How can Just Eat Takeaway balance user convenience with commission rates for restaurants?

Introduction

Balancing user convenience with commission rates for restaurants is a critical trade-off for Just Eat Takeaway. This scenario involves managing the delicate ecosystem of a food delivery platform, where we must consider the needs of customers, restaurants, and our own business sustainability. I'll approach this by analyzing the key stakeholders, metrics, and potential experiments to find an optimal balance.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking user acquisition might be a key priority. Could you share our current user growth rate and how it compares to our competitors?

Why it matters: Helps determine if we should prioritize user convenience over commission rates. Expected answer: Growth rate is slowing compared to competitors. Impact on approach: Would focus on user-centric solutions to boost acquisition and retention.

• Considering our revenue model, I assume commission rates significantly impact our bottom line. What percentage of our revenue comes from restaurant commissions versus other sources like advertising or subscription fees?

Why it matters: Helps understand the financial impact of adjusting commission rates. Expected answer: Majority of revenue (70-80%) comes from commissions. Impact on approach: Would need to carefully balance any commission reductions with other revenue streams.

• Looking at user behavior, I'm curious about order frequency and average order value. Have we seen any significant changes in these metrics recently?

Why it matters: Indicates whether user convenience or pricing is currently a pain point. Expected answer: Order frequency stable, but average order value declining. Impact on approach: Might suggest focusing on value perception rather than pure convenience.

• From a technical perspective, I'm wondering about our platform's flexibility. How easily can we implement variable commission rates or user-specific promotions?

Why it matters: Determines the feasibility of nuanced solutions. Expected answer: Platform allows for some flexibility, but major changes require significant development time. Impact on approach: Would favor solutions that can be implemented within current technical constraints.

• Regarding our restaurant partners, what's the current sentiment and churn rate? Are we seeing pushback on commission rates?

Why it matters: Indicates the urgency of addressing restaurant concerns. Expected answer: Increasing dissatisfaction and churn among small to medium-sized restaurants. Impact on approach: Would prioritize solutions that address restaurant pain points while maintaining user convenience.