Data Interview Question

Targeting Ideal Merchants for Expansion

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Requirements Clarification & Assessment

  1. Objective:

    • Identify which merchants DoorDash should prioritize for acquisition in a new market.

  2. Key Metrics:

    • Potential revenue generation.
    • Customer acquisition and retention potential.
    • Order volume and frequency.
    • Merchant popularity and customer satisfaction.

  3. Data Requirements:

    • Historical data on merchant performance in existing markets.
    • Demographic and economic data of the new market.
    • Merchant characteristics such as type, size, menu diversity, and customer reviews.
    • Competitive landscape data (e.g., merchants on competitor platforms like Grubhub, UberEats).

  4. Constraints:

    • Limited historical data for new market conditions.
    • Variability in merchant performance across different geographies.
    • Potential lack of direct merchant data prior to acquisition.