For a food delivery app, what goals would you set for the next 6 months?

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For a food delivery app, what goals would you set for the next 6 months?

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Shravan Shankar · Answer 1 · 2021-11-17T20:45:56+0000

Structure:
Clarifying Questions
Users and user journey
Metrics
North Star Metrics
Supplementary Metrics
Summary

Clarifying Questions:
1. What stage of development is the product in? - MVP
2. Food Delivery? - Is that from restaurants only or grocery and alcohol as well? - focus on restaurants
3. Is this US or WW? - US only
4. Any particular market to focus on or is it Pan US? - We have launched only in NY, SF and Chicago
5. Is this only App? or Web as well? - Both
6. What is the macro goal of the product? - Market Share/disruption?
7. Who are the key competitors? - Assume Uber eats and Doordash
8. Are we focussed on end-end supply chain (order through app and get Uber Eats delivery) or just Last Mile Delivery (order on resturant website/app and Uber Eats delivery)? - End to End

Users:
Supply Side - Restaurants
Demand Side - End Customers
App Side - DElivery drivers and App in itself
Given that the largest group here is the Demand Side, let's focus on their user journey

User Journey:
Open App-->Find Restaurant of choice-->add desired food to cart-->order and tip-->get delivery estimates-->received food-->rate and tip

Metrics:
1. Total number of orders placed (by day, week, region etc)
2. Daily Active Users (DAU)/WAU/MAU
3. Total revenue generated from completed orders ( (by day, week, region etc)
4. Total # of new customers (acquisitions) - (by day, week, region etc
5. Orders delivered as a % of total placed (by day, week, region etc)
6. Average time to complete order
7. Average wait time at restaurant for delivery associates
8. Accuracy of estimates provided to customers (calculated in terms of # orders closed within estimate as a % of total orders)
9. Total # of new customers (acquisitions) - (by day, week, region etc)
10. Total Cost and Cost per Order (CPO)
11. Average time between 1st and 2nd order for customers.

The North Star for me to understand how we are doing is - Metrics 1,2,3 and 4.

Now, not all metrics lend themselves to be indicators of good performance. Even if the above metrics are doing well and trending in the right direction, we want to keep an eye out for the following metrics to indicate optimizations and changes that would be needed.
1. # cancelled orders (by reason, day, etc.)
2. Average time between order and cancellation (by order, over time etc)
3. #Churned customer (30/60/90 days)

From the App Side:
1. App health (uptime vs downtime)
2. errors reported for app
3. # outages that lead to customer dissatisfaction

Summary:
In summary, we are looking to grow our market for the food delivery app by looking at the demand side and understanding their user journey. Once we know the potential areas where we can encounter issues, we want to measure those to ensure that we are trending in the right direction. We believe that our North Star metrics should be DAU/WAU/MAU while also focussing on the total order volume, revenue and acquisitions over time. At the same time, we also want to keep our eyes open to supplementary metrics such as cancelled orders and churned customers so as to keep engagement at competitive levels.

Aslan · Answer 2 · 2022-02-23T06:48:32+0000

Clarify:

This is the food delivery app where you can order food from the close restaurants etc.

Is this food delivery app used in the US? Yes

Is this a mobile or web app? Both.

Assuming that we are launching the app from the scratch.

Is this going to be the part of Lyft/Uber or not? No this is a new app

I am assuming that 6 months after lauch will be too early to talk about the goals/ metrics of a mature product. since this is a new food delivery app, I think we need to focus on the user acquisition(demand) and driver acquisition.

GoaL: launch a food delivery app in order to increase the user acquisition for the next 6 months

Food delivery app is going to be a marketplace where the restaurants will post their food and the users are going to order.

Pre launch : marketing, PR, partnership with hired drivers/couriers, pricing of the food and the delivery accordingy, customer service readiness

Launch: marketing, PR, promotions and campaigns , set the metrics for the growth and monetization

After Launch: analyzing the metrics with the stakeholders to see what went well, what went wrong.

It looks like we launched this product and we are setting goals for the next 6 months.

Lets say its been around 1 month and learning effect has passed and we saw that we need to increase the customer base and supply:

Pain points:

- ETA is too high for the delivery. (still there might be imbalance between demand and supply)

- Limited #of restaurants joined the app (still there might be imbalance between demand and supply)

Solution:

- If the order passes ex 45 mins, pay x% of the order back

Launch a campaign for the restaurants by cutting the commission for a limited time so that we can keep them in the ecosystem

- Check the comments of the restaurants to see if there were any customer complaints regarding the food and provide feedback to the restaurants.

- Launch the referral system for both drivers to have a healthy the supply-demand base ( since creating the supply is harder than creating the demand)

- Launch a subscription model to increase the retention rate

Prioritization/ MVP for the next 6 months timeframe:

-	Impact	- Effort
- Time limit	- H	- L
- Campaign	- H	- L
- Comment check	- L	- L
- Referral system for drivers	- H	- M
- Subs model	- H	- H
-	-	-

Features in the next 6 months after the launch of MVP:

Time limit, campaign launch, referral system can be considered. Since we want to have a healthy supply-demand base.

Metrics:

#of drivers signed up ( need to know the supply base)

#of users signed up (need to know the user base)

#orders for the money back ( late orders to see the imbalance)

#restaurants signed up ( to see if the # restaurants enough to the area;s demand)

How many new drivers joined to the system in 6 months

Any increase/decrease in DAU, WAU, MAU ( this is not the acquisition part we primarily consider, but always nice to know about the user base)

Avg revenue per order

App metrics:

Any app crash?

Errors reported?

Outages that caused churn?

Aslan · Answer 3 · 2022-02-23T06:45:01+0000