Should Rappi prioritize expanding its restaurant selection or improving delivery speed?

Introduction

The trade-off between expanding Rappi's restaurant selection and improving delivery speed is a critical decision that could significantly impact our growth trajectory and user satisfaction. This scenario touches on the core value proposition of our food delivery platform and requires careful consideration of both short-term gains and long-term strategic positioning. I'll approach this analysis by examining the current market context, evaluating potential impacts on key stakeholders, and designing experiments to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share how our restaurant selection and delivery speed compare to our main competitors?

Why it matters: Helps understand our competitive advantage or areas for improvement Expected answer: We're behind in restaurant selection but competitive in speed Impact on approach: Would lean towards expanding selection if we're significantly behind

• Business Context: Based on our revenue model, I assume we earn a percentage of each order value. Is this correct, and are there any other significant revenue streams we should consider?

Why it matters: Informs which strategy might have a more direct impact on revenue Expected answer: Correct, with additional revenue from advertising and premium partnerships Impact on approach: Would consider how each option affects order values and frequency

• User Impact: I'm curious about our user segments. Can you tell me which segment (e.g., frequent users, new users) is growing fastest and which has the highest lifetime value?

Why it matters: Helps prioritize which user needs to focus on Expected answer: New users growing fastest, but frequent users have highest LTV Impact on approach: Would tailor strategy to balance acquisition and retention

• Technical Feasibility: Regarding improving delivery speed, are we considering algorithmic optimizations, increasing our courier network, or both?

Why it matters: Affects the complexity and timeline of implementing speed improvements Expected answer: Both options are on the table, with algorithmic changes being easier to implement Impact on approach: Would influence the timeline and resource allocation for speed improvements

• Resource Allocation: Can you give me an idea of our current team capacity and any budget constraints for either expanding restaurant selection or improving delivery infrastructure?

Why it matters: Determines the feasibility and scale of potential initiatives Expected answer: Limited team capacity but flexible budget for high-impact projects Impact on approach: Would focus on high-leverage initiatives that can be executed with current team