What is the most important metric for UberEats and why
0 votes
1.1k views
in Metrics by (16 points) | 1.1k views

2 Answers

+2 votes
Context:

1. UberEats is division of Uber and it provides restaurant to door delivery service. As far as I know, customers can create an account with Uber Eats, find restaurants that offer Uber Eats based delivery, find items to order, view estimated time of arrival and price. If all looks good, then the food arrives within estimated time. UberEats charges the customer a delivery fee.

2. UberEats is available in cities in USA, targeted at people who want the convenience of having good food at home without driving, waiting for the table but they do not want to cook themselves.

Let us understand what success looks like UberEats as a business and see where it should focus on given its state. My assumption is that UberEats has lots of room to grow - the service is not that old, it is competing with a number of other players, the differentiation between the competitors is not that clear. Customers have no reason to be loyal to one delivery service v/s other except due to loyalty related discounts. In the ideal state, UberEats succeeds by having enough customers, ordering enough times in most urban areas so that economies of scale can be achieved and margin can be earned. Restaurant owners are also unlikely to partner with many different delivery services so it is important for UberEats to provide them a significant share of their business. So number of orders brought through UberEats is a very important part of these success.

Therefore, the progress of the business should be viewed in these terms:

1. Number of users using the service at least once a month - service is growing or not

2. Churn rate month over month - service is retaining viable percentage of users

3. Average Order Value per month / per user - service is gaining significant share of business

4. Average # of Orders / UU / month - users are forming a habit and are ordering more frequently with UberEats

Of all the metrics, we should focus on the ones that are most relevant to the stage of the business. UberEats is still not validated as a business. There are many unknowns in determing whether economies of scale can be achieved at city level to sustain the business viably. So at this stage the most important metric would be to keep customers as the most fundamental part of the business. If they are unable to retain customers at a viable rate, month over month, other KPIs would not matter. They reflect deeping engagement and revenue. However, the focus should be on being of value to as many people as possible regardless of the amount of money they are spending on the service.
See less
by (75 points)
0 votes

Let me start with what are different types of users. As it is a marketplace model so we have:1. Buyers2. Sellers3. Delivery PersonLet me break down the goals into Acquisition, Activation, Retention and Custome…See more

by (75 points)
Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
To avoid this verification in future, please log in or register.
Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
To avoid this verification in future, please log in or register.

Related questions

0 votes
3 answers
asked Jun 17, 2019 in Metrics by

anonymous

| 807 views
+4 votes
5 answers
asked Apr 21, 2018 in Metrics by bijan (717 points) | 3.1k views
0 votes
3 answers
+8 votes
4 answers