Why has Just Eat's restaurant onboarding rate dropped 30% in the last quarter?

Introduction

The recent 30% drop in Just Eat's restaurant onboarding rate is a critical issue that demands immediate attention. This decline could significantly impact the platform's growth, user satisfaction, and overall market position. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this drop coincided with any particular season or holiday period?

Why it matters: Seasonal fluctuations could explain temporary changes in onboarding rates. Expected answer: No significant seasonal correlation. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd look deeper into internal factors.

• Considering potential changes in the onboarding process, have there been any recent updates to the restaurant sign-up flow or requirements?

Why it matters: Process changes could directly impact onboarding rates. Expected answer: Minor updates to the verification process were implemented. Impact on approach: If changes occurred, we'd scrutinize their impact; if not, we'd explore other internal factors.

• Thinking about market dynamics, has there been any significant shift in competitor activities or market conditions?

Why it matters: External market forces could influence restaurant decisions to join the platform. Expected answer: A new competitor entered the market with aggressive onboarding incentives. Impact on approach: If market shifts occurred, we'd focus on competitive positioning; if not, we'd prioritize internal improvements.

• Considering data integrity, has there been any change in how we measure or define the onboarding rate?

Why it matters: Ensures we're comparing apples to apples and not facing a data anomaly. Expected answer: No changes in measurement or definition. Impact on approach: If changes occurred, we'd recalibrate our analysis; if not, we'd proceed with the current metrics.

• Thinking about restaurant segments, has this drop been consistent across all types of restaurants, or is it more pronounced in certain categories?

Why it matters: Helps identify if the issue is universal or segment-specific. Expected answer: The drop is more significant among small, independent restaurants. Impact on approach: If segment-specific, we'd tailor solutions to that segment; if universal, we'd look for broader systemic issues.