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

Introduction

The trade-off between expanding Wolt's restaurant selection and improving delivery speed for existing partners is a critical decision that will shape our product strategy and market position. This scenario touches on key aspects of our business model, user experience, and operational efficiency. I'll analyze this trade-off by examining its impact on various 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 Wolt is facing increased competition in the food delivery market. Could you provide more context on our current market share and growth trajectory?

Why it matters: Helps determine if we need to focus on acquisition or retention Expected answer: Moderate market share with slowing growth Impact on approach: Would lean towards improving existing partner experience

• Business Context: Based on our revenue model, I'm thinking delivery speed might directly impact our take rate. Can you clarify how our pricing structure is affected by delivery times?

Why it matters: Influences the financial impact of speed improvements Expected answer: Faster deliveries allow for higher fees or improved margins Impact on approach: Would prioritize speed improvements if strongly tied to revenue

• User Impact: Considering user behavior, I'm curious about the primary pain points in our current user journey. Are users more frustrated by limited restaurant options or long wait times?

Why it matters: Helps identify which improvement would have a greater impact on user satisfaction Expected answer: Long wait times are a significant source of complaints Impact on approach: Would lean towards improving delivery speed if this is a major user concern

• Technical Feasibility: Looking at our current infrastructure, I'm wondering about the technical challenges in scaling our restaurant onboarding process versus optimizing delivery routes. Which presents a more significant technical hurdle?

Why it matters: Influences the feasibility and timeline of each option Expected answer: Restaurant onboarding is more complex due to integration requirements Impact on approach: Might favor delivery speed improvements if they're easier to implement

• Resource Allocation: Considering our current team structure, I'm curious about the resource requirements for each option. Do we have more capacity in our partner management team or our logistics optimization team?

Why it matters: Helps determine which option aligns better with our current capabilities Expected answer: Stronger capabilities in logistics optimization Impact on approach: Would lean towards improving delivery speed if we have the right team in place