Should Postmates prioritize expanding its restaurant selection or improving delivery speed for existing partners?

Introduction

The trade-off between expanding Postmates' restaurant selection and improving delivery speed for existing partners is a critical decision that could significantly impact our growth trajectory and user satisfaction. This scenario touches on the core of our value proposition: providing customers with a wide variety of food options delivered quickly. I'll analyze this trade-off by examining its implications on our business model, user experience, and operational efficiency.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking our current market position might influence this decision. Could you share our market share compared to competitors and how it's trending?

Why it matters: Helps determine if growth or retention should be prioritized Expected answer: Moderate market share with increasing competition Impact on approach: Would lean towards expansion if market share is low

• User Impact: Based on user feedback, I'm assuming delivery speed is a pain point. What percentage of our negative reviews mention slow delivery times?

Why it matters: Indicates the urgency of improving delivery speed Expected answer: Significant portion (30-40%) of negative reviews mention slow delivery Impact on approach: High percentage would prioritize speed improvements

• Technical Feasibility: Considering our current platform, I'm curious about the technical effort required for each option. How complex would it be to onboard new restaurants versus optimizing our delivery routing algorithms?

Why it matters: Affects resource allocation and timeline Expected answer: New restaurant onboarding is straightforward, routing optimization is more complex Impact on approach: Easier technical implementation might favor expansion

• Resource Allocation: Given our current team structure, I'm wondering about our capacity for each initiative. Do we have more available resources in partner acquisition or in logistics optimization?

Why it matters: Determines feasibility and speed of implementation Expected answer: Balanced resources, slight lean towards partner acquisition Impact on approach: Would consider leveraging existing strengths

• Timeline and Urgency: Considering market dynamics, I'm curious about the urgency of this decision. Are we facing any immediate competitive pressures or upcoming busy seasons?

Why it matters: Influences prioritization and scope of initial efforts Expected answer: Upcoming holiday season with increased order volume expected Impact on approach: Might prioritize short-term improvements in delivery speed