Product design question

Facebook wants to get into the food delivery business. How would you do it?

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What this question tests

Judgment on whether and how to enter a mature, low-margin market using existing platform assets rather than building from scratch.

How to approach it

  1. Question the premise first: food delivery is a low-margin, logistics-heavy business unlike the company's core software and ads model.
  2. Identify the company's real assets: massive local business Pages, Groups, and existing ad relationships with restaurants.
  3. Propose a lighter-weight option: an ordering and discovery layer integrated into existing local Pages and Marketplace, aggregating existing delivery providers rather than building an in-house fleet.
  4. Reject building in-house logistics, which requires a fleet and driver network the company has no experience operating and is capital-intensive.
  5. Propose monetization: ad placements for restaurants and a referral fee for orders routed to delivery partners.
  6. Define success as order volume routed through the platform and incremental ad revenue from local restaurant advertisers.

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