Did it make sense for Zomato to do 10 minute instant delivery?
Google- Dianne Stinger
- (Customer) I would try to evaluate first from users perspective whether the need for the product exists or not
- Zomato user who orders cares about 3 factors
- Price
- Taste (which includes selection of restaurants, selection of items & food quality itself)
- Time to deliver.
- Time to deliver is one of the most important lever to play upon from customer’s needs angle and hence zomato must do it
- 10 minute instant delivery is not per se the priority need for customers and this behavior also doesn’t exist. By launching this zomato would be creating this ‘New need’ and setting customer expectations
- Zomato user who orders cares about 3 factors
- Competitor
- Zomato/Swiggy founder has announced that zomato must go ahead with this quoting that (If zomato doesn’t do it, then someother competitor will actually do it)
- Company
- This is not a new market for zomato. Majority of the tech capabilities are already built. Zomato must only optimize some of them on suggesting restuarants on what times must be kept available and how to go about delivery
- Feasibility of value prop
- Availability of delivery partners
- Types of food that can be given within 10 minutes
- Delivery speed by delivery partners (considering traffic etc.)
- Company goal (additional revenue)
- Existing users (divided into stages)
- Frequent users (orders one time every day)
- Users who order 2-3 times a week
- Users who order once a week
- Users who order twice a month
- Users who order once a month / more
- New users
- I would try to understand % of users who are dropping off the funnel after seeing that the delivery time is 30 mins or more. All these users ideally will be my converted users who will now order. I would measure how users are moving across stages with this new initiative
- Existing users (divided into stages)
From the above analysis, I think zomato going into instant delivery makes absolute sense.