Should Glovo prioritize expanding our 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 will shape our product strategy and user experience. 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 impact on key stakeholders, evaluating potential outcomes, and proposing a data-driven approach to make an informed decision.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Glovo is facing increased competition in the food delivery market. Could you provide more details on our current market position and the specific challenges driving this trade-off consideration?

Why it matters: Helps frame the urgency and strategic importance of the decision Expected answer: Glovo is a strong player but facing pressure from new entrants Impact on approach: Would influence whether we prioritize defensive or offensive strategies

• Business Context: Based on our business model, I'm thinking restaurant commissions are a significant revenue source. How does our current revenue split look between commissions, delivery fees, and other sources?

Why it matters: Helps understand the financial implications of expanding restaurant selection Expected answer: Majority revenue from commissions, with growing delivery fee contribution Impact on approach: Would affect how we balance restaurant acquisition vs. delivery optimization

• User Impact: Considering user behavior, I'm curious about our current user retention rates. Can you share insights on how often users switch between different food delivery apps?

Why it matters: Helps gauge the potential impact of improved selection vs. speed on user loyalty Expected answer: Moderate to high switching behavior, especially in competitive markets Impact on approach: Would influence whether we focus more on acquisition or retention strategies

• Technical: Regarding our current delivery infrastructure, I'm wondering about our average delivery times and variability. What's our current performance in terms of on-time deliveries and average delivery duration?

Why it matters: Helps assess the potential gains from focusing on delivery speed improvements Expected answer: Room for improvement in both consistency and average delivery times Impact on approach: Would determine the potential impact and feasibility of speed improvements

• Resource: Thinking about our team structure, I'm curious about our current resource allocation. How are our product and engineering teams currently split between restaurant partnerships and delivery logistics?

Why it matters: Helps understand the feasibility of pursuing either option without significant restructuring Expected answer: Relatively balanced, with slightly more resources in restaurant partnerships Impact on approach: Would influence the ease of pivoting resources to either initiative