Strategy question
For a food delivery app, what goals would you set for the next 6 months?
- Meta
- Strategy
- Hard
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What this question tests
Ability to set a coherent set of strategic goals for a defined time horizon, balancing growth, unit economics, and retention.
How to approach it
- Clarify the app's current stage, assuming an established player improving profitability and retention rather than pure growth in the near term.
- Assess the market: food delivery is mature and competitive with thin margins, so goals should focus on efficiency and loyalty, not just order volume.
- Set a primary goal: improve contribution margin per order by reducing delivery cost and increasing average order value.
- Set a secondary goal: improve retention among existing users with reliable delivery times and loyalty perks, cheaper than acquiring new users.
- List options: batch deliveries to cut cost per order, or a subscription plan with free delivery to lock in frequent users.
- Recommend prioritizing the subscription and loyalty lever first, since it directly improves retention and predictable revenue within 6 months.
What a strong answer includes
- Grounds the goals in the food delivery industry's real constraint, thin unit economics, rather than generic growth language.
- Proposes concrete, connected goals, margin improvement and retention, rather than a disconnected metric wishlist.
- Weighs two realistic strategic options and picks one with reasoning tied to the 6-month window.
- Ties the recommendation to a dual outcome, retention and revenue predictability, showing strategic coherence.
Common mistakes
- Setting goals that are purely growth-focused, ignoring the industry's margin pressure.
- Listing unconnected metrics instead of a coherent strategic narrative.
- Not giving a clear recommendation among the options considered.
Likely follow-up questions
- How would you measure success of the subscription plan specifically?
- What would you do if delivery cost reduction hurt speed and hurt retention instead?
- How would this strategy differ in a market with a dominant low-cost competitor?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop