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Design a product that will disrupt the food delivery industry (e.g. Uber Eats).

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Step 1 - Scope the problem
The current food delivery industry has the following structure.
  1. A restaurant is onboarded and their menu is placed online
  2. A customer goes through the menu and places the order
  3. A delivery rider picks up the food from the restaurant and delivers it to the customer
 
When we say disrupt, what do we mean. Let's assume we mean that behaviour of a user changes so that they prefer our product to an incumbent product.
For the purposes of this question, I will assume that we are a startup looking to disrupt the space.
 
Step 2 - List down and finalize the user segment
We have 3 primary segments here.
  1. Restaurants
  2. Customers
  3. Riders
 
I'll choose customers for now, but let me know if you want me to pick something else.
 
If we look at customers a little closer, there are different types
  1. The health conscious, who have a diet plan or are required to have a health chart (because of medical issues)
  2. The explorers (who have a variety of cuisines)
  3. The junkies (the guys who love the junk food and the biryani)
 
For the purposes of this question, I would like to focus of the health conscious because it would give us a good entry point. Also because the number of health conscious people are growing exponentially every year. Because of the lifestyle we follow, more and more people also have health issues at a much younger age, so we would want a solution that will cater to this audience.
 
Step 3 - List down and prioritize pain points
 
Pain pointExisting solutionSeverity
Find restaurants that serve healthy food, along with the nutritional informationNutrition available but healthy food is a filter on most apps and it is often self certified. When you actually go to the menu, it says all salads where as some of the dips that they give are not healthyL (This is a big pain point where you have to go through a lot of restaurants to actually find a good healthy restaurant)
place an order every dayLog into to Uber Eats every day and order and go through the above hassle again before placing the orderM (This is a pain but can be prioritized for later because currently people can log in whenever they want and then place an order)
look at each item in the diet chart prepared by the dietitian and place the orderYou have to look at each dish and search for that or cross reference from a menuL (This is a big pain and actually takes up a lot of time)
once i receive the order, it doesn't look too healthyI can raise a complaint but it doesn't seem to go anywhereM (You can order from another place)
I have to manually add my food to the diet check appI have to open the calorie counter or diet checker app and then add the food that I ate and the calories that I took inM (We can currently do that do de-prioritizing to later)
Based on the above, I would like to work on the pain points related to finding restaurants that serve healthy food and actually placing an order on that.
 
Step 4 - List down and prioritize solutions
 
SolutionsReachImpactEffort
Upload your diet plan and get a list of curated restaurants that serve you. These can also be curated by certified nutritionists so that it gets more trust in the systemM (An increasingly large number of people will use this)L (This will solve the discovery problem to some level)M (You will need an OCR reader to understand the diet chart and then recommend restaurants that can give you similar food)
Set a schedule and have someone deliver at those particular timesL (A lot of people will use this so that they can order whenever they remember)L (This will solve the problem of forgetfulness)S (Just a timer feature will be required)
Have a tag which says "This is for a patient" which will help restaurants understand the situationM (Like the "I am sick" feature, some people may use this)S (I don't think this will be as impactful. In fact it might also be misused)S (Just a couple of changes on the UI of the customer side and the restaurant side apps)
Have an API that will directly push the nutrition information to the diet checker appM (An increasing number of people will use this)M (Will be medium as people still like to type in their calories because it gives them a good feeling about themselves)M (API documentation needs to be read)
Have a health check rating along with the normal rating for things like unhealthy food, which can be penalizedS (We will have to look at parameters that constitute this rating)S (People might ignore this)S (Just a filter)
Based on the above, we can start by creating an app that is focused on the health conscious and then move into the other categories. As part of the MVP, the user can upload a diet plan and get a list of curated restaurants that serve you. These can also be curated by certified nutritionists so that it gets more trust in the system. Then based on the schedule and the chosen dishes, we can get the food delivered to the customer at the said times. In fact, going forward we can also offer nutrition services where they can recommend a chart and we can place the order without the user's intervention.
 
Step 5 - Risks
The model that we build will have to be quite good and there can be no compromise on quality. If there is any issue, then it will lead to a huge backlash. Apart from that there is always the risk that an established incumbent like Uber Eats can just copy this as a feature.
 
