After my case study about the strategy of a PM working for Swiggy against the Uber eats launch, I was intrigued to explore how a PM at Uber eats would have faced the situation. The Indian Food Delivery market is overwhelmed with two big players, Zomato and Swiggy for 10-12 years and have their footprint across the country. What would have been the thought process? The vision? As always I tried to go into the details and enjoy the process. Hope you feel the same.
Clarifying Questions
- Is Uber planning to deliver groceries as well? No.
- How Uber eats is going to be linked with Uber? Still under the plan.
- I am assuming the same account on the Uber app will also work on Uber eats.
Competition Analysis
Advantages | Disadvantages | |
Swiggy | 1. Working in the same industry for a long time 2. Huge active userbase 3. Clean UX 4. Good brand image 5. Massive reach across the country in terms of the number of restaurants, cities, delivery agents, etc. | 1. Low funding compared to Uber and Zomato. 2. Food delivery and Ads are the only sources of revenue. 3. First-mover disadvantage |
Zomato | 1. Working in the same industry for a long time 2. Huge active userbase 3. Impressive UX 4. Good brand image 5. Massive reach across the country in terms of the number of restaurants, cities, delivery agents, etc. 6. Huge food and restaurant dine-in information | 1. After the massive media coverage during the IPO, the share price is on continuous fall. 2. Food delivery and Ads are the only sources of revenue. 3. Confused vision in the leadership. 4. First-mover disadvantage |
Uber Eats | 1. Great brand image 2. Impressive UX principle 3. Massive potential userbase 4. Massive funding 5. Have other income streams, not entirely dependent on this service for revenue 6. An educated audience who knows how to order food online. | 1. No experience in the industry 2. Zero reach |
User Segregation
- Uber cab service has a huge database in India. In 2019, Uber reported completing 14 million rides in a week. All Uber customers are going to be potential users of Uber eats.
- The city-based working professionals are the first adopters and frequent users of both Uber Cabs and the existing food-delivery giants. There is going to be an intersection of users.
Plan 1: Advertisement creates curiosity
- Uber has the largest share of car rentals in India. We can use the cars as the advertisement banners. It will cost tiny, and the visibility will be guaranteed.
Plan 2: Returning customers purchase a lot (Retaining customers is the game)
- Simplify the user flow to get the least number of steps to order something.
- Some monetary benefits for returning users.
- High focus on customer satisfaction like quickly resolving the issues and initiate refunds.
Plan 3: Average cost of conversion will define who lasts long.
- If we can integrate the food delievry and the cab services in the same app, we can skip the cost of advertising and installation rates will be also high.
Plan 4: A clearly communicated vision sets the expectations right and creates the brand value. Uber eats need to stand for some value.
Plan 5: Figure out the pastries instead of fighting for the cake
- Run surveys beyond tier 1 and tier 2 cities and see how much the smaller cities are prepared for online food delivery.
- Explore Uber car rental and state-to-state commutation. Additionally, there is a famous culture of long driving with friends called ‘Gedi’ among the youngsters in the Northern parts of India. Bike rides and hikes are very common in the southern parts of India. We can tie-up with the famous ‘Dhaba’s and food joints along the highway and provide take away services. There are three benefits here. One the cost of the operation will be less because there is no delivery involved. Two, huge discounts can be arranged considering the less operational cost. Three, restaurants will be eager to put their name on the suggestion/ feed.
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