Setting Delivery Charges

Requirements Clarification & Assessment

1. Objective Definition:

   • Determine whether the primary goal is to optimize revenue, gain market share, or balance both.
   • Clarify if the delivery fee is solely for delivery or includes other service fees.

2. Market Context:

   • Identify the competitive landscape in the new city, including key players like UberEats, GrubHub, and local services.
   • Gather insights on the city's demographics, economic conditions, and consumer behavior.

3. Fee Structure Understanding:

   • Define the delivery fee structure: is it flat, distance-based, or dynamic based on time and demand?
   • Clarify the revenue split between DoorDash and dashers.

4. Consumer & Dasher Expectations:

   • Assess customer willingness to pay based on order value, delivery time, and urgency.
   • Understand dasher expectations regarding compensation and incentives.

5. Historical Data Analysis:

   • Review DoorDash's historical data from similar cities to identify successful pricing strategies.
   • Analyze competitor pricing models and customer feedback.

6. Regulatory Considerations:

   • Check for any local regulations affecting delivery pricing.

7. Operational Factors:

   • Consider logistical challenges like traffic, distance, and geographic layout of the city.