What are the different problems that Instacart would see in their delivery experience? How would you prioritize the problems?

Introduction

Instacart's delivery experience is crucial to their business model and customer satisfaction. I'll analyze the various problems they might encounter and propose a prioritization framework. My approach will involve identifying key issues, assessing their impact on different stakeholders, and considering both short-term fixes and long-term strategic solutions.

Step 1

Clarifying Questions (3 minutes)

• Business context: I'm thinking Instacart's revenue model is primarily based on delivery fees and markups. Could you confirm if there are any other significant revenue streams we should consider?

Why it matters: Helps prioritize problems affecting core revenue sources Expected answer: Delivery fees and markups are primary, with some additional income from premium memberships Impact on approach: Would focus on issues directly impacting order volume and customer retention

• User segments: I assume Instacart serves various user groups, from busy professionals to elderly customers. Can you provide insights into the most valuable or fastest-growing segments?

Why it matters: Different user groups may experience distinct problems Expected answer: Young professionals and families are key growth segments Impact on approach: Would tailor solutions to address pain points of high-value segments

• Technical infrastructure: Given the complexity of real-time order tracking and routing, I'm curious about the current state of Instacart's technical stack. Are there any known limitations or ongoing upgrades?

Why it matters: Technical constraints could be root causes of delivery issues Expected answer: Some legacy systems, with ongoing modernization efforts Impact on approach: Would consider both quick fixes and long-term technical solutions

• Competitive landscape: I'm aware of increasing competition in the grocery delivery space. How is Instacart positioned relative to competitors in terms of delivery experience?

Why it matters: Helps gauge the urgency of addressing delivery problems Expected answer: Strong market position, but facing pressure from new entrants Impact on approach: Would prioritize issues that differentiate Instacart from competitors

• Recent changes: Have there been any significant changes to the delivery process or business model in the past 6-12 months?

Why it matters: Recent changes could be sources of new problems or solutions Expected answer: Expansion into new markets and addition of non-grocery items Impact on approach: Would consider how recent changes might have introduced new challenges