Should Gokada prioritize expanding its delivery services or focus on improving its ride-hailing platform?

Introduction

The trade-off question at hand is whether Gokada should prioritize expanding its delivery services or focus on improving its ride-hailing platform. This scenario involves balancing growth opportunities with core product enhancement for a multi-service transportation company. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and resource allocation to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Gokada might be facing increased competition in the ride-hailing space. Could you share more about the current market dynamics and our position relative to competitors?

Why it matters: Helps assess the urgency of improving the ride-hailing platform Expected answer: Fierce competition with declining market share Impact on approach: Would prioritize ride-hailing improvements if market position is threatened

• Business Context: Based on the dual-service model, I'm curious about the revenue split between ride-hailing and delivery. What percentage of our revenue comes from each service currently?

Why it matters: Indicates which service is currently driving more value Expected answer: 60% ride-hailing, 40% delivery Impact on approach: Would influence resource allocation towards the higher-revenue service

• User Impact: Considering user behavior, I'm wondering about the overlap between our ride-hailing and delivery customers. What percentage of users utilize both services?

Why it matters: Reveals potential for cross-service synergies Expected answer: 30% overlap in user base Impact on approach: High overlap might favor a unified platform improvement strategy

• Technical: Given the potential for expansion, I'm curious about our current technical infrastructure. How scalable is our existing system for handling increased delivery volume?

Why it matters: Determines feasibility of rapid delivery service expansion Expected answer: Moderately scalable with some upgrades needed Impact on approach: Would influence timeline and resource allocation for delivery expansion

• Resource: Thinking about our team structure, how are our product and engineering resources currently allocated between ride-hailing and delivery services?

Why it matters: Indicates current organizational focus and potential for reallocation Expected answer: 70% ride-hailing, 30% delivery Impact on approach: Would inform feasibility of shifting resources to delivery expansion