Should Zoox prioritize expanding service areas or improving reliability in existing zones?

Introduction

The trade-off between expanding Zoox's service areas or improving reliability in existing zones is a critical decision that will shape our growth trajectory and user experience. This scenario touches on the core challenges of scaling an autonomous vehicle service while maintaining quality. I'll analyze this trade-off by examining our product understanding, metrics, experimentation, and decision-making framework.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Zoox has launched in a few initial markets. Could you confirm how many cities we're currently operating in and their characteristics (e.g., population density, weather conditions)?

Why it matters: Helps understand the current scale and diversity of our operations Expected answer: 2-3 cities with varying characteristics Impact on approach: Would influence the complexity of improving reliability across different environments

• Business Context: Based on our current stage, I'm thinking revenue growth might be a key priority. How are we balancing growth targets with profitability goals in the next 12-18 months?

Why it matters: Aligns decision with overall business strategy Expected answer: Focus on growth and market share, with a path to profitability in 2-3 years Impact on approach: Would lean towards expansion if growth is the primary focus

• User Impact: I'm curious about our user retention rates in existing zones. Can you share any insights on user satisfaction and repeat usage patterns?

Why it matters: Indicates whether reliability is a critical issue affecting user retention Expected answer: Moderate retention with room for improvement Impact on approach: High churn would prioritize reliability improvements

• Technical: Considering the complexity of autonomous systems, I'm wondering about our current reliability metrics. What's our average uptime or successful trip completion rate?

Why it matters: Establishes a baseline for reliability improvements Expected answer: 85-90% successful trip completion rate Impact on approach: Lower rates would emphasize the need for reliability focus

• Resources: Given the capital-intensive nature of our business, I'm curious about our current burn rate and funding runway. How does this impact our ability to invest in expansion vs. technology improvements?

Why it matters: Determines the feasibility of pursuing both strategies simultaneously Expected answer: 18-24 months of runway with current burn rate Impact on approach: Limited runway might force a more focused strategy