope and timeline possibilities Expected answer: Limited additional resources available, need to prioritize carefully Impact on approach: Would focus on phased approach or hybrid solution to manage resources