Case Study Deliveroo - Marc Bergeot

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CASE STUDY

Why do you think Site A has performed so much better than site B and
what would you look to do to improve Site B's performance?

Key goals: delivering the best customer experience & fast growth
MARC BERGEOT
AGENDA
SECTION 1: THE OVERPERFORMANCE OF SITE A COMPARED TO SITE B
The shorter estimated delivery time
SECTION 2: AREAS OF IMPROVEMENT FOR SITE B
Internal factors
External factors
03
Section 1
Assumption: Since both sites are serving the same menu, we will assume that the main driver for the customers to submit an order would be the estimated delivery
time. The shorter, the better.
Site A performed much better than Site B in terms of the number of orders delivered (+48%) because of the shorter
estimated delivery time which is lower than site B (-17%) and of the average of all Editions restaurants (-15%). The reason
for this can be attributed to:
Faster average meal prep time (-15%) as the kitchen staff is more efficient and/or that there are more employees. This
could also explain the lower relative number of rejected orders, assuming rejections are due to capacity constraints (cf.
Appendix 1).
Faster driver experience time (-18%) compared to site B which hence results in a faster estimated delivery time and
more orders delivered.
Section 1
Thanks to a better estimated delivery time, Site A managed to
catch up with Site B in terms of pageviews and achieved a better
conversion rate in terms of orders per pageviews (+58%).
Although we looked into other metrics, we do not believe that they have a significant impact on the performance of the sites
as they are not affecting the estimated delivery time which we consider as the main driver of submitted orders:
% of late orders (7% vs 6%)
Average Order Delay (6,7min vs 6,2min)
Order spikes between weekends and weekdays (131% vs 122%) (cf. Appendix 3)
Section 2
As the main action point for improving Site B's performance, we can look into internal and external factors:
Internal factors External factors
Order is a function of the number of pageviews and
conversion into an order
Optimization of the head count
If they are too few employees at Site B, they should
consider increasing the kitchen staff. To increase the number of pageviews, we can modify the
Possibility of transferring employees from Site A algorithm to push forward Site B instead of Site A.
to Site B.
If they are too many and it negatively impacts
productivity, we can look into downsizing the staff.
To improve the conversion rate into an order, we can
offer discounts, coupons and reward points to customers
ordering from Site B which ultimately will improve its
performance.
Appliances
Assuming that the prep time is higher in Site B since
they do not have (i) the same level of appliances
and/or (ii) the kitchen is smaller, they should look Potential risks include the decreasing profit margins and the
into increasing the size of the kitchen and/or get a cannibalisation of sales from Site A.
better cooking surface.
Thank you!
Appendix
APPENDIX 1: RELEVANT KPIS
APPENDIX 2: NUMBER OF ORDERS PER WEEK & PROGRESS WOW
APPENDIX 3: COMPARISON OF ORDERS DURING THE WEEK AND WEEKEND

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