Why has the average order value for Talabat's restaurant deliveries dropped by 15% in the past month?

Introduction

The recent 15% drop in average order value for Talabat's restaurant deliveries is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the business.

Step 1

Clarifying Questions (3 minutes)

• Considering the timing, I'm wondering if there have been any recent changes to the app or website. Have we launched any new features or UI changes in the past month?

Why it matters: Recent changes could directly impact user behavior and order values. Expected answer: Yes, we updated the recommendation algorithm. Impact on approach: If confirmed, we'd focus on analyzing the new algorithm's performance.

• Looking at the metric definition, I'm curious about how we calculate average order value. Has there been any change in how we measure or report this metric recently?

Why it matters: Ensures we're comparing apples to apples and not dealing with a data anomaly. Expected answer: No changes in measurement or reporting. Impact on approach: If unchanged, we'd focus on external factors and user behavior.

• Considering market dynamics, have we seen any significant shifts in competitor pricing or promotions during this period?

Why it matters: Competitive pressures could be driving users to adjust their ordering habits. Expected answer: Some competitors have increased discounts. Impact on approach: We'd need to analyze our pricing strategy and value proposition.

• Thinking about user segments, are we seeing this drop across all customer types, or is it more pronounced in specific groups?

Why it matters: Helps identify if this is a universal issue or specific to certain user segments. Expected answer: The drop is more significant among occasional users. Impact on approach: We'd focus on retention strategies for occasional users and analyze their behavior patterns.