Step 6 - Metrics
Since we are a startup, I would look closely at user acquisition metrics
  1. Unique DAUs/MAUs/WAUs
  2. No. of nutrition plans uploaded
  3. CAC
  4. Returning users (30 day, 60 day, 90 day)
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Here my attempt

Starting with clarification questions

 

What specific demographic or geographic market are we targeting with this product?--> Assuming India

 

What are the major pain points for customers, restaurants, and delivery drivers in the current food delivery industry?--> Existing algorithms are not able to predict right demand of the order which is blocker for supplies to supply the product

 

Are we looking to disrupt the industry through a new business model, technology innovation, or a combination of both?--> Assuming both, considering increasing customer engagement without compromising on cost and improving enhanced experience

 

What are the main strengths and weaknesses of current competitors (e.g., Uber Eats, DoorDash, Grubhub)?--your wish

 

Give a Product Name: Oyster

 

Vision:

To create a seamless, efficient, and eco-friendly food delivery platform that revolutionizes the way people order, prepare, and receive their meals.

 

Pain Points

For Customers:

  • Delay in delivery
  • Food Quality
  • Calories Measurement

For Restaurants

  • Platform Dependency
  • Brand Dilution
  • Data Ownership

For Delivery Platforms

  • Logistical Challenge
  • Operating Cost
  • Customer retention

For Drivers

  • Low Earnings
  • Unpredictable work conditions
  • Low benefits

 

 

Core Features and Innovations

 

 

 

1. Decentralized Kitchen Network (DKN)

   - Cloud Kitchens: Establish a network of strategically located cloud kitchens to reduce delivery times and enhance food quality.

   - Restaurant Partnerships: Partner with local restaurants to use these cloud kitchens during off-peak hours, optimizing kitchen utilization.

 

2. AI-Powered Order Management

   - Demand Forecasting: Use AI to predict demand patterns and optimize kitchen inventory and staffing.

   - Dynamic Routing: Implement AI-driven routing for delivery drivers to minimize delivery times and fuel consumption.

 

3. Hyperlocal Focus

   - Community Hubs: Create community hubs where multiple food vendors can operate, providing customers with a variety of choices within a small radius.

   - Local Ingredients: Partner with local farms and suppliers to ensure fresh ingredients and support local economies.

 

4. Enhanced User Experience

   - Personalized Recommendations: Utilize machine learning to offer personalized meal recommendations based on user preferences and order history.

   - Real-time Tracking: Provide real-time tracking of orders from preparation to delivery, ensuring transparency and reliability.

   - Loyalty Programs: Implement loyalty programs that reward frequent customers with discounts, exclusive offers, and early access to new features.

 

5. Integration with Smart Home Devices

   - Voice Ordering: Enable ordering through smart home devices like Google Home and Amazon Alexa for added convenience.

   - Smart Appliances: Partner with smart appliance manufacturers to create a seamless integration for meal preparation and delivery.

 

 

 Product Flow

 

1. User Interface:

   - Users access Oyster via a mobile app or web platform.

   - They receive personalized meal recommendations and can browse local restaurant and cloud kitchen offerings.

 

2. Order Placement:

   - Users place an order, choosing from various customization options (e.g., dietary preferences, portion sizes).

   - AI predicts the optimal kitchen and delivery route.

 

3. Preparation and Packaging:

   - The nearest cloud kitchen or partner restaurant prepares the meal using fresh, local ingredients.

   - Eco-friendly packaging is used to pack the meal.

 

4. Delivery:

   - An electric vehicle or bike courier receives the dynamic route and delivers the meal.

   - Users can track their order in real-time and opt for contactless delivery.

 

5. Post-Delivery:

   - Users provide feedback on their experience, which is used to improve future service.

   - Loyalty points are awarded, and any issues are promptly addressed by customer support.

 

 Summary

 

Oyster aims to disrupt the food delivery industry by addressing key pain points through a combination of innovative technology, sustainable practices, and a superior user experience. By leveraging AI, cloud kitchens, and eco-friendly solutions, Oystercan set new standards in efficiency, quality, and customer satisfaction in the food delivery market.

 

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