Strategy question

Dunzo wants to enter T3/T4 cities in India. If you are the product manager driving this expansion, how would you go about it?

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What this question tests

Market-expansion strategy accounting for infrastructure and demand differences in smaller cities.

Clarify current model strengths, metro-focused hyperlocal delivery, and what changes in smaller cities: lower density, different infrastructure, more price sensitivity.
Propose a phased approach: start with a few representative smaller cities as a pilot.
Adapt the delivery fleet model, e.g. more reliance on local partners, to lower order density.
Adjust the product for local needs, e.g. cash-on-delivery support and simpler app UX for lower digital literacy.
Prioritize proving unit economics in the pilot cities before a broad rollout.
Define success as orders per delivery partner per hour and contribution margin per order.

Names the concrete differences in smaller cities, density, infrastructure, payment habits, rather than treating expansion as a copy-paste of the metro model.
Proposes a phased pilot-first approach instead of an immediate broad rollout, managing risk.
Addresses unit economics explicitly, since lower order density directly threatens delivery cost efficiency.
Picks operational metrics suited to validating the model before scaling.

Assuming the same product and delivery model that works in metros will work unchanged in smaller cities.
Ignoring unit economics and delivery cost efficiency at lower order density.

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