How might Delivery Hero redesign the in-app tipping system to benefit both customers and delivery drivers?

Introduction

To redesign Delivery Hero's in-app tipping system for the benefit of both customers and delivery drivers, we need to carefully consider the ecosystem, user behaviors, and potential impacts. I'll outline a strategic approach to tackle this challenge, focusing on user needs, pain points, and innovative solutions.

Step 1

Clarifying Questions

• Looking at the product context, I'm thinking about the current tipping behavior. Could you share some data on the current tipping rates and average tip amounts?

Why it matters: This information will help us understand the baseline and identify improvement opportunities. Expected answer: Low tipping rates (e.g., 30% of orders) with an average tip of $2. Impact on approach: If tipping rates are low, we'd focus on increasing participation; if average tips are low, we'd emphasize increasing amounts.

• Considering user behavior, I'm curious about the timing of tips. Are customers primarily tipping at the time of order, after delivery, or both?

Why it matters: This affects how we design the tipping flow and potential incentives. Expected answer: Most tips occur at the time of order, with a small percentage after delivery. Impact on approach: If most tips are pre-delivery, we might explore ways to encourage post-delivery tipping based on service quality.

• Thinking about company alignment, what are the key metrics Delivery Hero is looking to improve with this redesign?

Why it matters: Ensures our solution aligns with broader company goals. Expected answer: Increase in driver satisfaction and retention, higher customer satisfaction scores. Impact on approach: Would focus on solutions that directly impact these metrics, potentially exploring gamification or recognition systems.

• Considering external factors, how does Delivery Hero's tipping system compare to major competitors in the market?

Why it matters: Helps identify potential differentiators or industry best practices. Expected answer: Similar to most competitors, with standard percentage-based options. Impact on approach: Would look for innovative features to set Delivery Hero apart, possibly incorporating elements from other service industries.