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Product Management Trade-off Question: Ola weighing ride-hailing focus against food delivery expansion

Asked at Ola

15 mins

Is it better for Ola to focus on ride-hailing or diversify into adjacent services like food delivery?

Product Trade-Off Hard Member-only
Strategic Thinking Market Analysis Resource Prioritization Transportation Food Delivery On-Demand Services
Product Strategy Food Delivery Ride-Sharing Market Expansion Resource Allocation

Introduction

The key trade-off we're examining is whether Ola should focus on its core ride-hailing business or diversify into adjacent services like food delivery. This decision will significantly impact Ola's strategic direction, resource allocation, and competitive positioning in the rapidly evolving mobility and on-demand services market.

In my analysis, I'll evaluate the pros and cons of each option, considering factors such as market dynamics, user needs, operational capabilities, and long-term growth potential. I'll then propose a structured approach to make an informed decision, including key metrics to track and experiments to run.

Analysis Approach

I'd like to start by asking a few clarifying questions to ensure we're aligned on the context and objectives of this trade-off decision. This will help me tailor my analysis to Ola's specific situation and goals.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm assuming Ola is facing increased competition in the ride-hailing space. Could you provide more details on Ola's current market position and the competitive landscape?

Why it matters: Helps assess the urgency of diversification Expected answer: Strong in ride-hailing but facing pressure from global players Impact on approach: Would influence the balance between strengthening core business and exploring new verticals

  • Business Context: Based on industry trends, I'm thinking food delivery might be seen as a high-growth opportunity. How does Ola currently view the potential of the food delivery market compared to ride-hailing?

Why it matters: Aligns strategy with market opportunities Expected answer: Food delivery seen as promising but uncertain Impact on approach: Would affect resource allocation and risk assessment

  • User Impact: Considering Ola's existing user base, I'm curious about the overlap between ride-hailing and food delivery customers. Do we have data on what percentage of our users also use food delivery services regularly?

Why it matters: Identifies potential for cross-selling and user retention Expected answer: Significant overlap, especially in urban areas Impact on approach: Would influence marketing strategy and product integration decisions

  • Technical: Given Ola's current technology stack, I'm wondering about the feasibility of adapting it for food delivery. How much of our existing infrastructure could be leveraged for this new service?

Why it matters: Assesses technical challenges and potential synergies Expected answer: Core routing and dispatch systems adaptable, but new features needed Impact on approach: Would affect timeline and resource requirements for diversification

  • Resource: Thinking about Ola's current team structure, I'm curious about our capacity to take on a new vertical. Do we have the necessary expertise in-house for food delivery, or would we need to hire significantly?

Why it matters: Determines feasibility and speed of diversification Expected answer: Some expertise, but would require additional hiring Impact on approach: Would impact budget allocation and implementation timeline

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