New Delivery Driver Compensation Model

Requirements Clarification & Assessment

1. Objective Clarification:

   • Primary Goal: Determine if the new compensation model can enhance driver motivation and retention while maintaining or improving company profitability.
   • Secondary Goals: Assess the impact on customer satisfaction and service quality.

2. Stakeholders Impacted:

   • Company: Profit margins, operational costs, and brand reputation.
   • Drivers (Dashers): Earnings, motivation, and retention rates.
   • Customers: Delivery speed, order accuracy, and overall satisfaction.

3. Metric Definitions:

   • For Drivers:
     • Average earnings per delivery.
     • Number of deliveries per driver.
     • Retention rate and new driver sign-ups.
   • For Company:
     • Total compensation costs.
     • Profitability per delivery.
     • Revenue growth.
   • For Customers:
     • Delivery time.
     • Satisfaction scores.

4. Assumptions:

   • Average order value is less than $400.
   • New payment model aims to incentivize more frequent deliveries.
   • The $50 bonus is attractive enough to motivate drivers.

5. Constraints:

   • Budget limitations for pilot testing.
   • Variability in order values across different locations.